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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 2 February 2026
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Displaying 4236 contributions

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Finance and Public Administration Committee [Draft]

Budget Scrutiny 2026-27

Meeting date: 20 January 2026

Kenneth Gibson

Some of the questions that I was going to ask Professor Heald with regard to his submission were asked of the SFC in the previous session, and so I will not tread on my colleagues’ toes, because they may wish to ask the same or similar questions here.

In the pages of the submission, Professor Heald has, I think, expressed frustration with regard to people’s understanding of the tax system in Scotland relative to the UK. I will quote from it.

In a supporting document to the budget, the Scottish Government states:

“54% of respondents felt they understood the UK tax system and the UK taxes paid. This compares to 41% of respondents who felt they understood tax devolution in Scotland and the devolved taxes they paid. This is broadly in line with the last three years.”

However, your submission states:

“If this were true … why do the UK and Scottish Governments engage in so much subterfuge?”

Are you referring specifically to fiscal drag, or have you concerns about a number of areas in which the Scottish and UK Governments are pulling the wool over people’s eyes?

Finance and Public Administration Committee [Draft]

Budget Scrutiny 2026-27

Meeting date: 20 January 2026

Kenneth Gibson

Indeed.

What do you think, Professor Spowage?

Finance and Public Administration Committee [Draft]

Budget Scrutiny 2026-27

Meeting date: 20 January 2026

Kenneth Gibson

There is also the issue of incorporation and people putting money into pensions and all sorts of stuff.

Finance and Public Administration Committee [Draft]

Budget Scrutiny 2026-27

Meeting date: 20 January 2026

Kenneth Gibson

You have talked about loss aversion at this committee in the past. As we all know, the problem with council tax reform is that the losers will all be less than pleased with the Government—of whatever colour—that introduces it, which is why it has not happened in England, although it has been done modestly in Wales.

I want to switch tack. I want colleagues to come in, but I want to ask a couple more questions. I end up getting sucked into a big discussion and other people cannot come in. In the previous evidence session, we did not speak much about the sustainability of social care. You have touched on that, Professor Bell. What is your concern about that, given the tightness of the local government settlement?

Finance and Public Administration Committee [Draft]

Budget Scrutiny 2026-27

Meeting date: 20 January 2026

Kenneth Gibson

Let me go back to Professor Spowage. Capital is a real issue. Along with colleagues. I was quite astonished to see that the infrastructure investment pipeline does not seem to include any timelines or any budgets for any of the projects. As we discussed with the previous witnesses, the overall capital budget is set to reduce by 5 per cent in real terms. That is the figure if we use the GDP deflator, which, in my view, is the wrong measure for capital, because, as we all know, construction costs are well ahead of that. The GDP deflator gives an unrealistic picture of what can be delivered, which is less than we would like.

What is your view on where we are going with regard to capital expenditure over the next five years and what can be delivered through it?

12:00

Finance and Public Administration Committee [Draft]

Budget Scrutiny 2026-27

Meeting date: 20 January 2026

Kenneth Gibson

We have been calling for that since December 2023.

Finance and Public Administration Committee [Draft]

Budget Scrutiny 2026-27

Meeting date: 20 January 2026

Kenneth Gibson

We might have one or two questions for the cabinet secretary next week.

Finance and Public Administration Committee [Draft]

Budget Scrutiny 2026-27

Meeting date: 20 January 2026

Kenneth Gibson

That is only the case if nothing changes in the next five years.

13:00

Finance and Public Administration Committee [Draft]

Budget Scrutiny 2026-27

Meeting date: 20 January 2026

Kenneth Gibson

Good morning, and welcome to the third meeting in 2026 of the Finance and Public Administration Committee. We have one public item on our agenda today, which is evidence from two panels of witnesses on the Scottish budget for 2026-27.

For the first panel, we will hear from the Scottish Fiscal Commission. I welcome to the meeting Professor Graeme Roy, the commission’s chair; Dr Eleanor Ryan and Justine Riccomini, who are commissioners; Claire Murdoch, the head of fiscal sustainability and public funding; and Michael Davidson, the head of social security and devolved taxes.

Having read out that list, I think that our time is just about up.

Before we move on to questions, I invite Professor Roy to make a short opening statement. Good morning, Professor.

Finance and Public Administration Committee [Draft]

Budget Scrutiny 2026-27

Meeting date: 20 January 2026

Kenneth Gibson

It makes it difficult for people to make comparisons year on year, which is certainly a concern for this committee and for anyone who might want to look at the figures.

One thing that stands out is the difference in the reconciliation, which is a change of more than £0.5 billion. You touched on the reasons for that, but only a few of them. Although they are in your report, could you go through them in a wee bit more depth for the record?