estate Taxing land better could help Scotland’s economic recovery Increasing the role land plays in Scotland’s tax base and a local authority power targeted at newly derelict property are among the key recommendations put to Government Ministers in today’s report on how Scotland’s land could be taxed better. The Scottish Land Commission was tasked with advising on how changes to existing land and property taxation could support Scotland’s economic recovery and land reform objectives. The Commission’s recommendations make the case for ongoing reform to improve the way in which Scotland taxes land, outlining the steps needed to increase the role of land values in the nation’s tax base and support the delivery of the Scottish Government’s land policies. While 50% of the UK’s wealth is tied up in land and property, it only forms around 10% of the total tax base. In Scotland, just 12% of all public sector revenue across reserved and devolved taxes are raised through taxes fully or partially levied on land and property. Identifying changes to the tax system could help regenerate town centres, ensure that the move to net zero is a just transition, deliver wider benefits for local communities, and support a more diverse pattern of land ownership. The recommendations include making information on land ownership, value and use publicly available through the introduction of a cadastral map approach – which is widely adopted across Europe and maps all land data. This would be a vital first step in strengthening
the role of land in Scotland’s tax base. The report also identifies tax as playing a key role in tackling vacant and derelict land and supporting town centre regeneration. Recommending the incentivisation of the reuse of sites by introducing additional reliefs on Non Domestic Rates (NDR) and council tax for new build properties on longstanding vacant sites and giving local authorities new powers to apply NDR to newly derelict properties to discourage them from falling into disrepair. On the hot topic of ‘natural capital’ and the emerging carbon market, the Commission recommends that particular attention should be given to how taxation can secure “a productive balance of public and private benefit from future carbon values”. It also recommends specific consideration of the role of Land and Buildings Transaction Tax, suggesting changes could help support more diverse land ownership and address the risks to a just transition of high land values associated with carbon. Offering income tax relief to encourage more letting of agricultural land is a final recommendation – which would require engagement on a UK basis to secure changes to what is a reserved power. Scottish Land Commission Chief Executive, Hamish Trench, said: “Land is our most valuable asset and Scotland has scope to tax land in ways that better support the Scottish Government’s policy priorities, but this needs to be considered in a careful way that acknowledges
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Move beyond tribalism
By Stephen Young, Head of Policy at Scottish Land & Estates Tribalism is all too common, not least in the world of football and politics. The idea that you pick a side, back them unconditionally, shout loudly and disregard any other viewpoints appears to work in some circumstances. However, when it comes to rural Scotland it is completely counterproductive. Whether it is sheep versus trees, holiday accommodation versus long term housing or even differing soil management techniques, there is a feeling that we appear to be entering into tribal territory. The reality is it is rarely black and white and as with everything, there needs to be balance. The role of land management in Scotland’s economy and combatting climate change cannot be underestimated, and there are challenges around how it is best used. SLE has been calling for greater integration of thinking around differing land uses for a long time, arguing for the need to ensure that policies are not competing with each other but instead offer genuine options for land managers to select the use which is best suited to achieve beneficial outcomes on all levels. We don’t see that there is any need for conflict between land uses: we should have the ability to meet planting targets, while still maintaining output from agriculture, by using the land best suited for each
activity. That doesn’t mean large monocultures of each in different areas either. It will, however, involve grown up discussions, taking the conflict out of the debate and spending less energy creating heat and more creating light. There is a similar debate going on around rewilding, initially over what constitutes rewilding, then whether it is a good thing and then how to do it. I would argue that rewilding in the right place is exactly the right thing to do - but the key is the right place. As with all of these issues, what we need to do is come from a position of facts and evidence, not emotion and ideology (and I’m not just talking about rewilders here). We need to put meat on the bones around what the impact of “green jobs” (my current pet hate phrase, as it says everything and means nothing) will be. We need to understand which jobs are and are not “green” and what skills are required. Currently it seems to be a get-out phrase whenever the economics is questioned. Trying to move beyond tribalism can only come via learning and understanding. It takes time and it is not always fun, but it is incumbent on bodies, like SLE, to push ourselves to make sure our members have the best information available to understand issues and the ability to make informed choices.
For more information www.scottishlandandestates.co.uk Telephone : 0131 653 5400
