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Displaying 1485 contributions
Finance and Public Administration Committee
Meeting date: 14 December 2021
Liz Smith
Thank you.
Finance and Public Administration Committee
Meeting date: 14 December 2021
Liz Smith
Notwithstanding what you said about the big factors, is it not the case that those effects have considerable implications for the amount of tax take that comes to Scotland and that, therefore, when a Government decides on its tax policy, the projections that you are giving about revenues in relation to the factors that you just mentioned are extremely important?
Finance and Public Administration Committee
Meeting date: 14 December 2021
Liz Smith
That leads into my final question, which is about the participation rates and the changing demography in the labour market. There are concerns, particularly in relation to the number of young people, who perhaps have more transferable skills for the future, coming into the market. To what extent do you feel that those are significant issues with regard to projections for the future?
Finance and Public Administration Committee
Meeting date: 14 December 2021
Liz Smith
I am thinking about two things in particular. It is quite clear that there are people who are able to work but are perhaps not able or willing to work in certain jobs. That is why the vacancy rate has stayed higher than we might have expected at a time when unemployment was supposed to rise. There is a skills mismatch, and we might need policies to address that.
Do we also need education policies that allow younger people in particular to get a wider range of skills, so that they are more flexible in the jobs that they can do? We have seen increasing flexibility over the years, but do we have sufficient flexibility to fill some of the gaps?
Finance and Public Administration Committee
Meeting date: 14 December 2021
Liz Smith
You could end up as a politician.
Finance and Public Administration Committee
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
Meeting date: 14 December 2021
Liz Smith
My final point—
Finance and Public Administration Committee
Meeting date: 14 December 2021
Liz Smith
Thank you for that—
Finance and Public Administration Committee
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
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?