Performance Report
Introduction
This performance overview serves as a summary to provide readers with a clear and comprehensive understanding of Revenue Scotland, our purpose, and our performance over the reporting period. This section summarises our strategic outcomes, our performance in relation to these outcomes, and the management of key risks.
The performance overview begins by detailing our key functions, our governance structure, before discussing our progress against the strategic outcomes outlined in our Corporate Plan 2021-24
Who we are and what we do
Revenue Scotland was established under the Revenue Scotland and Tax Powers Act 2014 (RSTPA). We are responsible for the collection and management of the fully devolved Scottish taxes: Land and Buildings Transaction Tax (LBTT) and Scottish Landfill Tax (SLfT).
As a Non-Ministerial Office, we are part of the Scottish Administration and we are accountable directly to the Scottish Parliament, ensuring the impartial and fair administration of taxes. The Scottish Government is responsible for tax policy and rates, while we provide policy development support through the provision of advice, data, and information based on our operational experience.
We are proud to work alongside the Scottish Fiscal Commission (SFC), which is responsible for providing independent forecasts of tax revenue in line with the Fiscal Framework. To aid forecasting work, we provide anonymous, aggregated SLfT and LBTT data to the SFC.
In addition to delegating specific functions for SLfT collection to the Scottish Environment Protection Agency (SEPA), we also collaborate with His Majesty’s Revenue and Customs (HMRC) for compliance activity. Furthermore, we actively participate in the British Isles Tax Authorities Forum, working closely with other tax authorities to share knowledge and best practices in tax collection and management.
How we are governed
The Board is responsible for the strategic direction, oversight, and governance of the organisation. It currently comprises seven members appointed by Scottish Ministers through the Scottish Public Appointments process. Board members provide specialist knowledge in key areas and act as ambassadors for the organisation.
The Board has two committees: the Audit and Risk Committee (ARC) and the Staffing and Equalities Committee (SEC), which provide direction, support and detailed scrutiny of key areas of work and report on these to the Board. The Chief Executive is accountable to the Board and acts in a personal capacity as the Accountable Officer for Revenue Scotland. The Chief Executive is responsible for the day-to-day leadership and operation of the organisation.
Further details about the activities of the Board, committees, and staff can be found in the Accountability Report section of the Annual Report.
How we are structured
Our Senior Leadership Team is led by the Chief Executive and includes the Head of Tax, the Head of Corporate Functions, and the Head of Legal Services. Reporting directly to the Chief Executive, our SLT are responsible for the operational leadership, and the direction and coordinating of the delivery of our strategic outcomes.
Our organisational and team structure is depicted in the diagram on the following page, providing a visual representation of the Senior Leadership Team’s role within our organisation.
How we are funded
Revenue Scotland is part of the Scottish Administration and our budget is set by the annual Budget Bill. The Scottish Government liaises with us to identify our budgetary requirements which are then reflected in the Budget Bill that Ministers present to the Scottish Parliament. Where additional funding for major programmes is required, proposals for funding are developed in line with the guidance on business cases in HM Treasury’s ‘The Green Book: appraisal and evaluation in central government’.
We are responsible for managing our budget for each financial year to deliver our statutory functions. We have authority to incur expenditure on individual items, but this is subject to the limits imposed by the budget allocated by the Scottish Parliament and guidance from Scottish Ministers.
Revenue Scotland’s purpose and vision
This year, 2023-24, was the final year in our current Corporate Plan – delivered from April 2021 until March 2024. The Corporate Plan 2021-24 outlined our purpose, vision, strategic outcomes and performance measures. These determined our priorities in raising revenue to support public services across Scotland in the most efficient and effective way.
Purpose
To efficiently and effectively collect and manage the devolved taxes which fund public services for the benefit of the people of Scotland.
Vision
We are a trusted and valued partner in the delivery of revenue services, informed by our data, digital by design, with a high-performing and engaged workforce.
Corporate Plan 2021-24 strategic outcomes
After nine successful years in operation, and collecting over £6 billion in tax revenue, we have continued to build our reputation as a leading and well-respected public body, delivering excellence for Scotland.
This year marked the final stretch of our Corporate Plan for 2021-24, which focused on four strategic outcomes, as outlined below. These outcomes were the cornerstone of our efforts towards achieving our ambitions, ensuring we continued to progress and improve the services we offered. Our new Corporate Plan 2024-27 was laid in Parliament in March 2024, and includes a refreshed purpose, vision and new strategic outcomes.
Excelling in Delivery
We offer user-focused services that are digital by design, and provide value for money, convenience and ease of use for internal and external users.
Investing in our People
We are high-performing, outward-looking and diverse, and provide a great place to work as an employer of choice. Our staff are motivated and engaged, and we invest in their development and health, safety and wellbeing.
Reaching Out
We are accessible, collaborative and transparent, keen to learn from others and to share our experiences and expertise.
