The Official Report is a written record of public meetings of the Parliament and committees.
All Official Reports of meetings in the Debating Chamber of the Scottish Parliament.
All Official Reports of public meetings of committees.
Displaying 3697 contributions
Finance and Public Administration Committee
Meeting date: 20 December 2023
John Mason
Do you want to come in, Professor Ulph?
Finance and Public Administration Committee
Meeting date: 20 December 2023
John Mason
I will start with a question for Mr Ireland. In the chief executive’s introduction to the commission’s annual report and accounts you say:
“We are continuing to work on the public understanding of fiscal policy in Scotland.”
I wonder whether that is possible. How is it going?
Finance and Public Administration Committee
Meeting date: 20 December 2023
John Mason
Thanks. I realise that we are tight for time.
In the past, Dame Susan Rice produced quite a long list of data needs. However, you are now saying that you will publish that only every two years because you seem to have cracked that. Is that right?
Finance and Public Administration Committee
Meeting date: 12 December 2023
John Mason
Did you suggest earlier that that is more of a challenge for the UK because our interest rates are more index linked? Are other countries different?
Finance and Public Administration Committee
Meeting date: 12 December 2023
John Mason
Is it about the choices that other—certainly, European—countries made? They did not do the same amount of quantitative easing but did more traditional debt.
Finance and Public Administration Committee
Meeting date: 12 December 2023
John Mason
I will ask you some of the same questions that I asked the first panel, so if you were watching, you will know what they will be.
My first question is on debt interest. I think that it was in March that the OBR forecast debt interest to be £94 billion. Now, it is saying that the figure will be £116 billion for 2023-24. When I asked the witnesses from the OBR about that, they just said that they follow the markets and that that is what the markets said. Should the OBR be able to forecast a bit more accurately on a figure like that?
Finance and Public Administration Committee
Meeting date: 12 December 2023
John Mason
Is there any backdating? Does revising the GDP deflator have any practical effect?
Finance and Public Administration Committee
Meeting date: 12 December 2023
John Mason
That is helpful. I will press you again on the practical impact of the GDP deflator. My understanding is that the Scottish Government uses it to measure factors such as how much it can borrow. However, the illustration that we are always given is inflation in the capital sector—for example, buying materials such as concrete and steel, which have been expensive. Am I right in thinking that the GDP deflator effectively constrains the amount of capital expenditure going forward, or is that a misunderstanding?
Finance and Public Administration Committee
Meeting date: 12 December 2023
John Mason
On the positive side, if companies have more modern machinery, that should help their productivity. However, is there not also a risk that they might invest for the sake of it, to get their tax bills down, and so make poor investments?
Finance and Public Administration Committee
Meeting date: 12 December 2023
John Mason
On the question of forecasting accuracy, I think that in March the forecast for debt interest was £94 billion and it is now £116 billion, which is quite a change. Is that one of the most difficult forecasts to pin down?