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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 10 September 2025
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Displaying 2603 contributions

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Public Audit Committee [Draft]

“Administration of Scottish income tax 2023-24”

Meeting date: 26 March 2025

Colin Beattie

What you have described is a UK-wide issue, and, in that respect, we in Scotland might benefit by having more accurate data. When it comes to improving information, there are two levels to take into account: the overall UK improvement, and the potential Scotland-level improvement—that is, what the Scottish Government might or might not be prepared to invest in to get better data. If the Scottish Government were to suddenly win the lottery and were able to spend some money on improving the data, what would be the most productive area for that spend?

Public Audit Committee [Draft]

“Administration of Scottish income tax 2023-24”

Meeting date: 26 March 2025

Colin Beattie

Jonathan, you were talking about the need to upgrade and modernise your systems. To be blunt, I would point out that the last time that you tried to do that, it did not work so well—I cannot remember how many billions you wrote off on that one. What are the prospects of getting the money that you need to drive those changes, which will clearly be beneficial not just for Scotland but for the whole of the UK?

Public Audit Committee [Draft]

“Administration of Scottish income tax 2023-24”

Meeting date: 26 March 2025

Colin Beattie

From what you are saying, a lot more is going on than the committee was aware of. We go by what the NAO says, and it is unequivocal about the low level of investment in such evaluations. Why does the information from the NAO seem to be pointing in one direction, when you are saying that a lot of other stuff is going on? Does the NAO not have access to that information?

Public Audit Committee [Draft]

“Administration of Scottish income tax 2023-24”

Meeting date: 26 March 2025

Colin Beattie

I have one final question, which is about the impact of tax divergence. The Comptroller and Auditor General said:

“One of our big critiques of Government generally, including HMRC, is the surprisingly low level of investment in evaluation of the impact of different policies.”—[Official Report, Public Audit Committee, 19 February 2025; c 10.]

Does the Scottish Government have enough information about the impact of its tax policies to be able to make informed choices in the future?

Public Audit Committee [Draft]

“Administration of Scottish income tax 2023-24”

Meeting date: 26 March 2025

Colin Beattie

What you have said actually emphasises my concerns. The NAO report shows so many estimates, projections and UK-wide calculations, including for the south-east of England—which, of course, distorts any figures for any other place—and we are relying on those figures to calculate the Scottish rate of income tax. Looking at the NAO report, you would say, “My gosh, so many areas here are actually quite weak.” However, when I speak to HMRC or to you, you give reassurance that things are not, in fact, quite as drastic as they would appear in the NAO report. Would you agree with that?

Public Audit Committee [Draft]

“Administration of Scottish income tax 2023-24”

Meeting date: 26 March 2025

Colin Beattie

If it were to be possible to get that information, that would be really helpful.

Public Audit Committee [Draft]

“Administration of Scottish income tax 2023-24”

Meeting date: 26 March 2025

Colin Beattie

I will return to the issue of estimates, which is something that has exercised this committee and me for a number of years. There seems to be a difference between what the National Audit Office says and what HMRC says. It is in the nature of being an auditor that you always approach things from a more negative point of view, because that is the job. However, the Comptroller and Auditor General noted:

“When it comes to the outturn calculation, our exercise shows that we can take material assurance on the accuracy of the figure, most of which is based on actual records of Scottish taxpayers. However, while we have our current systems, an element of it will always be an estimate. Reducing the uncertainty even further will require significant investment in more accurate Scottish data.”—[Official Report, Public Audit Committee, 19 February 2025; c 13-14.]

It is obviously a concern that we get accurate figures. I am not saying whether it would be a gain or a loss for Scotland if we had accurate figures, but accurate figures are important for planning ahead. If additional resources were available to invest in more accurate Scottish income tax data, where should that be prioritised? Which area would give the biggest results?

09:45  

Public Audit Committee [Draft]

“Administration of Scottish income tax 2023-24”

Meeting date: 26 March 2025

Colin Beattie

A service level agreement is in place between HMRC and the Scottish Government. To start with, I want to ask a daft question, which Alyson Stafford can perhaps answer. The page that is headed “Purpose” references a requirement for the Scottish Government to meet any “net additional costs”. Can you define what a net additional cost is?

Public Audit Committee [Draft]

“Administration of Scottish income tax 2023-24”

Meeting date: 26 March 2025

Colin Beattie

So—to be clear—there is an intention to revisit the SLA.

Public Audit Committee [Draft]

“Administration of Scottish income tax 2023-24”

Meeting date: 26 March 2025

Colin Beattie

But we are very reliant on the UK systems here.