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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 5 May 2021
  6. Current session: 12 May 2021 to 14 May 2025
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Displaying 1491 contributions

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Finance and Public Administration Committee

National Care Service (Scotland) Bill: Financial Memorandum

Meeting date: 26 September 2023

Michael Marra

I think so, because we all know the huge costs of the failure to eliminate delayed discharge.

Finance and Public Administration Committee

National Care Service (Scotland) Bill: Financial Memorandum

Meeting date: 26 September 2023

Michael Marra

In your letter to us, you committed to completing stage 1 by 31 January 2024. The convener has it on the record that the financial memorandum should be provided four weeks prior to that date. Working back, we are looking at your having to provide the financial memorandum—by my reckoning—by around 11 December. Do you have a date in your diaries for when you will send the financial memorandum to the committee?

Finance and Public Administration Committee

Sustainability of Scotland’s Finances

Meeting date: 19 September 2023

Michael Marra

No. Sorry.

Finance and Public Administration Committee

Sustainability of Scotland’s Finances

Meeting date: 19 September 2023

Michael Marra

Alastair, you know that I am a big supporter of the universities in Dundee, and we have had conversations regularly, but you will also be aware that we have industrial action this week at various institutions across the country. Unite and the University and College Union are out, looking for pay that is commensurate with something approaching the cost of living, frankly. How can we make sure that our universities are delivering the pay deals that we require, given that we are sitting here talking about budgets?

Finance and Public Administration Committee

Sustainability of Scotland’s Finances

Meeting date: 19 September 2023

Michael Marra

There definitely is not. In our previous evidence session, Professor David Heald talked about people negotiating their net pay position. In essence, he was agreeing with you that, internationally, people will look at that. Whether there is less pay because of tax or a lower basic wage is probably immaterial to somebody making that move internationally. Does that not result in the national health service having to pay substantially more to make up for the cuts and it becoming a vicious cycle where, on your logic, the public sector has to pay into the system rather than gain from it?

Finance and Public Administration Committee

Sustainability of Scotland’s Finances

Meeting date: 19 September 2023

Michael Marra

The tax working group that the Government has put in place is looking at the increase in the higher rate, which has already been discussed. According to the SFC’s modelling, that will raise £128 million, if we look at the static costings, and, if we take account of behavioural effects, that goes down to £92 million. On the change in the top rate from 46p to 47p, Professor Heald mentioned that the static costing was £32 million and that, after behavioural effects, it was £3 million. Could you say a little about what you think the reason for that is? One of those measures loses 90 per cent of its value, while the other loses a smaller percentage. Could you explain that?

Finance and Public Administration Committee

Sustainability of Scotland’s Finances

Meeting date: 19 September 2023

Michael Marra

Do you have confidence in those numbers?

10:45  

Finance and Public Administration Committee

Sustainability of Scotland’s Finances

Meeting date: 19 September 2023

Michael Marra

As a panel, you have illustrated some risks that you think are coming. Professor Heald mentioned that, if we teach higher-earning public sector workers to avoid tax, in essence, the more people will have to be involved in where our income might come from. There are real risks in the longer term.

Overall, that £92 million is going into a black hole of nearly £2 billion, which is the figure that we are looking at by 2027-28. Given the risks that you have illustrated, do you think that it is worth it?

Finance and Public Administration Committee

Sustainability of Scotland’s Finances

Meeting date: 19 September 2023

Michael Marra

None of this accounts for behavioural effects that are external. That is the kind of messaging that you are concerned about when it comes to attracting breast cancer oncologists to NHS Tayside, in a very competitive international situation in which candidates could have multiple job offers.

Finance and Public Administration Committee

Sustainability of Scotland’s Finances

Meeting date: 19 September 2023

Michael Marra

What about the gearing and the relationship between the UK and Scotland? The performance of the Scottish system will always be looked at relative to the performance of the UK system, whatever the constitutional settlement is. How exposed are we? We have talked about the different measures of our demographic trends in the SFC projections, which are a key factor in that. Within those assumptions, are we more exposed than other parts of the UK?