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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 going to move on to discuss social security, so I am glad that you have mentioned that. The problem with social security benefits, of course, is that they are demand led. How do you see the Scottish Government being impacted over the next year and beyond by the increase in the number of people who are seeking benefits? Where do you see that going?

Finance and Public Administration Committee

Budget Scrutiny 2024-25 (United Kingdom Context)

Meeting date: 12 December 2023

Kenneth Gibson

Have you looked at the impact on pensioners of fiscal drag? There has been an 8.5 per cent increase in the triple lock, but that seems to have increased the number of pensioners who pay tax. In 2010, about half of all pensioners paid tax; now, it is about two thirds.

Finance and Public Administration Committee

Budget Scrutiny 2024-25 (United Kingdom Context)

Meeting date: 12 December 2023

Kenneth Gibson

Yes, but that is not good for long-term growth, is it?

This will be my final question before I pass on to colleagues. The OBR has predicted a 3 per cent reduction in living standards in 2024-25 from pre-pandemic levels, but when we asked it to advise us on the impact on different age groups, it was unable to do so. Does the IFS have any detail on how the reduction will impact on different age groups in society?

Finance and Public Administration Committee

Budget Scrutiny 2024-25 (United Kingdom Context)

Meeting date: 12 December 2023

Kenneth Gibson

Pensioner poverty is a reality in many communities in many parts of the country but, according to The Economist, half of the 14 million pensioners in the UK do not have any housing costs, because they have paid off their mortgages.

I am now going to open out the session. I call Liz Smith, to be followed by John Mason.

Finance and Public Administration Committee

Budget Scrutiny 2024-25 (United Kingdom Context)

Meeting date: 12 December 2023

Kenneth Gibson

That is okay. I asked about that because net zero is, obviously, a key issue in Scotland and, indeed, elsewhere.

Does either of you wish to make any further points before we wind up the session?

Finance and Public Administration Committee

Revenue Scotland

Meeting date: 5 December 2023

Kenneth Gibson

“Pay and Benefits” seems to be the one where people are looking for the most improvement, surprisingly.

Finance and Public Administration Committee

Revenue Scotland

Meeting date: 5 December 2023

Kenneth Gibson

I am delighted to see how much you have been able to achieve with a fairly modest capital investment, given that Parliament spent more than £3 million updating its website to, in my view, a ropier system; however, we will not go into that, at this moment in time.

You are focusing on digitalisation. Do you have an issue with people who are not digitally included? I would not have thought that you would have a lot of that, given how house-buying operates now, but you must have some.

Finance and Public Administration Committee

Revenue Scotland

Meeting date: 5 December 2023

Kenneth Gibson

I am curious about your financial statement of cash flows in the devolved taxes account. At the bottom of page 26, there is mention of the

“analysis of changes in net funds”.

I am not really sure what that means. Can you explain that a wee bit? For example, on 31 March in tax year 2022-23, the figure was £61.935 million, but the following day it was £66.696 million. It is interesting that the net funds on 31 March in 2022-23 and in 2021-22 are about £61 million and £67 million, but there is a huge difference—of a factor of 10—between the net funds on 1 April in 2022-23 and those on the same date in 2021-22. Can you explain what those figures relate to and what they mean?

Finance and Public Administration Committee

Revenue Scotland

Meeting date: 5 December 2023

Kenneth Gibson

That is absolutely fine.

In the same document, note 1.4 about the devolved taxes account 2022-23 deals with the tax gap. I am interested in that, because it says:

“The theoretical liability represents the tax that would have been paid if all individuals and companies complied with both the letter of the law and Revenue Scotland’s interpretation of the intention of the Scottish Parliament in setting law (referred to as the spirit of the law).”

When the relevant bill was being put together a decade or so ago, the idea of the spirit of the law was very important in trying to avoid creating loopholes such as those that can occur in UK taxation. How much do you estimate the tax gap to be? It might be in the figures somewhere, but I had a wee look and could not find it in your accounts.

Finance and Public Administration Committee

Revenue Scotland

Meeting date: 5 December 2023

Kenneth Gibson

That is certainly very positive.

I have been looking at the corporate governance report. One of society’s big concerns these days is cybercrime, and I note that your accountability report indicates:

“During the course of the year, there were eight issues relating to minor data losses, which were reported and dealt with internally.”

It goes on to say that those losses

“were resolved quickly, and mitigations put in place.”

Has the potential occurrence of further and more serious data breaches set off alarm bells for Revenue Scotland? What is the organisation doing to ensure that that does not happen in the future?