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.
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Public Audit Committee
Meeting date: 11 May 2023
Richard Leonard
It would be helpful if you could notify the committee of when the minutes will be published on the website, so that we have warning of that.
Public Audit Committee
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
Meeting date: 11 May 2023
Richard Leonard
So you have had talks about talks.
Public Audit Committee
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
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
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
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
Meeting date: 11 May 2023
Richard Leonard
Thank you very much.
As you have suggested, those are very much the kind of areas that we want to probe, question and better understand. However, before we get to questions, I invite Jonathan Athow to give us an opening statement.
Public Audit Committee
Meeting date: 11 May 2023
Richard Leonard
Agenda item 2 is consideration of the report entitled “Administration of Scottish income tax 2021/22”. I am pleased to welcome our witnesses from His Majesty’s Revenue and Customs and the Scottish Government. Alyson Stafford is director general of the Scottish exchequer, and Lorraine King is deputy director of the Scottish Government tax and revenues directorate. We are also joined by Jonathan Athow, who is director general for customer strategy and tax design at HMRC, and Phil Batchelor, who is deputy director for income tax policy at HMRC.
We have quite a number of questions that we want to put to the witnesses. However, before we get into those questions, I invite Alyson Stafford to make a short opening statement.
Public Audit Committee
Meeting date: 11 May 2023
Richard Leonard
We have a couple of minutes left. Jonathan Athow, if you want to add to that, please feel free to do so.