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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 7 August 2025
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Displaying 893 contributions

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Finance and Public Administration Committee

Budget Scrutiny 2025-26 and Economic and Fiscal Forecasts

Meeting date: 10 December 2024

Craig Hoy

My next question probably strays into the realm of policy choice but, given the scale of private sector investment in renewables—for example, SSE is investing £24 billion and Scottish Power is investing £20 billion—and the strong pipeline of work in the private sector, would there be merit in the state using its capital resource in areas where it is difficult to leverage private sector capital investment?

Finance and Public Administration Committee

Budget Scrutiny 2025-26 and Economic and Fiscal Forecasts

Meeting date: 10 December 2024

Craig Hoy

I have one final question about rates relief for hospitality. Initially, I think that the sector had an expectation that the relief that was granted might have been a bit more generous than it ended up being once the numbers had been crunched.

Remote hospitality venues and those on islands will still get 100 per cent rates relief, whereas other hospitality businesses will get 40 per cent relief, up to a rateable value of £51,000. However, the retail and leisure sectors have been excluded. Has the Government given any indication as to why there is a special need for remote and island hospitality businesses to get that relief, but not those in urban or other rural areas?

11:15  

Finance and Public Administration Committee

Budget Scrutiny 2025-26 and Economic and Fiscal Forecasts

Meeting date: 10 December 2024

Craig Hoy

You note that the increase in take over the two years is significant, so I presume that a canny finance minister would look at that and think that that is quite a good way of plugging any gap.

We touched on it earlier, but the behavioural impact seems to rise proportionately. There must be a tipping point. How difficult is it, from a forecasting and modelling point of view, to look at what the behavioural impact of tax will be? Is it, in effect, a Donald Rumsfeld unknown unknown, and you just have to pluck a number out of the air?

Finance and Public Administration Committee

Budget Scrutiny 2025-26 and Economic and Fiscal Forecasts

Meeting date: 10 December 2024

Craig Hoy

Presumably, it would be prudent for the Scottish Government to allocate something for the preparatory work and the planning for and the construction of administering the benefit in Scotland, however it ends up doing it.

Finance and Public Administration Committee

Budget Scrutiny 2025-26 and Economic and Fiscal Forecasts

Meeting date: 10 December 2024

Craig Hoy

Good morning. On the two-child cap, the finance secretary said at the weekend that she would look to introduce the payment before the following financial year—that is, in the financial year that we are discussing now—if it was possible to do so, and that she would make provision for that. Have you seen any such provision in the Scottish Government’s budget?

Finance and Public Administration Committee

Budget Scrutiny 2025-26 and Economic and Fiscal Forecasts

Meeting date: 10 December 2024

Craig Hoy

On overall sustainability and the impact that the benefit has on the rest of the budget, at what point should we start to feel uncomfortable about what we are having to move from other areas into that position?

Finance and Public Administration Committee

Budget Scrutiny 2025-26 and Economic and Fiscal Forecasts

Meeting date: 10 December 2024

Craig Hoy

Before Professor Ulph comes in, can you say how easy or difficult that is to model? I presume that there will be a behavioural impact, in the same way as taxation has a behavioural impact.

Finance and Public Administration Committee

Budget Scrutiny 2025-26 (United Kingdom Context)

Meeting date: 3 December 2024

Craig Hoy

I will close by asking about two issues that you have identified—sustainability of the NHS in Scotland and sustainability of Scottish universities and higher education. You said that the inputs into the English health service might be slightly higher than those in Scotland. However, this year, at the autumn budget revision, there was a significant resource increase of £1.1 billion for the Scottish health service. From today’s Audit Scotland report on the NHS, it is clear that the Scottish health service continues to be in crisis and is underperforming, compared with the service in the rest of the UK. That implies that money alone will not solve the NHS’s ills.

How clear would you be in suggesting that urgent reform is now required to the Scottish NHS, particularly given the concern that public sector pay, including NHS pay, is absorbing a greater proportion of the overall budget?

Finance and Public Administration Committee

Budget Scrutiny 2025-26 (United Kingdom Context)

Meeting date: 3 December 2024

Craig Hoy

Finally, in relation to the future sustainability of Scottish universities, you identify a heavy reliance in the Scottish higher education system on overseas students, the numbers of whom are falling. At the same time, there has been no increase for 15 years in the tuition fees that are paid for Scottish students, which is leading to a looming cash crisis in Scottish higher education. What needs to change in the system to put it on a more sustainable footing?

10:45  

Finance and Public Administration Committee

Budget Scrutiny 2025-26 (United Kingdom Context)

Meeting date: 3 December 2024

Craig Hoy

Yes. There is perhaps an element of smoke and mirrors at play.

You identify that the Scottish Government faces a challenging situation in future years, partly because of the projections in relation to public sector pay and the social security bill, and potentially also because of its income tax policies. You have recommended that the Scottish Government should set out its plans in a spending review next year and that it should

“evaluate key policies that increasingly differentiate it from the rest of the UK—including its higher public sector pay and income tax policies and wider tax strategy.”

I would probably add social security to that list. Should those three or four issues be cause for concern with regard to the long-term sustainability of the Scottish public finances?