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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 11 January 2026
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Displaying 1396 contributions

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Finance and Public Administration Committee [Draft]

Subordinate Legislation

Meeting date: 6 January 2026

Ivan McKee

That is in the code of conduct, which businesses need to comply with in order to be able to access the relief.

Finance and Public Administration Committee [Draft]

Subordinate Legislation

Meeting date: 6 January 2026

Ivan McKee

I do not think that I or my officials have anything on the specifics of that. We might need to come back to you.

Finance and Public Administration Committee [Draft]

Subordinate Legislation

Meeting date: 6 January 2026

Ivan McKee

Obviously, that is part of the picture. It is important that the measures are targeted, that we are clear about what it is that we are trying to do and that we understand the reason for it. In relation to green ports and investment zones, it is about targeting specific industrial sectors and specific locations where there are inherent advantages, with the intention of building clusters in those technologies that are world-competitive, in order to attract those technologies.

The tax piece is a part of that. If you look at the total amount of money in relation to investment and so on, the amount that is allocated to tax—as opposed to skills, infrastructure or other site-readiness measures—is a small percentage of the total. It will be part of the decision-making criteria for companies, but, again, it will be a small part of the overall consideration. In answer to your question: yes, those incentives and reliefs can play a role, but they need to be targeted and we need to understand what we are trying to achieve with them.

11:45  

Finance and Public Administration Committee [Draft]

Subordinate Legislation

Meeting date: 6 January 2026

Ivan McKee

The member will be aware that there is a list of criteria that a company must comply with in order to be eligible for relief.

Finance and Public Administration Committee [Draft]

Subordinate Legislation

Meeting date: 6 January 2026

Ivan McKee

The process, which I was not involved in at the time, was a joint process between the UK Government and the Scottish Government. As I said, it was a rigorous process that looked at several factors. The availability of underdeveloped land was one of them, but there were others, such as the existing business activity, its location, access to technology and the role of universities—several factors were chosen. Of course, in a perfect world, we would want to create more investment zones, but the offer that we took up from the UK Government was limited to two, and those two areas were chosen.

Finance and Public Administration Committee [Draft]

Subordinate Legislation

Meeting date: 6 January 2026

Ivan McKee

The first point to note is that LBTT happens only when somebody moves into the area, so if the counterfactual is that the transaction did not happen, you are not losing any money.

The second point is—

Finance and Public Administration Committee [Draft]

Subordinate Legislation

Meeting date: 6 January 2026

Ivan McKee

It is not part of my portfolio, but I can come back to you on that matter—unless officials have anything specific to say on the numbers. There are certainly numbers for the matched investment that is estimated or forecast to come in, which is somewhere north of £300 million. Liam Farrow might want to comment on your point.

Finance and Public Administration Committee [Draft]

Subordinate Legislation

Meeting date: 6 January 2026

Ivan McKee

It is important that there is a process and that the process is robust. As officials have said, the criteria for the process are available online. There is an issue in that this is a zero-sum game and only two investment zones were on offer from the UK Government. Two areas had to be selected for that process, and criteria were used on that basis. At the end of the day, whichever areas were chosen through that process, other areas would have made the case that they were hard done by, as was the case with the green port selection process. However, the reality is that there were only two areas to be allocated, and a rigorous process was undertaken to select those two.

Finance and Public Administration Committee [Draft]

Subordinate Legislation

Meeting date: 6 January 2026

Ivan McKee

I suggest that we have done as much as we can on the fair work criteria, given that we do not have control over employment law, which means that there are legal restrictions on what we can do. You will be very aware that, for the work that we did on green ports, we engaged in the process only when there was a commitment from the UK Government and all parties that they would comply with the fair work agenda. The agenda has been signed up to by the green ports, which are taking that forward with the businesses that are seeking to base themselves in those locations. One of the criteria that they will use to assess businesses is compliance with the fair work agenda.

The same process will be followed in this case: a code of conduct has been written by both the regional economic partnerships, which will be used to assess bids and determine their eligibility and compliance with the criteria so that those businesses can receive the benefits. There are restrictions on what we can do, certainly with fair work, because we do not have control of employment law. We are using other measures to try to circumvent those restrictions so that we can influence business behaviour. We take that very seriously and I believe that we have done everything that we can to ensure that those criteria are in place.

Finance and Public Administration Committee [Draft]

Subordinate Legislation

Meeting date: 6 January 2026

Ivan McKee

Yes.