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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 2 September 2025
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Displaying 3539 contributions

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Finance and Public Administration Committee

Budget Scrutiny 2024-25 (United Kingdom Context)

Meeting date: 12 December 2023

Kenneth Gibson

I was not really planning to go down that road. I was just curious about the overall contribution of overseas students.

The OBR has commented that there is

“little sign in the UK of significant new investment in low-carbon energy and heating technologies in response to the rise in gas prices.”

Why is that?

Finance and Public Administration Committee

Budget Scrutiny 2024-25 (United Kingdom Context)

Meeting date: 12 December 2023

Kenneth Gibson

Does that mean that Britain’s international competitiveness in this sector is falling back?

Finance and Public Administration Committee

Budget Scrutiny 2024-25 (United Kingdom Context)

Meeting date: 12 December 2023

Kenneth Gibson

Public debt is a major issue now facing the UK economy, and you have highlighted the fact that it has more than trebled from below 30 per cent of GDP at the start of this century to almost 100 per cent of GDP. The Institute for Fiscal Studies director, Paul Johnson, has said that

“early action to tackle these risks and vulnerabilities can help to contain their fiscal consequences”

and that

“delay or inaction is likely to see debt continuing to rise toward unsustainable levels in the decades to come”.

What is the level of debt in the UK? How many billions of pounds a year are we now paying to service our debt? What will the impact be on the forecast for the UK’s long-term sustainability?

Finance and Public Administration Committee

Budget Scrutiny 2024-25 (United Kingdom Context)

Meeting date: 12 December 2023

Kenneth Gibson

Inflation is persistently higher than you predicted even in March of this year. You spoke about debt interest of more than £100 billion. I think that the last figure I saw was £116 billion or £118 billion. Is that about right at this point?

Finance and Public Administration Committee

Budget Scrutiny 2024-25 (United Kingdom Context)

Meeting date: 12 December 2023

Kenneth Gibson

I have two more questions for you before I let colleagues in. One is on the fact that public sector capital spending has been frozen in cash terms. What is that likely to mean for infrastructure and economic growth?

Finance and Public Administration Committee

Budget Scrutiny 2024-25 (United Kingdom Context)

Meeting date: 12 December 2023

Kenneth Gibson

You talked about where you predicted the economy would be and the economy having been stronger than you thought. However, the 3 per cent difference seems quite big. It was thought that the economy would be 1 per cent below pre-pandemic levels, but it was actually 2 per cent higher. Why was there such a significant difference from what you anticipated in the forecast?

Finance and Public Administration Committee

Budget Scrutiny 2024-25 (United Kingdom Context)

Meeting date: 12 December 2023

Kenneth Gibson

Let us hope not. I thank our witnesses very much for answering our questions so succinctly and comprehensively. I also thank Mr Josephs and Mr Hughes specifically for coming to Edinburgh, and I hope to see Professor Miles in Edinburgh next time.

11:03 Meeting suspended.  

11:09&Բ;&Բ;ܳԲ—&Բ;&Բ;

Finance and Public Administration Committee

Budget Scrutiny 2024-25 (United Kingdom Context)

Meeting date: 12 December 2023

Kenneth Gibson

I have two more questions before I open up the discussion to other members. One is on capital. You touched on the full expensing policy. That will be a £3 billion tax cut, but corporation tax is going from 19 to 25 per cent, which is an £18 billion tax hit. What impact, if any, has that corporation tax rise had on investment? What is your view of the impact of flat cash for capital investment in relation to UK infrastructure and growth?

Finance and Public Administration Committee

Budget Scrutiny 2024-25 (United Kingdom Context)

Meeting date: 12 December 2023

Kenneth Gibson

Yes, although it is quite easy to predict what the natural growth in the population of people born in the UK is, because you get about 16 to 18 years’ lead time on that.

One of the issues of concern in your report is that almost 650,000 more adults were outside the labour market in the autumn of 2022 than at the start of 2020. You go on to mention the £7 billion that is being spent each year on health-related benefits and the resulting £9 billion that is lost in foregone tax revenue. That is at the same time as unemployment is set to increase by around 85,000 more than was predicted. What is the impact on growth of those figures?

Finance and Public Administration Committee

Budget Scrutiny 2024-25 (United Kingdom Context)

Meeting date: 12 December 2023

Kenneth Gibson

I will move on to debt interest. One obvious concern is the fact that debt interest is increasing and national debt is now at 93 per cent of GDP. I understand that the cost of servicing that debt is about £116 billion this year. Could you discuss what you feel the impact of that will be for the next year or two and beyond?