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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 12 September 2025
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Displaying 3573 contributions

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Finance and Public Administration Committee

Budget Scrutiny 2023-24

Meeting date: 20 December 2022

Kenneth Gibson

In London, for example, a higher proportion of income goes on mortgages than is the case here, so interest rates are much more damaging there, when they go up.

When it comes to capital funding, you have talked about the 2023-24 budget reflecting a real-terms cut of ÂŁ185 million using the GDP deflator rate. However, you have also said that the UK Government has announced a freeze on capital budgets in cash terms from 2026-27 onwards. What impact will that have on growth and productivity?

Finance and Public Administration Committee

Budget Scrutiny 2023-24

Meeting date: 20 December 2022

Kenneth Gibson

[Inaudible.]—3.2 per cent, but the price of materials has gone up by 17 per cent. That is not even in the ball park, is it?

Finance and Public Administration Committee

Budget Scrutiny 2023-24

Meeting date: 20 December 2022

Kenneth Gibson

I would have thought that some people would just not bother about a 1p increase; some might not bother with 2p or 3p, but the higher the increase, the more you will see behavioural change.

Finance and Public Administration Committee

Budget Scrutiny 2023-24

Meeting date: 20 December 2022

Kenneth Gibson

Good morning, and welcome to the 34th meeting in 2022 of the Finance and Public Administration Committee. We have received apologies from Douglas Lumsden, who is attending a funeral today.

The first item on our agenda is an evidence session with the Scottish Government’s expert panel on the Scottish budget for 2023-24. We are joined remotely by Professor Sir Anton Muscatelli, principal and vice-chancellor of the University of Glasgow; Professor Frances Ruane, chair of the national competitiveness and productivity council and research affiliate at the Economic and Social Research Institute; and Dr Mike Brewer, chief economist and deputy chief executive at the Resolution Foundation. I welcome you all to the meeting.

I intend to allow up to 75 minutes for the session. We will move straight to questions. Our questions do not have to be answered by everybody. I will put my questions to Professor Muscatelli, who can decide which of his colleagues should answer. Although more than one person can answer, that does not need to happen.

The “Expert Panel Interim Commentary on the Implications of the UK Government Fiscal Statements for the Scottish Government Budget” sets out the panel’s thinking

“on how the Scottish Government could respond to the challenges it is facing through the tax system and the wider implications for public services and the economy.”

It suggests that the Scottish Government will need to find a balance between

“providing short-term support to vulnerable households and businesses; and ... investing to grow and improve the productivity and resilience of the economy in the medium to longer term.”

Has it done so?

Finance and Public Administration Committee

Budget Scrutiny 2023-24

Meeting date: 20 December 2022

Kenneth Gibson

You have said that the UK Government’s decision not to enhance capital funding given the high levels of inflation

“will lead to a steep decline in the purchasing power of Scottish Government investments ... this may hamper the Scottish Government’s ability to meet its net zero targets and damage the economic recovery”.

Finance and Public Administration Committee

Budget Scrutiny 2023-24

Meeting date: 20 December 2022

Kenneth Gibson

You said:

“it is important to achieve the right type of growth: growth that is sustainable and in line with other wider policy objectives, such as reducing inequality and the transition to net zero”.

Clearly, you will not be recommending the building of a giant coal mine, which they are suggesting will go ahead in Cumbria. Will you give us some examples of sustainable growth that is of the right type to reduce inequality and support the transition to net zero?

Finance and Public Administration Committee

Budget Scrutiny 2023-24

Meeting date: 20 December 2022

Kenneth Gibson

[Inaudible.]—on the Scottish budget 2023-24. I warmly welcome to the meeting, in person, Professor Graeme Roy, who is chair of the Scottish Fiscal Commission; Professor Francis Breedon, who is a commissioner on the Scottish Fiscal Commission; and John Ireland, who is the Scottish Fiscal Commission’s chief executive.

Professor Roy, I understand that you wish to make a short opening statement.

Finance and Public Administration Committee

Budget Scrutiny 2023-24

Meeting date: 20 December 2022

Kenneth Gibson

I am sorry—I try and put the questions to Professor Muscatelli so that he can decide who answers.

Finance and Public Administration Committee

Budget Scrutiny 2023-24

Meeting date: 20 December 2022

Kenneth Gibson

I think that it is a bit of a stretch to suggest that the Scottish child payment going from ÂŁ10 in April this year to ÂŁ25 next year somehow represents a real-terms cut.

Finance and Public Administration Committee

Budget Scrutiny 2023-24

Meeting date: 20 December 2022

Kenneth Gibson

Yes. I apologise—I should have been clearer about that.