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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 November 2025
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Displaying 982 contributions

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Finance and Public Administration Committee [Draft]

Pre-budget Scrutiny 2026-27

Meeting date: 30 September 2025

Craig Hoy

Good morning, cabinet secretary. In response to Mr Greer, you talked about how you would like to ensure that local government is empowered. I do not say this very often, but I have full sympathy with you in respect of the timing of the UK budget and the knock-on effect that that will have on the Scottish budget. That will also have a knock-on effect for Scottish councils; they are very concerned that they are in effect the last link in the chain, which could cause them real issues.

However, there are certain things that you could do now to make their job easier. In respect of your remarks to Mr Greer, do you rule out a council tax freeze next year in order to allow councils to start their modelling earlier?

Finance and Public Administration Committee [Draft]

Pre-budget Scrutiny 2026-27

Meeting date: 30 September 2025

Craig Hoy

Looking forward, which is, obviously, the purpose of this evidence session, how concerned are you, on a scale of one to 10, about the underlying issues that we now face in the budget, in terms of both your projected spend and your projected revenues?

Finance and Public Administration Committee [Draft]

Pre-budget Scrutiny 2026-27

Meeting date: 30 September 2025

Craig Hoy

You would concede, however, that enhancing the benefit system is one thing, but having more people on an equivalent benefit is a much deeper problem. When they were in front of us, Professor Ulph and Professor Breedon accepted that there was an issue around transfers; they said that they had relative confidence that an underlying trend exists in the Scottish system that is of concern. That will emerge quite clearly between now and the end of the decade.

Finance and Public Administration Committee [Draft]

Pre-budget Scrutiny 2026-27

Meeting date: 30 September 2025

Craig Hoy

What message does it send if the Scottish Government says that it will in effect just let £36 million of taxpayers’ money go?

Finance and Public Administration Committee [Draft]

Pre-budget Scrutiny 2026-27

Meeting date: 30 September 2025

Craig Hoy

Perhaps the media coverage spoke to another narrative.

Finance and Public Administration Committee [Draft]

Pre-budget Scrutiny 2026-27

Meeting date: 30 September 2025

Craig Hoy

I have one final short question—sorry, two questions. You said that the work on reducing the overall size of the Scottish Government and on the invest to save scheme is fundamentally important. Will you confirm how many applications were made to the invest to save scheme?

Finance and Public Administration Committee [Draft]

Pre-budget Scrutiny 2026-27

Meeting date: 30 September 2025

Craig Hoy

I will reverse a bit because of that politician’s answer. Do you therefore anticipate that councils will be able to set their council tax rates next year? That would be one of the levers that they have at their disposal. If they are doing pre-planning, they will want to anticipate what their multiyear increases will be.

Finance and Public Administration Committee [Draft]

Pre-budget Scrutiny 2026-27

Meeting date: 30 September 2025

Craig Hoy

However, you concede, as the SFC does, that the gaps between the Scottish Government’s spending projections and the available funding are significant. Do you accept that at this point?

Finance and Public Administration Committee [Draft]

Pre-budget Scrutiny 2026-27

Meeting date: 30 September 2025

Craig Hoy

The SFC’s projection of a £4.7 billion gap identifies that it is £2.6 billion in resource spending and £2.1 billion in capital spending. How concerned should we be that the capital spend gap is proportionately more, given that capital expenditure is, in one sense, funding the engines of growth—the physical infrastructure? Is that a long-term concern?

Finance and Public Administration Committee [Draft]

Pre-budget Scrutiny 2026-27

Meeting date: 30 September 2025

Craig Hoy

In relation to the interplay between UK benefits and Scotland-specific benefits, would you accept, for example, having the Scottish child payment be dependent on universal credit? When you and I have talked in the past, you have said that you do not like to put cliff edges in, but would you accept that the interplay between those benefit systems puts in place a barrier to work? People will lose one benefit if they do more hours and therefore have greater earned income. The structure of the benefit system in Scotland is such that having some of it devolved may work against getting people into employment.