Board minutes: 25 February 2026

Meeting of the Revenue Scotland Board

25 February 2026

10:00 - 14:00, Victoria Quay, Edinburgh

1. Meeting opening

Welcome and introductions

1.1    The Chair opened the meeting, welcoming all attendees.

Apologies

1.2    No apologies were received.

New Declarations of Interest

1.3    Aidan O’Carroll informed the Board that he would be stepping down as a non-executive director of Hillhouse Estates Ltd from 31 March 2026.  

Draft Minutes of 26 November 2025

1.4    The Board approved the draft minutes of Board meeting held on 25 February 2026. 

Draft Minutes of 4 February 2026

1.5    The Board approved the minutes of the Board Strategy meeting held on 04 February 2026 as drafted. 

Action and Decision Log

1.6    The Head of Corporate Operations introduced the action log, noting open actions and providing an update where appropriate. 

1.7    It was agreed that actions A62/25, A02/25, A11/25, A12/25, A25/25, A28/25 , A30/25 A31/25, A32/25, A33/25, A34/25, A34/25, A36/25 and A39/25 were to be closed.

2. Chair's Update

2.1    The Chair provided updates on a number of issues these included:

1. The New Year Gathering, which was reported to have been successful, with strong attendance and positive feedback received.
2. An external Board Effectiveness Review which will begin shortly. 
3. The most recent meeting of the Tax Advisory Group, where discussions had focused on the current governmental current tax approach, and its implications for the sector.
4. Plans to formalise the appraisal process for Board members, to ensure a more consistent and structured approach to assessing member performance and contribution.

2.2    The Chair confirmed for the record that: 

1. The Board had agreed the reviewed Code of Conduct for Members of Revenue Scotland.
2. The Board had agreed to appoint Simon Cunningham as Board Deputy Chair. 
3. The Board had agreed to appoint Idong Usoro as SEC Chair once Jean Lindsay had stepped down from the Board. 
4. The Board had agreed to the re-appointment of the three co-opted members on ARC and SEC for a further period of 18 months.

3. SEC Update

3.1    The Chair of the SEC provided an update, highlighting 4 areas of interest to Board members from the 21 January SEC meeting.

1. An update was provided to the Board on SEC’s consideration of the People Survey results. SEC had welcomed the highly positive results and the fact that Revenue Scotland continued to score higher than comparative organisations. Staff engagement continued to remain high. It was noted that Learning and Development scores had declined slightly and that further work was being undertaken to understand the drivers behind this. The Board Chair noted the positive outcomes from the people survey and emphasised the importance of maintaining this progress.
2. SEC had reviewed people data, with most indicators remaining within tolerance. It was noted that diversity data was improving, however, there remains limitations in the data available. As such, SEC had focused on gaining assurance from other forms of assurance around current recruitment practices. 
3. An update was provided on Workforce Planning. It was noted that work is progressing well, with ongoing review of current capacity, capability, and anticipated future requirements. The SEC requested that a summary table be prepared for consideration.
4. A deep-dive on Equality, Diversity and Inclusion had been presented, providing good assurance on the findings within Equalities Mainstreaming Progress Report. It was agreed that careful monitoring will be required going forward to ensure continued progress. The committee had held a discussion on how the wider political landscape may impact future activity and oversight in this area. Board members felt that this was an important issue and agreed to discuss it further at a future Board meeting and that this will include a sub-table for significant projects.

4. ARC Update

4.1.    The Chair of the ARC provided an update, highlighting 8 areas of interest to Board members from the 28 January ARC meeting. 

1. The ARC Chair thanked all members of the Board for completing the Cyber Governance Code of Practice training. Further to this, a gap analysis was being prepared in relation to current compliance with the Code.
2. The Committee had endorsed proposals from the Head of Finance to further improve the process for the compilation of the Annual Report and Accounts. The timetable for this was presented and agreed. Opportunities for both the committees and the Board to contribute to the process were highlighted. 
3. The Committee had received a report on the Finance Improvement Project and commended the progress that had been made. 
4. The quarterly review of the Corporate Risk Register had been undertaken. Two new risks had been agreed following the deliberations at the ARC strategy day. The SEC would be asked to review the new risk around change. Risk tolerance and risk appetite were also considered in relation to the Corporate Risk Register. 
5. The Assurance Map had been considered. Minimal changes had been proposed. The relevance to Internal Audit planning was noted and there was particular emphasis on assurance sources regarding business continuity planning and resilience testing. 
6. Internal Audit had confirmed that the 2025/26 internal audit plan was on track. Planning for the 2026/27 plan is underway and will be presented to the next ARC meeting.
7. Audit Scotland had confirmed their audit team for the 2026/27 Audit. Despite some changes to the team, continuity would be ensured. Audit Scotland also confirmed that their Audit Plan would be presented to the March ARC.
8. A deep dive presentation had been received on risks related to the changing Scottish landfill industry following the introduction of the bio-municipal wate ban. The Board discussed the issues and asked for updated projections now that the closure date for the Scottish Landfill Communities Fund (SLCF) was known.