Looking Ahead
We plan and deliver change and new responsibilities flexibly, on time and within budget. We have a digital mindset, maximising the use of our data and harnessing new technology to improve our working practices and services.
How we deliver our purpose and measure our success
Our purpose is delivered through the strategic outcomes in our Corporate Plan, with progress tracked using key performance indicators (KPIs) and milestones related to key project objectives. Our Business Plan details projects and initiatives supporting these outcomes, guiding team and individual goals.
This structure ensures a direct connection between individual work goals and the strategic outcomes defined in the Corporate Plan. Our systematic method of managing performance underpins our ability to track and document progress throughout the organisation.
National Performance Framework
The National Performance Framework (NPF) underpins the Scottish Government’s vision, setting out National Outcomes to measure progress towards its goals. Our Corporate Plan is aligned with these Outcomes, guiding our efforts to support those relevant to Revenue Scotland’s remit.
Our Corporate Plan’s execution involves clearly defined objectives and deliverables, enacted through a detailed strategy that includes corporate, business, and team plans. We track our progress rigorously, with monthly and quarterly performance reviews.
By collecting devolved taxes, we indirectly support all National Outcomes, and directly contribute to six specific areas: economy, environment, fair work and business, communities, human rights, and health. Our approach emphasises investment in our workforce, dedication to equality, diversity, and inclusion, and collaboration with various partners, all underpinned by transparency and accountability.
The following table shows which Revenue Scotland strategic outcomes are relevant to the various National Outcomes.
| National Outcomes | Excelling in Delivery | Investing in our People | Reaching Out | Looking Ahead |
| We grow up loved, safe and respected so that we realise our full potential | ✓ | |||
| We live in communities that are inclusive, empowered, resilient and safe | ✓ | ✓ | ||
| We are creative and our vibrant and diverse cultures are expressed and enjoyed widely | ✓ | ✓ | ||
| We have a globally competitive, entrepreneurial, inclusive and sustainable economy | ✓ | ✓ | ✓ | |
| We are well educated, skilled and able to contribute to society | ✓ | ✓ | ||
| We value, enjoy, protect and enhance our environment | ✓ | ✓ | ||
| We have thriving and innovative businesses, with quality jobs and fair work for everyone | ✓ | ✓ | ||
| We are healthy and active | ✓ | ✓ | ||
| We respect, protect and fulfil human rights and live free from discrimination | ✓ | ✓ | ✓ | |
| We are open, connected and make a positive contribution internationally | ✓ | ✓ | ||
| We tackle poverty by sharing opportunities, wealth and power more equally | ✓ | ✓ | ✓ |
Key issues and risks
This corporate risk summary provides an overview of the key risks faced, their impact on delivering our strategic outcomes, and emerging risks that may affect future performance.
We have a Risk Management Framework that follows the best practices outlined in the Scottish Public Finance Manual (SPFM) and the Scottish Government’s Risk Management Guidance. This framework guides us in identifying, documenting, and scoring risks, assigning ownership, determining responses, and monitoring and reporting progress. We completed a review of this framework in 2023-24 to ensure it remains effective.
Managing and communicating potential threats and opportunities is key for meeting the goals in our Corporate Plan. Before taking any action, we thoroughly score and manage risks. The concept of ‘risk appetite’ — the level of risk we are willing to accept to achieve our objectives — helps create a shared understanding across Revenue Scotland and supports confident, risk-based decision-making.
Throughout the year, the Audit and Risk Committee, together with staff and Board members, reviewed the corporate risk register with a focus on risk appetite. Looking ahead to our new Corporate Plan for 2024-27, we plan to conduct a full review of our corporate risks.
| Corporate Risks | |||
| Protecting the integrity of the tax system recognises our need to ensure we have the necessary infrastructure and operational processes to ensure the integrity of the tax system. |
Legislative and policy change recognises our need to be consulted in good time for any upcoming legislative changes that may impact on devolved taxes. |
Communication and stakeholder engagement recognises our need to have appropriate internal and external engagement to support our activities. |
Budgeting and finance recognises our need to ensure we have the appropriate budget to ensure continued operations, investments in systems and planning of future work. |
| Ways of working recognises the need to maintain the conditions to foster a positive, inclusive way of working where staff are engaged and empowered. |
Staff capacity and capability recognises our need to build and/or protect staff capability and capacity in a sustainable way, investing in training and development. |
Health, safety and wellbeing allows us to monitor our legal and moral obligations to health, safety, mental health and wellbeing. |
Digital systems performance and adaptability recognises our need to invest in our digital architecture and systems. |
| Information and cyber security recognises our need to have effective systems and controls in place to support the secure management and transaction of our information. |
Governance and compliance allows us to monitor our compliance with our statutory obligations and the effectiveness of our governance procedures and controls. |
Resilience recognises our need to have tested effective business continuity planning to meet expectations. |
Data optimisation allows us to improve the design of our systems, deliver evidence-based operational efficiencies and identify areas for innovation. |
Performance summary
Key projects
Our Business Plan outlines key strategic projects for 2023-24, marking the final year of the Corporate Plan. These projects represent major investments or hold strategic importance, playing a crucial role in fulfilling the Corporate Plan’s objectives. As we conclude this period, the majority of our projects are either on schedule or have been successfully completed.
