Western Europe, the UK, Scotland - we all have a problem regarding public finances. Debt is dangerously high. We have unmet social and economic needs - health, education and infrastructure are obvious examples. The cost of caring for us all as we age will soon start to increase rapidly - the pressure on the public finances will rise. We will be faced with 3 choices - cut expenditure, deliver public services more efficiently or raise more in tax.

Scotland does not have an appetite to reduce public expenditure - and given the needs we have that’s a fair view. The best answer is to deliver services more efficiently - which means the private sector delivering more public services - we don’t like it but we are going to have to do it - I will return to that theme at another time.

For now let’s concentrate on the requirement to increase taxation. This is the dirty secret politicians won’t tell us about but , it is inevitable if we are to maintain a decent and cohesive society. Let’s not get too hung up about the precise powers which Scotland has relative to Westminster and look, from a Scottish perspective, at how more money could be raised.

There are two truly stupid ways to raise more money. The first is to tax business more - business creates wealth and jobs and we need to make Scotland an attractive place to do business. The current Scottish Government gets this - the odd daft aberration such as buying Prestwick Airport but it is broadly on the right track. The second stupid option is to try to tax wealthier people in Scotland higher than is the case in England - they will just move away and poorer people in Scotland will be the ones who suffer. I have a feeling the Scottish Government gets this but feels it dare not say so.

Ok so what then? The important point is not to hit a small group hard or you risk behavioural change which reduces rather than raises tax revenues. The smarter choice is to raise small amounts of money from lots of people, if possible allowing people choices about how much they pay so that they feel empowered rather than milked and, to try to gain other benefits as a by-product. Here are some options.

1. User pays

This is a theme I have already written about in relation to transport infrastructure where tolling major roads could raise £100 million a year.

2. Sugar tax

We each consume roughly 100 grams of sugar a day. Obesity is an increasing problem which shortens lives and costs society. We have to cut sugar consumption. There would be some implementation difficulties (lots of sugar in fruit) but a tax of 0.1p per gram of sugar would cost each Scottish taxpayer an average of 10p a day and raise nearly £200 million each year. A good start.

3. LBTT (AKA stamp duty)

The rates are too high and the wrong people are paying - the owners of existing housing wealth don’t pay anything when they sell and the people who are struggling their way up the ladder pay a lot. Odd. Solution - cut all the rates by ? but make both parties to each transaction pay the tax. The pain is spread more evenly and the tax take rises by one third. It’s a little hard to calculate what this would raise as LBTT is so new but up to £100 million a year is realistic.

4. Inheritance tax

One of the worst constructed taxes of all. If you transfer your wealth to the next generation and live for 7 years you pay nothing. If you cannot afford to give your wealth away you quite quickly pay tax at 40%. Solution - change the basis of the tax completely. Charge 10% on all gifts which you receive - no exemptions other than business assets. The donor pays nothing. Result - a number of wealthy people would come to Scotland - where they would pay lots more taxes of various kinds - we would make a packet.

5. Electronic communications

I have no idea how this could be achieved technically but everybody I speak to loves this. How about a 1p tax, payable by the sender, on every email, text, WhatsApp etc. If every person gets 20 a day that’s about £400 million a year. We need to get imaginative in the digital world, if we are not looking at this we should be.

Pinstripe is a senior member of Scotland's financial services community.