5. Chief Executive's Report

5.1    The Chief Executive provided an update on items not otherwise covered in the agenda for the meeting. She gave an update on Ministerial engagement, noting that she had no further scheduled meetings with the minister ahead of the election. There was, however, an upcoming meeting between members of the Compliance team and Mr McKee regarding SAT Compliance. 

5.2    In relation to litigation, she outlined the status of current cases. The Board noted the update and re-affirmed the delegation to her in respect of the live cases, asking that they be kept informed of any significant developments. 

5.3    She reported a rise in FOI activity ahead of the election. The Board suggested that it may be helpful to record the time and effort involved in responding to these requests.

5.4    The Chief Executive shared the positive feedback on the recent All Staff Gathering, highlighting the strong energy among staff and the willingness of staff to take on a range of roles. The theme around resilience and wellbeing was considered appropriate and reflective of the organisation’s culture. 

5.5    Discussion on Sections 8.3 and 8.7 focused on the next steps and gateways for the Corporate Plan. The Board noted the Strategy Day reflections, particularly the balance between what is explicit and what remains implicit in the Plan. 

5.6    Debt write‑off was raised. Discussions with relevant parties were ongoing and a position would be agreed in time for incorporation into the Annual Report and Accounts.

6. Engagement activity - 10 Year Anniversary 

6.1    The Head of Strategy and Communications introduced this item, highlighting the celebratory events which have taken place over the past year. Board members were thanked for their engagement in the various events. 

6.2    It was noted that events were scheduled to run until the end of March, after which a wrap‑up package will be produced. It was confirmed that the organisation would be unable to maintain this level of engagement next year due to resource constraints. A retrospective session had taken place reviewing activity over the past year, capturing lessons learned from this work. 

6.3    Board members recognised the significant work that had gone into the programme and expressed their thanks to the team. The Board noted the importance of being purposeful in selecting themes, potentially adopting a cycle that alternates between an internal gathering and an external facing event. Members discussed the need to leverage resources and opportunities through partner organisations, to continue communicating who we are and where we are going, and to promote the organisation as proud and ambitious. The Board agreed that future activity should focus on engaging the audiences and stakeholders we most want to involve.

6.4    The Head of Strategy and Communications outlined the existing Brand Story and the opportunity to re‑familiarise staff and stakeholders with it. The Board discussed how best to engage with ‘unknown’ stakeholders, including the importance of identifying who delivers the message and encouraging others to advocate on our behalf. Members noted that short video content and similar formats could support more regular engagement and help raise the organisation’s profile, with LinkedIn remaining the primary channel. The Board also reflected on the need to ensure that future communications create value and have a clear purpose, emphasising that success should not be measured by volume alone but by whether we are reaching and targeting the right audiences.

6.5    The Chair acknowledged that a high‑quality and comprehensive briefing pack will be helpful for new MSPs following the election, informing them about the organisation’s remit, priorities and current work. 

7. SETS3 Update

7.1    The Head of Corporate Functions presented two papers: the first outlined the options appraisal for SETS3, and the second set out the management case for delivering the project.

7.2    The first paper presented outlined three options, with a preference for the hybrid option 3. Stakeholder engagement to date shows a clear majority support for this option, and work will now focus on mapping out what delivery would look like should this approach be agreed. 

7.3    The Board discussed the importance of testing the market early, noting that indicative costings are not yet included in the paper. The Head of Digital and Data to explore and provide the best available estimates. 

7.4    A point was raised regarding the pace of technological change and the associated risk of future emerging technologies making alternative approaches more favourable. It was confirmed that horizon scanning and technology assessment will be built into the review, ensuring alignment with our timeline.

7.5    Cyber security considerations were noted, and the Board received assurance that current protections remain robust. The Board confirmed that any future system must, as a minimum, maintain these standards and, preferably, exceed the level of cyber security expected by 2029. Principle E will be amended accordingly to reflect the Board’s expectation of enhanced security, replacing wording that suggests security levels would remain unchanged.

