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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 5 May 2021
  6. Current session: 12 May 2021 to 20 June 2025
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Displaying 1200 contributions

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Finance and Public Administration Committee

Pre-budget Scrutiny 2025-26

Meeting date: 8 October 2024

Liz Smith

Earlier, Lucy O’Carroll confirmed that the tax strategy will be published along with the budget on 4 December. How many times has the tax strategy group met since the general election?

Finance and Public Administration Committee

Pre-budget Scrutiny 2025-26

Meeting date: 8 October 2024

Liz Smith

My final question is about expanding the tax base, which the convener referred to earlier. What are the priorities of the Scottish Government’s current policies on expanding the tax base?

Finance and Public Administration Committee

Pre-budget Scrutiny 2025-26

Meeting date: 8 October 2024

Liz Smith

But the tax strategy will set out how we widen the tax base.

Finance and Public Administration Committee

Proposed National Outcomes

Meeting date: 8 October 2024

Liz Smith

That is helpful.

My final question is for Kate Forbes. Earlier, we discussed how, perhaps in the past two or three years, some people—although not everybody—have felt that there has not been as much emphasis on the national performance framework as there had been previously and that, therefore, it has been difficult to meet the framework’s demands. Is one possible reason for that difficulty the fact that the framework is, in theory, very ambitious in trying to do some very difficult things, including combining very different objectives and considering the opportunity costs that are involved in all that? Mr Mason mentioned that the Scottish Government has added a few extra dimensions to the framework. Has that made things more difficult?

12:30  

Finance and Public Administration Committee

Pre-budget Scrutiny 2025-26

Meeting date: 8 October 2024

Liz Smith

To be specific, how many times has it met since the general election?

Finance and Public Administration Committee

Pre-budget Scrutiny 2025-26

Meeting date: 8 October 2024

Liz Smith

I am interested because there has been discussion about the principles and objectives behind the Scottish Government’s tax strategy. Has the issue of competitiveness been added to that overview of the tax strategy?

Finance and Public Administration Committee

Pre-budget Scrutiny 2025-26

Meeting date: 8 October 2024

Liz Smith

I understand those principles, but my specific question is about competitiveness. Is that issue in the Scottish Government’s tax strategy?

Finance and Public Administration Committee

Pre-budget Scrutiny 2025-26

Meeting date: 8 October 2024

Liz Smith

I am just coming to behaviour. The tax strategy has to deliver economic growth and improve the economy and wellbeing. That all has to be up there. I am asking about competitiveness because a lot of people in the world of business and industry make the point that the competitive side of the tax strategy is extremely important. If we are to deliver much greater economic growth and a much better economic outturn, we need a competitive tax structure. I would have thought that that was central to the Government. I flag up the comment that the Deputy First Minister made at the end of August, when she wrote:

“continually raising taxes is ultimately counter-productive”

because revenue falls, which impacts on potential investment.

The committee has had various bits of evidence from the Scottish Fiscal Commission, which has argued that, at the top levels of tax systems, there is a problem with potential behavioural change. In terms of your tax strategy—never mind the tax rate—are you measuring the different tax elasticities and the behavioural change that is likely to result from the tax policies that you have just now?

Finance and Public Administration Committee

Pre-budget Scrutiny 2025-26

Meeting date: 8 October 2024

Liz Smith

Obviously, there are businesses that are concerned about the potential for difficulties with recruitment in the future, because they feel that some medium to high earners are being put off.

When we get the tax strategy, it will be important that you produce the evidence behind what is driving it. In other words, will we get the evidence that allows us to see what the different elasticities are at present and whether the behavioural change is as we suspect it is?

Finance and Public Administration Committee

Pre-budget Scrutiny 2025-26

Meeting date: 1 October 2024

Liz Smith

What are you doing just now to identify areas in which the outcomes of the decisions that you make in local government are better than they have been in the past? Is that work not on-going? I would have thought that, with public sector reform, it would be very important to know exactly where there had been successes. Is that not an important discussion for local government and central Government to have?