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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 August 2025
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Displaying 2881 contributions

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Finance and Public Administration Committee

Budget Scrutiny 2024-25 (United Kingdom Context)

Meeting date: 12 December 2023

John Mason

Is there any backdating? Does revising the GDP deflator have any practical effect?

Finance and Public Administration Committee

Budget Scrutiny 2024-25 (United Kingdom Context)

Meeting date: 12 December 2023

John Mason

That is helpful. I will press you again on the practical impact of the GDP deflator. My understanding is that the Scottish Government uses it to measure factors such as how much it can borrow. However, the illustration that we are always given is inflation in the capital sector—for example, buying materials such as concrete and steel, which have been expensive. Am I right in thinking that the GDP deflator effectively constrains the amount of capital expenditure going forward, or is that a misunderstanding?

Finance and Public Administration Committee

Budget Scrutiny 2024-25 (United Kingdom Context)

Meeting date: 12 December 2023

John Mason

On the positive side, if companies have more modern machinery, that should help their productivity. However, is there not also a risk that they might invest for the sake of it, to get their tax bills down, and so make poor investments?

Finance and Public Administration Committee

Budget Scrutiny 2024-25 (United Kingdom Context)

Meeting date: 12 December 2023

John Mason

On the question of forecasting accuracy, I think that in March the forecast for debt interest was £94 billion and it is now £116 billion, which is quite a change. Is that one of the most difficult forecasts to pin down?

Finance and Public Administration Committee

Budget Scrutiny 2024-25 (United Kingdom Context)

Meeting date: 12 December 2023

John Mason

Would there be any impact on research and development, or is that pretty well written off as it happens anyway?

Finance and Public Administration Committee

Budget Scrutiny 2024-25 (United Kingdom Context)

Meeting date: 12 December 2023

John Mason

You have got a lot of faith in the market, which maybe I do not entirely share. Is that not the same as following the bookies, which is to do with what is popular rather than what you are expecting.

Finance and Public Administration Committee

Budget Scrutiny 2024-25 (United Kingdom Context)

Meeting date: 12 December 2023

John Mason

That is great—thank you.

Finance and Public Administration Committee

Budget Scrutiny 2024-25 (United Kingdom Context)

Meeting date: 12 December 2023

John Mason

I will move on to another point. I believe that the concept of full expensing of fixed-asset expenditure covers only plant and machinery. How will that approach play out? As I understand it, there will be a short-term hit and then a longer-term advantage. Is that the plan?

Finance and Public Administration Committee

Budget Scrutiny 2024-25 (United Kingdom Context)

Meeting date: 12 December 2023

John Mason

My final question is on the tax burden, which is 4.5 percentage points higher than it was before the pandemic. How does that compare with other countries? Does that have an impact on our economy?

Finance and Public Administration Committee

Budget Scrutiny 2024-25 (United Kingdom Context)

Meeting date: 12 December 2023

John Mason

Okay. I think that I partly understand that. [Laughter.]

The GDP deflator has come up a few times in our committee. I noted that, for 2023, it was forecast to be 5.7 per cent and it is now 6.7 per cent. In practice, where does that impact? Does that make any difference?