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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 5 May 2021
  6. Current session: 12 May 2021 to 15 July 2025
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Displaying 1221 contributions

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Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 5 March 2024

Liz Smith

Absolutely. It is a very difficult area, because it is very hard to identify a lot of the bad behaviour. That is a really big issue. Any modelling that could be carried out on behavioural change would be very helpful, because that is what this is about, by and large.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 5 March 2024

Liz Smith

As the convener has been discussing, the issue is about whether the measures that we have to deal with the problem are effective. I think that I am correct in saying there have been a couple of prosecutions in Scotland, but this is about the deterrent factor. What modelling has been done to demonstrate whether the measure will have a really big deterrent effect?

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 5 March 2024

Liz Smith

Notwithstanding the difficulties with timescales and uncertainties—which I think we all acknowledge, as a finance committee—I will take you back to comments that you made in reply to the convener’s question about unallocated sums in the health capital budget. You were clear that you were giving a broad spectrum on a range of capital projects; you did not give us details on what those projects are. I ask this because, in recent weeks, the public have seen that some capital building projects have been paused. Can you give us a bit more detail on what the money is being held back for?

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 5 March 2024

Liz Smith

But the money is not being spent.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 5 March 2024

Liz Smith

I am sure that it is a timescale issue. It is difficult to increase the transparency of how budgets work, but to make it clear we should, if there are specific projects awaiting that money, know what they are. That is the key issue, because—let us be honest—in recent years we have had big arguments about underspends at the end of the year, and the reason for underspend is not always clear.

I will move on to a question about the revised fiscal framework. It has obviously increased the Scottish Government’s flexibility in relation to its borrowing powers. Has that had an important effect in terms of helping you to address some of the constraints that you face?

Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 20 February 2024

Liz Smith

Many people would want to see that evidence being used as the basis for the decision making. If that evidence is not being compiled until after the decisions are made, it puts the Scottish Government in quite a difficult situation. We have seen the reactions from the business community, in particular, and many people feel that the evidence in relation to the changes that have been made is not being compiled. There is a great worry that some of the behavioural changes that will happen could be detrimental to the economy.

Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 20 February 2024

Liz Smith

I will come to retail in a minute. Were there people in the business community who were supportive of the Scottish Government’s tax changes?

Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 20 February 2024

Liz Smith

This will be my final question, cabinet secretary. On that point, the Scottish Retail Consortium has said that, according to the budget document, the tax, should it come in,

“is about plugging a shortfall in the devolved finances”

but the Scottish Government is now putting it forward as a tax that would be “hypothecated for public health”. In fact, you have just mentioned its title—I think that you said that it is a public health supplement.

Can we just get this clear? Is it the intention to bring in this tax as part of a public health agenda, or is it simply about trying to plug the big black hole in the Scottish Government’s finances?

Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 20 February 2024

Liz Smith

The business community has, almost universally, not been supportive of the changes because—

Finance and Public Administration Committee

Budget Scrutiny 2024-25

Meeting date: 20 February 2024

Liz Smith

Of course they are, but they are also the ones who can stimulate economic growth.

We received a submission from the Scottish Retail Consortium. It said that it was absolutely flummoxed as to why retail in general, and one sub-sector of retail in particular, has been “singled out” for the potential business rate surtax, which is unfair and inequitable. Will you comment on that?