The Official Report is a written record of public meetings of the Parliament and committees.
All Official Reports of meetings in the Debating Chamber of the Scottish Parliament.
All Official Reports of public meetings of committees.
Displaying 3697 contributions
Finance and Public Administration Committee
Meeting date: 7 June 2022
John Mason
I have a few things to ask about. However, first of all, I want to say how much I have appreciated working with Dame Susan Rice over the years. I was on the Finance Committee before the Fiscal Commission was set up and was involved in that process. I have had a long-running relationship with the commission and Dame Susan and I have very much appreciated that.
We have spent quite a lot of time on inflation. On social security, the numbers are going up quite dramatically. It has often been said that if we give more money to people who are less well-off, that will have a secondary effect of boosting the economy, because they will spend the money in local shops on local goods and services. However, when people who are better off have more money, they might spend it abroad or on other things. Does that secondary effect come into the forecasts, or can we not really go that far?
Finance and Public Administration Committee
Meeting date: 7 June 2022
John Mason
Absolutely. That is a key point.
The reconciliation of £870 million sounds quite scary. However, previously we thought that we had quite a large reconciliation coming along but it turned out not to be quite as bad as that. Should that make me hopeful that, once again, things will improve, or are things very different this time?
Finance and Public Administration Committee
Meeting date: 7 June 2022
John Mason
Am I right in saying that, last time, even at the end of the year in question, we still forecast a more pessimistic position than turned out to be the case? It is hard to know in advance.
Finance and Public Administration Committee
Meeting date: 7 June 2022
John Mason
I thought that I was pessimistic but that underlines it more.
There was a suggestion that you were going to investigate further the slower employment growth in Scotland compared to the UK. Will you expand on what you are going to do?
Finance and Public Administration Committee
Meeting date: 7 June 2022
John Mason
Would life expectancy be part of that equation, given that it affects things such as the proportion of the population that is working? It seems to be a UK-wide issue.
Finance and Public Administration Committee
Meeting date: 7 June 2022
John Mason
It has been suggested that the headcount in the public sector would reduce to pre-Covid levels—30,000 fewer staff, I believe. Daniel Johnson gave us some figures earlier, and I believe that there has been an increase of 14,000 in the NHS. Can we expect a reduction of 14,000 in the NHS? How does that work out?
Finance and Public Administration Committee
Meeting date: 7 June 2022
John Mason
Is that because the balance between the number of people who are self-employed and those who are employed can change a lot from year to year?
Finance and Public Administration Committee
Meeting date: 7 June 2022
John Mason
I suspect that there would be no end to our discussion of the subject. Another point that the SFC made was about how long inflation might last—I was surprised that it was not more certain on that point. Inflation might come back down; I presume that it will come down if oil prices come back down. However, if oil prices do not come down, it could carry on rising. Do you agree?
Finance and Public Administration Committee
Meeting date: 7 June 2022
John Mason
Does it make any difference to the economy that the Scottish Government is putting money into social security, which is clearly its focus? That money is going into the pockets of certain groups and on from there. That is in contrast to money that goes to Scottish Enterprise, which might go to international companies.
Finance and Public Administration Committee
Meeting date: 7 June 2022
John Mason
We spent quite a lot of time with the Scottish Fiscal Commission earlier this morning looking at inflation from different angles. Professor Breedon talked about the previous, old-fashioned spiral in the 1970s and 1980s when wages and costs chased each other up. The Scottish Fiscal Commission representatives seem to think that that will not happen this time. They are predicting a real earnings decrease of 2.7 per cent. What is your angle on that? Will there have to be a reduction in real earnings because wage increases will not be able to match inflation for a period?
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