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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 25 May 2025
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Displaying 3259 contributions

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Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 9 January 2024

Kenneth Gibson

So far, everyone has body-swerved the issue of taxation. I will ask Keir Greenaway about that, as the GMB’s submission is the most virulent on the issue.

The GMB welcomes the introduction of a new income tax band,

“as this will collect more money from higher earners”.

However, it added:

“this goes nowhere near far enough to plug the gap in Scotland’s public finances.”

Do you believe that the gap should be plugged solely by increases in taxation or that there should be a combination of additional grant funding from the UK, for example, and taxation? How would you pitch that?

Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 9 January 2024

Kenneth Gibson

The STUC talked about raising up to £3.7 billion. The Scottish Government’s increases in taxation would, on paper, raise £200 million. However, when behavioural change comes into play because, for example, people might decide that they will not do an extra shift if they are paying a marginal tax rate of 69.5 per cent, the actual amount that would be brought in is about £82 million. One of my concerns about the STUC document was that it did not seem to take that behavioural change into account. What is your view on behavioural change and how it would impact on the amount that can be raised—not on paper, but the actual amount that the Scottish Government would have available to spend—given the effect that the increase would have on some people’s behaviour?

Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 9 January 2024

Kenneth Gibson

I am sorry. Why did I call you Howard?

Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 9 January 2024

Kenneth Gibson

Yes.

Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 9 January 2024

Kenneth Gibson

That is fine. I was just looking for clarification on that.

Does anyone want to comment on taxation at all, for or against, or to talk about the Scottish Government’s capital priorities? I touched on housing, which was discussed at some length in the previous evidence session. Where can capital be spent? For example, I mentioned previously that the police are getting a 12.4 per cent increase in capital, whereas there is a 30 per cent decrease for housing. It would be interesting to hear what people have to say about that.

Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 9 January 2024

Kenneth Gibson

Okay, who wants to go first with their final comments?

Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 9 January 2024

Kenneth Gibson

Yes, I am sure that we all look forward to the spring and autumn revisions. Stacey Dingwall, I will give you the final word.

Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 9 January 2024

Kenneth Gibson

In your submission, you say that Scotland is now spending £1,092 million a year in benefits and welfare payments over and above what was devolved. The Scottish Parliament information centre has said that, based on current projections, that will rise to £1,502 million by 2029. How sustainable do you think that is?

Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 9 January 2024

Kenneth Gibson

Good morning, and welcome to the first meeting in 2024 of the Finance and Public Administration Committee. I wish you all a happy new year, and I congratulate Liz Smith, who is a member of the committee, on the award of a well-deserved CBE in the new year’s honours list.

There is a single item on our agenda, which is to take evidence on the 2024-25 Scottish budget from two panels of witnesses. First, we will hear from João Sousa, deputy director of the Fraser of Allander Institute; Chris Birt, associate director for Scotland at the Joseph Rowntree Foundation; and Professor David Bell, professor of economics at the University of Stirling. I welcome all of you to the meeting and thank you for your written submissions.

We will move straight to questions. If I ask an individual member of the panel a question, other witnesses can chip in. However, I might put questions to all members of the panel. We will suck it and see, so to speak.

The Scottish Government has said that it will prioritise spending on three missions, which are:

“Equality: Tackling poverty and protecting people from harm

Opportunity: A fair, green and growing economy

Community: Prioritising our public services”.

How is the Scottish Government doing that in the budget? We will start with Mr Birt.

Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 9 January 2024

Kenneth Gibson

I read your submission in detail, and I noticed that it did not set any context on where the Scottish Government finds itself on the finances and the economics. You have talked about the need to increase the Scottish child payment to £30 and about reversing the reduction in the affordable housing supply budget, for example. You referred to that reduction as “brutal”. Given that the Scottish Government has a £484 million cut in its capital budget next year and that the resource budget has been increased by only 2.6 per cent, how would you do that? The Scottish child payment has been increased by 6.7 per cent, which is in line with the United Kingdom’s increases in benefits. How would you square the circle?