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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 23 August 2025
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Displaying 875 contributions

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Finance and Public Administration Committee

Cabinet Secretary for Finance and the Economy

Meeting date: 31 August 2021

Daniel Johnson

Following on from the convener’s remarks at the beginning of the meeting, we can agree that we both have excellent diction and enunciation.

I want to follow up on some points that have already been raised. I am clear that you have read the SPICe report and the Fraser of Allander Institute piece looking at the outturn reports and comparing them with the tax plans. In the 2019-20 budget, the Scottish Government expected its tax plans to raise an additional £500 million, but, based on the outturn, they have raised only £148 million. I understand what you were hinting at with regard to the block grant mechanism. However, it is clear from both of those bodies that what that difference fundamentally tells us is that income tax per capita has not grown as much in Scotland as it has in the rest of the UK.

First, do you agree with that assessment? More importantly, and given what you were just saying about the need to expand the income tax base and to make sure that people are earning more within that, what does that say about the policies that you have been pursuing? What policies will you pursue to ensure that people are earning more so that they pay more tax, which we can all agree would be a good thing?

Finance and Public Administration Committee

Scottish Fiscal Commission (Economic and Fiscal Forecasts)

Meeting date: 31 August 2021

Daniel Johnson

To follow up that point, I challenge what was said about businesses having figured out how to operate through Covid. The businesses that I speak to have managed to get through Covid but, although they are trading, their trade is significantly down from where it would have been. For a lot of consumer-facing businesses, 60 to 80 per cent is not unusual and it is not sustainable for them. Furthermore, most of those businesses have got to that point by accumulating significant sums of debt, whether that is through Government schemes, deferred payment of rent to landlords or other arrangements. It has even been reported that small business owners have cashed in their pensions. I am told that a lot. It strikes me that those businesses are operating under a very different set of circumstances from those that existed pre-Covid, and that, too, must imply a degree of fiscal headwind when you start looking at those figures, or certainly the overall economic performance of the country.

10:00  

Finance and Public Administration Committee

Scottish Fiscal Commission (Economic and Fiscal Forecasts)

Meeting date: 31 August 2021

Daniel Johnson

No.

Finance and Public Administration Committee

Scottish Fiscal Commission (Economic and Fiscal Forecasts)

Meeting date: 31 August 2021

Daniel Johnson

To take the next step, I absolutely understand those points, but the key conclusion that is drawn in the paper is that growth has been slower in Scotland than in the rest of the UK. Do you share that conclusion? Do you have insight into that?

Finance and Public Administration Committee

Interests

Meeting date: 22 June 2021

Daniel Johnson

I am a director of, and sole shareholder in, a company that has retail interests. I am a member of the Union of Shop, Distributive and Allied Workers and of the Community trade union, and I am the vice chair of the ADHD Foundation charity.