Chamber and committees

The Scottish rate of income tax will be clearly shown on an individual’s annual tax summary to provide transparency for all Scottish taxpayers while minimising the impact on employers.

I set out the rationale for this decision in my letter of 9 June 2015 to the Convener of the Finance Committee. This can be found at:

http://www.scottish.parliament.uk/S4_FinanceCommittee/General%20Documents/2015_06_11_Cab_Sec_to_Finance_Committee.pdf.

The Scottish Government will propose a Scottish rate of income tax for the consideration of the Scottish Parliament within its draft budget for 2016-17.

Direct annual expenditure on tourism since 2007-08, by VisitScotland (VS), Scottish Enterprise (SE) and Highlands and Islands Enterprise (HIE) is shown in the following tables:

VS Annual Expenditure

Notes:

(1) Data from annual accounts except for 2014-15, which is anticipated spend from the three year corporate plan revised in 2015. The 2014-15 annual report and accounts is yet to be released.

(2) Above figures exclude ring-fenced DEL (non-cash) and Annually Managed Expenditure (AME).

SE Annual Expenditure on Tourism

Notes:

(1) All data from annual accounts.

(2) Complete figures for 2007-08 and 2008-09 are unavailable as SE’s systems did not have full industry tagging available in those years.

(3) Expenditure on tourism from 2009-10 until 2012-13 included investments made towards the Queens Dock project: £12 million in 2009-10, £7 million in 2010-11, and £1 million in 2012-13.

(4) Above figures exclude ring-fenced DEL (non-cash) and AME.

HIE Annual Expenditure on Tourism

Notes:

(1) Data from annual accounts except for 2014-15, which is estimated. The 2014-15 annual report and accounts is yet to be published.

(2) Above figures exclude ring-fenced DEL (non-cash) and AME.

In addition to the above it should be noted that, other Scottish Government policy areas also provide funding and support, which supports tourism in Scotland.

It is the responsibility of HMRC to identify the Scottish taxpayer population as part of its implementation programme for the Scottish rate of income tax. The Scottish Government is represented on HMRC’s project and programme boards.

The level of risk associated with the identification of Scottish taxpayers is monitored and managed as part of the ongoing programme and project management procedures in place for the implementation of the Scottish rate of income tax by HMRC.

The Scottish Government will propose a Scottish rate of income tax for the consideration of the Scottish Parliament within its draft budget for 2016-17.

It is the responsibility of HMRC to implement the Scottish rate of income tax. HMRC have provided an outline of its communications strategy for the Scottish rate of income tax to the Finance Committee.

HMRC is responsible for the implementation of the Scottish rate of income tax. In the UK Government’s Third Annual Report on the Implementation and Operation of Part 3 (Financial Provisions) of the Scotland Act 2012, the breakdown of the estimated costs for the lifetime of the implementation programme allocated £4.2 million for communications and publicity related activity.

Scottish Government is meeting all the costs of HMRC’s implementation programme for the introduction of the Scottish rate of income tax, which includes those associated with communications and publicity related activity.

As outlined in the Draft Budget in 2015-16, we plan to use up to £304 million of borrowing to maximise our infrastructure investment in 2015-16. The borrowing will support the overall capital infrastructure programme rather than be allocated on an individual project basis.

The Joint Exchequer Committee has met on 7 July, 4 September and 23 September 2015. The Joint Exchequer Committee will continue to meet with the intention of reaching agreement on Scotland’s fiscal framework during the autumn.