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Displaying 1752 contributions
Finance and Public Administration Committee
Meeting date: 20 December 2022
Ross Greer
Given that that change takes place immediately, to avoid a very obvious bit of avoidance that would otherwise have taken place, do you have a projection for what the additional income will now be in quarter 4 of this financial year?
Finance and Public Administration Committee
Meeting date: 20 December 2022
Ross Greer
I have a final question, which is just to jog my memory. How did the eventual outcome to the 2018 changes to income tax across the board compare to the behaviour change assumptions that were made at the time?
Finance and Public Administration Committee
Meeting date: 20 December 2022
Ross Greer
Thank you very much. That is all from me, convener.
Finance and Public Administration Committee
Meeting date: 20 December 2022
Ross Greer
Unless any of the other witnesses wants to pitch in on that, I have finished my questions, convener.
Finance and Public Administration Committee
Meeting date: 20 December 2022
Ross Greer
That is fantastic. We have not quite figured out how to fill the gap in the remaining quarter of this year, so every little helps in that regard.
On the question of behaviour change, do you have an estimate of what the tipping point would be at which ADS would become net negative in revenue terms? It is an interesting tax, in that it has two objectives—one is to raise revenue for public services, but the second is that it can result in what many of us would see as a desirable policy change around freeing up more housing for owner occupiers rather than for second or holiday homes. What is the tipping point at which it becomes such a strong disincentive that we have a net loss of revenue?
Finance and Public Administration Committee
Meeting date: 20 December 2022
Ross Greer
No—boring is important in that regard. You saved me from getting into trouble there, so I thank you for that.
I will ask a similar question, which might result in a similar answer, on income tax. I will take us back to Daniel Johnson’s point about the difference between what you are projecting from raising the top rate, versus IPPR’s projections. If you are assuming that putting the top rate up by 1p will bring in only a net £3 million, I presume that, if we had increased it by 2p rather than 1p, we would have ended up bringing in less.
Finance and Public Administration Committee
Meeting date: 13 December 2022
Ross Greer
I can come in at any point.
Finance and Public Administration Committee
Meeting date: 13 December 2022
Ross Greer
Like John Mason, I apologise for having been late this morning. It had nothing to do with buses or trains, either; it was due to a much more mundane issue about my pass and gaining entry to the building.
Convener, may I check something so that I will not be wasting time by duplicating matters? In its initial questions, which I missed, did the committee cover the GDP deflator?
Finance and Public Administration Committee
Meeting date: 13 December 2022
Ross Greer
Grand.
Finance and Public Administration Committee
Meeting date: 13 December 2022
Ross Greer
Excellent—thanks.
My question might be best put to Richard Hughes, in the first instance. I am interested in hearing your thoughts on how appropriate the GDP deflator is as a measure of inflation for Government. At the moment, there is quite a gulf between the 3.7 per cent that it states, on the one hand, and, on the other hand, the consumer price index and retail price index levels, which are into double figures.
In the wider debate on the issue, it seems to be broadly recognised that neither method is quite right for measuring the impact of inflation on a Government, but the GDP deflator is the one that is used officially. I am interested in hearing your thoughts on how appropriate it is in the current financial context.