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: 7 February 2023
Kenneth Gibson
With that, as there are no other questions, I bring the evidence session to a close. We will have a five-minute comfort break.
11:04 Meeting suspended.Finance and Public Administration Committee
Meeting date: 7 February 2023
Kenneth Gibson
Our next item is consideration of the Budget (Scotland) (No 2) Bill at stage 2. We have no amendments, but the standing orders oblige us to consider and agree formally to each of the bill’s sections and schedules, and its long title. We will take the sections in order, with schedules being taken immediately after the section that introduces them, and will take the long title last. Fortunately, the standing orders allow us to put a single question on groups of sections and schedules that are to be considered consecutively. Unless members disagree, that is what I propose to do.
The question is, that section 1, schedule 1, section 2, schedule 2, section 3, schedule 3, and sections 4 to 11 be agreed to. Are we agreed?
Finance and Public Administration Committee
Meeting date: 7 February 2023
Kenneth Gibson
Absolutely.
Finance and Public Administration Committee
Meeting date: 7 February 2023
Kenneth Gibson
I am sorry, Deputy First Minister, but I am not trying to get the specifics, for the reasons that you outlined. I am trying to get parameters—for example, what is the minimum that it is likely to cost and what is the maximum? Surely the Government must be aware of that at this stage in the budget process.
Finance and Public Administration Committee
Meeting date: 7 February 2023
Kenneth Gibson
That stability over such a long period has helped the Scottish Government’s policy direction whereas, south of the border, there has been incredible turmoil in energy policy, which has gone in all sorts of different directions: it has reversed and gone up, down and round about. There has been little consistency or long-term financial planning, whether we are talking about wind, solar or nuclear power. I take that on board.
My last question is about growing the tax base and productivity, which is a key area for us. You responded to the points that we made on that in our report by saying:
“Economic modelling estimates that delivery of key components of the strategy”—
the national strategy for economic transformation—
“could increase the size of the Scottish economy by at least £8 billion”,
which is almost 5 per cent,
“more than it otherwise would have been in 2032.”
You went on to mention a network of hubs to support high-growth tech businesses, the technology sector export plan, a hydrogen innovation scheme and the low-carbon manufacturing challenge fund. However, I wonder what other components will deliver that extra £8 billion.
10:00Secondly, on ScotWind leasing, you referred to
“£28 billion of potential Scottish economic activity.”
Over what time period will that be delivered?
Finance and Public Administration Committee
Meeting date: 7 February 2023
Kenneth Gibson
That ends stage 2 consideration of the bill. I thank the cabinet secretary.
We move into private session to consider our work programme.
11:09 Meeting continued in private until 11:18.Finance and Public Administration Committee
Meeting date: 7 February 2023
Kenneth Gibson
Do you accept that there is an element of frustration in the committee that we will not get the financial memorandum until after stage 3 has passed? Obviously, members are keen to know how much of a commitment there is to the NCS. We know the size of the overall budget and that more than £1 billion extra is going into health and social care this year, but there is a focus on that specific aspect.
Last week in the chamber we heard wildly differing figures for how much it will cost over the next five years. That is partly because we do not have a real grip on the financial memorandum and exactly what it is likely to say. Any help in terms of parameters would be useful—minimums and maximums, for example.
Finance and Public Administration Committee
Meeting date: 7 February 2023
Kenneth Gibson
Indeed.
Some capital projects have had to be deprioritised. I am keen to get information on which projects have been affected. I am aware of one in my constituency, for a start. Major rail projects seem to be an area in which there has been deprioritisation. However, the Scottish Government has met its commitment to expand its green investment portfolio, the target on which it has exceeded by around 15 per cent. The current figure is £3.4 billion, so there is also some good news, is there not?
Finance and Public Administration Committee
Meeting date: 7 February 2023
Kenneth Gibson
One area of taxation where there is concern is council tax. A working group, which includes representatives from the Convention of Scottish Local Authorities, has been set up to consider proposals for meaningful changes to be introduced in the short term, such as increasing the rates of council tax on second and empty homes. The group will also consider approaches to long-term reform. When is that working group likely to report?
Finance and Public Administration Committee
Meeting date: 7 February 2023
Kenneth Gibson
I will stay with council tax. Currently, the Scottish Government provides council tax relief and 450,000 households receive a council tax reduction, with recipients saving more than £750 a year on average. By my calculations, that is a Scottish Government investment of £337.5 million, give or take one or two million. If council tax increases substantially this year, do you anticipate a significant increase in the Scottish Government’s input to that scheme?