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All Official Reports of meetings in the Debating Chamber of the Scottish Parliament.
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Displaying 4778 contributions
Finance and Public Administration Committee [Draft]
Meeting date: 9 December 2025
Kenneth Gibson
Talking to constituents over many years, I have found that most of them are quite astonished when they find out that council tax does not provide 100 per cent of local authority funding. When you tell them that it is probably 14 or 15 per cent, they are quite amazed.
In paragraph 10 of the report you say that
“This audit focuses on taxes devolved through the Scotland Acts 2012 and 2016”
but that it is not about non-domestic rates or council tax. Would you like to be able to include those in future?
Finance and Public Administration Committee [Draft]
Meeting date: 9 December 2025
Kenneth Gibson
Thank you. I will not ask about the tax base performance gap because I am quite sure that colleagues want to dig into that in some detail.
I was surprised, though, by the comment in paragraph 40 that the percentage of people who state they do not understand taxes well is around 50 per cent. I thought that it would be much higher than that. I think that the number of people who do not understand what taxes are devolved and reserved is infinitely higher than 50 per cent. I think that you would be quite shocked. People do not realise that excise duties or VAT or whatever are reserved; there is corporation tax, inheritance tax, you name it. I think that there is real surprise about what is and what is not under the control of this Parliament.
Finance and Public Administration Committee [Draft]
Meeting date: 9 December 2025
Kenneth Gibson
It could make a more rounded picture.
Finance and Public Administration Committee [Draft]
Meeting date: 9 December 2025
Kenneth Gibson
I have a further concern on transparency and communication. In exhibit 1, you say about VAT assignment:
“To date there has been no agreement between the Scottish and UK Governments on a way forward for the implementation of VAT assignment.”
You continue in paragraph 5 to say:
“In July 2025, the Scottish Affairs Committee of the UK Parliament raised concerns over progress”.
This committee has consistently and repeatedly said that we do not believe that VAT assignment would be of any benefit whatsoever to Scotland. It would cost millions of pounds to set up. There would be arguments between Scotland and the UK over the levels of assignment—blah, blah, blah. There would be no control whatsoever in this Parliament of the VAT level. The view of this committee, expressed to the Scottish Government over many years, is that it is a complete waste of time. I see no reference to that in here; it is as if we are still a week after the Smith commission report has been published and we are just looking at when this will be implemented. I would hope that, in future reports, you would make it clear that we feel that this is a dead duck and that it is a waste of time to talk about it. We could talk about devolving VAT—that is another argument—but we do not feel that assignment should be progressed.
Finance and Public Administration Committee [Draft]
Meeting date: 9 December 2025
Kenneth Gibson
Hold on. We do not have any control in Scotland over oil prices, but you report mentions
“the sensitivity of the oil and gas industry ... to changes in global oil prices.”
Surely if you are mentioning global oil prices, you need to look at the issue in the round and talk about the impact of things such as the energy profits levy.
Finance and Public Administration Committee [Draft]
Meeting date: 9 December 2025
Kenneth Gibson
It would be good if you could do that. I could understand if it was £5 million, but 22 per cent of the amount that we are talking about is something on which clarification would be appreciated.
Why has behaviour change in relation to LBTT not been looked at?
Finance and Public Administration Committee [Draft]
Meeting date: 9 December 2025
Kenneth Gibson
I will open up the session to colleagues.
Finance and Public Administration Committee [Draft]
Meeting date: 9 December 2025
Kenneth Gibson
That concludes questions from colleagues. I have one or two additional questions.
Over the years, I have known a few folk who moved to London, not for tax purposes but for big pay rises, only to find that they had no disposable income after they had paid the horrendous housing and day-to-day living costs. Quite a few of them have returned to Scotland somewhat chastened, having learned that everything is not so wonderful in the UK capital. Yesterday, I read an interesting article that said that, in Haringey, a family with five children would have to earn £88,000 per year to be better off working than they would be living off benefits. In addition, housing costs are significantly higher there in relation to housing benefit.
Given that your report is about the future role of taxes in delivering fiscal sustainability, what impact do you think that the benefit changes that have taken place recently and that will take place as a result of announcements by the First Minister and others will have on tax revenue and fiscal sustainability?
Finance and Public Administration Committee [Draft]
Meeting date: 9 December 2025
Kenneth Gibson
Of course, in the next financial year, we face a £1 billion gap in resource funding and £1.1 billion gap in capital funding, as you say in paragraph 41. Do you expect that gap to be closed in the next financial year?
Finance and Public Administration Committee [Draft]
Meeting date: 9 December 2025
Kenneth Gibson
That concludes questions from me and my colleagues. Are there any further points that you or Richard Robinson would like to make before we wind up the session?