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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 24 June 2025
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Displaying 1208 contributions

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Finance and Public Administration Committee

Budget Scrutiny 2023-24 (United Kingdom Context)

Meeting date: 13 December 2022

Liz Smith

Thank you.

Finance and Public Administration Committee

Budget Scrutiny 2023-24 (United Kingdom Context)

Meeting date: 6 December 2022

Liz Smith

I want to ask a technical question on the back of commentary by some economists that, following the end of lockdown and the severe restrictions that we all faced when we were unable to do some things, service industries are beginning to be rebooted. Can you put your finger on any evidence that that is happening a bit more successfully than in other areas of the economy, because we are now out and about and taking advantage of services that we could not use previously? Have you any data to suggest that that commentary is accurate, or is it too early to tell?

Finance and Public Administration Committee

Budget Scrutiny 2023-24 (United Kingdom Context)

Meeting date: 6 December 2022

Liz Smith

I heard that interview, too, and I thought it was interesting. It also flagged up that there are regional differences in the ways that people are reacting to their local high streets, which is another potential worry.

Obviously, different factors affect inflation—there can be demand-pull or cost-push scenarios. Is it your understanding that the greater component of high inflation has been more on the cost-push side than the demand-pull side—whether that has been because of a lack of supplies from Ukraine or the huge hike in energy prices?

Finance and Public Administration Committee

Budget Scrutiny 2023-24 (United Kingdom Context)

Meeting date: 6 December 2022

Liz Smith

I asked that question because we have suffered from fiscal policy and monetary policy pulling in opposite directions. The UK has been trying desperately—perhaps not very successfully, at one stage—to get the right balance on fiscal policy, whereas the Bank of England’s remit is to control inflation, and therefore monetary policy has pulled in the opposite direction. That difficulty means that it really matters what kind of inflation it is, which allows us to determine what policies are put into practice, which is why I asked that question.

Public Audit Committee

“Scotland’s public finances: Challenges and risks”

Meeting date: 1 December 2022

Liz Smith

That is a very helpful answer. It is good to hear that a paper is coming in early 2023 about that. Is it your understanding that some of the money that is held in the reserves of councils or IJBs could be used to ease some of the financial pressures that councils are under just now?

Public Audit Committee

“Scotland’s public finances: Challenges and risks”

Meeting date: 1 December 2022

Liz Smith

So, that could that help the budget, from that angle.

Public Audit Committee

“Scotland’s public finances: Challenges and risks”

Meeting date: 1 December 2022

Liz Smith

I have just one more question, convener.

You rightly mention in paragraph 35 that the Scottish Government has capital borrowing powers and that, while capital borrowing cannot be used to support resource spending, there are certain types of capital spending that could be moved to resource spending. Can you clarify whether there are specific criteria that need to be adhered to in order for that capital spend to be moved to resource spend?

Public Audit Committee

“Scotland’s public finances: Challenges and risks”

Meeting date: 1 December 2022

Liz Smith

That is helpful. Thank you.

Public Audit Committee

“Scotland’s public finances: Challenges and risks”

Meeting date: 1 December 2022

Liz Smith

And any decision in that regard has to be set against the HM Treasury criteria.

Public Audit Committee

“Scotland’s public finances: Challenges and risks”

Meeting date: 1 December 2022

Liz Smith

Thank you, convener. Mr Boyle, in relation to the convener’s first questions this morning, you said that a very high percentage of the Barnett consequential spend in Scotland went on Covid, which was very important in trying to get us through the pandemic. How easy is it to track where that Covid spend went? Are you aware of any unspent Covid money?