- Asked by: Tom Mason, MSP for North East Scotland, Scottish Conservative and Unionist Party
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Date lodged: Thursday, 28 June 2018
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Current Status:
Answered by Derek Mackay on 17 July 2018
To ask the Scottish Government, further to the answer to question S5W-15800 by Derek Mackay on 17 April 2018, and in light of its indication that decisions on how to spend capital borrowing are not made at the time of the budget, for what reason the agreed repayment period for capital borrowing that will occur in 2018-19 and 2019-20 is confirmed as 25 years, when the Fiscal Framework states that 10 years is the normal period, subject to specific information regarding the asset life of the capital project.
Answer
No borrowing has yet been undertaken in 2018-19 or 2019-20 therefore repayment periods have not been agreed. Where the lives of the assets being purchased through the loan justify longer terms, these can be agreed as set out in paragraph 60 of the Fiscal Framework.
- Asked by: Tom Mason, MSP for North East Scotland, Scottish Conservative and Unionist Party
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Date lodged: Thursday, 28 June 2018
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Current Status:
Answered by Derek Mackay on 17 July 2018
To ask the Scottish Government for what reason it has not split, or planned to split evenly, its capital borrowing repayments for the capital borrowing that took place, or is planned to take place, in 2017-18, 2018-19 and 2019-20 over each respective payback period, and for what reason its approach in these years prioritises smaller repayments at the beginning of repayment periods, with larger repayments required later on in the repayment period.
Answer
The Scottish Government borrowed in 2017-18 using the Equal repayments (ER) method - an annuity profile of equal annual payments, hence varying levels of principal and interest (in the earlier years more interest and less principal is paid and vice versa in the latter years of the loan). This method is allowable under the Borrowing Memorandum of Understanding agreed between Scottish Government and HM Treasury. Decisions on repayment method have yet to be taken for 2018-19 and beyond.
- Asked by: Tom Mason, MSP for North East Scotland, Scottish Conservative and Unionist Party
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Date lodged: Thursday, 28 June 2018
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Current Status:
Answered by Derek Mackay on 17 July 2018
To ask the Scottish Government on what basis it claims in the Scotland's Fiscal Outlook, The Scottish Government's Five Year Financial Strategy that Scotland has the "most attractive business rates package in the UK".
Answer
Scotland provides the most competitive non-domestic rates reliefs package available anywhere in the UK and is worth a record £720 million, up from £660 million in 2017-18, which includes several measures that are unique to Scotland. The Small Business Bonus Scheme (SBBS) has lifted over 100,000 properties out of rates altogether in 2017-18 and has saved businesses over £1.5 billion cumulatively since 2009. The package of measures also includes the UK’s first targeted 100 percent rates relief for nurseries which was introduced from 1 April 2018, along with the growth accelerator and relief for new unoccupied builds which supports investment in non-domestic property.
These measures have been welcomed by businesses the length and breadth of Scotland.
- Asked by: Tom Mason, MSP for North East Scotland, Scottish Conservative and Unionist Party
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Date lodged: Thursday, 28 June 2018
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Current Status:
Answered by Derek Mackay on 17 July 2018
To ask the Scottish Government what evidence it has to support its claim in Scotland's Fiscal Outlook, The Scottish Government's Five Year Financial Strategy that there is a "wider public acceptance" of the income tax policy changes in the 2018-19 budget.
Answer
Polling by YouGov for the Times showed that more than half of Scots support our income tax changes. When asked if they supported the income tax changes announced at the Budget, 54% of respondents said they supported the change, and only 27% did not. That is double the number of respondents supporting the policy change than not.
- Asked by: Tom Mason, MSP for North East Scotland, Scottish Conservative and Unionist Party
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Date lodged: Friday, 22 June 2018
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Current Status:
Answered by Derek Mackay on 16 July 2018
To ask the Scottish Government, further to the answer to question S5O-01731 by Derek Mackay on 1 February 2018, in light of it already confirming its plans for 2019-20 capital borrowing to the Scottish Fiscal Commission, for what reason it stated that capital borrowing decisions for 2019-20 would be taken and outlined at the budget stage of the year.
Answer
No decisions have been made on capital borrowing in 2019-20. The impact of capital borrowing in 2019-20 has been modelled by Scottish Government and the Scottish Fiscal Commission but final decisions on if, and how much, to borrow will be taken as part of the 2019-20 budget process.
