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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 11 September 2025
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Displaying 2603 contributions

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Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Colin Beattie

But it comes back to the theme of estimates and assumptions that runs through all of this. For example, paragraph 1.11 on page 13 says:

“HMRC deducts an estimate of the Scottish share of tax reliefs given against PAYE liabilities.”

How does it reach that figure? What is it based on? Is it based on some of the flawed data that you have highlighted in paragraph 1.23?

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Colin Beattie

I also note paragraph 1.16 on page 14, which says:

“HMRC calculated both deductions by estimating the Scottish share of each tax relief claimed across the UK using historical data.”

I do not know what those “historical data” are.

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Colin Beattie

I could go on, but I am conscious of time.

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Colin Beattie

In paragraph 15, you say:

“HMRC ... estimates Scotland’s share of net losses was £800 million ... based on a proportion of the UK figure, rather than ... Scotland-specific data”.

How exactly does it calculate that share of the net losses? Is it simply a percentage based on the volume of taxpayers that we have or is there some other esoteric formula?

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Colin Beattie

I will ask for a bit of clarification on one or two specific areas of the report.

As I said, anybody reading the report would have a concern at the level of estimations right the way through it. I know that you consider that the system that is in place is robust, but that is dependent on having a system to produce those estimates. It is very difficult to get a grip of the facts, so let me ask one or two questions.

In paragraph 6 on page 4 of the report, you talk about HMRC producing

“a provisional estimate of Scottish income tax revenue for that year.”

Is that in line with what you do for the UK?

09:30  

Economy and Fair Work Committee

Tourism and Hospitality

Meeting date: 2 February 2022

Colin Beattie

I will pick up on a couple of points. You touched on rates relief and seemed to indicate that that is not tremendously beneficial in some ways. However, since 1 April 2020, businesses—not just in the tourism and hospitality sector—have saved a total £1.6 billion in rates. That is not inconsiderable; it is a fairly large sum.

I would like to explore debt levels. You mentioned the bounce back loans: if they have been drawn down, businesses have not spent them because they are afraid of repayments. We have heard about that in previous evidence. To what extent is that an issue?

Economy and Fair Work Committee

Tourism and Hospitality

Meeting date: 2 February 2022

Colin Beattie

I know that members have already touched on elements of this, but I want to explore competitiveness. Every destination across the globe has been impacted by Covid-19, and they are all trying to build back their businesses. Indeed, they are investing heavily in that.

Ireland has been highlighted as spending €288.5 million on tourism this year. Of course, Ireland benefits from the Brexit compensation fund, which gives it €920 million. That is a nice sum of money to be able to work with. We certainly do not have access to anything like that.

Being competitive is of vital importance to the economy. If we are not competitive, our industries will go down, the economy will shrink and we will all be poorer, so it is incredibly important. If we just measure it in money, it seems quite difficult for us to be competitive. Do we measure competitiveness only in money, or are there other clever things that we can do to compensate for the fact that we do not have the sort of cash that other countries are pouring into tourism?

Economy and Fair Work Committee

Tourism and Hospitality

Meeting date: 2 February 2022

Colin Beattie

So the 2,000 businesses that you referred to are Scottish businesses alone?

Economy and Fair Work Committee

Tourism and Hospitality

Meeting date: 2 February 2022

Colin Beattie

Thank you. I will ask Marc Crothall to comment.

Economy and Fair Work Committee

Tourism and Hospitality

Meeting date: 2 February 2022

Colin Beattie

Can I just break in there? You mentioned 2,000 businesses. It is already agreed that the hospitality and tourism sector as a whole is incredibly complex. Where are those 2,000 businesses in terms of the overall picture? Who are they? Are they hotels?