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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 25 May 2025
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Displaying 3150 contributions

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Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 9 February 2023

Richard Leonard

Thank you very much. I will kick off. You make the point that HMRC estimates that Scottish income tax revenue in 2021-22 will be £13.2 billion, which would be an increase of about 11.3 per cent on the previous year—a year when the economy was in lockdown—but it is also estimated that the increase in the UK will be 13.2 per cent, which is significantly more than in Scotland. Why is there an expected difference between UK performance and Scottish performance?

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 9 February 2023

Richard Leonard

Yes.

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 9 February 2023

Richard Leonard

That clarification is helpful—thank you for that.

Obviously, the estimates are in the domain of the decision-making process, so they are quite important to us. That is why we have taken the view that having better data would give us a clearer sense of where policy should go and what will have the most impact in relation to raising revenue or redistributing the burden of taxation.

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 9 February 2023

Richard Leonard

The Auditor General wants to come in on that point.

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 9 February 2023

Richard Leonard

Thank you. There is a whole other area that we want to explore, which includes the tax gap and other data issues. Colin Beattie will lead on that.

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 9 February 2023

Richard Leonard

Thank you. Obviously, the committee will consider what its next steps are on that, but there would be interest in understanding whether private debt collection agencies are now being deployed.

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 9 February 2023

Richard Leonard

Auditor General, I want to touch on something in your report. In paragraph 42, which is in the section on taxpayer behaviour, you say:

“In my view, the publication of the income tax behavioural analysis and the development of a dataset to track taxpayer responses to income tax changes over time is a positive development.”

Can I check with you where that is? I have not seen anything published yet, but is there an expectation that something will be published later this year? Has work been commissioned to get that data set and put it into the public domain?

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 9 February 2023

Richard Leonard

The principal reason for our meeting is to take evidence on the “Administration of Scottish income tax 2021/22” report, which was produced on 12 January this year by the Auditor General for Scotland and is, in turn, a commentary on a report that was prepared by the National Audit Office.

I am pleased to welcome our four witnesses, who are here in person this year. Stephen Boyle, the Auditor General for Scotland, is accompanied by Mark Taylor, audit director at Audit Scotland. I am particularly pleased to welcome Gareth Davies, Comptroller and Auditor General at the National Audit Office, who is appearing in person before the committee for, I think, the first time. He is joined by Darren Stewart, audit director at the NAO.

We have a series of questions to put to the witnesses, but I begin by inviting the Auditor General for Scotland to make a short opening statement.

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 9 February 2023

Richard Leonard

Sure.

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 9 February 2023

Richard Leonard

The report mentions the omicron variant of Covid and the war in Ukraine, and it is suggested that those would have an impact on taxpayers’ ability to meet their tax liabilities. Will you elaborate on that, please?