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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 30 November 2025
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Displaying 3519 contributions

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Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 11 May 2023

Richard Leonard

That would be helpful.

This morning’s session has been very useful for the committee. I thank Alyson Stafford, Lorraine King, Jonathan Athow and Phil Batchelor for giving evidence. We will consider whether we would like to take any further steps but, for the time being, I thank you for your evidence and draw the public part of the meeting to a close.

11:27 Meeting continued in private until 11:38.  

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 11 May 2023

Richard Leonard

Thank you. I am now going to move things on and invite Willie Coffey to put some questions to you.

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 11 May 2023

Richard Leonard

I have one final question in this area. Do you expect there to be a higher level of income tax per head in Scotland as a result of the process of fiscal drag, wages going up, inflation rising and so on?

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 11 May 2023

Richard Leonard

Another area that the committee has been particularly keen to explore is the implications of a much higher inflation economy, one of the consequences of which is that people’s real-terms living standards are, in most cases, being cut. On the other side of that equation, pay settlements have been higher and people’s earnings—not in real terms but in monetary terms—have been going up, which presumably has an implication for the income tax that is collected.

I turn to Jonathan Athow first. Could you help us to understand a bit more about the impact of inflation on the collection of Scottish income tax?

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 11 May 2023

Richard Leonard

If the fee attached to the service level agreement or other parts of the memorandum of understanding were revised, that is something that you could do, if you had the resources.

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 11 May 2023

Richard Leonard

So you have had talks about talks.

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 11 May 2023

Richard Leonard

Absolutely. Any time.

Bill Kidd has some questions about transparency to put to you.

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 11 May 2023

Richard Leonard

Willie Coffey wanted to come back in on this area.

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 11 May 2023

Richard Leonard

As the Public Audit Committee of the Scottish Parliament, we are interested in whether any differential fiscal drag exists in Scotland, in comparison to other parts of the UK. Do you have any data that would help to illuminate that point?

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 11 May 2023

Richard Leonard

Just to be clear, do you have data to back up that analysis and help you reach the conclusion that there does not appear to be much of a differential impact in Scotland compared with the rest of the UK?