7.6    It was suggested that operational efficiency opportunities, such as voice analytics and chat agent capability, should also be considered.

7.7    Regular engagement with stakeholders continues, including exploration of a proof of concept as part of the preparatory work for Option 3.

7.8    The second paper outlined the proposed approach to delivering the project, drawing attention to the key stages and dependencies. The Board noted the challenge around organisational resilience, particularly given the number of single‑person roles, and highlighted the need to consider appropriate backfill as the team transitions to the new system.

7.9    Members requested indicative timescales for the procurement elements and asked that these be streamlined as far as possible. It was agreed that the respective roles of ARC, SEC and the Board should be clearly defined to ensure appropriate engagement and avoid overlap. 

7.10    Members noted the importance of determining a proportionate level of oversight, emphasising the need to avoid over‑management or excessive reporting. Clarity of purpose and maintaining a focus on delivery were identified as key priorities.

8. Scottish Aggregates Tax Go Live

8.1    The Programme Lead introduced this item and confirmed that the organisation was well‑prepared for Go Live on 1 April 2026. A letter has now been drafted and issued to confirm our readiness to Minsters.

8.2    It was noted that all deliverables expected at this point have been completed. As planned, some follow‑on work will continue beyond the formal project period, up to project close‑down later in the year. 

8.3    The Board welcomed the good progress that had been made and endorsed the decision to ‘go live’ with SAT.

9. DDaT Programme Quarterly Highlight Report

9.1    The Board noted that the programme continues to report an overall Green/Amber status. Members were advised that substantive progress has been achieved across key workstreams, particularly within the RS Cloud data platform, where live data is now in place and further development of reporting and data transformation capability is ongoing. Continuous improvement of SETS 2 also is ongoing, with enhancements to set‑off processes and taxpayer communications being delivered as planned.

9.2    The Board further noted the ongoing resourcing pressures within the data team, arising from continued staff turnover and vacancies. The Board recognised that capacity constraints are contributing to areas of amber rating and will require close monitoring.

9.3    Members discussed the need for clarity on how BAU activity will operate alongside the development of SETS 3. It was agreed that further work is required to define the associated resourcing model, dependencies, and sequencing. The Board also noted the requirement to reshape the DDAT programme to ensure it remains clearly delineated and not subsumed within the broader SETS 3 planning.

9.4    In relation to programme finances, the Board acknowledged that improvement activity will reduce as the contract end approaches, with the majority of remaining spend expected to relate to legislative changes. A small amount of discretionary funding remains available to support proof‑of‑concept activity informing SETS 3 design. The updated highlight report format was welcomed, with members noting the improved clarity and financial transparency. The Board requested that future reports incorporate forward‑looking financial variance projections to support proactive oversight.

9.5    For missions classed as amber, the Board noted that the route to recovery will require restored team capacity, confirmation of the BAU/SETS 3 operating model, clearer definition of DDAT programme structure, and continued development of RS Cloud reporting to support key deliverables.

9.6    The Board noted that they were content for re‑prioritisation of the missions to take place and requested that they be kept informed of any changes made.

10. New Devolved Taxes – Reporting Dashboard 

10.1    The Head of Tax introduced the reporting dashboard. 

10.2    He highlighted that Scottish Building Safety Levy is currently at Stage 3, and needed to be completed before the election otherwise the Bill would fall. The team is refreshing the project’s timetable now that the introduction date has been put back to April 2028. 

10.3    Furthermore, work on Air Departure Tax is beginning to gather pace: a workshop was held last week to establish high‑level timings, and a further planning session was scheduled. These activities will feed into the development of a master plan by April, which is intended to provide the Board with the same level of reporting as they have on the other new taxes.

11. Q3 Performance Report  

11.1    The Head of Corporate Functions introduced the Performance Report. 

11.2 Success Measure 1 remains on track overall. It is, however, currently rated red for Scottish Landfill Tax due to wider pressures within the Landfill industry. There is positive news on one of the legal cases, which means the position is not expected to deteriorate further as we approach year‑end.

11.3 The Head of Legal explained work is underway to re‑formulate the Tax Partnership Board and suggested that it would be beneficial for Local Government finance to be included in the next iteration.

12. AOB

12.1    There were no items of AOB raised.

12.2    The Board moved to a private session

End of meeting

25 February 2026