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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 5 May 2021
  6. Current session: 12 May 2021 to 28 August 2025
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Displaying 1691 contributions

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Finance and Public Administration Committee

Fiscal Framework (Independent Report)

Meeting date: 11 January 2022

Michelle Thomson

Thank you for that—although my question was actually about what the limitations of the current arrangements are, rather than the benefits. Perhaps you would like to fill in on that. What are the limitations of the fiscal levers that the Scottish Government has in influencing the tax base? That was my question.

Finance and Public Administration Committee

Fiscal Framework (Independent Report)

Meeting date: 11 January 2022

Michelle Thomson

Thank you for mentioning those fundamentals.

I will let you move on now, convener.

Finance and Public Administration Committee

Fiscal Framework (Independent Report)

Meeting date: 11 January 2022

Michelle Thomson

Earlier, we talked about how one could grow the tax base—in other words, the working-age population—in Scotland. Daniel Johnson mentioned that, the committee has talked about it a great deal, and I would like to understand the issue a bit more.

Professor Bell, in your view, what are the limitations on the fiscal levers that the Scottish Government currently has to influence and grow the tax base, regardless of the indexation method? Of course, we are really looking at the working-age population. I would appreciate hearing your thoughts on the current limitations in the area that we are discussing.

Finance and Public Administration Committee

Fiscal Framework (Independent Report)

Meeting date: 11 January 2022

Michelle Thomson

To what extent does the Barnett formula embed structural imbalances in the UK? You mentioned financial services, which is an industry that I was involved in for many years. Over the course of my career, head office functions moved to London, bar a few noteworthy examples such as Standard Life, although things have changed for it as well.

Finance and Public Administration Committee

Fiscal Framework (Independent Report)

Meeting date: 11 January 2022

Michelle Thomson

I thank Ed Poole and Guto Ifan for their submission. I echo the sentiments of everyone else on the committee: it really is excellent.

How have the different BGAs per income tax band been beneficial for Wales, given what you have outlined about the difference in your tax base? What are the primary benefits of that system going forward in the light of post-Brexit immigration restrictions?

That is quite a general question. It is fine for whoever wants to answer to do it.

Finance and Public Administration Committee

Fiscal Framework (Independent Report)

Meeting date: 11 January 2022

Michelle Thomson

Thank you.

Finance and Public Administration Committee

Fiscal Framework (Independent Report)

Meeting date: 11 January 2022

Michelle Thomson

I can see that David Phillips wants to come in. He has put an R in the chat box.

Finance and Public Administration Committee

Fiscal Framework (Independent Report)

Meeting date: 11 January 2022

Michelle Thomson

I have a question for all three of the Davids, but perhaps Professor David Bell could start. We have focused on Scotland and Wales, but I am interested in what helpful precedents operate elsewhere in the world, particularly those that deal with issues around fiscal transfers and divergence over time. I feel as though we are dancing on the head of a pin, particularly in relation to indexation methods, and some of those problems are not unique. I would appreciate some thoughts from Professor Bell on that in relation to the review.

Finance and Public Administration Committee

Fiscal Framework (Independent Report)

Meeting date: 11 January 2022

Michelle Thomson

[Inaudible.]—and everybody for the barking that came out of nowhere.

Thank you for that, Ed. Do you have anything to add, Guto? That is my only question.

Finance and Public Administration Committee

Budget Scrutiny 2022-23

Meeting date: 21 December 2021

Michelle Thomson

Good morning. I am finding this evidence session very enjoyable so far, and I thank the cabinet secretary for highlighting the complexity of the process of money being allocated, drawn down and spent, and how that expands from one financial year to the next. Of course, that is all about financial asymmetry, but I also want to explore our own asymmetry.

I had the chance to glance through the report by the three Davids entitled “Options for reforming the devolved fiscal frameworks post-pandemic”, which recommends:

“Given that devolved governments cannot really exercise full control over health policy in the absence of appropriate economic support measures, a feasibility study into making furlough-type support available on a geographical basis should be urgently undertaken and published.”

You also correctly alluded to the fact that things have moved rapidly since some of the recent data came out. Do you have any indication yet of UK Treasury thinking about what type of financial support, such as furlough, could be available if and when the anticipated peak of the current Covid crisis hits us in mid-January?