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Displaying 1485 contributions
Finance and Public Administration Committee
Meeting date: 10 September 2024
Liz Smith
That is a fair point.
I have one final question. You gave an interesting analysis of the problems within tax structures. To what extent are the UK and Scottish Governments—particularly the UK one—giving enough credence to debates about global taxation, particularly in areas such as environmental policy and tax avoidance? Do we have to be more cognisant of what is happening in such areas?
Finance and Public Administration Committee
Meeting date: 3 September 2024
Liz Smith
Which is obviously increasing as a percentage share of the total population.
What I am driving at is the policies that the Scottish Government needs to enact to try to address the big black hole in public finances. Some of that can be done through public sector reform, which you have set out, and some can be done with tax-and-spend policies. However, addressing economic inactivity in the Scottish population is a crucial element of your longer-term forecasts; indeed, it is a major issue. Do you have any indication from your analysis as to the policies that might be most effective in bringing those people back into work?
Finance and Public Administration Committee
Meeting date: 3 September 2024
Liz Smith
The nuancing of that will be very important with regard to the policies that might help us in the future. The statistics for the longer term that you have given us are pretty grim, and we need to do all that we can to try to address the issue.
I want to raise one point of clarification. Your report contains a very short piece about the UK Government’s raising of VAT on independent schools. Am I correct in thinking that, if that amount of money were to be positive, it would be spent in England and Wales and that, as a result, there would be Barnett consequentials for Scotland?
Finance and Public Administration Committee
Meeting date: 3 September 2024
Liz Smith
Thank you—that was helpful.
I want to turn to what we can try to do about the challenges in the Scottish Government’s finances. In the summary of your budget report, you set out some of the demographic trends, which I have to say are some of the most concerning aspects for the longer run, particularly the issues around economic inactivity in the labour force. Given Claire Murdoch’s point that there is some incompleteness in the labour market survey, does your data give you a good understanding of the behavioural changes in the group of people who are able but are unwilling to work?
Finance and Public Administration Committee
Meeting date: 3 September 2024
Liz Smith
—the older generation.
Finance and Public Administration Committee
Meeting date: 3 September 2024
Liz Smith
Indeed.
Finance and Public Administration Committee
Meeting date: 3 September 2024
Liz Smith
Assuming that the amount is positive—I know that there is a lot of debate about that—if the money was spent on teachers or on improving resources in the state sector in England and Wales, am I correct in thinking that Barnett consequentials would flow from that?
Finance and Public Administration Committee
Meeting date: 3 September 2024
Liz Smith
Thank you. That was helpful.
Finance and Public Administration Committee
Meeting date: 3 September 2024
Liz Smith
Good morning. I have a point of clarification that follows on from Michael Marra’s question. You made it clear that the Scottish Government has not provided you with a public sector pay policy. Have you expressed concern to the Scottish Government about that? If so, when was that?
Finance and Public Administration Committee
Meeting date: 3 September 2024
Liz Smith
Yes, it is obviously putting considerable pressure on the social security budget. What about people who are economically inactive and do not have disabilities or health issues? Do you have any idea of the policies that will make a difference to getting them back into the labour market? Obviously that has a huge implication for increasing productivity and, in the long run, economic growth.