The STUC

Speaking as the STUC published a discussion paper ‘’Supply Side Scotland?’ Grahame Smith, STUC General Secretary said: “The STUC believes that Scotland’s political parties desperately need to raise their game on taxation. “A nadir was reached when the First Minister confessed to the Wall Street Journal that he is ‘a long-time advocate of supply side economics’. But the First Minister’s assertion is, unfortunately, symptomatic of a wider malaise afflicting all Scotland’s major political parties the principal manifestations of which are: A stubborn refusal to face up to key challenges on taxation i.e. a mature consideration of the level of taxation required to support the needs of citizens in a 21st century western economy – and how responsibility for raising this taxation should be shared amongst individuals and businesses; A widespread investment in the supply side idea – the proposition that cutting taxes, especially business taxes, will necessarily yield high returns for the Scottish economy; and, An irresponsible disregard for evidence based policy-making. “This paper, published during STUC Congress 2008, comes at an opportune time as debate continues around the UK Government’s decision to abolish the 10p tax rate, the Scottish Government’s plans for a local income tax and persistent calls from employer representative organisations to reduce their taxation responsibilities even further’. Notes 1 Supply Side Scotland? is the third in a series of discussion papers on the Scottish economy published by the STUC. It follows Challenging the Red Tape Myths published in December 2006 and The Future of Manufacturing Industry in Scotland published in April 2007. 2 Supply Side Scotland? examines the origins and veracity of Supply Side Economics and its relevance to Scotland; wider issues around the taxation of business; the taxation ‘burden’ on Scottish businesses; the political consensus in favour of tax-cuts for business and issues around the local income tax. It then makes a number of recommendations for action. ENDS For further information contact Stephen Boyd 0141 337 8100

Supply Side Scotland? in pdf format