The Official Report is a written record of public meetings of the Parliament and committees.
All Official Reports of meetings in the Debating Chamber of the Scottish Parliament.
All Official Reports of public meetings of committees.
Displaying 2063 contributions
Economy and Fair Work Committee (Virtual)
Meeting date: 12 January 2022
Michelle Thomson
Thank you. I am aware of time, so I will stop there.
Economy and Fair Work Committee (Virtual)
Meeting date: 12 January 2022
Michelle Thomson
Good morning, everybody. We have received quite a few submissions about the bill’s potential impact on economic development. In his submission, Professor Bell points out the difference between horizontal and vertical development. It is perhaps a matter of regret that we do not have a representative of the Scottish National Investment Bank on the panel. As you will be aware, the SNIB involves an investment by the Scottish Government of £2 billion over 10 years, which is a serious amount of public money. In its submission, the bank says:
“It goes without saying that if development banks are to be constrained to operating in areas of market failure, the new UK Subsidy Control Regime must be at least as wide as its predecessor, and/or sufficient discretion to public bodies and devolved administrations afforded.”
I want to get your views on the Scottish National Investment Bank in particular, as it seems to be a slightly different model, given that it was set up specifically to aid economic development in Scotland in a key way, not least on net zero. I imagine that, if that is the case for the SNIB, it will also be an issue for the British Business Bank. Perhaps Professor Fothergill or Professor Bell might like to answer in the first instance.
Finance and Public Administration Committee
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
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
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
Meeting date: 11 January 2022
Michelle Thomson
Thank you.
Finance and Public Administration Committee
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
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
Meeting date: 11 January 2022
Michelle Thomson
I can see that David Phillips wants to come in. He has put an R in the chat box.
Finance and Public Administration Committee
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.