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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 15 May 2025
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Displaying 3259 contributions

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Finance and Public Administration Committee

Subordinate legislation

Meeting date: 17 January 2023

Kenneth Gibson

Everyone is keen to ask questions. Michelle Thomson will be first, followed by Daniel Johnson.

Finance and Public Administration Committee

Subordinate legislation

Meeting date: 17 January 2023

Kenneth Gibson

What is likely to be the behavioural impact of the measure? You have talked about the importance of the money—an additional £34 million—that will be raised through it. The £34 million is not net; it is following behavioural change. What is your view on the level of that behavioural change and how it will impact this tax in future years?

Finance and Public Administration Committee

Subordinate legislation

Meeting date: 17 January 2023

Kenneth Gibson

That is in the south-east of England. You will find that, in places such as Preston or Huddersfield, the average is nowhere near those prices.

Finance and Public Administration Committee

Subordinate legislation

Meeting date: 17 January 2023

Kenneth Gibson

It does not lower the price of the house for those people; it just means that their rivals would pay more for the same house.

Finance and Public Administration Committee

Subordinate legislation

Meeting date: 17 January 2023

Kenneth Gibson

Do members have any further comments?

Finance and Public Administration Committee

Subordinate legislation

Meeting date: 17 January 2023

Kenneth Gibson

I second that. I bought my first flat when I was 21. My children are aged 30, 26 and 24. One still lives at home and two of them rent, because they simply cannot afford the deposit that is required to buy a property, so I sympathise with that viewpoint. That is having huge socioeconomic impacts in Scotland. It affects people’s decisions on when to start a family and all the things that follow on from that.

Finance and Public Administration Committee

Subordinate legislation

Meeting date: 17 January 2023

Kenneth Gibson

I will follow up on a couple of points. How much of the £34 million will be raised from local authorities?

Finance and Public Administration Committee

Subordinate legislation

Meeting date: 17 January 2023

Kenneth Gibson

Thank you. That would be very helpful.

What seems to have come out of the discussion is that the additional dwelling supplement appears to be a bit of a blunt instrument, although there are lots of really good aspects to it. John Mason made an interesting point. Raising the additional dwelling supplement to 6 per cent will not just make things more competitive for first-time buyers; it will probably deter a number of people in the buy-to-let sector from entering the market in the first place, which could reduce upward pressure on prices. That could be a significant positive gain from the policy.

The policy might deter people from buying second homes in our rural areas. In relation to some islands in Scotland, the figure is well over 50 per cent. A couple of years ago, I was in Colonsay, where, I think, 108 people live and only two children are in the school, with many of the properties having been bought by retirees who use them as second homes. However, some of the properties are not second homes; some people live in them. I realise that that is a housing issue rather than a finance issue.

The ADS can be a bit of a blunt instrument when it comes to people buying derelict houses or houses that are a wee bit rundown so that they can upgrade and live in them. Further thought should also be given to that. To me, the ADS is too broad an instrument. It has some positive aspects, but there are also negative aspects. In broad terms, it can act as both an incentive and a disincentive in relation to the Government’s objectives.

Minister, do you want to add anything before we move on?

Finance and Public Administration Committee

Subordinate legislation

Meeting date: 17 January 2023

Kenneth Gibson

There will be a division.

For

Gibson, Kenneth (Cunninghame North) (SNP)
Greer, Ross (West Scotland) (Green)
Johnson, Daniel (Edinburgh Southern) (Lab)
Mason, John (Glasgow Shettleston) (SNP)
Thomson, Michelle (Falkirk East) (SNP)

Abstentions

Lumsden, Douglas (North East Scotland) (Con)
Smith, Liz (Mid Scotland and Fife (Con)

Finance and Public Administration Committee

Subordinate legislation

Meeting date: 17 January 2023

Kenneth Gibson

The result of the division is: For 5, Against 0, Abstentions 2.

Motion agreed to,

That the Finance and Public Administration Committee recommends that the Land and Buildings Transaction Tax (additional amount: transactions relating to second homes etc.) (Scotland) Amendment Order 2022 (SSI 2022/375) be approved.