Chamber and committees

The Scottish Government’s Medium Term Financial Strategy (MTFS) published on 30 May 2019, sets out the Scottish Government’s borrowing policy over the period of the National Infrastructure Mission.

The MTFS publication can be found by way of the following link www.gov.scot .

The Scottish Government’s Medium Term Financial Strategy (MTFS) published on 30 May 2019, sets out the Scottish Government’s plans to borrow £450 million in 2019-20. This is an outline at this stage and has been modelled at 2% over a 25 year repayment term. A final decision on the amount and term of borrowing will be taken nearer the end of the financial year, taking account of relevant factors at the time.

The MTFS publication can be found by way of the following link www.gov.scot .

The Scottish Government manages Scotland’s public finances in a competent, responsible and balanced way. This Government has a strong track record in this respect as we continue to invest in Scotland’s economy and public services in the face of Westminster austerity.

In our second Medium-Term Financial Strategy (MTFS) published on 30 May, we set out the key financial challenges and opportunities that lie ahead. The MTFS is accompanied this year by a framework for our forthcoming Spending Review, which will assist us to allocate budgets to meet the changing needs of Scotland’s people. Both the MTFS and spending review framework are key parts of our Written Agreement with the Finance and Constitution Committee, which followed the recommendations of the Budget Process Review Group.

The Scottish Government continues to deliver its commitment made in 2010-11 that all health resource consequentials will be passed on in full. Details of spending are set out in the Scottish Budget publications.

I refer the member to the answer to question S5W-23401 on 4 June 2019. All answers to written parliamentary questions are available on the Parliament’s website, the search facility for which can be found at http://www.parliament.scot/parliamentarybusiness/28877.aspx .

The Scottish Fiscal Commission’s’ report [May 2019] shows the latest estimates of losses in income tax revenue due to behavioural change from the 2019-20 policy decision to be £45 million over the period 2019-20 to 2024-25. The same report forecasts the overall revenue gain from the 2019-20 policy change to be £476 million over the same period. Losses from behavioural change are therefore small relative to these gains.

Behavioural change is a consideration for all taxes in all jurisdictions. The Scottish Government takes the matter of behavioural change very seriously. However, the latest forecasts suggest that the tax policy change is not having detrimental effect through lost revenues.

Scottish Enterprise plans to publish its business plan in mid-June.

The 2019-20 public sector pay policy strikes the right balance in delivering a fair deal for public sector workers and value for the public purse in terms of affordability and investing in high-quality public services. It continues the Scottish Government’s commitment to lifting the pay cap, provides job security through our commitment to no compulsory redundancies, and tackles income inequality through progressive measures including the real Living Wage, a guaranteed three per cent increase for lower earners – which in practice benefits almost three-quarters of all staff directly covered by the policy – and a capped increase of £1,600 for the highest earners.

This is an operational matter for Scottish Enterprise.

I have passed your query on to Steve Dunlop, the Chief Executive, and asked him to respond to you directly.

I refer the member to the answer to question S5W-23395 on 4 June 2019. All answers to written parliamentary questions are available on the Parliament’s website, the search facility for which can be found at http://www.parliament.scot/parliamentarybusiness/28877.aspx .