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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 4 May 2021
  6. Current session: 13 May 2021 to 1 September 2025
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Displaying 3539 contributions

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Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 9 January 2024

Kenneth Gibson

Should the grant—for example, the resource grant that the UK Government awards Scotland through the block grant—have been increased more?

Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 9 January 2024

Kenneth Gibson

The investment in critical safety and maintenance for road infrastructure is going up by 40 per cent next year to £524.7 million, and college capital is going up from £340.7 million to £356.9 million, which is a 4.5 per cent increase. In both those areas, capital is actually increasing.

Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 9 January 2024

Kenneth Gibson

Indeed. However, the point that I am trying to make is that, as Ross Greer said in the previous evidence session, a lot of the capital funding is going on critical safety and maintenance. The amount for road improvements is quite low—it is only £124 million. The issue is that the trunk road network maintenance and safety aspect is taking up the bulk of the capital, which is why local government is not getting the capital that it requires to do the pavements and side streets, which are also extremely important for people.

Does anyone else want to make any points?

Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 9 January 2024

Kenneth Gibson

Yes, well—newspapers are another story.

Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 9 January 2024

Kenneth Gibson

That is a matter for bartering, discussion and debate among the political parties. At this time of year, representatives of each of the political parties will speak to the Deputy First Minister to see whether they can shift the dial on the budget in one direction or another. There will not be any more money from anywhere, unlike in the good old days of Derek Mackay’s sofa. It is a question of moving the money from one page of the budget to another page. If colleges make a really good argument, it will no doubt be to the detriment of somebody else. That is the way it works when you have a budget that is, in effect, shrinking.

The theory is that they use what is called the GDP deflator, which means that inflation is set at 1.7 per cent in the budget. We all know that inflation is not 1.7 per cent, but that is how it is measured, because the UK Treasury GDP deflator is used. A 2.6 per cent increase in resource is probably a reduction in the real world, because more than half of the money that is spent here goes on salaries and wages and nobody is getting 2.6 per cent.

Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 9 January 2024

Kenneth Gibson

Figures for local government show that the general capital grant is falling from £607.6 million to £476.9 million, which is about a 19 per cent reduction.

Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 9 January 2024

Kenneth Gibson

It is also reasonable to ask where else in the budget the money would come from to reverse that reduction. After all, we are scrutinising the Scottish budget. You have made a valid point about the council tax, and we might agree or disagree on that, but I am not seeing anything here about what should be done with capital. All you are saying is, “Oh, we should reverse that cut.” Maybe we should, but where should the money come from to do that?

Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 9 January 2024

Kenneth Gibson

That is my point: where should the money come from within the Scottish Government’s capital budget? For example, it has increased the capital budget for the police by 12.4 per cent. Should it not have done that? The Scottish Fire and Rescue Service’s capital budget has increased, too. Should that have not been done, either? How should the Scottish Government respond to what is, to be honest, a polemic?

Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 9 January 2024

Kenneth Gibson

On capital, you say in your submission:

“low investment is acknowledged to be one of the key impediments to growth both at the Scottish and UK levels ... public sector investment helps de-risk private investment and therefore cutting public investment will adversely affect overall levels of investment in the Scottish economy and consequently growth.”

What are the long-term implications for Scotland of the reduction in capital?

Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 9 January 2024

Kenneth Gibson

Yes. The figures in your paper are backed up by the Scottish Parliament information centre. For the highest rate, on earnings over £125,140, it expects that the mechanical income would be £56 million but that, post-behavioural change, it would be only £8 million. For earnings of £75,000 up to £125,140, £144 million would be raised on paper, but only £74 million in reality. Do you recognise those figures?