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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 21 June 2025
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Displaying 1200 contributions

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Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 20 February 2024

Liz Smith

I am sorry, but I want to bring you back to the business rate surtax proposals that I asked about. We have received a detailed submission from the Scottish Retail Consortium that sets out somewhere in the region of seven or eight very serious objections to the surtax’s possible introduction. There are two things that I would highlight, the first of which is its bitter complaint that, when it came to the discussion about the new deal for business, the Scottish Government said that there would be “no surprises”. However, this has come as a complete surprise as an announcement without warning.

Secondly, the consortium has set out some pretty substantial concerns about behavioural change. On what basis have you modelled the surtax’s potential impact?

Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 20 February 2024

Liz Smith

Cabinet secretary, in your response to paragraph 40 of our report, you said that, in relation to looking at the impact of tax policy changes on the wider economy, you have been using

“a range of evidence including: real-time economic data”

and

“formal evaluations”.

You give one example of a formal evaluation, which is the income tax evaluation of the 2018-19 reforms. Using the statistics that you have received, what are the other formal evaluations of behavioural change and the impact of tax policy change?

Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 20 February 2024

Liz Smith

It is, of course, the decision of ministers as to what changes to make to tax policy.

Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 20 February 2024

Liz Smith

I do not doubt that. It is the fact that that is not going to be compiled until after the decisions have been made that is the issue.

You also said that engagement with stakeholders, including some of those in the business community, has been very important. Who was it in the business community who was supportive of your income tax changes?

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 6 February 2024

Liz Smith

In answer to the convener, you said that you are not able to provide timescales, should further amendments be needed. Might a number of adjustments need to be made or are you reasonably content that, should the order be agreed to, it will be effective in addressing most of the concerns that we have heard about?

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 6 February 2024

Liz Smith

In relation to some of the concerns that have been put before the committee, will the Scottish Government have on-going discussions with the relevant groups individually about their concerns or is today the end of the matter for that discussion process, should we agree to the motion on the order?

Finance and Public Administration Committee

Agriculture and Rural Communities (Scotland) Bill: Financial Memorandum

Meeting date: 6 February 2024

Liz Smith

My point is that, if that work is controlled largely here in Scotland through the on-going co-design process—this is an issue that we have had in relation to other bills—how are we to interpret the on-going costs of the on-going co-design? How can we do that when we are not sure what the co-design will result in?

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 6 February 2024

Liz Smith

Thank you for that. In its submission, the Institute of Chartered Accountants of Scotland says:

“Historically we have found that generally speaking, awareness of Scottish taxes is not high in Scotland”—

I think that we know that—

“and there is a need for improvement of communications by the Scottish Government to ensure this improves, in line with the Scottish Government’s own Framework for Tax principles.”

We have heard quite a lot from Audit Scotland about the need for greater clarity and transparency on tax in general—what decisions have underpinned certain tax decisions, where the money is coming from and so on—so I think that the point that the convener and Michelle Thomson raised is a valid one. The idea of having a finance bill to improve that and to provide some extra clarity and transparency is quite appealing to this committee. I completely take your point that scrutiny of that would have to be done by Parliament, not just by specific committees, but we would be grateful if that discussion could go a wee bit further.

Finance and Public Administration Committee

Agriculture and Rural Communities (Scotland) Bill: Financial Memorandum

Meeting date: 6 February 2024

Liz Smith

Can you explain why you think that it is acceptable when, as you have admitted, there are so many uncertainties in it?

Finance and Public Administration Committee

Agriculture and Rural Communities (Scotland) Bill: Financial Memorandum

Meeting date: 6 February 2024

Liz Smith

Mr Kerr, when Mr Greer was questioning you, he quoted the section of the financial memorandum that says that the precise split of funding across the tiers is yet to be determined. The financial memorandum goes on to say that that work is

“a key component of the codesign work currently underway”.

Can you tell us about that on-going co-design work?