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Displaying 3032 contributions
Public Audit Committee
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
Meeting date: 3 February 2022
Colin Beattie
I could go on, but I am conscious of time.
Public Audit Committee
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
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?
09:30Economy and Fair Work Committee
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
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
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
Meeting date: 2 February 2022
Colin Beattie
Thank you. I will ask Marc Crothall to comment.
Economy and Fair Work Committee
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?
Economy and Fair Work Committee
Meeting date: 2 February 2022
Colin Beattie
I recall from previous evidence sessions on hospitality and tourism that Ireland receives a multiple of the number of visitors that Scotland does. That seems to indicate that it is much more successful at attracting tourists. Could you comment on that?