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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 21 June 2025
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Displaying 1200 contributions

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Finance and Public Administration Committee

Public Service Reform Programme

Meeting date: 12 September 2023

Liz Smith

That is very important. It would be double taxation, and you would be in very considerable danger of not only creating very considerable bills for some people who might not actually be at the top end of the scale but making things very complex administratively. As you know, the Parliament does not have the power to tax bodies on a non-income basis—that is, we cannot have a national wealth tax—but I think that the wealth tax that you have suggested in your paper is to be administered locally.

Finance and Public Administration Committee

Public Service Reform Programme

Meeting date: 12 September 2023

Liz Smith

Would that not make things more complex, too?

Finance and Public Administration Committee

Public Service Reform Programme

Meeting date: 12 September 2023

Liz Smith

I come back to the point that we want a much more sustainable future for the Scottish economy in terms of the revenue that we bring in, in line with necessary increased expenditure, particularly on things such as health and social care and social security. Obviously, that tax revenue is absolutely vital to the future. If we are going to have increased taxation on certain members of the population, as well as structural changes, we have to be clear that what we are suggesting will not provide the disincentives of the sort that the convener set out. It is not necessarily that people are going to move elsewhere, but that they might think, “Well, this isn’t very good for us—we don’t like this extra burden of taxation, so we won’t work quite as much,” which would be a considerable problem for the economy. Also, from a business angle, people think, “Do we want a higher tax burden in Scotland? Probably not.” Do you accept that that is a view that, certainly, business and industry hold?

Finance and Public Administration Committee

Public Service Reform Programme

Meeting date: 12 September 2023

Liz Smith

Thank you.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 12 September 2023

Liz Smith

I will pursue that point, in line with the committee’s job of scrutinising the budget. In your answers, you have given an idea of what the potential costs might be. Has the Government done some arithmetic on the benefits that would accrue, in particular from the creation of new jobs, in the five-year period that you spoke about earlier? The hope is that those would be highly paid jobs, so we would get a greater return through tax revenues from income tax and so on. Have you done any analysis of the benefits and the costs?

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 12 September 2023

Liz Smith

So, are applications most likely to be successful if you see benefits to the Scottish economy overall, with regard to the revenue that they will bring in?

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 12 September 2023

Liz Smith

Thank you.

Finance and Public Administration Committee

Public Service Reform Programme

Meeting date: 12 September 2023

Liz Smith

If that happened, would you also be in favour of the wealth tax that you have suggested in your paper?

Finance and Public Administration Committee

Public Service Reform Programme

Meeting date: 12 September 2023

Liz Smith

The other issue, which you come to later in your tax paper, is business tax. The key issue for the Scottish economy just now is getting the right balance between the tax take or revenue, which you have suggested can be increased in various ways—I might disagree with you on some of that—and behavioural change, a really quite significant example of which the convener has pointed out. It is all about trying to project what would happen in various scenarios and I am keen to know what the STUC would pick out as a priority basis in that respect.

Finance and Public Administration Committee

Public Service Reform Programme

Meeting date: 12 September 2023

Liz Smith

I am just not entirely clear whether, by making recommendations on changes to tax, you want to change taxation rates or you want specific structural changes to the overall tax basis. That is a key question, and a question that the Scottish Fiscal Commission is asking, too.