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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 6 September 2025
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Displaying 1231 contributions

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Finance and Public Administration Committee

Budget Scrutiny 2022-23

Meeting date: 14 December 2021

Liz Smith

You could end up as a politician.

Finance and Public Administration Committee

Budget Scrutiny 2022-23

Meeting date: 14 December 2021

Liz Smith

I thank the witnesses for giving us a bit more information about the trends.

You have been predicting a fall in income tax receipts; I want to ask, first, about data. Economists talk about the Laffer curve. The Laffer curve has been a bone of contention politically, but it is important, because it is the relationship between the tax rate and the revenues that are actually collected. In your updated data, do you have information about taxable income elasticity—in other words, the change in taxable income in response to changes in the rate of taxation? The issue is obviously important for policy; do we have good data on it?

Finance and Public Administration Committee

Budget Scrutiny 2022-23

Meeting date: 14 December 2021

Liz Smith

My final point—

Finance and Public Administration Committee

Budget Scrutiny 2022-23

Meeting date: 14 December 2021

Liz Smith

Thank you for that—

Finance and Public Administration Committee

Budget Scrutiny 2022-23

Meeting date: 7 December 2021

Liz Smith

Would it be correct to assume, therefore, that, because of some of the blockages in the system that you mentioned earlier—specifically, the tightness in the labour market and employers not being able to fill some of the available jobs—your understanding is that the expectation factor may be increasing?

Finance and Public Administration Committee

Budget Scrutiny 2022-23

Meeting date: 7 December 2021

Liz Smith

I have just one question. Quite a few of the witnesses who have appeared before this committee have indicated that they think that consumer behaviour has changed quite markedly under Covid. Do you have any way of estimating whether that change is likely to be permanent?

Finance and Public Administration Committee

Budget Scrutiny 2022-23

Meeting date: 7 December 2021

Liz Smith

Are there implications for savings patterns as well?

Finance and Public Administration Committee

Budget Scrutiny 2022-23

Meeting date: 7 December 2021

Liz Smith

How easy is it to understand whether the labour market problems have been caused by Brexit or by people not being willing—rather than not having the right skills—to take up the available jobs? How easy is it to drill down on that?

Finance and Public Administration Committee

Budget Scrutiny 2022-23

Meeting date: 7 December 2021

Liz Smith

Professor Bean made some interesting comments in reference to the impending meeting with the MPC and what is focusing minds on inflation and, specifically, its causes. How easy is it to use economic data to home in on the cost-push factors in inflation and on demand-led inflation? In previous meetings on the economy, people have spoken to us about cost-push inflation being very strong.

Finance and Public Administration Committee

Budget Scrutiny 2022-23

Meeting date: 7 December 2021

Liz Smith

That is very interesting. In Scotland, there has been a significant problem in specific sectors such as hospitality and tourism, so I was interested in how such issues are measured.

My final questions are about the chancellor’s budget. He made the decision to be a bit more demand led—in other words, he wanted to ensure that public spending was at a higher level than it might have been—and to increase some taxes. Has the budget led to some increase in the demand side of the economy? Is it having an impact on inflationary pressure?