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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 8 September 2025
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Displaying 3573 contributions

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Finance and Public Administration Committee

Cabinet Secretary for Finance and the Economy

Meeting date: 31 August 2021

Kenneth Gibson

Politics moves very fast in Scotland, and we now have the co-operation agreement between the Scottish Government and the Green Party, with ministers, including Patrick Harvie, a former member of this committee, being appointed this afternoon. What work has been done on the implications of that for the public finances? For example, the number of affordable houses to be built to 2032 is to increase from 100,000 to 110,000, although that will happen at a time of labour and skills shortages; 拢500 million is to be invested in a just transition fund for the north-east and Moray; and there is to be a fair fares review to provide a realistic alternative to car use and increase investment in active travel and public transport. Given the likelihood of the funding for those measures impacting on other Scottish Government policies and programmes, can you take me through the process of how the agreement will work as you take the budget forward?

Finance and Public Administration Committee

Cabinet Secretary for Finance and the Economy

Meeting date: 31 August 2021

Kenneth Gibson

A number of members, myself included, have raised issues with regard to tax and demography. One issue of concern is the need to grow the Scottish economy relative to the UK economy. We have real demographic challenges, and there is also a productivity issue. What steps will be taken on that?

As the Scottish Government recently pointed out, the UK has had the lowest economic growth of any north-west European state over the past 12 years or so since the financial crash, but Scotland does not seem to have done particularly well in comparison, as reflected in the block grant adjustment in some years. What can we do to try to increase productivity so that we can restore and improve the health of, and enhance, the public finances?

Finance and Public Administration Committee

Cabinet Secretary for Finance and the Economy

Meeting date: 31 August 2021

Kenneth Gibson

In our second evidence session we will hear from Kate Forbes, the Cabinet Secretary for Finance and the Economy, and Douglas McLaren, deputy director, budget, pay and pensions, in the Scottish Government. I welcome our witnesses to the meeting, not least because the cabinet secretary has come straight from the Local Government, Housing and Planning Committee meeting and has already had an exceptionally busy morning.

Committee members have received a paper providing background information for the evidence session, but before I open the session to questions from members, I invite the cabinet secretary to make a short opening statement.

Finance and Public Administration Committee

Cabinet Secretary for Finance and the Economy

Meeting date: 31 August 2021

Kenneth Gibson

I agree with your comments. However, the UK and Scotland have the same immigration policies. What can Scotland do to improve its position relative to the rest of the United Kingdom? The block grant adjustment and taxation are obviously major issues in future budgetary considerations.

Finance and Public Administration Committee

Scottish Fiscal Commission (Economic and Fiscal Forecasts)

Meeting date: 31 August 2021

Kenneth Gibson

Absolutely. Daniel Johnson is just warming up for the cabinet secretary鈥攄o not worry.

Finance and Public Administration Committee

Scottish Fiscal Commission (Economic and Fiscal Forecasts)

Meeting date: 31 August 2021

Kenneth Gibson

I thank our witnesses very much for their very interesting presentation and for answering our questions.

10:45 Meeting suspended.  

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Finance and Public Administration Committee

Cabinet Secretary for Finance and the Economy

Meeting date: 31 August 2021

Kenneth Gibson

The committee received a letter from you earlier this morning regarding a number of matters. The letter鈥檚 heading is 鈥淧rocess and timetable around Scottish Budget 2022-23鈥. In it, you touch on the delayed medium-term financial strategy and say:

鈥淭here is logic for publishing the MTFS alongside the Scottish Budget and thereby basing it on the updated SFC and OBR forecasts. Publishing it before the OBR October forecasts would mean having to use OBR forecasts from March, the effect of which would be to give a misleading sense of the fiscal outlook.鈥

When I raised the matter with Scottish Fiscal Commission representatives, they agreed with that.

Where are we in terms of the MTFS? Are we going to see it alongside the budget? Can you give us any further thoughts on the timing of the budget, given all the stramash that you outlined in your letter regarding the difficulty of not having confirmed timings for UK fiscal events?

Finance and Public Administration Committee

Cabinet Secretary for Finance and the Economy

Meeting date: 31 August 2021

Kenneth Gibson

We will certainly deliberate on that in our next private session, which is about to start in a few minutes, when we consider our work programme.

I thank both our guests today, particularly the cabinet secretary for answering so many questions in such depth, particularly after a session at the Local Government, Housing and Planning Committee. I realise that it has been a very heavy morning for you, so I hope you will have a wee break now before the rest of the day鈥檚 proceedings.

12:33 Meeting continued in private until 12:47.  

Finance and Public Administration Committee

Scottish Fiscal Commission (Economic and Fiscal Forecasts)

Meeting date: 31 August 2021

Kenneth Gibson

I fully appreciate that, but do you produce for the Scottish Government forecasts of what specific tax levels could mean for the block grant adjustment, so that the Scottish Government has a clearer focus on what the result of a tax policy might be?

Finance and Public Administration Committee

Cabinet Secretary for Finance and the Economy

Meeting date: 31 August 2021

Kenneth Gibson

That allows me to neatly segue to your letter to the committee of 8 July, in which you indicated that the Scottish Government had started work

鈥渢o support a potential multi-year Resource Spending Review concluding in the autumn.鈥

Where are we with that now? Is it on schedule, and will it be informed by the fiscal framework?