Chamber and committees

Before I move on, I have a final point on this, which is perhaps for the numbers guys. Obviously, it is very inefficient to have the variability. Do you collect data on sunk costs at all? There must be quite a lot of sunk costs when you have a projection of £X and it suddenly turns out to be £Y.

Is the crowding in of private investment flowing towards what you consider to be the right business—in relation to matters such as fair work, ethical stance and sustainability? Are you making the Scottish Government or SNIB aware that you have that scale?

I hear that clearly, and I also recognise what you say about the banks.

My last question is to both the enterprise agencies. The recent programme for government included a commitment to

“Increase the number of women starting and scaling businesses”,

and it mentions our partnership with the enterprise agencies to enable that. Will you tell us more about what is going on in that regard? This is a chance for you to evangelise.

You and me both.

I have a question for Vicki Miller, although Stuart Black and Jane Morrison-Ross might want to come in, as well. To what extent have you considered the opportunities and challenges that are set by artificial intelligence, particularly generative AI, linked to your marketing propositions? I would appreciate your initial thoughts on that.

Many of the areas that I am interested in have been covered. I want to explore the main theme of this evidence session. Thus far, the evidence has highlighted the considerable complexity that is illustrated by the fiscal framework. It also points to the fact that there is a bit of a johari window issue in that politicians are driven to look at very nearside issues in relation to the budget in hand at this moment in time, although our earlier conversation was about the lack of long-term infrastructure investment—capex and so on. Public sector net investment was 8 per cent of gross domestic product in the 1960s and had dropped to 0.5 per cent of GDP by the 1990s. That big thematic framing of the UK macroeconomy tends to be forgotten when we are looking at this exercise.

That is a long explanation for what is a simple question. Given that this evidence session is about a strategic approach to the Scottish budget, in summing up, what areas would you like to pull out that have not been considered thus far to genuinely attempt some consideration of a strategic approach to the Scottish budget?

You looked at me, Professor Bell, so I will go to you first.

Thank you everyone. That helpful thread has taken us back to the complexity of the big picture.

That is interesting and I suspect that it will be picked up further.

Vikki Manson, there is an intriguing bit in your submission, which I will quote for the record:

“It is simply impossible to expect to see an increase in economic activity when the proposed Economy National Outcome intends to deprioritise economic growth.”

You go on to refer to the wellbeing economy. That is being looked at and we know that work is under way, but I would like to get a little more flavour of what you mean by that. Also, given that you made your submission prior to the budget, do you now have more confidence that the budget will encourage economic growth?

I suspect that some of those themes will be picked up by the Economy and Fair Work Committee, of which I am also a member, which is convenient.

My final question picks up on a point that my colleague Ross Greer alluded to. As we are taking a strategic look at the budget, I am interested in the panel’s views on hypothecated taxes, by which I mean those that are aligned to particular purposes. Through the use of the term “ring fencing”, we have seen such an approach being passed on to councils, yet it is not being applied to the Government itself. Ross gave the example of minimum unit pricing. There has also been a suggestion that the £640 million of ScotWind moneys would just go on building supply-side infrastructure and so on for renewables. This is a bit of a throwaway question, but what are your thoughts on the principle of hypothecated taxes? Would that intrigue you, given that this session is about strategic budgets? David Lonsdale is going first on that one.

Many of the areas that I am interested in have been covered. I want to explore the main theme of this evidence session. Thus far, the evidence has highlighted the considerable complexity that is illustrated by the fiscal framework. It also points to the fact that there is a bit of a johari window issue in that politicians are driven to look at very nearside issues in relation to the budget in hand at this moment in time, although our earlier conversation was about the lack of long-term infrastructure investment—capex and so on. Public sector net investment was 8 per cent of gross domestic product in the 1960s and had dropped to 0.5 per cent of GDP by the 1990s. That big thematic framing of the UK macroeconomy tends to be forgotten when we are looking at this exercise.

That is a long explanation for what is a simple question. Given that this evidence session is about a strategic approach to the Scottish budget, in summing up, what areas would you like to pull out that have not been considered thus far to genuinely attempt some consideration of a strategic approach to the Scottish budget?

You looked at me, Professor Bell, so I will go to you first.