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All Official Reports of meetings in the Debating Chamber of the Scottish Parliament.
All Official Reports of public meetings of committees.
Displaying 3919 contributions
Public Audit Committee [Draft]
Meeting date: 28 January 2026
Richard Leonard
We can follow up on any outstanding questions in correspondence with the NAO.
My final question goes to the point about the cost of administering the Scottish income tax and the service-level agreement that exists. I think that there are committees in place that monitor that and look at the quality of data. When we consider these reports each year, it always strikes me that the administration cost is quite low—I think that it is £1.2 million. I always start to wonder whether, if a higher administration fee were paid, we could get more Scottish-level data out of the process. I do not know whether you have any observations on that, Auditor General.
Public Audit Committee [Draft]
Meeting date: 28 January 2026
Richard Leonard
Thank you, Auditor General. I invite the Comptroller and Auditor General, Gareth Davies, to make an opening statement.
Public Audit Committee [Draft]
Meeting date: 28 January 2026
Richard Leonard
Thank you very much indeed, Comptroller and Auditor General. We will touch on all of those areas in the course of this morning.
I will begin with the Auditor General. You mentioned your report from November last year, “Financial sustainability and taxes”, which looked in some depth at the dynamics of Scottish income tax setting and the benefits that it brings. You said that, in the 2025-26 tax year, although £1.7 billion will be raised from the Scottish income tax through the policy choices made by the Scottish Government, the impact on the budget will be a net rise of just £616 million, due to what you describe as the “tax base performance gap”. Could you elaborate a bit on that? Why does that gap exist? Is it to do with earnings levels and employment levels? What lies behind that figure?
Public Audit Committee [Draft]
Meeting date: 28 January 2026
Richard Leonard
Colin, I will bring you back in later if we have time. I am conscious that we are up against the clock. The deputy convener has one question that he wants to put to the NAO.
Public Audit Committee [Draft]
Meeting date: 28 January 2026
Richard Leonard
In the interest of time, I will ask one final question before I move on. It is about transparency. You mentioned in your previous answer that the Scottish Government could be more transparent about the gap between the money that it raises and how that ricochets through the block grant adjustment as a result of the Scottish fiscal framework. Could you say a bit more about what you expect the Scottish Government to do in order to fulfil your demand for more transparency?
Public Audit Committee [Draft]
Meeting date: 28 January 2026
Richard Leonard
Before I bring in the deputy convener, I want to go back to the point about the financial and insurance sector. I would have expected that, out of all the parts of the economy, employers in the financial services sector would be on top of tax codes and tax arrangements. Earlier, Mr Davies spoke about deliberate or accidental mistakes. Would it be reasonable to infer that deliberate mistakes are being made by the financial services sector?
Public Audit Committee [Draft]
Meeting date: 28 January 2026
Richard Leonard
Yes, and there is also the fact that the problem is persistent. That was a speculative defence on the sector’s behalf, but we could also mount some speculative prosecutions. [Interruption.]
Public Audit Committee [Draft]
Meeting date: 28 January 2026
Richard Leonard
Thank you very much again for your contribution this year—it is much appreciated.
Public Audit Committee [Draft]
Meeting date: 28 January 2026
Richard Leonard
The Scottish tax gap is the difference between what should be paid and what is actually paid in tax. There have been discussions over the years about whether HMRC would start to collect that Scottish-level tax gap data. There is a suggestion in this year’s NAO report that it is considering that. Do you get any sense of how close we are to that figure being calculated and being part of the annual report? This committee would find that very useful indeed.
Public Audit Committee [Draft]
Meeting date: 28 January 2026
Richard Leonard
Is that due to the block grant adjustment?