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Displaying 4779 contributions
Finance and Public Administration Committee
Meeting date: 16 September 2025
Kenneth Gibson
Lesley Jackson, you can come in on that as well if you want.
Finance and Public Administration Committee
Meeting date: 16 September 2025
Kenneth Gibson
Sorry, what kind of negative experience?
10:15Finance and Public Administration Committee
Meeting date: 16 September 2025
Kenneth Gibson
Frankly, there is a fear of the unknown in many organisations. They think, “We’re going to have to adopt this, but do we have to do it this week?” or, “What’s the implication going to be for the workforce and the whole structure.” I led the first debate on AI in the Parliament, way back in 2018, and the information that we had then about the impact on employment was completely different from the information now. At that time, the sectors that we were told would be most adversely affected and those that would be boosted were completely different from the scenario now. That issue is still being grappled with.
I will move on to capital investments in a couple of minutes, because a few people mentioned that in their written submissions, but a couple of folk want to come in at the moment.
Finance and Public Administration Committee
Meeting date: 16 September 2025
Kenneth Gibson
Lesley Jackson, did you want to come in?
Finance and Public Administration Committee
Meeting date: 16 September 2025
Kenneth Gibson
One issue is clearly the current political and economic instability. The UK economy is flatlining and there is a lot of turbulence in the political situation, so people may be afraid to invest—that tends to be the situation. However, we can look at the benefits of capital. Your submission says:
“a permanent increase in the economic infrastructure investment rate of 1 per cent of national income permanently raises GDP by around 4.9 per cent and for social infrastructure (eg housing, health, prisons) it is about 3.5 per cent.”
There is obviously a balance to be struck between those two, but both are extremely positive. However, although the Scottish economy has had a huge increase in capital allocation this year, it will decline over the next four or five years and we will be where we were a couple of years back. There is not really any major advance in catching up to international competitors, as you suggested.
How does the Scottish Government tackle that, given the restrictions on capital that we have as part of the fiscal framework?
Finance and Public Administration Committee
Meeting date: 16 September 2025
Kenneth Gibson
It is more or less the UK that decides our capital.
Finance and Public Administration Committee
Meeting date: 16 September 2025
Kenneth Gibson
All else being equal, although I think that people want to buy locally, doing so might be 20 per cent more expensive, and that public money could be better spent with a company 25 miles up the road that might be more efficiently and effectively run.
Finance and Public Administration Committee
Meeting date: 16 September 2025
Kenneth Gibson
Price, quality and delivery are what it is all about, is it not? It is about the right price and the right quality, delivered on time—if only, eh?
Finance and Public Administration Committee
Meeting date: 16 September 2025
Kenneth Gibson
Tom Ockendon, on capital, you said in your paper:
“Investment in the Affordable Housing Supply Programme (AHSP) should be a priority for the Scottish Government’s capital spend.”
You went on to say:
“Crucially, government grant in Scotland is still around 50%—which should not be altered through capital spend plans. Any changes to that ratio—as seen in England where grant has been as low as 15% in recent years—risks pushing rents up.”
Have you heard that the Scottish Government is planning to reduce the grant from 50 per cent, or is it just something that you wish to flag up at this point?
Finance and Public Administration Committee
Meeting date: 16 September 2025
Kenneth Gibson
We continue our evidence on pre-budget scrutiny, this time with a focus on social security in the context of fiscal sustainability. For our second evidence session, we are joined by Shirley-Anne Somerville, Cabinet Secretary for Social Justice, Ian Davidson, deputy director, social security policy, James Wallace, deputy director, social justice finance lead, Scottish Government, and David Wallace, chief executive, Social Security Scotland. Good morning and welcome to the meeting. I invite the cabinet secretary to make an opening statement.