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Chamber and committees

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 20 June 2025
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Displaying 862 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

Craig Hoy

Obviously, the Auditor General has looked at the framework and made recommendations on how it could be strengthened. What plans do you have to respond to that, particularly in relation to strengthening the link between risk tolerance and risk appetite for investment in the Scottish Government?

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

Craig Hoy

My final question is on Ferguson Marine. Obviously, the construction of the vessels is under way. Have you or are you making provision for any additional cash calls from the yard separate to those that are to fund the construction of the vessels?

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

Craig Hoy

You will note from our meeting on 19 January that we have a significant interest in the financial interventions in Prestwick airport and the Lochaber aluminium smelter, in addition to our on-going inquiries in relation to Ferguson Marine. How is the Scottish Government managing the heightened financial risk with the Lochaber smelter, given the reported issues that are facing the Liberty group?

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

Craig Hoy

In March 2022, the Scottish Government published its business investment framework, outlining the principles for investments and decisions that it might make in the private sector. Mr Marks, can you bring us up to speed on whether the Scottish Government has used the framework in practice yet?

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

Craig Hoy

Good morning, Mr Marks. Will you reflect on Covid-19 support payments and the issue of fraud? In 2021-22, the Government allocated £5.3 billion in funding to Covid response activities. The estimate that we were working with for fraud and error equated to 1 to 2 per cent of that. Are you in a position to say to the committee how much has been recovered from fraud and how much has been recovered from payments made in error during that financial year?

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 9 February 2023

Craig Hoy

Good morning, Mr Davies and Mr Boyle, and welcome. It is good to see you in the flesh, rather than on Zoom.

I want to delve a bit deeper into the monitoring and evaluation that you can do around the compliance of Scottish income tax payers, which is becoming a live issue, given the increasing divergence between the Scottish tax system and the UK tax system. Indeed, that is referred to in a report by the Institute for Fiscal Studies, which is covered in today’s Daily Telegraph.

I return to the issue that the deputy convener raised regarding postcodes and where people are resident. The NAO report says:

“HMRC has not identified any significant or widespread instances of taxpayers changing their address to obtain a tax advantage.”

However, today’s newspaper report points to David Alexander, the chief executive of Scotland’s largest letting agency DJ Alexander, saying that he is already seeing signs of high earners leaving. He said:

“It’s a natural situation that people think, ‘actually why would I reside here when I can move not that far and pay substantially less tax’.”

Given that HMRC says that it is not seeing any significant or widespread instances of that, can you elaborate on that? What would be significant or widespread, bearing in mind that Scotland has a very small number of upper-rate and high-rate taxpayers?

09:30  

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 9 February 2023

Craig Hoy

The divergence is around 2.1 per cent in relation to the rest of the UK, which is getting into what I perceive to be a significant sum. From your perspective, would it be reasonable to expect that there is an incentive for individuals faced with the prospect of higher tax to consider legitimate tax avoidance measures, such as converting income to dividends or moving south of the border? Is that a reasonable expectation that HMRC should be aware of?

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 9 February 2023

Craig Hoy

Is it difficult to do that modelling in a predictive sense? Do you only realise that the flight has happened once you look back over the output for a year?

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 9 February 2023

Craig Hoy

So, you are saying that if people are doing it, perfectly legitimately, over a number of years, HMRC would not necessarily be particularly activated about it.

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 9 February 2023

Craig Hoy

You came forward with various recommendations in your report. Do you think that more third-party data checks and compliance activity should be undertaken in Scotland?