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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 14 July 2025
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Displaying 1690 contributions

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Finance and Public Administration Committee

Fiscal Framework (Independent Report)

Meeting date: 11 January 2022

Michelle Thomson

I have a question for all three of the Davids, but perhaps Professor David Bell could start. We have focused on Scotland and Wales, but I am interested in what helpful precedents operate elsewhere in the world, particularly those that deal with issues around fiscal transfers and divergence over time. I feel as though we are dancing on the head of a pin, particularly in relation to indexation methods, and some of those problems are not unique. I would appreciate some thoughts from Professor Bell on that in relation to the review.

Finance and Public Administration Committee

Fiscal Framework (Independent Report)

Meeting date: 11 January 2022

Michelle Thomson

[Inaudible.]—and everybody for the barking that came out of nowhere.

Thank you for that, Ed. Do you have anything to add, Guto? That is my only question.

Finance and Public Administration Committee

Fiscal Framework (Independent Report)

Meeting date: 11 January 2022

Michelle Thomson

Thank you for that—although my question was actually about what the limitations of the current arrangements are, rather than the benefits. Perhaps you would like to fill in on that. What are the limitations of the fiscal levers that the Scottish Government has in influencing the tax base? That was my question.

Finance and Public Administration Committee

Fiscal Framework (Independent Report)

Meeting date: 11 January 2022

Michelle Thomson

Thank you for mentioning those fundamentals.

I will let you move on now, convener.

Finance and Public Administration Committee

Fiscal Framework (Independent Report)

Meeting date: 11 January 2022

Michelle Thomson

Earlier, we talked about how one could grow the tax base—in other words, the working-age population—in Scotland. Daniel Johnson mentioned that, the committee has talked about it a great deal, and I would like to understand the issue a bit more.

Professor Bell, in your view, what are the limitations on the fiscal levers that the Scottish Government currently has to influence and grow the tax base, regardless of the indexation method? Of course, we are really looking at the working-age population. I would appreciate hearing your thoughts on the current limitations in the area that we are discussing.

Finance and Public Administration Committee

Fiscal Framework (Independent Report)

Meeting date: 11 January 2022

Michelle Thomson

To what extent does the Barnett formula embed structural imbalances in the UK? You mentioned financial services, which is an industry that I was involved in for many years. Over the course of my career, head office functions moved to London, bar a few noteworthy examples such as Standard Life, although things have changed for it as well.

Finance and Public Administration Committee

Fiscal Framework (Independent Report)

Meeting date: 11 January 2022

Michelle Thomson

I thank Ed Poole and Guto Ifan for their submission. I echo the sentiments of everyone else on the committee: it really is excellent.

How have the different BGAs per income tax band been beneficial for Wales, given what you have outlined about the difference in your tax base? What are the primary benefits of that system going forward in the light of post-Brexit immigration restrictions?

That is quite a general question. It is fine for whoever wants to answer to do it.

Finance and Public Administration Committee

Fiscal Framework (Independent Report)

Meeting date: 11 January 2022

Michelle Thomson

Thank you.

Finance and Public Administration Committee

Budget Scrutiny 2022-23

Meeting date: 21 December 2021

Michelle Thomson

I appreciate that it is extremely complex; I absolutely understand that. Thank you for the figures. It is useful to have them on the record.

Given the uncertainty about that and what looks to be an increased provision, do you see a point coming at which you would seek to charge back to the UK Government the costs incurred by the Scottish Parliament because we are, in accounting terms, in uncharted territory in which the new environment may come to be seen as special and beyond our normal operating environment? Have you considered the possibility of charging back or having that discussion? If not, would you consider that?

Finance and Public Administration Committee

Budget Scrutiny 2022-23

Meeting date: 21 December 2021

Michelle Thomson

I have probably asked a question that nobody has thought about, but it may well come to that point if the head count and the additional cost are deemed to be significant.

I want to ask Jackson Carlaw a wee question. You mentioned tax in the light of the additional security requirements for members. What assurances can you give that the tax treatment vis-à-vis benefit in kind will be completely aligned between members of the Scottish Parliament and members at Westminster? You might not have been alluding to that. I apologise if you were not, but I wanted to ask that question.