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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 10 September 2025
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Displaying 2904 contributions

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Finance and Public Administration Committee

Scottish Fiscal Commission (Fiscal Sustainability Report)

Meeting date: 28 March 2023

John Mason

I want to pursue some of the areas that the convener has asked about. Paragraph 24 of your report, which is on page 7, under the heading “Fiscal Sustainability”, says:

“Based on the OBR’s suggested paths for reducing the projected UK Government deficit, we have modelled a scenario where the fiscal tightening is applied evenly across all areas of UK Government spending and taxation.”

What does that actually mean? Does it mean that half the gap will be met from spending and half will be met from taxation? Obviously, that would have an impact on us.

Finance and Public Administration Committee

Scottish Fiscal Commission (Fiscal Sustainability Report)

Meeting date: 28 March 2023

John Mason

So, we would have both the cut to the block grant, which we would have to put into practice, and the extra 1.7 per cent or whatever figure.

Finance and Public Administration Committee

Scottish Fiscal Commission (Fiscal Sustainability Report)

Meeting date: 28 March 2023

John Mason

That is, the Scottish Government budget is insulated, but not the people of Scotland, because the people of Scotland will have to pay more VAT or some kind of electric car duty or something to help as part of the UK applying the 10.1 per cent.

Finance and Public Administration Committee

Scottish Fiscal Commission (Fiscal Sustainability Report)

Meeting date: 28 March 2023

John Mason

I am emphasising the 1.7 per cent, because it would be, as you have just said, differential. In a sense, that is what we have to worry about and what we can make decisions on, because, if the UK cuts expenditure by 10.1 per cent, we will certainly all complain about it but we will not be able to do anything about it.

Finance and Public Administration Committee

Effective Scottish Government Decision Making

Meeting date: 28 March 2023

John Mason

On the theme of transparency, we also heard a witness say that too much transparency is harmful to decision making because writing everything down prevents civil servants from being frank with ministers. What is your response to that?

Finance and Public Administration Committee

Scottish Fiscal Commission (Fiscal Sustainability Report)

Meeting date: 28 March 2023

John Mason

That is helpful. I confess that I have not read every word in the report. I focused on certain chapters, so I will go back to the one that I have read. I am struggling with figure 4.2 on page 44, as some of it seems a little counterintuitive, so I want to ask you to explain some of that.

For example, the first paragraph under the chart says:

“Scottish tax revenues would grow by an additional 5 per cent by 2072-73 ... because of the larger pool of Scottish tax payers. But the BGAs would increase four times as rapidly due to the impact of greater population growth in Scotland”

relative to England and Northern Ireland. I am struggling to understand that.

Finance and Public Administration Committee

Effective Scottish Government Decision Making

Meeting date: 28 March 2023

John Mason

Thanks.

Finance and Public Administration Committee

Effective Scottish Government Decision Making

Meeting date: 28 March 2023

John Mason

Mr Taylor, I will give you the last word, on auditing kindness.

Finance and Public Administration Committee

Scottish Fiscal Commission (Fiscal Sustainability Report)

Meeting date: 28 March 2023

John Mason

Right. Just to clarify again, on the 1.7 per cent, you say that we are relatively insulated.

Finance and Public Administration Committee

Scottish Fiscal Commission (Fiscal Sustainability Report)

Meeting date: 28 March 2023

John Mason

You have kind of underlined what I was thinking. So, 1.7 per cent would be the absolute minimum or the best situation—however you want to look at it—whereas, as you say, 10.1 per cent is where we are more likely to be.

What would 1.7 per cent mean for us? I think that you gave us a figure, but what would we have to raise income tax or cut expenditure by to get 1.7 per cent?