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Seòmar agus comataidhean

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

Public Finances 2023-24 (Impact of Cost of Living and Public Service Reform)

Meeting date: 20 September 2022

Kenneth Gibson

They used to say, “Where there’s muck, there’s brass.” Now it seems to be data. Things have certainly moved on from when I were a lad.

Stephen Boyle, you refer in your submission to Audit Scotland’s report, “Addressing climate change in Scotland”, which contains

“a high-level summary of the key improvements that need to be made across the public sector if Scotland is to reach its climate change ambitions”.

Can you provide some examples of those improvements, the cost and the delivery timescale?

Finance and Public Administration Committee

Public Finances 2023-24 (Impact of Cost of Living and Public Service Reform)

Meeting date: 20 September 2022

Kenneth Gibson

Susan Murray, in your submission you call for more spending on public transport. Can you specify how much more, and what it should be allocated to—buses, ferries or rail? Where can that funding be sourced from?

Finance and Public Administration Committee

Public Finances 2023-24 (Impact of Cost of Living and Public Service Reform)

Meeting date: 20 September 2022

Kenneth Gibson

People can jump in if they wish to add anything, although the submissions are all quite distinct, so I do not think that there will be much overlap in my questions except in one or two cases. If you wish to contribute, please feel free to do so—I should have said that earlier.

Charlotte Barbour, you said that you wished to draw attention to dividend taxation in particular, which is

“set at UK level”

and

“is a standing invitation to higher rate Scottish business income taxpayers to consider remaining within lower UK rates of taxation by incorporating their businesses and paying corporation and dividend tax, rather than paying Scottish earned income tax rates.”

What is the impact of that in revenue loss to Scotland? What is the potential for it to be a serious issue?

Finance and Public Administration Committee

Public Finances 2023-24 (Impact of Cost of Living and Public Service Reform)

Meeting date: 20 September 2022

Kenneth Gibson

No, it is not.

You have also said that this is an obvious area in which to consider further devolution—I do not know whether the UK Government would consider that. It is uncertain whether increasingly differentiated tax rates between Scotland and the rest of the UK will reduce the attractiveness to higher earners of coming to Scotland. That matter was talked about years ago, as you will be aware. What research has been done about that question over the years? I have seen research from other countries that says that a 2 or 3 per cent differential does not make much difference to behaviour—you will not move everything because of a 2 or 3 per cent difference, but you might if it is 6, 7 or 8 per cent. Has any research been done as to where the tipping point might be in relation to Scotland and the rest of the UK?

Finance and Public Administration Committee

Public Finances 2023-24 (Impact of Cost of Living and Public Service Reform)

Meeting date: 20 September 2022

Kenneth Gibson

I do not think that they are; it is quite clear that they are not.

Finance and Public Administration Committee

Public Finances 2023-24 (Impact of Cost of Living and Public Service Reform)

Meeting date: 20 September 2022

Kenneth Gibson

If inflation is at 10 per cent and wages go up by 7 per cent, on average, that will still take a huge chunk of people into higher taxes and then they will be liable. Therefore of the extra money that they might get through a pay increase a higher proportion will be taken in taxes.

Finance and Public Administration Committee

Public Finances 2023-24 (Impact of Cost of Living and Public Service Reform)

Meeting date: 20 September 2022

Kenneth Gibson

Do you think that the Minister for Finance and the Economy should be the chair, perhaps?

Finance and Public Administration Committee

Public Finances 2023-24 (Impact of Cost of Living and Public Service Reform)

Meeting date: 20 September 2022

Kenneth Gibson

My reason for asking is that you mentioned the working group in your submission.

Finance and Public Administration Committee

Public Finances 2023-24 (Impact of Cost of Living and Public Service Reform)

Meeting date: 20 September 2022

Kenneth Gibson

No, because I am sure that others will ask you about that.

Finance and Public Administration Committee

Public Finances 2023-24 (Impact of Cost of Living and Public Service Reform)

Meeting date: 20 September 2022

Kenneth Gibson

You suggested that barriers to work need to be removed, so my question was about which barriers should be removed.