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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. Session 6: 13 May 2021 to 8 April 2026
  7. Current session: 14 May 2026 to 12 November 2026
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Displaying 117 contributions

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Finance and Public Administration Committee

Pre-budget Scrutiny 2027-28

Meeting date: 9 September 2026

Michael Marra

On the path to savings, is what you have heard in the past week commensurate with the scale of the challenge on pace? In the coming couple of years, we will have a significant block grant adjustment and a really constrained fiscal settlement. We know the shape of that and—to some extent, through the fiscal sustainability delivery plan—we know the shape of where we have to get to. Last week, we heard two essential parts of the conversation about a significant change in health board reform and a pretty broad and woolly conversation about local authority reform. I am not one to judge either of those things; my question is about the path to sustainability and whether it will give us the pace that is required to achieve the outcome of meeting the budget deficit.

Finance and Public Administration Committee

Pre-budget Scrutiny 2027-28

Meeting date: 9 September 2026

Michael Marra

On the lack of an MTFS this year, Dr Sousa, you suggest in your paper that we could instead be looking for an update on the fiscal sustainability delivery plan. Would that give us a better insight into whether targets have been met? Should the committee pursue that?

Finance and Public Administration Committee

Pre-budget Scrutiny 2027-28

Meeting date: 9 September 2026

Michael Marra

We will all be on our best behaviour, now that the police are in.

Finance and Public Administration Committee

Pre-budget Scrutiny 2027-28

Meeting date: 9 September 2026

Michael Marra

Do you have any clarity on the status of the £1.4 billion of additional spending committed to by the Scottish National Party in its election manifesto and whether it will add to the scale of the deficit?

Finance and Public Administration Committee

Pre-budget Scrutiny 2027-28

Meeting date: 9 September 2026

Michael Marra

I thought that he was eager to come in. Okay. No problem, convener. Thank you.

Finance and Public Administration Committee

Scottish Fiscal Commission (Publications)

Meeting date: 2 September 2026

Michael Marra

Having more data is good, but you are not factoring into your next set of forecasts that matter as a big consideration.

Finance and Public Administration Committee

Scottish Fiscal Commission (Publications)

Meeting date: 2 September 2026

Michael Marra

My final point on this area relates to the block grant adjustment that is coming down the line. We have seen the uptick this year of £859 million. The question for the Government is whether it applies that to meeting what was a very tight budget set at the start of this year, which, as recognised by independent analysts, is likely to be a deficit budget, or whether it should put that money away into its roughly £1.4 billion of spending reserve options to try to smooth the reconciliation further down the line? Do you think that the prudent thing to do would be to wait or to put some money aside now to deal with the reconciliation?

Finance and Public Administration Committee

Scottish Fiscal Commission (Publications)

Meeting date: 2 September 2026

Michael Marra

This question might create the risk of another slight professorial scolding about looking at the small numbers rather than the £5 billion that is coming down the line, but I will ask it anyway. Over the summer, there has been a lot of public comment regarding the top rate of tax and the difference between a projected £8 million net benefit and a potential £20 million net loss. Will you comment on those issues?

Finance and Public Administration Committee

Scottish Fiscal Commission (Publications)

Meeting date: 2 September 2026

Michael Marra

On a technical level, it has been useful for the Government to do that, but it has also been politically possible. Running a surplus on an annual basis in order to put away a little bit of money each year to get you to the point of having a cushion will open you up to political criticism from other sources. The Government has quite conveniently had a windfall of money, which has allowed it to do that. Do you think that having a proper second reserve is a useful tool? Forget about the net zero stuff—the purpose of it was to be a smoothing tool.

Finance and Public Administration Committee

Scottish Fiscal Commission (Publications)

Meeting date: 2 September 2026

Michael Marra

That brings me to the additional £859 million that has come into the current financial year, 2026-27. At the start of this year, around the time of the budget, the Institute for Fiscal Studies and the Fraser of Allander Institute both predicted that it was very likely that there would have to be an emergency budget half way through the year, as we have seen from the Scottish Government in three of the previous four years, due to the Government bursting the budget half way through the year and not having enough money to meet the commitments that it had made at the start of the year, because of poor financial management.

On that basis, do you think that it is likely that the additional £859 million will get the Government over the hump, which will mean that we will not have an emergency budget this year?