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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 2 November 2026
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Displaying 146 contributions

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Social Justice, Housing and Local Government Committee

Scottish Government Priorities

Meeting date: 9 September 2026

Craig Hoy

We will move on to planning in a second, but I have a specific question on non-domestic rates while we are on the topic of local government.

In June, the Government announced that it would establish a rapid review group on non-domestic rates. What is the remit of the group and when can Parliament expect it to report?

Social Justice, Housing and Local Government Committee

Scottish Government Priorities

Meeting date: 9 September 2026

Craig Hoy

Deputy First Minister, as it is you who considers the budget, before we close, I want to go back to the finances of local government and IJBs. The Accounts Commission has said that councils face a £529 million gap this year, and the committee papers identify a £475 million gap in IJB finances.

Ordinarily, at this stage in the financial year, if the Government had, for want of a better expression, some loose change hanging around, beneficiaries would often be councils or, through health boards, IJBs, which would be helpful to them if they were in a state of distress towards the end of the financial year. Next year, you are facing a £700 million negative tax reconciliation. It would be prudent, perhaps, if there were unspent funds, to roll that forward to the Scotland reserve for next year, which what could be a challenging one, as you have identified.

A lot comes down to tax planning and tax policy. There are two parts. On local authorities raising revenues, the programme for government identifies the capacity for revaluation and new rates at the upper end. It also talks of flexibility for local authorities to raise more funds. They may be forced to do that out of necessity but, at the same time, given that the Accounts Commission and the Scottish Fiscal Commission are challenging the 2 per cent real-terms increase figure, are we to expect that council tax payers and, potentially, businesses will have to pay more to make up for what are now clear real-terms reductions in council budgets this year and in future years of the parliamentary session?

Social Justice, Housing and Local Government Committee

Subordinate Legislation

Meeting date: 9 September 2026

Craig Hoy

After that brief interlude, we turn to item 3, which is consideration of an affirmative Scottish statutory instrument. I welcome back the Minister for Public Finance, as well as her officials from the Scottish Government: Fiona Campbell, visitor levy and cruise ship levy team leader, and Susan Robb, solicitor. Thank you all for joining us today.

Following the evidence session, the committee will be invited under the next item to consider a motion to approve this affirmative instrument. I remind everyone that the Scottish Government officials can speak under this item but not during any debate that follows the motion.

I invite Ms Goodlad to make some opening remarks on the SSI that is before us.

Social Justice, Housing and Local Government Committee

Decision on Taking Business in Private

Meeting date: 9 September 2026

Craig Hoy

We have started off with unanimity.

Social Justice, Housing and Local Government Committee

Scottish Government Priorities

Meeting date: 9 September 2026

Craig Hoy

Thank you, cabinet secretary, for being remarkably brief despite the breadth of issues that we have to cover.

As this is your first opportunity in this session of Parliament to appear before the committee, can you set out the Scottish Government’s main priorities for local government? Also, can you identify three measurable outcomes that you expect to have improved by this time next year?

Social Justice, Housing and Local Government Committee

Scottish Government Priorities

Meeting date: 9 September 2026

Craig Hoy

Ivan McKee is looking at every aspect of the public sector and public service reform. Local government is a large percentage of the Scottish Government’s budget, and the cost of staff is the largest percentage of that. As you go through the process, how many jobs do you think could be lost in Scottish local government?

Social Justice, Housing and Local Government Committee

Subordinate Legislation

Meeting date: 9 September 2026

Craig Hoy

As no member has any questions or comments, we will move on to item 4, which is the formal consideration of motion S7M-00407.

Motion moved,

That the Social Justice, Housing and Local Government Committee recommends that the Visitor Levy (Miscellaneous Amendment) (Scotland) Regulations 2026 [draft] be approved.—[Hannah Mary Goodlad]

Motion agreed to.

Social Justice, Housing and Local Government Committee

Subordinate Legislation

Meeting date: 9 September 2026

Craig Hoy

Thank you, minister, for your second appearance before us. We will let you get on with the rest of your day.

Are members content to delegate responsibility to me to approve a short factual report to the Parliament on the affirmative instrument?

Members indicated agreement.

11:26

Meeting continued in private until 12:46.

Social Justice, Housing and Local Government Committee

Scottish Government Priorities

Meeting date: 9 September 2026

Craig Hoy

Precisely.

Social Justice, Housing and Local Government Committee

Scottish Government Priorities

Meeting date: 9 September 2026

Craig Hoy

I will bring in Kate Campbell in a second after I ask a final question on local government finance.

When I questioned the Scottish Fiscal Commission earlier this year, it told me that it calculated that the like-for-like real-terms increase in local government funding for 2026-27 was 0.4 per cent, which is much less than the 2 per cent headline figure that ministers were using. The SFC also said that the spending review implied real-terms reductions of close to £500 million by 2028-29. The Accounts Commission now says that local councils face a £529 million gap this year, even after increasing council tax by 7.7 per cent. Do you accept, on the basis of that external independent analysis, that, on the current funding trajectory, councils might have to reduce or stop services or cut their workforce?