- Asked by: Tom Mason, MSP for North East Scotland, Scottish Conservative and Unionist Party
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Date lodged: Friday, 22 June 2018
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Current Status:
Answered by Derek Mackay on 16 July 2018
To ask the Scottish Government whether it anticipates its policy to increase income tax levels for people earning over £26,000 compared with people in the rest of the UK will widen or narrow the gap between Scotland and the UK’s real household disposable income growth levels.
Answer
The latest statistics from ONS show that over the period 2006 – 2016 (the latest available year) Gross Household Disposable Income per person in Scotland has grown at 2.6% a year in current prices, the same as in the UK as a whole. The SFC forecasts for disposable income growth shows a gap in the coming years, however they are forecasting that this will close (see figure 5 of their publication, which can be found here: http://www.fiscalcommission.scot/media/1314/scotlands-economic-and-fiscal-forecasts-may-2018-full-report.pdf ). The tax changes we have made have ensured that, for the majority of income tax payers, Scotland is the lowest taxed part of the UK.
- Asked by: Tom Mason, MSP for North East Scotland, Scottish Conservative and Unionist Party
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Date lodged: Friday, 22 June 2018
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Current Status:
Answered by Derek Mackay on 16 July 2018
To ask the Scottish Government what its position is on whether consumption is the most important component of aggregate demand in Scotland.
Answer
In common with many advanced economies, consumption is the largest component of aggregate demand in Scotland.
With regard to the Scottish government position on the consumption component of aggregate demand, I refer the member to the answer to question S5W-14068 on 6 February 2018.
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 .
- Asked by: Tom Mason, MSP for North East Scotland, Scottish Conservative and Unionist Party
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Date lodged: Friday, 22 June 2018
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Current Status:
Answered by Derek Mackay on 16 July 2018
To ask the Scottish Government for what reason Scotland’s real household disposable income growth is reportedly 0.5% behind the UK average.
Answer
As highlighted by the Scottish Fiscal Commission’s latest report, the growth rate of Real Disposable Household Income (RDHI) is influenced by a range of macroeconomic trends. In particular differences in population growth rates are an important determinant in the difference between the growth rate of RDHI between the UK and Scotland.
The Scottish Fiscal Commission go on to forecast that any gap between Scottish and UK RDHI on a per capita basis (controlling for differences in population growth) will narrow and then close over the next two years.
- Asked by: Tom Mason, MSP for North East Scotland, Scottish Conservative and Unionist Party
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Date lodged: Friday, 22 June 2018
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Current Status:
Answered by Derek Mackay on 16 July 2018
To ask the Scottish Government what its position is on whether the £292.17 million anticipated loss of income tax revenue in the years up to 2023-24 due to behavioural responses to policy changes in the 2018-19 budget is avoidable if taxes are lowered.
Answer
The Scottish Government’s 2018-19 income tax reform will - even after behaviour effects - deliver an additional £1.2 billion over the next 5 years to support public services and the economy, as well as making our system fairer and more progressive.
- Asked by: Tom Mason, MSP for North East Scotland, Scottish Conservative and Unionist Party
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Date lodged: Friday, 22 June 2018
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Current Status:
Answered by Derek Mackay on 16 July 2018
To ask the Scottish Government, in light of non-savings, non-dividend (NSND) income tax forecasts being revised down by £1.74 billion in the years up to 2023-24, what its position is on whether pursuing an income tax policy that is estimated to result in a loss in revenue in the same period of £292.17 million due to behavioural responses and almost £2.1 billion due to tax-motivated incorporations is a sustainable way to manage the economy.
Answer
The SFC’s report, Table 3.5, clearly states that the main reason for their downgrade in income tax receipts is a change in their projections for wage and employment growth. There is no evidence that would suggest our income tax policy is leading to a downgrade in forecasts. In their December report the SFC note that the income tax policy is “not of a large enough magnitude to have a significant aggregate impact on the Scottish economy” (page 76). The SFCs reports can be found here: http://www.fiscalcommission.scot/media/1196/scotlands-economic-fiscal-forecasts-publication.pdf and here: http://www.fiscalcommission.scot/media/1314/scotlands-economic-and-fiscal-forecasts-may-2018-full-report.pdf