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Seòmar agus comataidhean

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 4 May 2021
  6. Current session: 13 May 2021 to 5 November 2025
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Displaying 3443 contributions

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Public Audit Committee

Section 22 Report: “The 2021/22 audit of the Scottish Government Consolidated Accounts” and “Scotland’s public finances: Challenges and risks”

Meeting date: 23 February 2023

Richard Leonard

Before we move off this point, can you help us understand whether the green freeport projects, of which there are two in Scotland, will be the subject of scrutiny and audit by the Auditor General for Scotland?

Public Audit Committee

Section 22 Report: “The 2021/22 audit of the Scottish Government Consolidated Accounts” and “Scotland’s public finances: Challenges and risks”

Meeting date: 23 February 2023

Richard Leonard

The watchword for us is transparency. Regardless of whether we are looking at the reserve balance, which is not disclosed in the accounts, the failure to produce significant progress on the whole-of-public-sector consolidated accounts, or the extent to which there is transparency about capital borrowing, the view of the committee and the Auditor General is that much more could be done to improve levels of transparency. I hope that you will reflect on that.

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 9 February 2023

Richard Leonard

The report mentions the omicron variant of Covid and the war in Ukraine, and it is suggested that those would have an impact on taxpayers’ ability to meet their tax liabilities. Will you elaborate on that, please?

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 9 February 2023

Richard Leonard

Yes, it poses some wider questions—including, again, some policy questions.

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 9 February 2023

Richard Leonard

The principal reason for our meeting is to take evidence on the “Administration of Scottish income tax 2021/22” report, which was produced on 12 January this year by the Auditor General for Scotland and is, in turn, a commentary on a report that was prepared by the National Audit Office.

I am pleased to welcome our four witnesses, who are here in person this year. Stephen Boyle, the Auditor General for Scotland, is accompanied by Mark Taylor, audit director at Audit Scotland. I am particularly pleased to welcome Gareth Davies, Comptroller and Auditor General at the National Audit Office, who is appearing in person before the committee for, I think, the first time. He is joined by Darren Stewart, audit director at the NAO.

We have a series of questions to put to the witnesses, but I begin by inviting the Auditor General for Scotland to make a short opening statement.

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 9 February 2023

Richard Leonard

Sure.

Public Audit Committee

Decision on Taking Business in Private

Meeting date: 9 February 2023

Richard Leonard

Good morning, and welcome, everybody, to the fifth meeting in 2023 of the Public Audit Committee. Under the first item on the committee’s agenda, do members agree to take agenda items 3, 4 and 5 in private?

Members indicated agreement.

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 9 February 2023

Richard Leonard

Thank you very much. I will kick off. You make the point that HMRC estimates that Scottish income tax revenue in 2021-22 will be £13.2 billion, which would be an increase of about 11.3 per cent on the previous year—a year when the economy was in lockdown—but it is also estimated that the increase in the UK will be 13.2 per cent, which is significantly more than in Scotland. Why is there an expected difference between UK performance and Scottish performance?

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 9 February 2023

Richard Leonard

Yes.

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 9 February 2023

Richard Leonard

That clarification is helpful—thank you for that.

Obviously, the estimates are in the domain of the decision-making process, so they are quite important to us. That is why we have taken the view that having better data would give us a clearer sense of where policy should go and what will have the most impact in relation to raising revenue or redistributing the burden of taxation.