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Finance and Public Administration Committee
Meeting date: 13 January 2026
Kenneth Gibson
The impact of that could be tens of millions of pounds.
Finance and Public Administration Committee
Meeting date: 13 January 2026
Kenneth Gibson
I have a couple more questions on issues that we have not touched on. One is about the increase in tax on property income and savings income by 2 percentage points at the basic, higher and additional rates from April next year. The budget says that the UK Government intends to
“engage with the devolved governments of Scotland and Wales to provide them with the ability to set property income rates in line with their current income tax powers in their fiscal frameworks.”
In its reaction blog on the UK budget, the Scottish Parliament information centre said:
“Once the Scottish Parliament has the powers to set income tax rates to property, it will presumably face a choice between at least matching the rates for England, or accepting a block grant adjustment which will reduce funding for the Scottish Budget.”
What are the implications of that policy for savers, those letting out properties and tenants?
Finance and Public Administration Committee
Meeting date: 13 January 2026
Kenneth Gibson
Cheer up a bit—you have not even asked your questions yet.
Finance and Public Administration Committee
Meeting date: 13 January 2026
Kenneth Gibson
No one has asked to come in as yet, so I will ask a couple more questions. [Interruption.] Your name was not down to come in here.
Finance and Public Administration Committee
Meeting date: 13 January 2026
Kenneth Gibson
In terms of capital, you say in paragraph 2.49 of your report that a
“relatively high cost of capital and a weak rate of return together generate a modest decline in investment as a share of GDP over the forecast”.
You go on to say:
“the cost of capital has risen over recent years ... and the real return on capital is at a historically low level. Investment intentions and business confidence also remain subdued.”
What do you perceive to be the impact on growth of that?
Finance and Public Administration Committee
Meeting date: 13 January 2026
Kenneth Gibson
We will let Alex Reedijk come in.
Finance and Public Administration Committee
Meeting date: 13 January 2026
Kenneth Gibson
With that, I call an end to this meeting. Thank you very much, everyone, for your contributions.
Meeting closed at 12:41.Finance and Public Administration Committee
Meeting date: 13 January 2026
Kenneth Gibson
Four per cent, you said—
Finance and Public Administration Committee
Meeting date: 13 January 2026
Kenneth Gibson
Indeed.
Finance and Public Administration Committee
Meeting date: 13 January 2026
Kenneth Gibson
Thank you very much for your evidence this morning. It has been very helpful to the committee. Just before we wind up, Tom, are there any further comments that you want to make? Is there anything that we should have touched on but did not that you want to emphasise?