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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 4 May 2021
  6. Session 6: 13 May 2021 to 8 April 2026
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Displaying 3918 contributions

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Public Audit Committee

“The 2023/24 audit of UHI Perth”

Meeting date: 3 December 2025

Richard Leonard

Thank you. That is helpful.

Public Audit Committee

“The 2023/24 audit of UHI Perth”

Meeting date: 3 December 2025

Richard Leonard

You might not know it, but that has neatly teed up the deputy convener, who has questions on AST as well as broader questions, which I am sure that he will want to put not just to you, Mr Watson, but to Dr Cook and Mr Wishart.

Public Audit Committee

“Financial sustainability and taxes”

Meeting date: 3 December 2025

Richard Leonard

I am struggling a bit to understand what that alignment between tax and economic strategy looks like. For example, the report alludes to the Government’s stated aim to reduce the size of the public sector workforce. Is that based on a theory of crowding out, with the private sector mopping up those jobs? Is it based on an understanding that if you have fewer people in work, income tax receipts are likely to fall? What about earnings growth? There has been some talk about public sector pay settlements. We will take evidence in our next evidence session this morning from people from the college sector, and college pay rises have been cited as one of the reasons why the further education sector is struggling a bit financially.

Are you suggesting or recommending that, as part of aligning economic strategy with tax, there is some straightforward analysis of what those public policy decisions mean for tax receipts?

10:00  

Public Audit Committee

“Financial sustainability and taxes”

Meeting date: 3 December 2025

Richard Leonard

I will bring Graham Simpson in, but before I do, I have one final question. I mentioned at the start that landfill taxation brings in 0.1 per cent of the Scottish Government budget and Scottish income tax brings in over 32 per cent—almost a third. Where would VAT assignments sit in that range?

Public Audit Committee

“The 2023/24 audit of UHI Perth”

Meeting date: 3 December 2025

Richard Leonard

That is very helpful.

My last question on that is: why did it take you six months to resign, if that was such a critical point?

Public Audit Committee

“Financial sustainability and taxes”

Meeting date: 3 December 2025

Richard Leonard

That is fine. I appreciate that. Thank you. Graham Simpson has some questions.

Public Audit Committee

“Financial sustainability and taxes”

Meeting date: 3 December 2025

Richard Leonard

Thank you very much.

The key facts at the start of the report make the point that you have just alluded to, Auditor General, which is that although there is a 1.6 per cent contribution from land and buildings transaction tax and a 0.1 per cent contribution from the landfill tax, by far and away what we are talking about this morning is income tax, is it not? Income tax makes up almost a third of the Scottish budget. We need to be clear in our evidence session this morning that, first and foremost, we are talking about income tax.

Some of your recommendations are primarily about the Government’s approach to income tax. What struck me is that the six recommendations that you make on page 6 of the report, which are all directed at the Scottish Government, all talk about transparency and things being set out more clearly. They talk about information being more “accessible and transparent”, set out “more transparently”, and being stated “clearly”, to

“support transparency and public understanding.”

There is a bit of a problem here, is there not? The current approach is opaque.

Public Audit Committee

“Financial sustainability and taxes”

Meeting date: 3 December 2025

Richard Leonard

To use my old trade union terminology, is this just a long-term negotiation? Is there a dispute? At what level is the dispute? Is it at ministerial level? Is it at official level? What is the role of HMRC in this? HMRC obviously has relationships with the UK Government, the Treasury and the Scottish Government, and has had for quite a number of years.

Public Audit Committee

“The 2023/24 audit of UHI Perth”

Meeting date: 3 December 2025

Richard Leonard

We are the Public Audit Committee and we are not talking here about an ideal world; we are talking about a world where there is some accountability. Even your own document, the June 2021 UHI Perth financial regulations, which I presume was signed off by the board, says that the very first responsibility of the finance director—it is bullet point 1—is

“preparing annual budgets and financial plans”.

Public Audit Committee

“Financial sustainability and taxes”

Meeting date: 3 December 2025

Richard Leonard

We have time for one final question, and I am going to indulge the deputy convener.