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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 4 May 2021
  6. Current session: 13 May 2021 to 18 December 2025
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Displaying 4037 contributions

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Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 9 January 2024

Kenneth Gibson

The STUC talked about raising up to £3.7 billion. The Scottish Government’s increases in taxation would, on paper, raise £200 million. However, when behavioural change comes into play because, for example, people might decide that they will not do an extra shift if they are paying a marginal tax rate of 69.5 per cent, the actual amount that would be brought in is about £82 million. One of my concerns about the STUC document was that it did not seem to take that behavioural change into account. What is your view on behavioural change and how it would impact on the amount that can be raised—not on paper, but the actual amount that the Scottish Government would have available to spend—given the effect that the increase would have on some people’s behaviour?

Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 9 January 2024

Kenneth Gibson

I am sorry. Why did I call you Howard?

Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 9 January 2024

Kenneth Gibson

Yes.

Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 9 January 2024

Kenneth Gibson

That is fine. I was just looking for clarification on that.

Does anyone want to comment on taxation at all, for or against, or to talk about the Scottish Government’s capital priorities? I touched on housing, which was discussed at some length in the previous evidence session. Where can capital be spent? For example, I mentioned previously that the police are getting a 12.4 per cent increase in capital, whereas there is a 30 per cent decrease for housing. It would be interesting to hear what people have to say about that.

Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 9 January 2024

Kenneth Gibson

Okay, who wants to go first with their final comments?

Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 9 January 2024

Kenneth Gibson

Yes, I am sure that we all look forward to the spring and autumn revisions. Stacey Dingwall, I will give you the final word.

Finance and Public Administration Committee

Budget Scrutiny 2024-25 and Economic and Fiscal Forecasts

Meeting date: 20 December 2023

Kenneth Gibson

This figure does not have a number. It is on page 5 of your summary report—it is right at the beginning.

Finance and Public Administration Committee

Budget Scrutiny 2024-25 and Economic and Fiscal Forecasts

Meeting date: 20 December 2023

Kenneth Gibson

That would be 3 per cent.

Finance and Public Administration Committee

Budget Scrutiny 2024-25 and Economic and Fiscal Forecasts

Meeting date: 20 December 2023

Kenneth Gibson

That concludes the committee’s questions, but there are a couple of other points that I want to ask about.

First, I want to try and pin the behavioural response issue down a wee bit. In paragraph 35 of your report, you talk about £200 million gross and £82 million net, but, as we know, £74 million of that net figure comes from the new £75,000 band, and £8 million is from the £125,000 to £140,000 band. Where is the gross in those two figures? Are we talking about £8 million out of £40 million, £60 million or whatever? I want to get a better idea of where the tipping point is. I remember being in the Basque Country many years ago and being told, “If you put income tax up by 2 or 3 per cent more than the Spanish average, it does not make much difference, but if you go to 4 or 5 percent, it suddenly goes zzhhh”—that is, it falls away in a kind of reverse Laffer curve, so to speak. That is what I am trying to say. How much of the gross £200 million comes from the £125,000 to £140,000 band and how much comes from the £75,000 band?

Finance and Public Administration Committee

Budget Scrutiny 2024-25 and Economic and Fiscal Forecasts

Meeting date: 20 December 2023

Kenneth Gibson

Indeed.