The Official Report is a written record of public meetings of the Parliament and committees.
All Official Reports of meetings in the Debating Chamber of the Scottish Parliament.
All Official Reports of public meetings of committees.
Displaying 4779 contributions
Finance and Public Administration Committee
Meeting date: 10 December 2024
Kenneth Gibson
I would like to know the change within each band. My understanding is that there is a significant difference between the impacts of behavioural change in the two.
Finance and Public Administration Committee
Meeting date: 10 December 2024
Kenneth Gibson
Yes.
Finance and Public Administration Committee
Meeting date: 10 December 2024
Kenneth Gibson
Thank you. John Ireland, do you want to come in? No? Sorry—you are just wiggling your pen about. Remember, this is like an auction—if you touch your nose or anything like that, I will bring you in and expect you to buy a clock or something.
You touched on income tax, which I think is worth exploring. You have explored that in some detail in your report, but could you talk us through the income tax position a wee bit more. I am also very interested in the impact, as you see it, of income tax on behavioural change, as we are a year on from last year’s increases to the two highest tax rates in Scotland.
10:30Finance and Public Administration Committee
Meeting date: 10 December 2024
Kenneth Gibson
Thank you for that. It is certainly an issue that we will revisit.
Another significant area of revenue for the Scottish Government is non-domestic rates, in which I see that a quite significant increase is anticipated not next year, when you say that revenues will fall from £3,175 million to £3,052 million, but the following year, when you expect them to jump quite significantly by about 14 or 15 per cent. What is the reasoning for that? I see that they kind of level out after that.
Finance and Public Administration Committee
Meeting date: 10 December 2024
Kenneth Gibson
That is fair enough. That is clear. You do not expect a massive retail boom or something like that, with everyone coughing up hugely higher rates. You have more or less explained that it is to do with the cycle.
You said that you have not included figures on national insurance contributions in the report. The Scottish Government has suggested that the increase in NICs will cost the public sector about £549 million. There are organisations within the public sector, such as the Convention of Scottish Local Authorities, that argue that their share will be significantly higher than the Scottish Government has estimated. Either way, the UK Government does not seem to be keen, for whatever reason—maybe because of the size of our public sector—to fully fund that £549 million, if that is indeed the figure, although discussions are continuing. What impact is that likely to have in terms of the overall budget?
Finance and Public Administration Committee
Meeting date: 10 December 2024
Kenneth Gibson
Yes—in the context of non-domestic rates. Why is there such a big jump in your forecasts between 2025-26 and 2026-2027?
Finance and Public Administration Committee
Meeting date: 10 December 2024
Kenneth Gibson
We used to hear about Giffen goods—when the price went up, people bought more of them.
Finance and Public Administration Committee
Meeting date: 10 December 2024
Kenneth Gibson
Yes.
Finance and Public Administration Committee
Meeting date: 10 December 2024
Kenneth Gibson
No, I think that that is quite clear.
Finance and Public Administration Committee
Meeting date: 10 December 2024
Kenneth Gibson
In future, we will have to ban you from those opening briefings, given that you have answered half the questions that I was going to ask—of course, many of those figures are in the documents already—but we will try to progress, nonetheless.
You talked about the £1.3 billion in the autumn budget revision, which we discussed at some length in the session that we had in private before you came in. As you said, looking at the ABR, the Government has moved some way towards assessing next year’s budget compared with its most up-to-date position, but it seems that it has only gone halfway there. Can you elaborate a wee bit more on that issue and the difficulties that it causes you in setting out your forecasts for next year and assessing where we are?