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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 27 January 2026
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Displaying 3183 contributions

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Economy and Fair Work Committee [Draft]

Budget Scrutiny 2026-27

Meeting date: 21 January 2026

Stephen Kerr

May I ask the Deputy First Minister some very quick questions and go through a number of different issues very quickly, just to tie up some loose ends?

Economy and Fair Work Committee [Draft]

Budget Scrutiny 2026-27

Meeting date: 21 January 2026

Stephen Kerr

Right. I presume that there must be a number, because people inside Scottish Enterprise know that there will have to be redundancies on the basis of a third year of real-terms cuts.

Economy and Fair Work Committee [Draft]

Budget Scrutiny 2026-27

Meeting date: 21 January 2026

Stephen Kerr

I have some quick questions on employment. Do you have statistics on the employability funds and programmes that you have cited a few times this morning?

Economy and Fair Work Committee [Draft]

Budget Scrutiny 2026-27

Meeting date: 21 January 2026

Stephen Kerr

Excellent.

I turn to the Scottish child payment, in relation to which I have frequently raised a concern about the cliff edge that exists when it comes to encouraging people to take promotions, salary increases or different jobs. There is a cliff edge in the sense that, at a certain point, they will lose all their benefits if they do that. That acts as a disincentive for people with regard to employment. Is that a concern for you? If it is, what discussions have you had internally with a view to moving away from having that cliff edge?

Economy and Fair Work Committee [Draft]

Budget Scrutiny 2026-27

Meeting date: 21 January 2026

Stephen Kerr

I get such feedback from employers, particularly when it comes to asking people to work extra hours—in other words, overtime. People are reluctant to take overtime.

Economy and Fair Work Committee [Draft]

Budget Scrutiny 2026-27

Meeting date: 21 January 2026

Stephen Kerr

It is not data that I can share with you; it is anecdotal evidence. However, that situation seems to be quite widespread. When people are offered a few extra hours of work, they say, “Hang on a minute. That means that I would be at risk of losing this much.” There is no tapering effect. It is all or nothing. We should be concerned about that.

There are many other questions that I could ask, but I promise that this will be my last one. It is about the freeze on the thresholds for the higher, advanced and top rates of tax. There has been a lot of commentary by economists about the impact that that has on Scotland’s attractiveness as a place to move to, particularly for high-worth workers. Because of the freeze, people who are already paying higher rates will have to pay more, and more people will fall into the top brackets.

Are you concerned about the effect of that on the attractiveness of Scotland as a labour market? Have you had conversations with colleagues on the issue? Will action be taken?

Economy and Fair Work Committee [Draft]

Budget Scrutiny 2026-27

Meeting date: 21 January 2026

Stephen Kerr

Are you saying that more people will not fall into that category?

Economy and Fair Work Committee [Draft]

Budget Scrutiny 2026-27

Meeting date: 21 January 2026

Stephen Kerr

I am not saying that you are the only Government that has done it. I am just saying that we have higher burdens of taxation for people who are earning—

Economy and Fair Work Committee [Draft]

Budget Scrutiny 2026-27

Meeting date: 21 January 2026

Stephen Kerr

I think that lots of people—outside the Government, obviously—have concerns about the effect on the Scottish labour market.

Economy and Fair Work Committee [Draft]

Budget Scrutiny 2026-27

Meeting date: 21 January 2026

Stephen Kerr

Do you have a number in mind?