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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

There has been a £484 million cut in capital. Where should that cut fall?

Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 9 January 2024

Kenneth Gibson

I think that people do want that, but the issue is whether, if the tax threshold is increased to a certain degree, it ends up bringing in less than it would have done if it was not increased because of the behavioural changes that people would make. SPICe, the Fraser of Allander Institute and the Scottish Fiscal Commission have all said that the £125,140 rate would bring in less than 15 per cent of the money that, on paper, it should bring in because people will say that they will not work an extra day this week because it will all go on tax anyway.

I am asking whether the STUC and GMB are looking at that particular issue. It is not a zero-sum game. It is not a situation whereby increasing tax by 5 per cent means that we get that extra money, because it will be lost through behavioural change. Will the STUC and GMB go back and look at that and say that, if we pitch it too high, we will end up getting less and there will be lower productivity, sluggish economic growth and we will not have the money for public services? What are your views on that behavioural issue?

Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 9 January 2024

Kenneth Gibson

There are different prioritisations.

Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 9 January 2024

Kenneth Gibson

I asked Keir Greenaway about additional taxation or additional grant from the UK. The UK grant situation is obviously important. The UK Government has cut our capital budget by £484 million, which will have a huge impact. In the previous evidence session, we talked about, for example, the impact on housing, which is facing a 30 per cent cut in the year ahead. Does the GMB not feel that the UK Government should have increased the grant to Scotland this year?

Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 9 January 2024

Kenneth Gibson

Should the grant—for example, the resource grant that the UK Government awards Scotland through the block grant—have been increased more?

Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 9 January 2024

Kenneth Gibson

The investment in critical safety and maintenance for road infrastructure is going up by 40 per cent next year to £524.7 million, and college capital is going up from £340.7 million to £356.9 million, which is a 4.5 per cent increase. In both those areas, capital is actually increasing.

Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 9 January 2024

Kenneth Gibson

Indeed. However, the point that I am trying to make is that, as Ross Greer said in the previous evidence session, a lot of the capital funding is going on critical safety and maintenance. The amount for road improvements is quite low—it is only £124 million. The issue is that the trunk road network maintenance and safety aspect is taking up the bulk of the capital, which is why local government is not getting the capital that it requires to do the pavements and side streets, which are also extremely important for people.

Does anyone else want to make any points?

Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 9 January 2024

Kenneth Gibson

Yes, well—newspapers are another story.

Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 9 January 2024

Kenneth Gibson

That is a matter for bartering, discussion and debate among the political parties. At this time of year, representatives of each of the political parties will speak to the Deputy First Minister to see whether they can shift the dial on the budget in one direction or another. There will not be any more money from anywhere, unlike in the good old days of Derek Mackay’s sofa. It is a question of moving the money from one page of the budget to another page. If colleges make a really good argument, it will no doubt be to the detriment of somebody else. That is the way it works when you have a budget that is, in effect, shrinking.

The theory is that they use what is called the GDP deflator, which means that inflation is set at 1.7 per cent in the budget. We all know that inflation is not 1.7 per cent, but that is how it is measured, because the UK Treasury GDP deflator is used. A 2.6 per cent increase in resource is probably a reduction in the real world, because more than half of the money that is spent here goes on salaries and wages and nobody is getting 2.6 per cent.

Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 9 January 2024

Kenneth Gibson

Figures for local government show that the general capital grant is falling from £607.6 million to £476.9 million, which is about a 19 per cent reduction.