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I have one more question. The First Minister gave a commitment to fully fund the freeze to ensure that councils can maintain their services, despite offering no real clue as to where the money will come from. It is highly likely that different councils would have planned to have different increases in council tax in order to maintain services in their areas. Will the funds that are allocated to local authorities take into account the variety of council tax hikes that each local authority will have planned?

Good morning, minister. As has been mentioned, one of the primary principles of the Verity house agreement has been violated less than four months after the agreement was made. A key part of the agreement centres around there being a robust and regular process for early budget engagement that is embedded in the physical framework. However, the First Minister neglected to inform COSLA that council tax would be frozen for the coming year before he said so in his speech at the Scottish National Party conference.

Is the Verity house agreement even worth the paper that it is written on? If so, how is failing to consult on the decision to freeze council tax in keeping with the agreement’s principles?

My question is on how the levy will be raised. Councillor Macgregor has just mentioned that flat rates are much easier to manage and collect and that they are also easier for businesses and local authorities to operate. The committee has heard mixed opinions on whether the levy should be introduced as a percentage rate or a flat rate. As Councillor Macgregor said, the burden of collecting it will fall on businesses. Should the bill be amended to allow local authorities to introduce flat rates if they decide that those are more appropriate for their areas?

Although some witnesses call it an accommodation tax, others have asserted that businesses would take up the role of unpaid tax collectors for local authorities. Should companies be able to claim a portion of the revenue from tourist taxes to help offset the costs of collecting and reporting levies in the same way that local authorities will be able to? My question is for Councillor Macgregor.

Good morning, panel. My question is on international reputation. The committee has heard in previous evidence that Scotland’s international reputation relies on the past. That view was repeated in the recent House of Commons Scottish Affairs Committee report promoting Scotland internationally, which stated that there was a heavy focus on tartan. Although that hook is, of course, useful, particularly for tourism, we need to do a lot more to shift the focus on to things such as our scientific research and our business excellence. Have you experienced a similar need to move away from a more traditional reputation towards a more modern one? How have you achieved that?

Thank you for your responses. I have a question about the locations of international offices, which was touched on earlier. The committee has heard suggestions that there should be a review of the location of Scotland’s international offices. Currently, I believe, there are no offices in Spain, Italy or the Netherlands. How often do you review the locations and sizes of the offices? I am just back from a trip with the cross-party group on India. We have a presence in India, but we were asked to expand it because the trade deal and other things that are happening mean that there are lots more opportunities. It would be good to hear from both of you on how often the locations and sizes of the offices are reviewed. This time, I will go to Professor Cornago first.

Good morning, everybody. I just want to put on the record that I am chair of the cross-party group on India and that, in October, we had a cross-party delegation visit to India.

Thank you. Professor Paquin, do you want to add anything to that?

Obviously, there will be quite a heavy burden on microbusinesses and small businesses, which do not have as many people and resources as larger businesses, so is it important that those businesses are looked after?

Sticking to the theme of how the money is raised and some of the concerns, we have had witnesses from the industry and from councils, and one of the many areas where there is disagreement is whether the levy should be a flat rate or a percentage rate. The industry argues that a flat rate would be easier to collect. The process has to be simplified—both sets of witnesses talked about the importance of that. Last week, we heard from people from Europe that some countries use both approaches.

Do you agree that, with either approach, it is important to minimise basic burdens on businesses? What would be the easiest and simplest way to collect the levy?