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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 8 June 2025
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Displaying 3368 contributions

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Finance and Public Administration Committee

Budget Scrutiny 2024-25 (United Kingdom Context)

Meeting date: 12 December 2023

Kenneth Gibson

You talked about where you predicted the economy would be and the economy having been stronger than you thought. However, the 3 per cent difference seems quite big. It was thought that the economy would be 1 per cent below pre-pandemic levels, but it was actually 2 per cent higher. Why was there such a significant difference from what you anticipated in the forecast?

Finance and Public Administration Committee

Budget Scrutiny 2024-25 (United Kingdom Context)

Meeting date: 12 December 2023

Kenneth Gibson

Interestingly, the UK population has been growing very consistently over the past three years by about a third of 1 per cent a year. When it looks at growth for the UK economy, does the OBR also look separately at per capita income growth, or does it simply look at the economy globally? You are talking about 1.6 per cent growth in the UK economy but, if you take population into account, it is probably about 1.2 or 1.3 per cent. Do you look at that?

Finance and Public Administration Committee

Budget Scrutiny 2024-25 (United Kingdom Context)

Meeting date: 12 December 2023

Kenneth Gibson

Good morning, and welcome to the 33rd meeting in 2023 of the Finance and Public Administration Committee. We have apologies from Jamie Halcro Johnston, who is unwell, and from Ross Greer, who will be late. Michael Marra joins us remotely.

The first item on our agenda is an evidence session with the Office for Budget Responsibility on the United Kingdom autumn budget statement and the wider UK context, with a view to informing our scrutiny of the upcoming 2024-25 Scottish budget. I welcome to the meeting our witnesses from the Office for Budget Responsibility: Richard Hughes is chair of the budget responsibility committee; Tom Josephs is a member of the budget responsibility committee; and Professor David Miles, who joins us remotely, is a member of the budget responsibility committee. I understand that questions should be put to Richard Hughes and that he will bring in Professor Miles if he needs to do so.

We will move directly to questions from me; I will then bring in other members of the committee.

It appears that, in September, the Chancellor of the Exchequer was in—let us say—deep trouble with the fiscal situation, but by November, he had some significant wriggle room, thanks to OBR predictions of higher inflation and fiscal drag. I understand that that amounts to around £14 billion since March alone. Can you talk us through how the OBR forecasts have changed over the months since March?

Finance and Public Administration Committee

Budget Scrutiny 2024-25 (United Kingdom Context)

Meeting date: 12 December 2023

Kenneth Gibson

I am glad that you look at it in defence procurement, because the costs for the Ajax project or for certain aircraft carriers have been billions of pounds higher than initially estimated. Of course, that was the case with HS2 as well. All those major projects seem to be hugely over budget.

Incidentally, does the OBR ever look at the price of procurement in the UK relative to other parts of Europe? All capital projects seem to be phenomenally more expensive in the UK than they are in Europe, for example.

Finance and Public Administration Committee

Revenue Scotland

Meeting date: 5 December 2023

Kenneth Gibson

Thank you for that clarification.

My last question is on the information on page 38 of the resource accounts document, which is on performance analysis. I was pleased to see that, between 2016 and 2022, the 10 categories that you have, from “Leading and Managing Change” through to “Engagement Index”, have all improved significantly. However, there is variation in improvement. For example, you are sitting at 61 per cent for “Pay and Benefits”, compared with 92 per cent for “My Team”. I am not really sure what “My Team” relates to. Can you explain that graph and set out the progress that has been made and that you plan to make?

Finance and Public Administration Committee

Revenue Scotland

Meeting date: 5 December 2023

Kenneth Gibson

Okay. I have hogged the floor enough. I open up the session to colleagues.

Finance and Public Administration Committee

Revenue Scotland

Meeting date: 5 December 2023

Kenneth Gibson

I asked about it because the tax gap is one of the contentious issues. I was looking for a ballpark figure; I was not looking for you to say that it is £10.3 million or £4.5 million. Is it about 1 or 2 or 3 per cent? If we do not know what the gap is, it is hard to tackle it. I know from your accounts that more than 99 per cent of the money that is due is being collected, but it seems to me that there might be a gap outside of that.

Finance and Public Administration Committee

Revenue Scotland

Meeting date: 5 December 2023

Kenneth Gibson

That is great. Indeed, that, in itself, is a very helpful comment.

Thank you for answering our questions so fully and frankly. There is one issue that you said that you would get back to us on, so we look forward to receiving that information.

That concludes the public part of today’s meeting, as our next agenda item is discussion of our work programme, which will take place in private.

11:02 Meeting continued in private until 11:23.  

Finance and Public Administration Committee

Revenue Scotland

Meeting date: 5 December 2023

Kenneth Gibson

So you are hoping for further progress, and are planning for and working towards that.

Finance and Public Administration Committee

Revenue Scotland

Meeting date: 5 December 2023

Kenneth Gibson

Our accountant, John Mason, is waiting to come in after I am finished.