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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 September 2025
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Displaying 1103 contributions

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Economy and Fair Work Committee

City Region and Regional Growth Deals

Meeting date: 15 January 2025

Colin Smyth

I have another question. Did we need growth deals? Could the projects have been delivered using the structures that you are all involved in daily? Local authorities have economic development teams. Could we have delivered the projects without the need for growth deals and maybe done so quicker? I did not have any grey hairs when we first started discussing the Borderlands growth deal, but they are starting to develop quite quickly and we still do not have a lot of projects off the ground. I appreciate these things take time, but did we need growth deals? Could we have delivered what is being delivered without them?

That is another easy question. You can all put your head down again. [Laughter.]

Economy and Fair Work Committee

City Region and Regional Growth Deals

Meeting date: 15 January 2025

Colin Smyth

It is slightly more complex for you, Anthony Daye, because the area includes Cumbria—or Cumberland as it now called—and Northumbria. I do not know whether SOSE has a view.

Economy and Fair Work Committee

City Region and Regional Growth Deals

Meeting date: 15 January 2025

Colin Smyth

That is great. Thank you very much for that.

Looking around, I see that there are no other questions, so that brings us to the end of the morning’s evidence session. I thank our witnesses for joining us today and for contributing their comments, which I know will play a key role in our final report.

11:53 Meeting continued in private until 12:32.  

Economy and Fair Work Committee

Budget Scrutiny 2025-26

Meeting date: 8 January 2025

Colin Smyth

You will be pleased to hear that that brings us to the end of the evidence session—I was going to say this morning, but it is almost this afternoon. I appreciate that the session has gone on longer, but I hope that everyone has found it constructive. I thank the Deputy First Minister and her officials for joining us today.

12:01 Meeting continued in private until 12:22.  

Economy and Fair Work Committee

Budget Scrutiny 2025-26

Meeting date: 8 January 2025

Colin Smyth

I will bring in Lorna Slater on enterprise agencies.

Economy and Fair Work Committee

Budget Scrutiny 2025-26

Meeting date: 8 January 2025

Colin Smyth

Thank you very much. I will begin with questions on non-domestic rates. The United Kingdom Government’s budget provided 40 per cent business rates relief to retail, hospitality and leisure businesses across the rest of the UK. As a result of that policy, the Scottish Government will receive £147 million in consequentials in 2025-26. In recent years, the Scottish Government has chosen not to pass on similar allocations of consequentials for rates relief for retail, hospitality and leisure businesses. At this committee and others, the sector has argued that that has left it at a competitive disadvantage compared with its counterparts in the rest of the UK.

The Scottish Government has proposed 40 per cent business rates relief for next year, but it has restricted that relief to hospitality businesses with a rateable value of up to £51,000, and retail businesses will not be covered. Why has the Scottish Government chosen not to replicate the UK Government’s business rates relief proposals or, at the very least, made a proposal that would use the full £147 million of consequentials?

Economy and Fair Work Committee

Budget Scrutiny 2025-26

Meeting date: 8 January 2025

Colin Smyth

That is clearly an issue that we will probably return to as part of our inquiry, but that is a well-made point. I bring in Jamie Halcro Johnston.

Economy and Fair Work Committee

Budget Scrutiny 2025-26

Meeting date: 8 January 2025

Colin Smyth

Many in the sector have highlighted the fact that support in the rest of the UK is more generous for many businesses. For example, UKHospitality pointed out that, because of the cliff edge of the £51,000 rateable value—which is quite small for a hospitality business, given how we calculate rateable value in that sector—around 2,600 hospitality businesses in Scotland will miss out on support that is available in the rest of the UK. Why was the £51,000 cut-off point chosen? Why was not that extended to retail?

In recent weeks, we have heard that around 10,000 jobs have been lost in retail in the past year. The sector is under significant pressure. Indeed, this committee carried out an inquiry into the impact on town centres in particular.

Economy and Fair Work Committee

Budget Scrutiny 2025-26

Meeting date: 8 January 2025

Colin Smyth

It is also worth flagging up the concerns that organisations have raised to the committee over delays in making those employability payments. Organisations have been handing out redundancy notices purely because they are waiting for decisions by the Scottish Government. Obviously, that is deeply regrettable.

Economy and Fair Work Committee

Budget Scrutiny 2025-26

Meeting date: 8 January 2025

Colin Smyth

Do we have a timescale for when the work will be completed? Many hospitality businesses are struggling significantly. You referred to the SRC’s response to the budget. The SRC was also quite critical of the lack of additional business rates relief. It said that there was disappointment among smaller shopkeepers at the omission of any rates relief comparable to that which counterparts in Wales and England are entitled to for the coming year, especially as Barnett consequentials were forthcoming from the UK Government. Are there any proposals for a wider reform of business rates and, again, is there a timescale for that?