Chamber and committees

Thank you. I suspect that we could talk about that for some time yet.

To what extent do you think that, with guidance from you and the rest of the team, we could turn some of the outlook of the Scottish Fiscal Commission into leadership, moving away from the prevailing view of the world in the UK? Do you think that you would be able to influence that?

Good morning, Professor Roy. Thank you for attending today’s meeting. You are well known to us, and you set out in your CV how you can utilise, and how the commission can benefit from, the extensive networks that you have in Scotland and your long hinterland in economic understanding and supporting roles. However, it occurs to me that, although that is a benefit, it could also be a downside in relation to being able to differentiate yourself in a leadership role at this level. What challenges do you see in being able to do that, and how will you address them?

I am talking about the general principle. In a report from some years ago, Westminster’s Public Administration Select Committee said that it is “a constitutional fiction” that officials in Edinburgh and London are part of a unified civil service. What general assessment have you made of that?

Earlier, you talked about Roosevelt and the first 100 days—it is often quoted. In the first 100 days, you have done some things and we have talked about the strategy on external affairs and relentless focus on outcome. As a broad overview, what do you see as the key challenges in your role as permanent secretary? I do not mean in reporting to ministers; I mean organisationally. A fresh perspective is good. What do you see as your key opportunities?

My closing remark is that I am a bit surprised that you have not included more around organisational challenges. Someone brought up silo working, culture, risk appetite, innovation, use of technology and so on. I am conscious of time, but will you briefly tell me whether you will be writing an overarching strategy paper? What you are describing is operational, but I am talking about systemic, organisational change. Many of those challenges are inherent in business organisations and in public sector organisations, particularly the use of artificial intelligence. Do you produce something like that in your role as permanent secretary?

Good morning and thank you very much for attending. I agree that your CV is remarkable; indeed, when I was preparing for today, I wanted to go away and read a lot of your articles, but I simply did not have time.

I have a few questions. What time commitment are you able to give to the role and what challenges do you see to that time commitment?

I am on the record as expressing my frustration that quite a lot of people have a fundamental lack of knowledge about macroeconomic policy. The focus tends to be, particularly from a scrutiny perspective, on what we need to count and account for. How will you be able to use your extensive knowledge—this goes back to John Mason’s point—to create more general knowledge among the populace about the importance of macroeconomic frameworks and policy, and knowledge that, as Dr Lombardi said, our current policy levers can address only some of that? How can you help to heighten and broaden the thinking among the Scottish populace, not least among those in the Scottish Parliament?

Thank you.

I suppose that fiscal drag is going to kick in as well. I am probing whether we have considered that enough in the visioning that we do on town centres. I agree with what you have said about multi-unit flexibility, a move away from full repairing and insuring leases and so on, but there is a cost associated with that flexibility for retailers. Quite often, the business model that they choose to adopt is to target a certain sector or socioeconomic profile. I am trying to join the dots between the complexity of that and the cost, because that represents a risk for retailers when we have these challenges for certain sectors of our society.

There always seems to be a bit of serendipity when I am last to ask a question, as a panellist inevitably leads on to the area that I want to explore. David Lonsdale has just done so this time.

David, this question is for you and perhaps Martin Newman. Having listened to the discussion, I have been struck by the many different areas where we have touched on the wider economic macroenvironment, which, as we are aware, is facing significant challenges.

I read a paper on the KPMG/Ipsos Retail Think Tank website that quotes Ruth Gregory and discusses the level of consumer debt and how much it rose in quarter 1 of this year. I will perhaps put my question to David Lonsdale and Martin Newman initially, but other panellists may also wish to comment. Have we reflected the challenges for consumers enough in the terms of reference and scope of our inquiry, given what we have heard about the energy crisis, the cost of living crisis, Brexit starting to hit home, wage depression and so on? It is all very well to have grand ideas and reflect on business owners but, if consumers do not have money to spend, we need to factor that in as well.

I see Martin nodding. Perhaps he would like to comment first, as the paper that I mentioned is on his website.