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: 20 December 2023
Kenneth Gibson
But, to a large extent, fiscal drag is the reason for the forecast being £2,211 million higher now than it was a year ago.
Finance and Public Administration Committee
Meeting date: 20 December 2023
Kenneth Gibson
In paragraph 3.47, you say that pay in the finance sector in Scotland is growing 3.5 percentage points faster than it is in the rest of the UK. In the next paragraph, you mention that, for a while, North Sea oil acted as a drag on earnings, which are coming back up to the average. Will you talk to us about that and the circumstances around that? Why is that happening? Is that likely to continue?
Finance and Public Administration Committee
Meeting date: 20 December 2023
Kenneth Gibson
Before you ask another question, John, I see that Claire Murdoch wants to come in.
Finance and Public Administration Committee
Meeting date: 20 December 2023
Kenneth Gibson
It is not about commenting on policy choices; it is about showing which policy choices are available, and then it is up to politicians to decide whether to take one or other forward—I can see that.
I will open up the session to questions from members.
Finance and Public Administration Committee
Meeting date: 20 December 2023
Kenneth Gibson
Sorry, but you are talking about 0.4 per cent of income tax revenues, which is £82 million.
Finance and Public Administration Committee
Meeting date: 20 December 2023
Kenneth Gibson
About 90 per cent comes from the UK Government.
Finance and Public Administration Committee
Meeting date: 20 December 2023
Kenneth Gibson
Thank you. I now open up the meeting to members’ questions.
Finance and Public Administration Committee
Meeting date: 20 December 2023
Kenneth Gibson
Obviously, I know that it is standard practice. It is frustrating that the figure is not based as much in reality as one would wish, certainly in these difficult times.
In the fiscal overview, on page 3, you talk about resource funding rising by 8 per cent by 2028-29. However, on page 5, unless my arithmetic is wrong, you say that the funding will increase in real terms from £52,449 million to £54,691 million, which is actually an increase of 4.2 per cent rather than 8 per cent.
Finance and Public Administration Committee
Meeting date: 20 December 2023
Kenneth Gibson
It is interesting that, in her statement yesterday, the Deputy First Minister talked about a 10 per cent reduction over five years, rather than a 20 per cent reduction. That seems odd, given the figures that you have used. I did not see your figures until after the statement; if I had seen them, I would have asked the Deputy First Minister about that.
One of the issues that has been very much to the forefront has been the new additional rate of income tax, which starts at £75,000 a year. You have assumed that that will produce £82 million net, but the gross figure is £200 million. Basically, you are saying that the £200 million that, on paper, is being levied by that change will bring in only 41 per cent of that estimate, or £82 million. Would that be right?
Finance and Public Administration Committee
Meeting date: 20 December 2023
Kenneth Gibson
How accurate are your predictions likely to be in that regard? What are the margins of error? I would have thought that they could be quite wide.