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All Official Reports of meetings in the Debating Chamber of the Scottish Parliament.
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Displaying 4779 contributions
Finance and Public Administration Committee
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.Finance and Public Administration Committee
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?
11:00Finance and Public Administration Committee
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
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
Meeting date: 20 December 2022
Kenneth Gibson
Okay. I will not get into that argument at this point.
Finance and Public Administration Committee
Meeting date: 20 December 2022
Kenneth Gibson
—and then Liz Truss? [Laughter.]
Finance and Public Administration Committee
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
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
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.
Finance and Public Administration Committee
Meeting date: 20 December 2022
Kenneth Gibson
Good morning, and welcome to the 34th meeting in 2022 of the Finance and Public Administration Committee. We have received apologies from Douglas Lumsden, who is attending a funeral today.
The first item on our agenda is an evidence session with the Scottish Government’s expert panel on the Scottish budget for 2023-24. We are joined remotely by Professor Sir Anton Muscatelli, principal and vice-chancellor of the University of Glasgow; Professor Frances Ruane, chair of the national competitiveness and productivity council and research affiliate at the Economic and Social Research Institute; and Dr Mike Brewer, chief economist and deputy chief executive at the Resolution Foundation. I welcome you all to the meeting.
I intend to allow up to 75 minutes for the session. We will move straight to questions. Our questions do not have to be answered by everybody. I will put my questions to Professor Muscatelli, who can decide which of his colleagues should answer. Although more than one person can answer, that does not need to happen.
The “Expert Panel Interim Commentary on the Implications of the UK Government Fiscal Statements for the Scottish Government Budget” sets out the panel’s thinking
“on how the Scottish Government could respond to the challenges it is facing through the tax system and the wider implications for public services and the economy.”
It suggests that the Scottish Government will need to find a balance between
“providing short-term support to vulnerable households and businesses; and ... investing to grow and improve the productivity and resilience of the economy in the medium to longer term.”
Has it done so?