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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 27 December 2025
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Displaying 1359 contributions

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Finance and Public Administration Committee

Subordinate legislation

Meeting date: 17 January 2023

Liz Smith

I accept that the tax will raise revenue—that is clear from the evidence that we have had so far. I will come back to the issue that Michelle Thomson asked about. The assessment of what is likely to happen in the housing market as a result of this change is that it will have potentially have quite serious effects. Obviously, we have the evidence that has been presented to the committee and we also have strong anecdotal evidence that people are withdrawing from the market.

My question is to ask the Scottish Government about the potential detrimental effects of the removal from the market of quite a number of landlords who have extra dwellings that can support the economy. I come back to the point about the rural economy because, in some cases, there is a danger that, if too much of that activity comes out of the market, not only could it have a damaging effect on the mobility of the working population and repopulating difficult areas for the rural economy, it could have a considerable effect on tourism. We cannot afford to have any detrimental effects on those aspects of the economy. What evidence are you considering on those aspects of the economy? Finally, what discussions have you had with the Cabinet Secretary for Social Justice, Housing and Local Government over those likely effects?

Finance and Public Administration Committee

Subordinate legislation

Meeting date: 17 January 2023

Liz Smith

For clarity, when is that likely to be?

Finance and Public Administration Committee

Subordinate legislation

Meeting date: 17 January 2023

Liz Smith

I understand the point about raising tax revenue. It is incumbent on all parliamentarians to recognise the importance of that. However, the proposed legislation will result in a lot of unintended consequences that have not been thought through. I find that pretty difficult, because such issues are important to the future of Scotland. On that basis, I will abstain on the vote.

Finance and Public Administration Committee

Subordinate legislation

Meeting date: 17 January 2023

Liz Smith

Finally, I will pick up on the convener’s point that there are some inconsistencies in this approach. It is unfortunate that the reform to the additional dwelling supplement issue is happening at the same time as the review; it is almost a case of putting the cart before the horse. You are undertaking a review process, so would it not have been better to do it the other way round?

Finance and Public Administration Committee

Budget Scrutiny 2023-24

Meeting date: 10 January 2023

Liz Smith

What will restructuring of the SHRC office involve?

Finance and Public Administration Committee

Budget Scrutiny 2023-24

Meeting date: 10 January 2023

Liz Smith

Convener, if it is all right with you, it would be important to get that additional information on the public record. Could Mr Carlaw produce that in due course? That would be fine.

Finance and Public Administration Committee

Budget Scrutiny 2023-24

Meeting date: 10 January 2023

Liz Smith

We will have to disagree on that point. Some commentators—

Finance and Public Administration Committee

Budget Scrutiny 2023-24

Meeting date: 10 January 2023

Liz Smith

As I say, we will have to disagree on that point.

Over the past five years, Scottish income tax policy has diverged from the rest of the UK’s tax policy because of the Parliament’s new powers, so the Scottish Government has been able to generate additional revenues. However, the potential additional spending power has been partially offset by weaker growth in income tax per head, and, as you admitted this morning, by weaker economic performance in Scotland—the UK economy has been weak, but the economy in Scotland has been weaker. What specific economic policies should be prioritised to ensure that productivity in Scotland is enhanced?

Finance and Public Administration Committee

Budget Scrutiny 2023-24

Meeting date: 10 January 2023

Liz Smith

I take your point about some of that but, notwithstanding the perceived advantages that people in Scotland have, if they are asked to pay higher levels of tax than elsewhere, they will look for effective delivery of public services. If we look at the NHS, schools or transport and if we listen to some of the comments from yesterday, what is additional in the quality of delivery of public services that merits those higher tax rates?

Finance and Public Administration Committee

Budget Scrutiny 2023-24

Meeting date: 10 January 2023

Liz Smith

However, Mr Swinney, people do not find it easy to see their general practitioner. They are finding that there are cuts to bus services, some train services or services that are provided to our islands. A lot of things add up to concerns about the delivery of public services. That is reflected in some of the comments that were made yesterday.

I will ask you about one other aspect of the tax changes: the change to the additional dwelling supplement. The Scottish Government forecasts that we will get extra revenue from that tax change. Has it done any modelling about that change in light of the number of people who say that they might leave the market for the additional dwelling supplement as a result of the rent freeze?