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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 18 September 2025
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Displaying 918 contributions

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Finance and Public Administration Committee

Framework for Tax

Meeting date: 22 March 2022

Daniel Johnson

You have four objectives: stable revenues, a wellbeing economy, national outcomes and responsiveness to societal shifts. If you have objectives, surely you should have a way of measuring them.

Finance and Public Administration Committee

Framework for Tax

Meeting date: 22 March 2022

Daniel Johnson

I have two supplementary questions, the first of which follows straight on from that discussion.

The question is broader than that of North Sea oil and the transition to green jobs. A number of the answers begged further questions around what forecasting the Scottish Government undertakes.

We know that the Scottish Government is about to publish a multiyear spending review. I presume that forecasting will form part of that, so that the Scottish Government can have some view of what revenues will be generated over the period. Is the Scottish Government relying just on the Scottish Fiscal Commission forecast? If so, is it doing further interrogation? Is it undertaking its own forecasting?

The point is important; it is about what forecasts are used and where they are generated. Will you clarify what the Scottish Government is doing?

Finance and Public Administration Committee

Framework for Tax

Meeting date: 22 March 2022

Daniel Johnson

No, you have not. In your preamble, you said that it is about the how, but this is about the what. If it is just the SFC forecast, with any data set, it is not just about the numbers themselves but what they do in terms of your process.

Maybe you could write to the committee to clarify where in the process forecasting fits, what forecasting takes place and how you use the SFC data. That would be helpful.

Finance and Public Administration Committee

Framework for Tax

Meeting date: 22 March 2022

Daniel Johnson

It is not necessarily about additional forecasting; it is about what forecasting and data sets you are using. Do you use just what the SFC provides or does additional forecasting take place? On what basis is it broken down? It is not just about oil and gas; are there sectoral or regional forecasts?

Ultimately, you must think that the Scottish Government has some influence on tax receipts, so it is about how that is modelled, forecast and baked into your decision making. An understanding about how that takes place formally in the Government decision making process is pretty important.

Finance and Public Administration Committee

Framework for Tax

Meeting date: 22 March 2022

Daniel Johnson

I would like to follow up some of the lines of questioning that the convener commenced. At the outset, I note that, although the fiscal framework—sorry, I mean the framework for tax; I apologise for getting my frameworks mixed up, minister—is useful, it is incredibly high level, and I wonder about the specifics of how things are measured.

The Scottish Fiscal Commission has set out clearly the issues that we face over the next four to five years, in terms of shortfalls in income tax and indeed welfare commitments, with the combination of those coming close to £1 billion. The fundamental dynamic is that, if income tax receipts per capita grow more slowly in Scotland than they grow across the rest of the UK, we receive less money to spend on Scottish public services. Given that that is so fundamental to the way in which public finances work in Scotland, why is that not laid out specifically and explicitly in the framework?

Finance and Public Administration Committee

Framework for Tax

Meeting date: 22 March 2022

Daniel Johnson

The data points that I was referencing are from the National Audit Office, so they are at a global level—

Finance and Public Administration Committee

Framework for Tax

Meeting date: 22 March 2022

Daniel Johnson

You seek devolution of the taxes in question through the fiscal framework, so those levies would be devolved in a manner akin to income tax, albeit that there is some debate about the detail of that. Is that what you are saying? Are you talking about just those levies, or would you seek to have additional levies devolved?

Finance and Public Administration Committee

Resource Spending Review Framework

Meeting date: 8 March 2022

Daniel Johnson

That is me, except to thank Professor Heald for name checking the Mirrlees review, which I have been recommending to colleagues in private session.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 8 March 2022

Daniel Johnson

The convener—quite rightly—puts me under pressure as an Opposition spokesperson to say where the money is coming from. I think that that is a fair challenge. However, I would say the same thing to you. We have numbers that suggest that you are overcommitted by almost £100 million in this year’s budget and there are just four weeks to go. I hear what you are saying about pensions, but is that pension adjustment £500 million?

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 8 March 2022

Daniel Johnson

Where else in the budget are we going to underspend in order to generate the £500 million? Why is that not reflected in the spring budget revision itself? You are basically saying that the spring budget revision is not right and that we have overestimated costings by £500 million. Where is it?