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Indeed.

Some capital projects have had to be deprioritised. I am keen to get information on which projects have been affected. I am aware of one in my constituency, for a start. Major rail projects seem to be an area in which there has been deprioritisation. However, the Scottish Government has met its commitment to expand its green investment portfolio, the target on which it has exceeded by around 15 per cent. The current figure is £3.4 billion, so there is also some good news, is there not?

I thank the minister for his evidence. The committee will publish its report on the SSI in the next few days.

That concludes the public part of today’s meeting. The next item on our agenda, which will be discussed in private, is consideration of our work programme.

Thank you, minister. I will begin with some questions and then open the session to colleagues around the table.

The committee received submissions from the Convention of Scottish Local Authorities and from some local authorities that have concerns about the impact on local authority housing. For example, Clackmannanshire Council said:

“Local Authorities pay LBTT and ADS on the same basis as private sector developers and land speculators”,

but noted that,

“no additional grant is available to meet the cost of this tax.”

It went on to state:

“This is in contrast to the full exemption from both LBTT and ADS that is available to Registered Social Landlords.”

Why is that exemption in place for registered social landlords, but not for local authorities?

I can understand your position, but it is somewhat disappointing. Local authorities are concerned that the change is going to impact on them now. As you know, Clackmannanshire Council is the smallest mainland local authority, and yet it says:

“The increase in ADS from 4% to 6% will add a further £50,000 to the cost of our house purchase programme this year and an estimated £204,000 in 2023/24.”

That is not insignificant, as I am sure you can appreciate. The council’s submission goes on to talk about the unfairness of the change and says that it will put “additional pressure on rents” at a time when the cost of living is high.

When are you likely to produce the review? One of the committee’s concerns is that the Scottish Government often tells us that it is going to produce reviews or reforms, and yet the months pass by and we do not see them. To be fair, we get the same from the United Kingdom Government. When will we get a potential change that would benefit local authority tenants?

The Convention of Scottish Local Authorities has said that the increase impacts on its ability to purchase empty properties, for example, which it feels will be detrimental at a time when there is pressure on housing. In its submission, it said:

“There is no obvious policy objective to be achieved by the current arrangements for the payment of LBTT and ADS by local authorities that would justify the different treatment of them and their tenants to RSLs and their respective tenants or the additional costs involved.”

The point that COSLA makes, reinforcing what individual local authorities are saying, is that it will soon have to set rents for next year. The minister is talking about carrying out a review and potentially taking decisions, but without giving a date for a decision. It is therefore quite clear that rents will have to be set without a decision being made by the Scottish Government. I do not understand why there is a difference between RSLs and local authorities.

You have talked about supporting first-time buyers. Where is the evidence that the additional dwelling supplement has helped first-time buyers and encouraged them into the market? Although it might impact on second homes, I am not aware of any evidence that suggests that it actually helps to increase the number of people who are able to get on to the housing ladder in the first place.

I was going to ask what “shortly” meant, so thanks for that.

I understood Douglas Lumsden’s frustration when he said that the views submitted will not have an impact on Government policy. When you make decisions in future weeks, months and years, I hope that you will reflect on some of the issues that have been raised, particularly those that relate to local government.

Agenda item 2 is formal consideration of the motion on the instrument. I invite the minister to move motion S6M-07288.

Motion moved,

That the Finance and Public Administration Committee recommends that the Land and Buildings Transaction Tax (additional amount: transactions relating to second homes etc.) (Scotland) Amendment Order 2022 (SSI 2022/375) be approved.—[Tom Arthur]

As there are no further comments, the question is, that motion S6M-07288 be agreed to. Are we agreed?

Members: No.

Good morning, and welcome to the second meeting in 2023 of the Finance and Public Administration Committee.

The first item on our agenda is an evidence session with the Minister for Public Finance, Planning and Community Wealth, Tom Arthur, on a Scottish statutory instrument. Mr Arthur is joined by Ewan Cameron-Nielsen, who is head of the fully devolved taxes unit at the Scottish Government. I welcome you both to the meeting.

I advise members that I own a flat that I rent out, as per my entry in the register of members’ interests.

I invite Mr Arthur to make a short opening statement.