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Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 4 May 2021
  6. Current session: 13 May 2021 to 28 January 2026
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Displaying 1955 contributions

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Economy and Fair Work Committee [Draft]

Budget Scrutiny 2026-27

Meeting date: 21 January 2026

Michelle Thomson

Good morning. The rest of my colleagues will want to get into specific detail on your portfolio, but I have an open question. Productivity growth is one of the challenges of our times—that has arguably never been more the case—given geopolitical challenges and budget shortages, particularly around lumpy capital.

For the record, I would like you to walk us through how the key elements of the budget will improve productivity growth. It could well be that the trees that you have planted will grow to be big oaks in future years. I would also like you to reflect on the challenges of ensuring a focus on productivity growth across Government, not only in your portfolio. Take it away, cabinet secretary.

Economy and Fair Work Committee [Draft]

Budget Scrutiny 2026-27

Meeting date: 21 January 2026

Michelle Thomson

Thank you for that textbook answer—it was exactly as I would have expected it to be. I would like to hear more about the second part of my question, which was on how you have been able to ensure that there has been a similar focus across portfolios. Obviously, that is a matter of influencing. You mentioned areas that are clearly in your domain, where you have been able to influence that focus. However, skills, infrastructure investment and so on all contribute. How have you managed to ensure that there is that focus, particularly in the light of what we all recognise are challenging times for public sector funding, with the limitations and challenges in being able to crowd in private capital?

You might recall the question that I asked about the Scottish National Investment Bank when the budget came out. How do you feel that that is going? In other words, do all your colleagues have a similar focus on growth?

Economy and Fair Work Committee [Draft]

Budget Scrutiny 2026-27

Meeting date: 21 January 2026

Michelle Thomson

I know that other members want to come in, but I have a couple of wee observations. First, my understanding was that it is not £70 million for colleges; it is more like £40 million, because the numbers for the Dunfermline campus of Fife College had already been included in the previous year’s funding. I suspect that that will come up at the Finance and Public Administration Committee, and it is not in your domain. I also suspect that the infrastructure delivery pipeline will come in for a bit of questioning. It is a very good wish list but, in my opinion, it is some way off being a plan.

Finance and Public Administration Committee [Draft]

Budget Scrutiny 2026-27

Meeting date: 20 January 2026

Michelle Thomson

You are developing a capital market, for a start, which is a fundamental. I am sure that we will say more about that.

I want to get your reflections as well, Justine. You have background and experience from ICAS. Would any of your members have chosen to run their business like that? What are your reflections on going through the process for the first time?

Finance and Public Administration Committee [Draft]

Budget Scrutiny 2026-27

Meeting date: 20 January 2026

Michelle Thomson

Just like the UK Government.

Finance and Public Administration Committee [Draft]

Budget Scrutiny 2026-27

Meeting date: 20 January 2026

Michelle Thomson

I thank the witnesses very much for this session, which I have enjoyed a great deal. However, it strikes me that we have spent as much time talking about the fiscal framework in operation and the implications therein as we have talking about the budget.

Rather than asking Professor Roy, I invite Dr Ryan and Justine Riccomini to give us their reflections on their first sojourns into this process and to tell us what they think and why. I am not asking from any political point of view; I am asking a question about process.

In your answers, you might also want to reflect further on risk, but that is entirely up to you.

Finance and Public Administration Committee [Draft]

Budget Scrutiny 2026-27

Meeting date: 20 January 2026

Michelle Thomson

I should probably, and appropriately, give the last word to you, Professor Roy. I will add one more consideration—that of short-termism. Two major political events are enmeshed in this process—the Scottish election and the UK general election, plus the moving parts of the late fiscal events that you have already alluded to and the on-going new money via fiscal transfers that turns out to not be new money.

Give me your final reflections on what I am saying and on the transparency point. If we have more transparency that merely enables us to obsess yet further about the operation of the fiscal framework, that may give us the illusion of a step forward, but it would not really be a step forward at all.

What are your final comments on all of that and on where we are? Things surely have to be better from an efficiency and effectiveness point of view.

Finance and Public Administration Committee [Draft]

Budget Scrutiny 2026-27

Meeting date: 20 January 2026

Michelle Thomson

Thank you very much.

Finance and Public Administration Committee [Draft]

Budget Scrutiny 2026-27

Meeting date: 20 January 2026

Michelle Thomson

As Graeme Roy said earlier, David Heald will join our next session next week, when he will get on to this issue. A killer sentence from his submission said:

“the fiscal flexibility of the Scottish Government does not match its exposure to fiscal risk.”

That seems quite fundamental here and now, and even more so when we look forward to the potential introduction of Scottish bonds, for example. They are a different funding stream, but if they go ahead, they have the potential to produce even further complexity and therefore more risk. We will ask David when he is in front of us, but what is your thinking about the exposure to fiscal risk?

Economy and Fair Work Committee [Draft]

Community Wealth Building (Scotland) Bill: Stage 2

Meeting date: 14 January 2026

Michelle Thomson

The question is, that amendment 33 be agreed to. Are we agreed?

Members: No.