| Project and scope | Progress | Status |
|
1. Scottish Aggregates Tax Programme To introduce Scottish Aggregates Tax, a new devolved tax to replace the UK Aggregates Levy in Scotland. The UK Aggregates Levy is an environmental tax which aims to reduce the extraction of primary aggregate. In general, it applies to the commercial exploitation of this primary aggregate – predominantly crushed rock, sand, and gravel – which are used in the construction industry for housebuilding, infrastructure works, landscaping, and environmental protection. |
We’ve collaborated closely with the Scottish Government on legislation and tax design, whilst engaging with industry representatives through a stakeholder Expert Advisory Group, gaining valuable insights. IT system requirements are ongoing, embracing our digital-first approach to tax collection. We are preparing our staff and users for the tax launch with planned internal changes and guidance. |
On track |
|
2. Legislative Framework Project To review and improve our decade- old legislation to better deliver outcomes for taxpayers, enhance core functions, and support our strategic goals by creating a more effective and efficient system for managing devolved taxes. |
The Aggregates Tax and Devolved Taxes Administration (Scotland) Bill has been introduced, featuring measures to improve governance, communication, automation, penalties, and set-off provisions, with ongoing support for policy development. | On track |
| Project and scope | Progress | Status |
|
3. Capital Investment in SETS To deliver ongoing investment and improvements to the Scottish Electronic Tax System (SETS). |
Key improvements include enhanced validation on the portal to ensure data integrity, enhanced portal text for clarity and consistency, optimised search functionality for better user experience, automated letter generation with secure data transfer, and new functionality for lease review returns to ensure data accuracy. Additionally, we implemented legislative changes for the Additional Dwelling Supplement (effective 1 April 2024). |
On track |
|
4. RS Futures Project To deliver and evaluate a hybrid working pilot within Revenue Scotland, exploring a mixture of work and office working and the effect on staff productivity, performance and wellbeing. |
Hybrid working has been approved and embraced as the operating model for us going forward. |
Complete |
|
5. Capability Matrix Develop a Capability Matrix to help staff identify required skills for roles, assess their skill gaps, and support them to become high performers in their professions. |
A collaborative approach was used to develop a skills audit with team leaders. The audit was completed in Q4. The data will be used to develop learning and development opportunities in the CorporatePlan2024-27. | Complete |
|
6. Three-yearly Lease Reviews To drive an increase in the quality and quantity of received lease returns in Revenue Scotland. |
A systems approach targeting digital, data, communications and legislative change has shown early promise in boosting lease submission rates and the accuracy of the return; though full benefits will take several years to realise. | Ongoing |
| Project and scope | Progress | Status |
|
7. Develop and implement a stakeholder engagement programme To undertake the delivery and implementation of a specific stakeholder engagement programme. |
A stakeholder engagement delivery plan has been developed to deliver a coordinated and targeted approach to engagement throughout the 2024-27 Corporate Plan period. |
On track |
|
8. Service user feedback improvements User engagement aids in gathering feedback to improve service accessibility, usability, and efficiency, which leads to better tax compliance, and increased revenue. |
This is the first year we have scored our service user feedback. Website and SETS users satisfaction scores have shown a 76% user satisfaction throughout 2023-24, against a public sector target of 75%. In Q3 a feature was added to SETS, allowing users to provide feedback at any stage of their submission. | On track |
|
9. Scottish Government Business Transformation As part of the shared services agreement with Scottish Government, a new human resources and administrative finance system will be delivered. |
We are continuing to engage with the project delivery team ahead of the anticipated go live date in 2024- 25. | Due 2024-25 |
|
10. Corporate Plan 2024-27 Develop our new Corporate Plan for the period 2024-27. |
After extensive internal staff collaboration, and external stakeholder engagement, our new CorporatePlan 2024-27 was laid in parliament in March 2024. | Complete |
|
11. Leadership Programme To deliver a leadership development programme for staff within Revenue Scotland. |
As part of our continuous leadership development, senior staff completed a Leadership Development Programme incorporating 360-degree feedback, Emotional Intelligence in Leadership, and collaborative leadership techniques. |
Complete |
KPIs overview
The Corporate Plan 2021-24 outlines our key performance indicators (KPIs) that track our progress and alignment with our goals. These KPIs are detailed in the Performance Analysis section of this Annual Report, with page references included for easy navigation.
These KPIs reflect our operational effectiveness and adaptability to changes within the organisation, while broadening the scope of our performance assessment, to include areas such as equality integration and service user feedback.