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All Official Reports of meetings in the Debating Chamber of the Scottish Parliament.
All Official Reports of public meetings of committees.
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Finance and Public Administration Committee
Meeting date: 11 January 2022
Kenneth Gibson
Take your time. [Laughter.]
Finance and Public Administration Committee
Meeting date: 11 January 2022
Kenneth Gibson
Does David Eiser want to comment on the question that I asked? What should the independent review cover, and what should be the terms of reference for the independent report?
Finance and Public Administration Committee
Meeting date: 11 January 2022
Kenneth Gibson
Yes, there is. Before I touch on the block grant, I will follow up what you said. You talked about the adequacy—that was the word that you used—of the fiscal tools. Do we have adequate fiscal tools in terms of borrowing limits, for example? Should the limit be raised? Should it be linked to inflation? Where do the limits need to be increased to give more flexibility for Scotland?
Finance and Public Administration Committee
Meeting date: 11 January 2022
Kenneth Gibson
In other devolved regions around the world, the baseline is reset every five, seven or 10 years. The previous panel touched on that. That might take into account major structural changes such as—as you and others have mentioned—in the oil and gas industry in the north-east of Scotland. Should a reset be built into any future agreement between Scotland and England and, indeed, Wales and England—or, I should say, between Wales and the UK and Scotland and the UK?
Finance and Public Administration Committee
Meeting date: 11 January 2022
Kenneth Gibson
A reset must be based on fairness to both sides. There cannot be a situation in which Scotland—or Wales—would always benefit. The reset would have to be based on specific criteria. That should be looked at.
Wales’s powers are different from Scotland’s. What impact has that had on the block grant adjustments? Wales has more limited powers. You said that property prices have gone up more than was anticipated and that that has helped with land taxes and stamp duty. What impact has that had? Has the Scottish experience encouraged or discouraged Wales from seeking more fiscal powers?
12:00Finance and Public Administration Committee
Meeting date: 11 January 2022
Kenneth Gibson
Wales might have learned from Scotland, but it is time that Scotland learned from Wales. In terms of the block grant adjustment, what has happened with regard to separate tax rates has been a real eye opener.
Our inquiry will go on for some months; I hope that we will be able to speak to both of you further down the line. However, I have a final question for you, before I bring in other members. If the Scottish Government could wave a magic wand and make one change to Scotland’s block grant adjustment, what should it be?
Finance and Public Administration Committee
Meeting date: 11 January 2022
Kenneth Gibson
Who has not fed their dog? Is that you, Michelle? It is Michelle’s dog—I wondered why she had disappeared from view. Are you back, Michelle? Are you joining us?
Finance and Public Administration Committee
Meeting date: 11 January 2022
Kenneth Gibson
Yes, I do not want to focus too much on political issues. Scotland might get powers over corporation tax and a share of VAT assignment, and I am quite keen on getting powers on alcohol and tobacco duties, which would certainly help, given some of the issues that we have to deal with on those matters.
I thank Ed Poole and Guto Ifan for their evidence. I apologise for delaying you by some 30 minutes because the previous session overran. I appreciate your patience.
The committee will consider the next steps on this work once the UK and Scottish Governments agree the terms of reference, timetable and authorship of the report. In fact, we might invite Ed Poole and Guto Ifan back. We did not spend a lot of time asking questions, mainly because their submission is so detailed, which meant that we already had many of the answers before us, so I thank them for that.
12:32 Meeting continued in private until 12:41.Finance and Public Administration Committee
Meeting date: 21 December 2021
Kenneth Gibson
Thank you for that clarification. I could ask more questions on that, but I want to move on and then let colleagues in. I have a couple more brief questions.
In developing its budget, the Scottish Government assumed that it would receive extra income of £620 million to the resource budget in 2022-23 from a number of sources, some of which is still a matter of negotiation between the Scottish and UK Governments. Last week, the committee pressed the Scottish Fiscal Commission and economist colleagues for details of that and they were not really able to solve the mystery of those sources, how much they will be and the likelihood of them coming to Scotland. Can you enlighten us a wee bit on that, cabinet secretary?
Finance and Public Administration Committee
Meeting date: 21 December 2021
Kenneth Gibson
Thank you. I said that members could come in a second time, but no one has more questions to ask, and the cabinet secretary has given us more than two hours of her time, which we greatly appreciate.
I thank the cabinet secretary for her evidence today, and I wish her and all the committee members a merry Christmas and a happy new year when it comes.
Our next meeting is scheduled for Tuesday 11 January.
Meeting closed at 13:00.