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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 14 May 2025
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Displaying 3259 contributions

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Finance and Public Administration Committee

Budget Scrutiny 2023-24

Meeting date: 20 December 2022

Kenneth Gibson

That commentary was fascinating. I note that the budget’s three priorities are tackling child poverty, having sustainable public services and moving towards net zero. I have always assumed that people who work in the North Sea are paid very well and that people who work in the net zero industries not quite so well, but the average income is almost exactly the same, at just over £38,000 a year. Given that, and given what the Government has prioritised, how can we accelerate the move to net zero to ensure that it is faster than the decline in employment and the decrease in tax revenues in the north-east?

Finance and Public Administration Committee

Budget Scrutiny 2023-24

Meeting date: 20 December 2022

Kenneth Gibson

I thank Professor Muscatelli and his colleagues for their evidence this morning. We will have a five-minute break before we hear from the next panel.

10:44 Meeting suspended.  

10:50 On resuming—  

Finance and Public Administration Committee

Budget Scrutiny 2023-24

Meeting date: 20 December 2022

Kenneth Gibson

One of the issues is that benefits are going to be uprated in April to the consumer prices index rate, which was 10.1 per cent in September, whereas the GDP deflator is only 3.2 per cent. Of course, that is ridiculously low given current circumstances. Will that increase the gap even further?

11:00  

Finance and Public Administration Committee

Budget Scrutiny 2023-24

Meeting date: 20 December 2022

Kenneth Gibson

Given that the Scottish Government is, apart from the higher rates, more or less mirroring the UK’s thresholds, can you tell us what the UK level will be by 2027-28?

Finance and Public Administration Committee

Budget Scrutiny 2023-24

Meeting date: 20 December 2022

Kenneth Gibson

Thank you for that helpful clarification. The first member round the table to ask questions will be the deputy convener, Daniel Johnson.

Finance and Public Administration Committee

Budget Scrutiny 2023-24

Meeting date: 20 December 2022

Kenneth Gibson

Okay. I will not get into that argument at this point.

Finance and Public Administration Committee

Budget Scrutiny 2023-24

Meeting date: 20 December 2022

Kenneth Gibson

—and then Liz Truss? [Laughter.]

Finance and Public Administration Committee

Budget Scrutiny 2023-24

Meeting date: 20 December 2022

Kenneth Gibson

In London, for example, a higher proportion of income goes on mortgages than is the case here, so interest rates are much more damaging there, when they go up.

When it comes to capital funding, you have talked about the 2023-24 budget reflecting a real-terms cut of £185 million using the GDP deflator rate. However, you have also said that the UK Government has announced a freeze on capital budgets in cash terms from 2026-27 onwards. What impact will that have on growth and productivity?

Finance and Public Administration Committee

Budget Scrutiny 2023-24

Meeting date: 20 December 2022

Kenneth Gibson

[Inaudible.]—3.2 per cent, but the price of materials has gone up by 17 per cent. That is not even in the ball park, is it?

Finance and Public Administration Committee

Budget Scrutiny 2023-24

Meeting date: 20 December 2022

Kenneth Gibson

I would have thought that some people would just not bother about a 1p increase; some might not bother with 2p or 3p, but the higher the increase, the more you will see behavioural change.