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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 5 May 2021
  6. Current session: 12 May 2021 to 22 April 2025
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Displaying 1055 contributions

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Finance and Public Administration Committee

Pre-budget Scrutiny 2025-26

Meeting date: 10 September 2024

Liz Smith

It has been put to the committee previously that there are issues with Scottish universities being unable to lead research projects. That is also partly a Brexit issue, but it has undercut our ability to be at the cutting edge, which is a great pity, because we should be at the cutting edge. It would be helpful if we could get some information on how much that situation is affecting universities, because it is also key to public expenditure.

Finance and Public Administration Committee

Scottish Fiscal Commission (Publications)

Meeting date: 3 September 2024

Liz Smith

—the older generation.

Finance and Public Administration Committee

Scottish Fiscal Commission (Publications)

Meeting date: 3 September 2024

Liz Smith

Indeed.

Finance and Public Administration Committee

Scottish Fiscal Commission (Publications)

Meeting date: 3 September 2024

Liz Smith

Assuming that the amount is positive—I know that there is a lot of debate about that—if the money was spent on teachers or on improving resources in the state sector in England and Wales, am I correct in thinking that Barnett consequentials would flow from that?

Finance and Public Administration Committee

Scottish Fiscal Commission (Publications)

Meeting date: 3 September 2024

Liz Smith

Thank you. That was helpful.

Finance and Public Administration Committee

Scottish Fiscal Commission (Publications)

Meeting date: 3 September 2024

Liz Smith

Good morning. I have a point of clarification that follows on from Michael Marra’s question. You made it clear that the Scottish Government has not provided you with a public sector pay policy. Have you expressed concern to the Scottish Government about that? If so, when was that?

Finance and Public Administration Committee

Scottish Fiscal Commission (Publications)

Meeting date: 3 September 2024

Liz Smith

Which is obviously increasing as a percentage share of the total population.

What I am driving at is the policies that the Scottish Government needs to enact to try to address the big black hole in public finances. Some of that can be done through public sector reform, which you have set out, and some can be done with tax-and-spend policies. However, addressing economic inactivity in the Scottish population is a crucial element of your longer-term forecasts; indeed, it is a major issue. Do you have any indication from your analysis as to the policies that might be most effective in bringing those people back into work?

Finance and Public Administration Committee

Scottish Fiscal Commission (Publications)

Meeting date: 3 September 2024

Liz Smith

The nuancing of that will be very important with regard to the policies that might help us in the future. The statistics for the longer term that you have given us are pretty grim, and we need to do all that we can to try to address the issue.

I want to raise one point of clarification. Your report contains a very short piece about the UK Government’s raising of VAT on independent schools. Am I correct in thinking that, if that amount of money were to be positive, it would be spent in England and Wales and that, as a result, there would be Barnett consequentials for Scotland?

Finance and Public Administration Committee

Scottish Fiscal Commission (Publications)

Meeting date: 3 September 2024

Liz Smith

Thank you—that was helpful.

I want to turn to what we can try to do about the challenges in the Scottish Government’s finances. In the summary of your budget report, you set out some of the demographic trends, which I have to say are some of the most concerning aspects for the longer run, particularly the issues around economic inactivity in the labour force. Given Claire Murdoch’s point that there is some incompleteness in the labour market survey, does your data give you a good understanding of the behavioural changes in the group of people who are able but are unwilling to work?

Finance and Public Administration Committee

Scottish Fiscal Commission (Publications)

Meeting date: 3 September 2024

Liz Smith

Yes, it is obviously putting considerable pressure on the social security budget. What about people who are economically inactive and do not have disabilities or health issues? Do you have any idea of the policies that will make a difference to getting them back into the labour market? Obviously that has a huge implication for increasing productivity and, in the long run, economic growth.