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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 23 December 2025
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Displaying 1965 contributions

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Finance and Public Administration Committee

Revenue Scotland

Meeting date: 5 December 2023

Michael Marra

Have you been doing that?

Finance and Public Administration Committee

Revenue Scotland

Meeting date: 5 December 2023

Michael Marra

Do you think that your Scottish Government colleagues might be drawing those lessons for the aggregates tax? I am sure that we can ask the minister about that when he comes to see us.

Finance and Public Administration Committee

Revenue Scotland

Meeting date: 5 December 2023

Michael Marra

In the annual report, you note the decline in Scottish landfill tax revenues. Will you say a little bit more about that, please?

Finance and Public Administration Committee

Revenue Scotland

Meeting date: 5 December 2023

Michael Marra

I am interested in the move from collecting revenue towards a more environmentally sustainable trajectory and whether there is a trade-off in that regard for the public accounts. I think that there is reasonable agreement on that, but there are fiscal challenges for Scotland at the moment.

More broadly, we have seen significant issues with behaviour change on the income tax side of the agenda. As more taxes are collected, are there any broad lessons or reflections that Revenue Scotland could give us on how behaviour change in Scotland under the devolved taxation regime is beginning to evolve?

Finance and Public Administration Committee

Revenue Scotland

Meeting date: 5 December 2023

Michael Marra

I want to draw a slight distinction between compliance and minimisation, if that is possible. It is right that everybody complies, but businesses will tend to try to minimise their tax in order to heighten profitability. Does increased visibility result in higher minimisation?

Finance and Public Administration Committee

Scottish Fiscal Framework: Independent Report and Review

Meeting date: 14 November 2023

Michael Marra

As much as other members may describe the negotiation as a process in which the UK Government has the whip hand, it involves a two-party signatory agreement where one party can withhold agreement and say that “Until we get more of what we want, we are not going to agree to it”. Although, as David Phillips described, one party might, for very sound reasons, be reluctant to go in a particular direction, it is a two-party agreement.

That takes me to the issue about how rushed some of this feels towards the end. It is a long-term process but it seems like we are now locked into what is described as an agreement for more than 50 years on the basis of trying to deal with a short-term issue in terms of borrowing capabilities to deal with a £1 billion black hole of the Scottish Government’s own making. Is that not part of the risk in the way that the Scottish Government has dealt with this? It has focused on short-term budget priorities and how it can get through this budget year, and has locked us into a process for 50 years as a result.

Finance and Public Administration Committee

Scottish Fiscal Framework: Value Added Tax Assignment

Meeting date: 14 November 2023

Michael Marra

I believe that the principles that we have talked about in the committee this morning about the devolved institutions in Scotland having economic responsibility to focus more on how we grow the economy and how we get money in people’s pockets to generate the taxes to provide the public services that we need are right, but it is fair to say that, over some years, the institutions have had a good shot at trying to develop robust mechanisms to project and deliver some mechanism by which VAT assignment might be achieved. It does not feel to me that that work is bearing fruit.

When we took evidence about this from HMRC in private, I was less than convinced by its ability to produce reliable forecasts on the basis of survey data and some other indicators alone. There is obviously a stream of activity that it is funding and supporting with a view that this is continued Government policy. I think that we could reasonably ask whether that is money that is being well spent.

My general, broader opinion on that is that I agree with David Phillips about the need to ensure that we have a focus on a broad economy that takes a different form. Rather than taking a very narrow view of one part of the tax base, we need to understand the role of people who are not earning high levels of income, whether that be wealth, whether that be people who are living in relative poverty, whether that be pensioners, students or people at the bottom end of the income scale. We do need to think about how the Government incentives are structured properly to do that. It does not feel to me that this is a practical means to do that at the moment.

Finance and Public Administration Committee

Scottish Fiscal Framework: Independent Report and Review

Meeting date: 14 November 2023

Michael Marra

In the absence of any real public discussion or parliamentary scrutiny before the agreement and the publication of the report, we are left reading priorities into the text. It seems that the Scottish Government has placed the population dynamics at a higher level of priority than other economic challenges such as low gross value added or longer-term lack of investment in research and development that might be driven by more capital spend. Is it your feeling that it has put the immediacy of those issues ahead of longer-term economic transformation, as it might put it?

Finance and Public Administration Committee

Scottish Fiscal Framework: Independent Report and Review

Meeting date: 14 November 2023

Michael Marra

Upon which basis decisions are made, I suppose.

Finance and Public Administration Committee

Scottish Fiscal Framework: Independent Report and Review

Meeting date: 14 November 2023

Michael Marra

The Barnett formula was set in similar circumstances. It was thought that it might be revised within a couple of years but it has existed for decades and we are still unpicking the complexities of it. Mairi Spowage might want to come back to me on that one, but I invite David Phillips to share his thoughts first.