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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 6 September 2025
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Displaying 3573 contributions

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Finance and Public Administration Committee

Pre-budget Scrutiny 2022-23: Public Finances and Impact of Covid-19

Meeting date: 5 October 2021

Kenneth Gibson

Okay, but let me continue with my question. I was not asking about the spending for which the national insurance levy is being raised, which is for health and social care; I was asking about the impact of the levy on local government, for example, which collectively will have to pay £31 million to the Treasury. I understand that the UK Government has agreed that it will provide—certainly south of the border—the consequentials in that regard. Has that been guaranteed for Scotland, so that some of that £1 billion that you mentioned does not have to be fired back into local government, police and fire services and so on? That is what I was trying to get at; I apologise if I did not explain that clearly.

Finance and Public Administration Committee

Pre-budget Scrutiny 2022-23: Public Finances and Impact of Covid-19

Meeting date: 5 October 2021

Kenneth Gibson

Thank you. The second part of my question was about the implications of the national insurance increase for economic and employment growth in Scotland.

Finance and Public Administration Committee

Pre-budget Scrutiny 2022-23: Public Finances and Impact of Covid-19

Meeting date: 5 October 2021

Kenneth Gibson

I am sorry; we seem to have lost the cabinet secretary.

Are you back with us, Kate?

Finance and Public Administration Committee

Pre-budget Scrutiny 2022-23: Public Finances and Impact of Covid-19

Meeting date: 5 October 2021

Kenneth Gibson

I am tempted to come back on that last comment, but I will move on, because I want to touch on a number of issues so that colleagues can expand on them.

The committee often gets suggestions that local government should be provided with more flexibility to, for example, raise revenue on its own. Indeed, we received such suggestions this year. Has the Scottish Government identified any additional revenue streams that it could adopt or could devolve to local government? Will it encourage local government and other bodies to develop their own revenue streams, given the current financial situation?

Finance and Public Administration Committee

Pre-budget Scrutiny 2022-23: Public Finances and Impact of Covid-19

Meeting date: 5 October 2021

Kenneth Gibson

Immigration is a factor, but surely we must do more to upskill the 4 to 5 per cent of the population who are currently unemployed at a time when there is a huge number of vacancies in the economy. I am keen for the Scottish Government to do more to address the issue.

You mentioned gas. The Scottish Government has a national collaborative framework for the supply of natural gas, which means that there has been no increase in the wholesale cost of gas since April 2021 and that there will be no increase during this financial year. First, what is the impact on the Scottish Government likely to be next year? I imagine that the framework will have to be renegotiated in view of prices and that the impact will be significant. Secondly, what impact will there be on the private sector, particularly fuel-intensive industries? I have a number of such industries in my constituency—I am sure that that is the case for other members. What, if anything, can the Scottish Government do to assist with the issue?

Finance and Public Administration Committee

Pre-budget Scrutiny 2022-23: Public Finances and Impact of Covid-19

Meeting date: 5 October 2021

Kenneth Gibson

Thank you for that.

We have exhausted our questions. Cabinet secretary, thank you for answering so many questions so comprehensively. I wish you a speedy recovery. I apologise for the broadcasting glitches, which you valiantly managed to get through; we were able to ask the questions that we wanted to ask.

That ends the public part of the meeting.

12:10 Meeting continued in private until 12:19.  

Finance and Public Administration Committee

Pre-budget Scrutiny 2022-23: Public Finances and Impact of Covid-19

Meeting date: 5 October 2021

Kenneth Gibson

Obviously, significant multibillion-pound consequentials have been received from the UK Government since the start of the pandemic. How much of that is still available to allocate? Is there any risk of a clawback? Has there been a guarantee of consequentials from the UK health and social care levy and when will they be delivered?

Finance and Public Administration Committee

Pre-budget Scrutiny 2022-23: Public Finances and Impact of Covid-19

Meeting date: 5 October 2021

Kenneth Gibson

Good morning and welcome to the seventh meeting in 2021 of the Finance and Public Administration Committee.

For agenda item 1, we will take evidence from the Cabinet Secretary for Finance and the Economy in what is our final pre-budget scrutiny session. Unfortunately, the cabinet secretary is unable to be with us in person as she recently tested positive for Covid-19. I hope that she is recovering well and that she has not been too badly affected by the virus. Members will have received a paper from the clerks along with private briefings from our budget adviser and the Scottish Parliament information centre’s financial scrutiny unit.

I welcome to the meeting Kate Forbes, Cabinet Secretary for Finance and the Economy, who is joined by the following Scottish Government officials: Douglas McLaren, deputy director, budget, pay and pensions; and Claire McManus, fiscal framework team leader. I intend to allow 90 minutes for the session.

Before I open it up to questions from the committee, I invite Ms Forbes to make a short opening statement.

Finance and Public Administration Committee

Pre-budget Scrutiny 2022-23: Public Finances and Impact of Covid-19

Meeting date: 5 October 2021

Kenneth Gibson

I have a couple more questions before we open out to other members of the committee.

What was the level of engagement with the UK Government prior to its announcement that it will set out a multiyear spending review, given the impact that that will have on Scotland’s finances?

Finance and Public Administration Committee

Pre-budget Scrutiny 2022-23: Public Finances and Impact of Covid-19

Meeting date: 5 October 2021

Kenneth Gibson

I was pleased that you invited me, the deputy convener and the convener of the Social Justice and Social Security Committee to a meeting last week to discuss issues with the fiscal framework. I have one question about that. The fiscal framework has helped us through Covid-19 and the early months of Brexit, but what weaknesses have been identified in the framework and how can it be improved and made more flexible? What engagement has there been with the UK Government on the scope of the review and when it will commence?