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Finance and Public Administration Committee
Meeting date: 31 August 2021
Kenneth Gibson
Thank you. I open up for questions from the committee.
Finance and Public Administration Committee
Meeting date: 31 August 2021
Kenneth Gibson
That is clear.
Your report says that house price stability will be established in the current financial year and that prices will grow in subsequent years. How did you come to that conclusion? House prices appear to be rising quite significantly.
Finance and Public Administration Committee
Meeting date: 31 August 2021
Kenneth Gibson
I asked a question about the possibility of deferred funding, and members asked about the impacts on a number of areas of the Scottish budget. You talked about how difficult it was, as did members, with additional funding coming in at a time when local authorities were agreeing their own budgets and the council tax settlement was being agreed. Should we get into that situation—I hope that we do not, because I hope that the UK Government will do as it has done previously and agree a carry-over if necessary—do you have any shovel-ready projects available that would allow you to provide additional support to businesses or other areas of the economy, so that that money is used effectively?
Finance and Public Administration Committee
Meeting date: 31 August 2021
Kenneth Gibson
Just look at the most recent block grant adjustment—it was only £34 million.
Finance and Public Administration Committee
Meeting date: 31 August 2021
Kenneth Gibson
Straight in at the deep end.
Finance and Public Administration Committee
Meeting date: 31 August 2021
Kenneth Gibson
We will hear from two sets of witnesses today. The first panel is from the Scottish Fiscal Commission, with whom we will discuss a number of recently published reports, including the commission’s economic and fiscal forecasts. Members have received copies of those reports, along with a private briefing paper from the financial scrutiny unit and the Scottish Parliament information centre.
I welcome from the Scottish Fiscal Commission Dame Susan Rice DBE, chair; Professor Alasdair Smith, commissioner; and John Ireland, chief executive. We will also be joined remotely by Professor Francis Breedon, who is also an SFC commissioner. If members have any questions for Professor Breedon, or if Dame Susan wishes to bring him in at any point, they should make that clear so that our broadcasting operators can activate Professor Breedon’s microphone.
I intend to allow 75 minutes for the session. Before we open up to questions from members, I invite Dame Susan Rice to make a short opening statement.
Finance and Public Administration Committee
Meeting date: 31 August 2021
Kenneth Gibson
That will mean that more people become higher-rate taxpayers.
Finance and Public Administration Committee
Meeting date: 31 August 2021
Kenneth Gibson
In our second evidence session we will hear from Kate Forbes, the Cabinet Secretary for Finance and the Economy, and Douglas McLaren, deputy director, budget, pay and pensions, in the Scottish Government. I welcome our witnesses to the meeting, not least because the cabinet secretary has come straight from the Local Government, Housing and Planning Committee meeting and has already had an exceptionally busy morning.
Committee members have received a paper providing background information for the evidence session, but before I open the session to questions from members, I invite the cabinet secretary to make a short opening statement.
Finance and Public Administration Committee
Meeting date: 31 August 2021
Kenneth Gibson
I agree with your comments. However, the UK and Scotland have the same immigration policies. What can Scotland do to improve its position relative to the rest of the United Kingdom? The block grant adjustment and taxation are obviously major issues in future budgetary considerations.
Finance and Public Administration Committee
Meeting date: 31 August 2021
Kenneth Gibson
Absolutely. Daniel Johnson is just warming up for the cabinet secretary—do not worry.