Scottish Budget: SNP examine supermarket and jet taxes

Patrick Harvie's and Lorna Slater's party have voted for every SNP budget since 2016 but were left angered when former First Minister Humza Yousaf ended the Bute House Agreement, ending the Greens role government.

The SNP is reluctant to hold an election - which it may have to do if it can't get its financial plans passed - and support from its former coalition partners is seen as the best way of getting the budget through Holyrood.

Speaking to the Herald on Sunday, the Scottish Greens MSP and finance spokesman Ross Greer welcomed the Scottish Government's openness to discuss the Scottish Greens proposals on new taxes but insisted that what was agreed would have "to be delivered".

Scottish Greens's finance spokesman Ross Greer:  (Image: PA) After the collapse of the Bute House Agreement in April and the subsequent axing of policies pushed for by the Greens, Mr Greer said his party faced issues of trust towards the government.

The government U turns have seen the return of peak rail fares, a cut to nature restoration funding, a failure to extend free school meals to pupils in primary 6 and 7 and the dropping of plans for a pilot scheme to allow free bus travel for asylum seekers.

"The SNP will need to convince us that the package we agree will actually be delivered," Mr Greer said.

"The Scottish Government will need to come up with a way to get back our confidence. We are willing to negotiate in good faith because we think that is a responsibility all parties in parliament have. We were elected on a manifesto to make Scotland a fairer, greener place. Therefore we are going to try and do that.  

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"In the negotiations we will expect the Scottish Government to come forward with proposals that give us confidence not just on the tax and spend front but proposals of how we can be confident that that will be delivered.

"We now have a budget process which may give us significant leverage and influence, but for the SNP to secure our support they will need to convince us that what's on the table in the budget is what will be delivered in reality."

Minister for public finance Ivan McKee has met with representatives of all the Holyrood parties for preliminary talks and is expected to meet with the Scottish Greens for a second time in the coming weeks.

Minister for public finance Ivan McKee (Image: Scottish Government) Early discussions with businesses and public health charities have begun on the potential introduction of a supermarket tax which would see a levy imposed on some large retailers licensed to sell cigarettes and alcohol, with the money raised going to public health initiatives. 

A recent report by the Fraser of Allander economic research institute for Alcohol Focus Scotland suggested that a levy on retailers with a licence to sell tobacco and alcohol set at 13p in the pound could raise £57 million a year.

Work in government is also underway exploring how a tax on private jets can be introduced via existing air passenger taxes.

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A recent Oxfam study suggested that a private jet tax in Scotland could raise £21.5 million. 

The Greens say a new super rate for private jet passengers could raise £250,000 every time former US President Donald Trump arrives in Scotland.

Following the independence referendum it was agreed the levy should be devolved with Holyrood agreeing to the move in 2017. However, the Scottish Government deferred its beyond April 2020 to resolve issues with the UK Government over a tax exemption for flights departing the Highlands and Islands to protect remote and rural communities. 

In the meantime, the reserved air passenger duty (APD) continues to apply to flights departing Scottish airports.

"The Scottish Government continues to explore all options for implementing air departure tax. We will review the rates and bands of air departure tax - including the rates on private jet flights - to ensure they are aligned with our net zero ambitions once a solution to the Highland & Islands exemption has been identified," a Scottish Government spokeswoman told the Herald on Sunday.

"Exploratory discussions with business organisations and stakeholders have begun on considerations of the potential reintroduction of a Public Health Supplement.”

Speaking in a Greens-led debate on budget priorities in Holyrood last Wednesday Mr McKee acknowledged the work of the party in put forward proposals for new taxes and criticised parties who did not suggest ideas.

"It was good to hear some constructive suggestions from opposition parties about what they would like to be included in the budget, but, frankly, we did not hear such suggestions from all parties, which was a bit of a shame and a missed opportunity," he said.

The debate saw finance secretary Shona Robison commit to progressing plans to give powers to councils to bring in a levy for cruise liners - an earlier proposal by the Greens.

Senior SNP MSP Kenneth Gibson, convener of Holyrood's finance committee, a figure of key influence in his party and and in the Scottish Parliament, suggested taxes on private jets and on supermarkets were worthy of examination. He noted more than 12,000 private planes took off from Scottish airports annually.

"Taxing private jets flying from Scotland is an interesting suggestion. I, for one, was surprised that more than 12,000 such flights took off from Scotland last year," he said.

"Although that is a potential source of revenue, the government must also look at the potential impact on the people who are employed in crewing and maintaining such aircraft and the airports where the planes are hangared."

"Although sympathetic delivery might not be easy, a public health supplement surcharge on large retailers that sell alcohol and cigarettes is already under discussion between Scottish ministers, sector representatives and public health organisations," he said.

"That proposal recognises the impact of alcohol and tobacco by directly targeting large retailers that benefit from selling such products. However, if tobacco and alcohol duties were devolved, it would better allow reinvestment in improving public health, and that should be pursued."