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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 29 November 2025
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Displaying 1215 contributions

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Finance and Public Administration Committee

Subordinate legislation

Meeting date: 17 January 2023

Tom Arthur

As part of the process of deliberating on public policy, we consider a range of views and opinions from different organisations, which we balance against each other. Particular taxes can have particular impacts on the particular sectors, individuals or organisations that are liable for those taxes; however, the revenues that are raised have an impact on the people who benefit from public services.

Decisions have to be taken in the round. We cannot be in a silo where we just focus on one aspect or implication. The context in which we find ourselves is that there is a cost of living crisis and our public services are facing unprecedented pressure. It is an absolute imperative, and it is our moral responsibility, to ensure that we are properly resourcing our public services. That means taking proportionate, fair and balanced decisions with regard to how we utilise the tax levers that are at our disposal.

Finance and Public Administration Committee

Subordinate legislation

Meeting date: 17 January 2023

Tom Arthur

I do not have that figure in front of me, but I am happy to come back to the committee on that if there is a means of providing greater detail at a granular level.

Finance and Public Administration Committee

Subordinate legislation

Meeting date: 17 January 2023

Tom Arthur

My point, Mr Lumsden, is that I am not responding to comments when I have not had an opportunity to study them in detail and to understand the full context.

The reality is that we face a challenge in housing; that is recognised, and we are taking action across a range of Government areas to tackle it. The challenge and the proximate cause of the challenge are not down to the specific policy decisions of any one Government but are influenced by a series of much broader global factors, not least the global pandemic that we are just coming out of and significant cost inflation as a result of the broader macroeconomic challenges. There is no suite of policies or set of interventions that could address that.

10:30  

Our policy around LBTT is demonstrably raising revenue. We have had a buoyant property market in Scotland. We have seen significant revenue raised through LBTT over the past year, above and beyond the corresponding block grant adjustment. The level of transactions and the revenue raised demonstrates to me, and to any fair and impartial observer, that the policy is delivering on its objective to raise revenue. That revenue can be used to support vital public services, including the delivery of homes and the services that communities require.

Finance and Public Administration Committee

Subordinate legislation

Meeting date: 17 January 2023

Tom Arthur

We are seeking to support first-time buyers and other people to be able to buy their own homes.

Finance and Public Administration Committee

Subordinate legislation

Meeting date: 17 January 2023

Tom Arthur

I am conscious of the committee’s considerable interest in this area, and I repeat my strong appreciation of the concerns that local government has expressed. We have given careful consideration to the matter as part of the ADS review, and I will be in a position to set out the Government’s response to that in the near future.

Finance and Public Administration Committee

Subordinate legislation

Meeting date: 17 January 2023

Tom Arthur

Our decisions on tax are taken in the round as part of the overall budget process, in the context of the Government’s existing policy commitments. There are clear commitments around housing, in particular on the supply of affordable housing. The policies that we undertake overall with regard to residential LBTT reflect the characteristics of the Scottish property market, as was touched on earlier, with regard to average house prices.

We take account of broader economic factors, and decisions are taken in a way that is consistent with the policy objectives in other areas. In decisions around tax, there is, as much as there can be, a clear focus on revenue raising. We do not take things in isolation, which is why we said at the outset that a key part of the intent behind the ADS—as has been the case since it was introduced—is to provide support for first-time buyers.

Finance and Public Administration Committee

Subordinate legislation

Meeting date: 17 January 2023

Tom Arthur

It is something that has been reflected on. I will ask Ewan Cameron-Nielsen to correct me if I am wrong, but I think that housing co-operatives represent a very small part of the Scottish housing sector.

Finance and Public Administration Committee

Subordinate legislation

Meeting date: 17 January 2023

Tom Arthur

I will ask Ewan Cameron-Nielsen to come in at this point.

Finance and Public Administration Committee

Subordinate legislation

Meeting date: 17 January 2023

Tom Arthur

As members of the committee have recognised, the private rented sector plays an important role in providing flexibility for many people. However, we also recognise that there are many people who are renting who would far prefer to be able to own their own property. That is what the policy is designed to support.

Finance and Public Administration Committee

Subordinate legislation

Meeting date: 17 January 2023

Tom Arthur

No.