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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 5 May 2021
  6. Current session: 12 May 2021 to 19 June 2025
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Displaying 1169 contributions

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Social Justice and Social Security Committee

Low Income and Debt Inquiry

Meeting date: 23 June 2022

Tom Arthur

Good morning to the committee.

I have had the chance to read through much of the evidence that has been given in previous sessions, including from those who have experienced the pressures of debt and low income. That evidence has provided a stark and salient reminder of the pressures that households across the country and those who are trying to help them face. There is a reason why we are talking about a cost of living crisis.

The number of personal insolvencies dropped significantly during the pandemic, but it is now rising again. There can be little doubt that rising inflation—not just in energy costs—will bring more people into unsustainable debt. There are whole categories of debt that individuals do not necessarily choose to incur, including council tax and benefit repayments debts, and other involuntary debts. That is why we must look at the system itself, so that we are not asking those who cannot afford it to pay towards what are, in effect, the costs of the state. The cabinet secretary has set out much of what we have been doing recently on that front to put extra money into people’s pockets.

On the available debt solutions, I believe that we have a very strong foundation. High-quality advice is at the centre of our solutions—it is a prerequisite to accessing them. We believe that that is exactly the right approach. We have reduced the fees for accessing bankruptcy and removed the fees completely for the most financially vulnerable.

We continue to take action. We have made changes to the Coronavirus (Recovery and Reform) (Scotland) Bill to continue the extended moratorium period of six months beyond the end of September, and we support John Mason’s amendment on bank arrestments. It was good to see the changes to the moratorium getting cross-party support at stage 2.

I believe that giving people time and space to consider the right solution can deliver benefits to all sides, creditors included. We cannot take that too far, though, because we would only harm the interests of those on low incomes if we made creditors unwilling to lend to them.

I know that we have more to do. As the committee knows, we are in the midst of a stakeholder-led review of debt solutions. I would welcome any suggestions from the committee on where we should focus our attention.

Social Justice and Social Security Committee

Low Income and Debt Inquiry

Meeting date: 23 June 2022

Tom Arthur

On the specific point about our engagement with COSLA, I would just clarify that COSLA does not have a formal role in debt work, but we would encourage it to share good practice among its members.

Social Justice and Social Security Committee

Low Income and Debt Inquiry

Meeting date: 23 June 2022

Tom Arthur

I will ask Robin Haynes to say whether there is any legal obligation. Of course, I respect the autonomy of local authorities on this matter. We recognise that, in general, local authorities will always seek to engage with individuals who are in arrears to work out a mutually agreed scheme of addressing any debt.

Social Justice and Social Security Committee

Low Income and Debt Inquiry

Meeting date: 23 June 2022

Tom Arthur

On the specific question of engagement with COSLA, although it is for the Government to propose legislation and for Parliament to decide whether to enact it, and we can set the framework for how local taxation operates, the administration of that is a matter for local authorities, which of course are democratically accountable. In all aspects of my engagement with COSLA, that respect for the autonomy of local government is paramount.

Social Justice and Social Security Committee

Low Income and Debt Inquiry

Meeting date: 23 June 2022

Tom Arthur

I am not aware of any discussion having taken place on that.

Social Justice and Social Security Committee

Low Income and Debt Inquiry

Meeting date: 23 June 2022

Tom Arthur

I am sorry, Mr Balfour—did you have a second question?

Social Justice and Social Security Committee

Low Income and Debt Inquiry

Meeting date: 23 June 2022

Tom Arthur

I am conscious that there was stakeholder interest in that matter. As the committee will appreciate, there is a degree of complexity around it but I am happy to take it away and consider it carefully. With any such matter, given the complexity, we must always be careful that we do not end up creating unintended consequences. Having said that, I am happy to consider the matter as part of the broader work that we are doing in our wider review of statutory debt solutions.

I invite Alex Reid to comment.

Social Justice and Social Security Committee

Low Income and Debt Inquiry

Meeting date: 23 June 2022

Tom Arthur

I echo the cabinet secretary’s points and recognise that, although it is not for Government to mandate to local authorities how they manage debt, the work of the committee will be important in informing how local authorities choose to conduct their processes.

Citizen Participation and Public Petitions Committee

Continued Petitions

Meeting date: 15 June 2022

Tom Arthur

The procedures and process are clearly set out but, as a consequence of the reforms in the Planning (Scotland) Act 2019, significant change is happening around the PAC process. I will ask Andy Kinnaird to come in and narrate those points.

Citizen Participation and Public Petitions Committee

Continued Petitions

Meeting date: 15 June 2022

Tom Arthur

I take your point about broader engagement and participation in the planning system, which we touched on earlier in general terms. As you will be aware, we are continuing to review planning obligations, and there are provisions relating to an infrastructure levy in the Planning (Scotland) Act 2019. We will consider how we take those matters forward later this parliamentary session. I thought that it would be useful to bring that to the committee’s attention.