The following Media Release was issued by the Scottish Land Revenue Group today

The £60bn Route to Scotland’s Economic Independence

Devolution of new financial powers to Holyrood could lay the foundations for an independent Scottish economy within the UK, according to a new Glasgow-based think-tank.

The Scottish Land Revenue Group (SLRG) estimates that Scotland’s government could expand the economy by £59.8bn over the 5 years up to the Holyrood election in 2021 if, as expected, it is given control of the Income Tax.

The forecast assumes that the government would use its powers to rebalance the tax system. The process would begin by zero-rating the Income Tax, scrapping the existing property taxes and replacing the revenue with a new charge on location rents.

The Income Tax now yields £11.5 bn. Studies commissioned by the SLRG show that replacing Income Tax with one charge on land rents would boost employment by 55,000 jobs.

According to Dr Roger Sandilands, emeritus professor of economics at Strathclyde University: “This is not a revenue-neutral policy. By switching the way revenue is raised, the losses caused by the Income Tax are turned into financial gains.

“This is an anti-austerity strategy,” Dr Sandilands stresses. “The tax shift means that government does not have to cut public services. Tax cuts would be self-funding. Under current policies, when taxes are cut, the money does not stay in people’s pockets. Ultimately, it flows into the land market. People have to pay more to buy or rent homes or commercial properties. By collecting that revenue in the form of location rents, government can maintain current spending on services like the NHS.

“So why switch the way revenue is raised? There are two benefits. First, without reducing people’s take-home pay, it becomes cheaper to hire people. Scotland would become a magnet for investors wanting to create enterprises within the UK. This reverses the drift to London and the South-east.

“Secondly, the so-called ‘deadweight losses’ caused by bad taxes would be reduced. There is a net gain to the economy. We estimate that, if Holyrood exercised its power to zero-rate the income tax, the Scottish economy would expand faster than the UK average. GDP would increase in a virtuous cycle of growth. The boom/bust property cycle would be damped down in Scotland, and our economy would leave the rest of the UK behind.”

These themes will be explored at an SLRG conference at The National Piping Centre in Glasgow on February 25. Speakers will discuss how communities can be rebuilt, trust restored in the institutions of governance, and investment in the economy can be increased without incurring government debt.

Conference Programme

Contact SLRG to book a place

Rewards from Eliminating Deadweight Taxes: The hidden potential of Scotland’s land and natural resource rents
by Professor Roger Sandilands.

21. January 2015 · Comments Off on Land Reform Briefing · Categories: Announcements, Land Reform, Politics

A briefing by Andy Wightman on the Scottish Government’s proposals for a Land Reform Bill has been published. It is available from the Land Reform 2014-16 page on this website (menu item Hot Topics/Land Reform 2014-16). Further briefings and blogs on this subject will be published and collated on that page.

The consultation closes on 10 February 2015. Please make your views known to the Scottish Government.

SInce 2010, I have been ( like a couple of my self-employed writer/activist colleagues George Monbiot and Alastair McIntosh) making an annual declaration of interests, income and tax. Previous declarations can be found at the foot of the About page.

Commentators, campaigners and advocacy groups should be open about their interests and income (this story from earlier in 2014 is a good example of why I believe this to be so). I also believe that we have too much secrecy in the UK on matters of income and wealth and that if everyone’s income was openly declared, there would be much less inequality. This is not an especially radical idea. In Norway, details of every citizen’s income, assets and the tax they pay are available to the public and published on this website.

As a member of the Scottish Green Party, I also feel obliged to comply with the policy resolution passed at the 2011 Conference on Tax Evasion and Avoidance which encourages corporations and individuals to not use tax havens and to publish their accounts on a country by country basis.

2013 INCOME

I ear my living from writing, research, consultancy, public speaking, investigation, and subscriptions from the whoownsscotland website. For 2013, my income was as follows.

GROSS INCOME (1)     £ 32,485

LESS COSTS (2)           £ 8,228

TAXABLE INCOME (3)  £ 24,257

My total taxable income was £25,021 on which I am due to pay tax of £2,963.40 and Class 4 NI contributions of £1,485,18 = total of £4448.58 (see tax HMRC calculation here)

During 2013 all of my income was generated from within the UK. My main clients were NGOs, renewable energy companies, civic bodies, one political party (the Scottish Green Party), print & broadcast media and royalty payments on my books.

DECLARATION OF INTERESTS 1 JANUARY 2015

I own no land or property.

I have 483 shares in Standard Life.

I am on the Board of Directors of the Caledonia Centre for Social Development (Company No. 192099 & Scottish Charity No. SC 028485).

I am currently advising the House of Commons Scottish Affairs Committee.

I am a member of the Scottish Green Party and a number of charitable bodies.

I currently provide ad-hoc unpaid advice to four political parties – the Scottish Green Party, the Scottish Labour Party, the Scottish Conservative Party and the Scottish National Party.

I do not make use of any tax havens or artificial accounting structures to conceal my income

NOTES

(1) Gross Income is the total of all income received. This includes re-imbursment for travel costs etc.

(2) Costs are all expenses such as computers, travel, stationery, telephone, research fees (for example, search fees paid to Registers of Scotland) and other expenses of employment.

(3) Taxable income is Gross Income minus expenses and is the profit figure on which tax is calculated.