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 4778 contributions
Finance and Public Administration Committee
Meeting date: 13 December 2022
Kenneth Gibson
When do you want to come in?
Finance and Public Administration Committee
Meeting date: 13 December 2022
Kenneth Gibson
To be fair, everyone will be hit by fiscal drag between now and 2028. Andy King, did you want to come in?
Finance and Public Administration Committee
Meeting date: 13 December 2022
Kenneth Gibson
What would that mean in cash terms?
Finance and Public Administration Committee
Meeting date: 13 December 2022
Kenneth Gibson
Paul Johnson of the Institute for Fiscal Studies said that borrowing will take the strain in the near term, with
“the great majority of the planned consolidation … due only after the next election”.
He added,
“what we are really doing is reaping the costs of a long-term failure to grow the economy, the effects of population ageing, and high levels of past borrowing”,
and concluded by saying that
“we are in for a long, hard, unpleasant journey … that has been made more arduous than might have been by a series of economic own goals”.
Do you agree with that?
09:45Finance and Public Administration Committee
Meeting date: 13 December 2022
Kenneth Gibson
That is one of the Government’s arguments for trying to ride out some of the current pay demands and not build them into the system.
Finance and Public Administration Committee
Meeting date: 13 December 2022
Kenneth Gibson
It is indeed.
Finance and Public Administration Committee
Meeting date: 13 December 2022
Kenneth Gibson
What Michelle Thomson has just talked about—fraud, corruption and money laundering—can be called tax evasion, but what about tax avoidance, which is somewhat different? Does the OBR analyse the impact of tax avoidance on the public finances?
Finance and Public Administration Committee
Meeting date: 13 December 2022
Kenneth Gibson
Is that 5 per cent of total tax income or 5 per cent of GDP?
Finance and Public Administration Committee
Meeting date: 13 December 2022
Kenneth Gibson
Yes, and people who are on benefits are likely to be hit by fiscal drag, are they not?
Finance and Public Administration Committee
Meeting date: 13 December 2022
Kenneth Gibson
I think that we are in a more optimistic place in that at least we know what is happening. The OBR’s position has been strengthened by events in recent months, as I am sure that you will agree.
On the UK’s economic and fiscal outlook, you said:
“the medium-term fiscal outlook has materially worsened since our March forecast due to a weaker economy, higher interest rates, and higher inflation”.
You also talk about a number of those areas. For example, you said that rising prices
“erode real wages and reduce living standards by 7% in total over the two financial years to 2023-24 (wiping out the previous eight years’ growth), despite over £100 billion of additional government support.”
Obviously, that 7 per cent fall in living standards will not affect everyone equally. Who does the OBR feel will be most adversely affected by it?