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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 12 July 2025
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Displaying 3298 contributions

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Public Audit Committee

“Administration of Scottish income tax 2023/24”

Meeting date: 19 February 2025

Richard Leonard

Thank you very much indeed. I will turn to a couple of issues that both of you raised in your opening statements. In particular, Auditor General, you referred to something that is in your report. Exhibit 3 shows that £3.367 billion of additional income tax revenue has been raised from the Scottish population, but that that converts to additional budget spend of only £629 million. Presumably, that is a product of the fiscal framework. Do you have any observations about how the fiscal framework is working? What are the implications of that? As I calculate it, for every £5 raised, only £1 is available for the budget.

Public Audit Committee

“Administration of Scottish income tax 2023/24”

Meeting date: 19 February 2025

Richard Leonard

I said at the start we are quite pressed for time, but can I ask you to confirm my calculation? The figure in exhibit 3 is a cumulative figure—I draw attention to it because it is one of your key messages. For every £5 that has been raised through additional income tax in Scotland, only £1 of that—or less than £1 of that; it is about 18 per cent—finds its way into the Scottish budget.

Public Audit Committee

“Administration of Scottish income tax 2023/24”

Meeting date: 19 February 2025

Richard Leonard

Okay. Let me move on to another area that your report draws attention to and which you mentioned in your opening statement. The reconciliation figure for 2025-26 is £449 million—nearly half a billion pounds—which is the largest reconciliation to date. Is there a likelihood that that level of reconciliation will continue in the future? How does that affect the Scottish Government’s budget setting?

Public Audit Committee

“Administration of Scottish income tax 2023/24”

Meeting date: 19 February 2025

Richard Leonard

That might come back to haunt you, Mr Stewart, but we will see. I hope that you are right

My final question is on the overestimates. Your report speaks about calibration adjustments and a calibration adjustment was required to be made in 2021-22. Do you expect HMRC to have to make a calibration adjustment for the tax year 2023-24?

Public Audit Committee

“Administration of Scottish income tax 2023/24”

Meeting date: 19 February 2025

Richard Leonard

Thank you very much. I will now pass over to the deputy convener, Jamie Greene, who I know has some questions to put.

Public Audit Committee

Section 22 Report: “The 2023/24 audit of the Water Industry Commission for Scotland”

Meeting date: 19 February 2025

Richard Leonard

Okay. We will come to the international work later in our evidence session this morning.

I turn finally turn to you, Mr Brannen—but feel free to delegate to your team.

I am quite surprised that you did not know that something like that was happening. If the matter went to the audit and risk committee and the board, I would have expected there to be some oversight of it. Do the board and the audit and risk committee not produce minutes? At the very least, did the person who was in Jo Blewett’s position at the time not read the minutes that were generated in order to keep an eye on what was going on in a public organisation like WICS?

Public Audit Committee

Section 22 Report: “The 2023/24 audit of the Water Industry Commission for Scotland”

Meeting date: 19 February 2025

Richard Leonard

Okay, but does the bonus arrangement not come under the watchful eye of the remuneration committee either of the Scottish Government or, I presume, of Scottish Water, which has its own remuneration committee, has it not?

Public Audit Committee

Section 22 Report: “The 2023/24 audit of the Water Industry Commission for Scotland”

Meeting date: 19 February 2025

Richard Leonard

So, it is a ministerial decision, in the end.

Public Audit Committee

“Administration of Scottish income tax 2023/24”

Meeting date: 19 February 2025

Richard Leonard

Mr Davies, you might want to respond to that question, but I want to ask specifically about the point that you made in your opening statement about the error, which you have taken a fairly dim view of, I think. Can you talk us through that?

Public Audit Committee

Section 22 Report: “The 2023/24 audit of the Water Industry Commission for Scotland”

Meeting date: 19 February 2025

Richard Leonard

Mr Brannen assents also—excellent.

Could you give us a bit more detail on what you have been doing to address some of the deficiencies, which I think Mr Hinds described as quite shocking when he first read about and understood them? Mr Hinds, what changes have been made to financial management and governance arrangements over the past year, for example?