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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 9 September 2025
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Displaying 917 contributions

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Finance and Public Administration Committee

Budget Scrutiny 2025-26 and Economic and Fiscal Forecasts

Meeting date: 10 December 2024

Craig Hoy

I presume that that is a significant risk to the sustainability of the benefit.

Finance and Public Administration Committee

Budget Scrutiny 2025-26 and Economic and Fiscal Forecasts

Meeting date: 10 December 2024

Craig Hoy

I will turn to tax. Pages 148 and 149 of the SFC’s briefing show the forecasts for freezing the higher rate and advanced rate tax thresholds. Prior to your coming in to the meeting, we were advised that in 2025-26 the tax take for the higher rate would increase to £78 million and in 2026-27 to £215 million. After that, the figure in effect plateaus and grows in real terms. I presume that that is because we would expect the tax thresholds to rise at that point. Is that right?

Finance and Public Administration Committee

Budget Scrutiny 2025-26 and Economic and Fiscal Forecasts

Meeting date: 10 December 2024

Craig Hoy

It seems that you get the proof only after the problem has arisen, so you have lost that tax and that taxpayer, and you are unlikely to get them back.

Finance and Public Administration Committee

Budget Scrutiny 2025-26 and Economic and Fiscal Forecasts

Meeting date: 10 December 2024

Craig Hoy

I turn to the ScotWind moneys. The Government plans to use £300 million of that for capital expenditure on renewables next year, but there is nothing planned for 2026-27. Given the Government’s push for net zero and expanding Scotland’s renewables base, is there a particular reason for using £300 million one year and nothing the next?

Finance and Public Administration Committee

Budget Scrutiny 2025-26 and Economic and Fiscal Forecasts

Meeting date: 10 December 2024

Craig Hoy

My next question probably strays into the realm of policy choice but, given the scale of private sector investment in renewables—for example, SSE is investing £24 billion and Scottish Power is investing £20 billion—and the strong pipeline of work in the private sector, would there be merit in the state using its capital resource in areas where it is difficult to leverage private sector capital investment?

Finance and Public Administration Committee

Budget Scrutiny 2025-26 and Economic and Fiscal Forecasts

Meeting date: 10 December 2024

Craig Hoy

I have one final question about rates relief for hospitality. Initially, I think that the sector had an expectation that the relief that was granted might have been a bit more generous than it ended up being once the numbers had been crunched.

Remote hospitality venues and those on islands will still get 100 per cent rates relief, whereas other hospitality businesses will get 40 per cent relief, up to a rateable value of £51,000. However, the retail and leisure sectors have been excluded. Has the Government given any indication as to why there is a special need for remote and island hospitality businesses to get that relief, but not those in urban or other rural areas?

11:15  

Finance and Public Administration Committee

Budget Scrutiny 2025-26 and Economic and Fiscal Forecasts

Meeting date: 10 December 2024

Craig Hoy

You note that the increase in take over the two years is significant, so I presume that a canny finance minister would look at that and think that that is quite a good way of plugging any gap.

We touched on it earlier, but the behavioural impact seems to rise proportionately. There must be a tipping point. How difficult is it, from a forecasting and modelling point of view, to look at what the behavioural impact of tax will be? Is it, in effect, a Donald Rumsfeld unknown unknown, and you just have to pluck a number out of the air?

Finance and Public Administration Committee

Budget Scrutiny 2025-26 and Economic and Fiscal Forecasts

Meeting date: 10 December 2024

Craig Hoy

Presumably, it would be prudent for the Scottish Government to allocate something for the preparatory work and the planning for and the construction of administering the benefit in Scotland, however it ends up doing it.

Finance and Public Administration Committee

Budget Scrutiny 2025-26 and Economic and Fiscal Forecasts

Meeting date: 10 December 2024

Craig Hoy

Good morning. On the two-child cap, the finance secretary said at the weekend that she would look to introduce the payment before the following financial year—that is, in the financial year that we are discussing now—if it was possible to do so, and that she would make provision for that. Have you seen any such provision in the Scottish Government’s budget?

Finance and Public Administration Committee

Budget Scrutiny 2025-26 and Economic and Fiscal Forecasts

Meeting date: 10 December 2024

Craig Hoy

On overall sustainability and the impact that the benefit has on the rest of the budget, at what point should we start to feel uncomfortable about what we are having to move from other areas into that position?