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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 23 March 2026
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Displaying 1202 contributions

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Finance and Public Administration Committee [Draft]

Budget Scrutiny 2026-27

Meeting date: 20 January 2026

Craig Hoy

In his submission to the committee, Professor David Heald, who will be giving evidence in the next session, says that greater devolution of tax powers is actually increasing the risk in terms of the net effect on Scottish revenues. Is that a fair conclusion?

Finance and Public Administration Committee [Draft]

Budget Scrutiny 2026-27

Meeting date: 20 January 2026

Craig Hoy

Another debate that is about to be had is on what the budget means for Scottish local authorities. Yesterday, the First Minister urged councils to consider potential council tax increases of 3 per cent. We know from speaking to councils that some of them are considering increases of 8 per cent or even upwards of 10 per cent. Having delved into the figures, what would you say is the real-terms position for council budgets, next year and moving into future years?

Finance and Public Administration Committee [Draft]

Budget Scrutiny 2026-27

Meeting date: 20 January 2026

Craig Hoy

I have a question about business rates. Mention has been made of the fact that reliefs are baked into the tax system. It strikes me that, given all the reliefs in the business rates area—non-domestic rates—at the moment, perhaps the whole system needs to be looked at. The rates revaluation is coming through. There are a number of transitional reliefs, the small business bonus scheme and specific reliefs for hospitality.

Have you been able to estimate how many businesses in Scotland are going to be better off or worse off as a result of the proposed revaluations and the subsequent reliefs? Is there any specific sector or size of business that could be exposed to higher non-domestic rates bills? We are all hearing that hospitality, leisure and retail are potentially being hit through revaluation, whereas the Government is saying that it has now brought forward reliefs. Who will be the winners and who will be the losers, do you think?

Finance and Public Administration Committee [Draft]

Budget Scrutiny 2026-27

Meeting date: 20 January 2026

Craig Hoy

Yes.

Finance and Public Administration Committee [Draft]

Budget Scrutiny 2026-27

Meeting date: 20 January 2026

Craig Hoy

I want to pick up on the idea of the Scottish Government increasing its borrowing capacity and the risk that could be associated with that.

Additional funds have flowed to the Scottish Government for the removal of the two-child benefit cap, to which it had allocated £155 million. That equates to its having an extra £126 million. When the Scottish Government received that money, it said that it was more than it was expecting, so it would spend the additional money on tackling child poverty, rather than on cutting tax or putting those funds elsewhere.

Given the way in which the Scottish Government approaches public expenditure, is there not a risk that, if its borrowing capacity were to be significantly increased, rather than looking at its budget, it would just use the increased borrowing capacity and, rather than going cold turkey, it would simply continue to spend in the way that it is doing at the moment?

Finance and Public Administration Committee [Draft]

Budget Scrutiny 2026-27

Meeting date: 20 January 2026

Craig Hoy

Other analysts of productivity have said that it would be heroic for the Government to meet its productivity targets in light of everything in the budget. Based on recent experience, it would be heroic for the Scottish Government to go into a room with trade union officials and come out having negotiated, presumably, a net real-terms reduction in pay. That will not happen.

Finance and Public Administration Committee [Draft]

Budget Scrutiny 2026-27

Meeting date: 20 January 2026

Craig Hoy

Is there also a risk, given the current structure of the Scottish tax system, that, as public sector workers move into higher rates of tax, the trade unions who are negotiating on their behalf will be tougher, because they know that, in effect, 50 per cent of any pay increase will be handed back to the Scottish and UK exchequer in tax and national insurance?

Finance and Public Administration Committee [Draft]

Budget Scrutiny 2026-27

Meeting date: 20 January 2026

Craig Hoy

We have also discussed the fact that, by freezing thresholds at the higher level, more and more people are being pulled into tax. That is now happening in the rest of the UK. How does that compare with other nations of our size and net wealth?

Finance and Public Administration Committee [Draft]

Budget Scrutiny 2026-27

Meeting date: 20 January 2026

Craig Hoy

On that £475 million, the finance secretary said last week that local government was looking at 2 per cent year-on-year increases in real terms. Where would that figure have come from?

Finance and Public Administration Committee [Draft]

Budget Scrutiny 2026-27

Meeting date: 20 January 2026

Craig Hoy

So while councils say that they will potentially have to increase council tax and the Government says that they will not have to, you are clear in saying that there is a real-terms cut coming to council budgets—up to 2028-29, did you say?