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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 1 January 2026
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Displaying 2506 contributions

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Economy and Fair Work Committee (Virtual)

Subsidy Control Bill

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.

Meeting of the Parliament

Portfolio Question Time

Meeting date: 12 January 2022

Michelle Thomson

At today’s Economy and Fair Work Committee, it became clear that the 2020 act acts as an enabler for a raft of other legislation—for example, the UK Parliament Subsidy Control Bill is one area of concern. Professor David Bell of the University of Stirling noted in his submission to the committee that

“It is also not clear how the Bill might interact with policies that are intended to move the economy towards net zero. For example, if the Scottish government proposed to subsidise industrial plants to reduces their carbon footprints, would it be forced by the Secretary of State (BEIS) to request a CMA assessment of this action.”

To what extent does the cabinet secretary share the concerns of Professor David Bell?

Meeting of the Parliament

Portfolio Question Time

Meeting date: 12 January 2022

Michelle Thomson

To ask the Scottish Government in what ways the United Kingdom Internal Market Act 2020 could impact on its ability to meet its net zero targets. (S6O-00601)

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

Fiscal Framework (Independent Report)

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.