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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 10 May 2025
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Displaying 1235 contributions

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Social Justice and Social Security Committee

Pre-budget Scrutiny

Meeting date: 22 September 2022

Paul McLennan

I want to ask about taxation, which you have touched on, and fiscal flexibility, which I raised with the previous panel. A rise of 1p in income tax would bring in about £450 million. Even if we increased it by the 3p by which we are allowed to increase it, that would still not meet the £1.7 billion inflationary impact that we face this year, so it is important that we have fiscal flexibility. A key lever is additional borrowing powers. Another is the ability to raise allowances, which could be moved from the UK Government to the Scottish Government. If we had the ability to raise the personal allowance, we could raise it from £12,000 to £15,000, £16,000 or £17,000 and take a lot of people out of taxation altogether.

Do you support more fiscal flexibility? What are your views on those two issues: allowances and additional borrowing? I would appreciate brief answers.

Social Justice and Social Security Committee

Pre-budget Scrutiny

Meeting date: 22 September 2022

Paul McLennan

I will pick up one point. You mentioned the genuine limitations of the devolved settlement. A prime example that you gave was HMRC. We have no powers in Scotland to deal with tax evasion, which costs us—as you suggested—£3 billion to £7 billion.

We have heard about discussions that the Scottish Fiscal Commission and the cabinet secretary, Kate Forbes, are having about flexibility and the fiscal framework. One point that we have debated and argued for is the ability to borrow more within that fiscal framework. I know that discussions are on-going at the moment. I am not sure whether you are aware of them.

Is there anything in relation to the fiscal framework, or around giving flexibility to the Scottish Parliament within the devolved settlement, that you think would be useful, specifically around the approach in relation to the social security budget?

Social Justice and Social Security Committee

Pre-budget Scrutiny

Meeting date: 22 September 2022

Paul McLennan

My question is about tax policy more generally. Dr Hosie, you touched on the importance of tax policy before, and said that

“the Scottish Government’s focus would be more effectively spent on seeking to raise revenue than to believe the funding gap can be closed through efficiency.”

I would like to touch on that. We face a cut of almost £1.7 billion in the coming budget, because of inflation, which we have no control over, so raising taxation revenue is important. Sara Cowan, you also mentioned the impact of tax, and have stated that

“there is a need to embed human rights and equality as an overarching priority for Scotland’s public spending and revenue raising decisions.”

I am keen to touch on specific issues and also about the issues for women, which you have mentioned, but my questions, which I will roll into one are these: what principles should underline tax policy, what kind of impact analysis would you expect to accompany that tax policy and are there are any specific proposals that you would like to see in relation to tax in the 2023-24 budget?

Social Justice and Social Security Committee

Pre-budget Scrutiny

Meeting date: 22 September 2022

Paul McLennan

Thank you for being brief.

Local Government, Housing and Planning Committee

Pre-Budget Scrutiny 2023-24

Meeting date: 6 September 2022

Paul McLennan

Thank you. Professor Gibb, you spoke to us before about the report that I mentioned. Given what you have just heard, do you wish to add anything? I still remember our evidence session with you on the subject, which I quote quite a bit. What are your thoughts about striking the balance?

Local Government, Housing and Planning Committee

Pre-Budget Scrutiny 2023-24

Meeting date: 6 September 2022

Paul McLennan

Thanks for that.

Local Government, Housing and Planning Committee

Pre-Budget Scrutiny 2023-24

Meeting date: 6 September 2022

Paul McLennan

That is great—thank you.

Local Government, Housing and Planning Committee

Pre-Budget Scrutiny 2023-24

Meeting date: 6 September 2022

Paul McLennan

Mike Callaghan or Gary Fairley—I am not sure which of you would be best—might want to speak to the issue from a local authority perspective. How are local authorities balancing the need to decarbonise with the need to build new housing stock?

Local Government, Housing and Planning Committee

Pre-Budget Scrutiny 2023-24

Meeting date: 6 September 2022

Paul McLennan

Have your members done the detailed scoping work to determine how much decarbonisation will cost over a certain period? The housing stock will be of a different quality as well. How detailed is the work that the SFHA has carried out?

Local Government, Housing and Planning Committee

Pre-Budget Scrutiny 2023-24

Meeting date: 6 September 2022

Paul McLennan

I do not know if Gary Fairley wishes to come in on that, but I will ask him the same question, about the scoping work that has been carried out by local authorities of the detailed—or at this stage, estimated—costs. Where are local authorities in that regard? A scoping exercise would be the first step—it was mentioned by the SFHA, and by COSLA in terms of looking at detailed plans. How far has that work progressed among local authorities?