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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 5 May 2021
  6. Current session: 12 May 2021 to 10 May 2025
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Displaying 3226 contributions

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Finance and Public Administration Committee

Budget Scrutiny 2025-26 (United Kingdom Context)

Meeting date: 3 December 2024

Kenneth Gibson

Thank you for that. In your document, you say:

“as with funding in 2024-25, part of the increase in resource funding ... reflects extra SCAPE costs rather than an increase in spending power.”

You have talked about the fact that the budget is increasing fairly modestly in real terms. However, that also means that the Scottish Government has to be very careful about how it spends its money. You have talked about behavioural response in relation to income tax, and mentioned tax revenues in that regard, too. You highlight that the SFC found that

“such responses will offset half of revenues from the Scottish 45% rate and 85% from Scotland’s top rate of tax”

and that there is a need to better evaluate the impact of that. The document goes on to talk about

“the complexity introduced by having 19%, 20% and 21%”

and suggests that that

“is particularly unwarranted”.

Where do you think the Scottish Government is in terms of the issues of taxation and behavioural responses at this time? The document goes on to say that the Scottish Government should be

“open to reversing course if new evidence again suggests bigger-than-expected behavioural impacts”

and that

“a strategy should always be open to revision, not set in stone”.

Finance and Public Administration Committee

Budget Scrutiny 2025-26 (United Kingdom Context)

Meeting date: 3 December 2024

Kenneth Gibson

It is 0.3 per cent of our expenditure targets, so it is about £10 billion.

Finance and Public Administration Committee

Budget Scrutiny 2025-26 (United Kingdom Context)

Meeting date: 3 December 2024

Kenneth Gibson

We have gone well over our time and I know that our witnesses and members have other meetings to go to, so I bring the session to an end. I thank everyone for their contributions.

The Scottish budget be published tomorrow, 4 December. The committee will take evidence on the Scottish Government’s tax and spending plans at future meetings in December and January and all members have been given details of the budget timeline.

As that was the only item on our agenda, I close the meeting.

Meeting closed at 11:34.  

Finance and Public Administration Committee

Budget Scrutiny 2025-26 (United Kingdom Context)

Meeting date: 26 November 2024

Kenneth Gibson

Scotland, obviously, has a disproportionate number of jobs in the North Sea, with the oil and gas industry. On page 67 of your report, you talk about the energy profits levy. You say:

“Overall, on average, we assume that over the forecast period capital expenditure is 26 per cent lower, oil production 6.3 per cent lower, and gas production 9.2 per cent lower compared to our March forecast”,

which are quite significant changes. What will the impact from those changes be on employment in that sector?

Finance and Public Administration Committee

Budget Scrutiny 2025-26 (United Kingdom Context)

Meeting date: 26 November 2024

Kenneth Gibson

Yes, I appreciate that it is over and above things such as, for example, transition.

Finance and Public Administration Committee

Budget Scrutiny 2025-26 (United Kingdom Context)

Meeting date: 26 November 2024

Kenneth Gibson

I am keen to ask more questions, but I have colleagues who are all champing at the bit to come in, so I shall desist.

Finance and Public Administration Committee

Budget Scrutiny 2025-26 (United Kingdom Context)

Meeting date: 26 November 2024

Kenneth Gibson

I almost want to start singing that line from the wonderful Monty Python film.

This morning, the embryonic Trump regime said that Mexico, Canada and China will be the target of its tariffs.

To round off our discussion, I have a couple of questions, one of which is about economic inactivity, on which you had an interesting dialogue with Craig Hoy. The rate of economic activity is 26.3 per cent in Scotland and 25.2 per cent in the UK as a whole, so there is a 1.1 per cent difference. Have you looked to see where that difference arises?

The SFC has mentioned the fact that people forget that students are included in the economic activity rates. In Scotland, people do a four-year university degree, whereas, in England, they do a three-year university degree. If 40-odd per cent of Scottish young people go to university and their working life is reduced from, say, 45 years to 44 years, that is included in the economic inactivity rates when, in fact, one could argue that those university students are training for economic activity. Have you broken that down? The big issue that everyone is concerned about is people who are on long-term sickness and incapacity. Do you have a breakdown of the figures in relation to where the balance lies?

Finance and Public Administration Committee

Budget Scrutiny 2025-26 (United Kingdom Context)

Meeting date: 26 November 2024

Kenneth Gibson

They used to call it “shovel ready”.

Finance and Public Administration Committee

Budget Scrutiny 2025-26 (United Kingdom Context)

Meeting date: 26 November 2024

Kenneth Gibson

Whereas, traditionally, the Scottish Government will increase numbers and pay beyond that envelope.

Finance and Public Administration Committee

Budget Scrutiny 2025-26 (United Kingdom Context)

Meeting date: 26 November 2024

Kenneth Gibson

I am sure that the SFC will be relieved that there will be no hostile takeover from the OBR. [Laughter.]