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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 24 December 2025
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Displaying 4060 contributions

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Finance and Public Administration Committee

Subordinate legislation

Meeting date: 17 January 2023

Kenneth Gibson

The Convention of Scottish Local Authorities has said that the increase impacts on its ability to purchase empty properties, for example, which it feels will be detrimental at a time when there is pressure on housing. In its submission, it said:

“There is no obvious policy objective to be achieved by the current arrangements for the payment of LBTT and ADS by local authorities that would justify the different treatment of them and their tenants to RSLs and their respective tenants or the additional costs involved.”

The point that COSLA makes, reinforcing what individual local authorities are saying, is that it will soon have to set rents for next year. The minister is talking about carrying out a review and potentially taking decisions, but without giving a date for a decision. It is therefore quite clear that rents will have to be set without a decision being made by the Scottish Government. I do not understand why there is a difference between RSLs and local authorities.

Finance and Public Administration Committee

Subordinate legislation

Meeting date: 17 January 2023

Kenneth Gibson

You have talked about supporting first-time buyers. Where is the evidence that the additional dwelling supplement has helped first-time buyers and encouraged them into the market? Although it might impact on second homes, I am not aware of any evidence that suggests that it actually helps to increase the number of people who are able to get on to the housing ladder in the first place.

Finance and Public Administration Committee

Subordinate legislation

Meeting date: 17 January 2023

Kenneth Gibson

I was going to ask what “shortly” meant, so thanks for that.

Finance and Public Administration Committee

Subordinate legislation

Meeting date: 17 January 2023

Kenneth Gibson

I thank the minister for his evidence. The committee will publish its report on the SSI in the next few days.

That concludes the public part of today’s meeting. The next item on our agenda, which will be discussed in private, is consideration of our work programme.

10:48 Meeting continued in private until 11:07.  

Finance and Public Administration Committee

Subordinate legislation

Meeting date: 17 January 2023

Kenneth Gibson

I understood Douglas Lumsden’s frustration when he said that the views submitted will not have an impact on Government policy. When you make decisions in future weeks, months and years, I hope that you will reflect on some of the issues that have been raised, particularly those that relate to local government.

Agenda item 2 is formal consideration of the motion on the instrument. I invite the minister to move motion S6M-07288.

Motion moved,

That the Finance and Public Administration Committee recommends that the Land and Buildings Transaction Tax (additional amount: transactions relating to second homes etc.) (Scotland) Amendment Order 2022 (SSI 2022/375) be approved.—[Tom Arthur]

Finance and Public Administration Committee

Subordinate legislation

Meeting date: 17 January 2023

Kenneth Gibson

As there are no further comments, the question is, that motion S6M-07288 be agreed to. Are we agreed?

Members: No.

Finance and Public Administration Committee

Subordinate legislation

Meeting date: 17 January 2023

Kenneth Gibson

I will follow up on a couple of points. How much of the £34 million will be raised from local authorities?

Finance and Public Administration Committee

Subordinate legislation

Meeting date: 17 January 2023

Kenneth Gibson

Thank you. That would be very helpful.

What seems to have come out of the discussion is that the additional dwelling supplement appears to be a bit of a blunt instrument, although there are lots of really good aspects to it. John Mason made an interesting point. Raising the additional dwelling supplement to 6 per cent will not just make things more competitive for first-time buyers; it will probably deter a number of people in the buy-to-let sector from entering the market in the first place, which could reduce upward pressure on prices. That could be a significant positive gain from the policy.

The policy might deter people from buying second homes in our rural areas. In relation to some islands in Scotland, the figure is well over 50 per cent. A couple of years ago, I was in Colonsay, where, I think, 108 people live and only two children are in the school, with many of the properties having been bought by retirees who use them as second homes. However, some of the properties are not second homes; some people live in them. I realise that that is a housing issue rather than a finance issue.

The ADS can be a bit of a blunt instrument when it comes to people buying derelict houses or houses that are a wee bit rundown so that they can upgrade and live in them. Further thought should also be given to that. To me, the ADS is too broad an instrument. It has some positive aspects, but there are also negative aspects. In broad terms, it can act as both an incentive and a disincentive in relation to the Government’s objectives.

Minister, do you want to add anything before we move on?

Finance and Public Administration Committee

Subordinate legislation

Meeting date: 17 January 2023

Kenneth Gibson

There will be a division.

For

Gibson, Kenneth (Cunninghame North) (SNP)
Greer, Ross (West Scotland) (Green)
Johnson, Daniel (Edinburgh Southern) (Lab)
Mason, John (Glasgow Shettleston) (SNP)
Thomson, Michelle (Falkirk East) (SNP)

Abstentions

Lumsden, Douglas (North East Scotland) (Con)
Smith, Liz (Mid Scotland and Fife (Con)

Finance and Public Administration Committee

Subordinate legislation

Meeting date: 17 January 2023

Kenneth Gibson

The result of the division is: For 5, Against 0, Abstentions 2.

Motion agreed to,

That the Finance and Public Administration Committee recommends that the Land and Buildings Transaction Tax (additional amount: transactions relating to second homes etc.) (Scotland) Amendment Order 2022 (SSI 2022/375) be approved.