The Official Report is a written record of public meetings of the Parliament and committees.
All Official Reports of meetings in the Debating Chamber of the Scottish Parliament.
All Official Reports of public meetings of committees.
Displaying 1202 contributions
Finance and Public Administration Committee [Draft]
Meeting date: 9 December 2025
Craig Hoy
Would you say that it is important that that is done? That seems to be one of the strategic weaknesses of the position that we are in.
Finance and Public Administration Committee [Draft]
Meeting date: 9 December 2025
Craig Hoy
Good morning. In your November 2024 report “Fiscal sustainability and reform in Scotland”, you said that the Scottish Government was not being candid or transparent with the public about the scale of the challenge in the fiscal outlook: by the end of the decade, it is about £4.7 billion of a shortfall. Would it be fair to read into today’s report that it is unrealistic to think that tax can be the mechanism by which the Scottish Government will manage to close that gap?
Finance and Public Administration Committee [Draft]
Meeting date: 9 December 2025
Craig Hoy
Paragraph 58 identifies what the problem is and talks about the need for the Government to tackle that weakness in the forthcoming budget. It goes on to say:
“If this were to be the case, and if the Scottish Government were to further use tax as a lever to close the medium-term fiscal gap, then it would need to increase tax revenues through other means.”
When you talk about “other means”, do you mean that the Government needs to try to change the pattern of the labour market in Scotland? Is that what we should be considering, or does “other means” sound an alarm bell with regard to the possibility that the Scottish Government might look at other, new forms of taxation?
Finance and Public Administration Committee [Draft]
Meeting date: 9 December 2025
Craig Hoy
I have a final, technical point. In paragraph 71, you rightly note that,
“In its letter to the Public Audit Committee, setting out its assessment, the Scottish Government committed to providing further analysis within the MTFS”
in relation to
“weaker relative earnings and employment performance in Scotland”.
Obviously, the Government has not provided us with such analysis. Are you aware of whether it has been done? The committee can perhaps take that up, but I wondered whether, through any of your inquiries, you had found out whether that work has been done.
Finance and Public Administration Committee [Draft]
Meeting date: 9 December 2025
Craig Hoy
Perhaps the committee can follow up on that. Thank you.
Finance and Public Administration Committee [Draft]
Meeting date: 9 December 2025
Craig Hoy
What would that look like in practice? Would it involve HMRC and the Scottish Government providing people with far more in-depth annual tax statements?
Finance and Public Administration Committee [Draft]
Meeting date: 9 December 2025
Craig Hoy
I presume that fiscal drag—freezing thresholds—is the stealthy way to do it, because people do not realise that they are being dragged into the next band. It is not the most transparent way of raising taxation.
Finance and Public Administration Committee [Draft]
Meeting date: 9 December 2025
Craig Hoy
In terms of pulling the levers of taxation, it seems to me, reading into this, that there are two forms of behavioural change. There is behavioural change by employees and by employers—Ms Smith referred to that. For example, a financial services company that I spoke to recently said that it offers its graduate trainees from Scotland the opportunity to work in any office in the UK and many elect to do so, because they are clever people and they work out that they will be significantly better off in the short, medium and long term if they go and work in Manchester rather than in Glasgow. I am always saying that because of the opacity in relation to behavioural change, we only manage to find out the damage that has been done after it has been done.
Finance and Public Administration Committee [Draft]
Meeting date: 9 December 2025
Craig Hoy
On the issue of transparency, you say in the report that there is less behavioural change with threshold changes than there is with rate changes. We have often called threshold changes stealth taxes. People do not realise that they are being dragged into upper-rate tax because they have received an annual increase in their pay. Does the Government have more to do to provide transparency on the way in which it collects tax, given that threshold changes rather than rate changes seem to be the default of both Governments at the moment?
Finance and Public Administration Committee [Draft]
Meeting date: 25 November 2025
Craig Hoy
It is historical.