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Seòmar agus comataidhean

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 8 April 2026
  7. Session 6: 13 May 2021 to 8 April 2026
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Displaying 4079 contributions

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Finance and Public Administration Committee

Decision on Taking Business in Private

Meeting date: 31 August 2021

Kenneth Gibson

Good morning, and welcome to the second meeting in 2021 of the Finance and Public Administration Committee. The first item on our agenda is a decision on taking business in private. Do members agree to take item 4 in private?

Members indicated agreement.

Finance and Public Administration Committee

Decision on Taking Business in Private

Meeting date: 31 August 2021

Kenneth Gibson

I inform members that Patrick Harvie has resigned from the committee, no doubt due to his elevation to ministerial office. Although he has been to only two meetings, I thank Patrick for his contributions to date.

Finance and Public Administration Committee

Scottish Fiscal Commission (Economic and Fiscal Forecasts)

Meeting date: 31 August 2021

Kenneth Gibson

I have pages of questions, but I will let other committee members in after my next question, which is on a different topic: international supply pressures. Your forecast says that

“we assume there are no future waves of rapidly rising ... deaths and hospitalisations”

but that

“There are ... ongoing international supply pressures which combined with domestic recruitment challenges present risks to our forecasts.”

The impacts are from not just Covid but Brexit. How do you quantify the risks from supply pressures? We have heard about significant rises in raw material prices, for example, which could have an impact on the ability to deliver the Scottish Government’s capital programme.

Finance and Public Administration Committee

Scottish Fiscal Commission (Economic and Fiscal Forecasts)

Meeting date: 31 August 2021

Kenneth Gibson

There is a significant mismatch in the labour market between skills and geographic location.

Finance and Public Administration Committee

Scottish Fiscal Commission (Economic and Fiscal Forecasts)

Meeting date: 31 August 2021

Kenneth Gibson

That is clear.

Your report says that house price stability will be established in the current financial year and that prices will grow in subsequent years. How did you come to that conclusion? House prices appear to be rising quite significantly.

Finance and Public Administration Committee

Cabinet Secretary for Finance and the Economy

Meeting date: 31 August 2021

Kenneth Gibson

Thank you. I open up for questions from the committee.

Finance and Public Administration Committee

Scottish Fiscal Commission (Economic and Fiscal Forecasts)

Meeting date: 31 August 2021

Kenneth Gibson

That will mean that more people become higher-rate taxpayers.

Finance and Public Administration Committee

Cabinet Secretary for Finance and the Economy

Meeting date: 31 August 2021

Kenneth Gibson

I thank members of the committee.

I have a couple of questions to wind up with. One relates to capital budget. Raw material prices are growing by between 5 and 15 per cent a year. You said that the agreement with the Greens would not threaten the delivery of Scotland’s capital projects that are already committed to but, clearly, if there is significant pressure on the capital budget because of inflation, that may make it more difficult to deliver some of those projects. What discussions have you had with the UK Government regarding an uplift to the Scottish Government’s capital programme budget?

Finance and Public Administration Committee

Cabinet Secretary for Finance and the Economy

Meeting date: 31 August 2021

Kenneth Gibson

In our second evidence session we will hear from Kate Forbes, the Cabinet Secretary for Finance and the Economy, and Douglas McLaren, deputy director, budget, pay and pensions, in the Scottish Government. I welcome our witnesses to the meeting, not least because the cabinet secretary has come straight from the Local Government, Housing and Planning Committee meeting and has already had an exceptionally busy morning.

Committee members have received a paper providing background information for the evidence session, but before I open the session to questions from members, I invite the cabinet secretary to make a short opening statement.

Finance and Public Administration Committee

Cabinet Secretary for Finance and the Economy

Meeting date: 31 August 2021

Kenneth Gibson

I agree with your comments. However, the UK and Scotland have the same immigration policies. What can Scotland do to improve its position relative to the rest of the United Kingdom? The block grant adjustment and taxation are obviously major issues in future budgetary considerations.