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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 5 May 2021
  6. Current session: 12 May 2021 to 4 April 2025
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Displaying 1492 contributions

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Public Audit Committee [Draft]

Section 22 Report: “The 2023/24 audit of the Water Industry Commission for Scotland”

Meeting date: 19 February 2025

Jamie Greene

Good morning.

I will start by reflecting on the most recent correspondence that the committee has had, which is a letter from Ms Berge to the convener of the committee on 14 February. Thank you for your St Valentine’s day letter—it was the only one I got. I want to focus on the content of it and to give you an opportunity to clarify what happened.

My understanding is that when the committee looked at appendix 4 of the business case for the settlement agreement for departure of the former chief executive, the original draft was, of course, famously heavily redacted for us, but there was a signature on the document. The accountable officer stated that the business case was appropriate and that it complied with the Scottish public finance manual guidance. It was signed by Roy Brannen on 4 March 2024. Your letter seems to allude to that being an error. How so?

Public Audit Committee [Draft]

Section 22 Report: “The 2023/24 audit of the Water Industry Commission for Scotland”

Meeting date: 19 February 2025

Jamie Greene

What is your opinion as a director general? Is it good practice to allow somebody who is at the top of an organisation that has just been issued a section 22 report from Audit Scotland to be allowed to simply walk away from the process before a public audit hearing?

Public Audit Committee [Draft]

“Administration of Scottish income tax 2023/24”

Meeting date: 19 February 2025

Jamie Greene

Can you talk me through exhibit 1, on the block grant adjustment, just so that we can get our head around this? A Barnett-determined block grant is allocated to the Scottish Government, but that is not what we actually get, due to adjustments based on devolved taxation. Can you, in very simplistic terms, talk me through how we get from the block grant allocation, through a net adjustment up or down, to what the Scottish Government actually gets?

Public Audit Committee [Draft]

“Administration of Scottish income tax 2023/24”

Meeting date: 19 February 2025

Jamie Greene

Moving on to exhibit 3—this will all make sense in a moment—can you tell us about the relationship between any increase in taxation that is received through Scotland’s tax policy differences and what is described as the “net position”? Let me take the year 2021-22 as an example, as, according to the table, it was perhaps the starkest with regard to tax divergence. In that year, £749 million extra in taxation was raised, but the net position—however you describe it—was only £85 million, or 11 per cent of the tax raised, which is a tiny amount. Indeed, it is even starker than the figure of a fifth that the convener referred to. Again, can you talk me through the effect of that on the original Barnett-derived block grant versus what the Scottish Government gets? Is the Government getting the tax receipts, or is it getting this 11 per cent net figure?

Public Audit Committee [Draft]

Section 22 Report: “The 2023/24 audit of the Water Industry Commission for Scotland”

Meeting date: 19 February 2025

Jamie Greene

This question is aimed at whoever can best answer it. Did the former chair of WICS leave the organisation of his own accord or was he asked to leave and did he receive any financial settlement as a result of his departure?

Public Audit Committee [Draft]

Section 22 Report: “The 2023/24 audit of the Water Industry Commission for Scotland”

Meeting date: 19 February 2025

Jamie Greene

He resigned his position.

Public Audit Committee [Draft]

“Administration of Scottish income tax 2023/24”

Meeting date: 19 February 2025

Jamie Greene

I do, convener.

Good morning, gentlemen and lady. I want to cover a few areas. First, I draw your attention to figure 7 on page 21 of the HMRC report, which is probably one of the more helpful tables in what is quite a lengthy and detailed report. It is certainly more visual, from my point of view; I was wanting to get my head around the analysis that has been done on the Scottish tax base in general, and this table paints a picture that we can look at.

Just to make sure I am being accurate, can you tell me whether the table is saying that higher and top-rate taxpayers in Scotland accounted for 13.3 per cent of taxpayers in 2018-19, and that in 2022-23, the latest year we have available, that figure had risen to 18.1 per cent of the tax base? That is the percentage of the tax base, but alongside that—and what is more important—is the percentage of tax that they are paying, which for the same group has risen from 58.6 per cent to 64.2 per cent. Is such a shift normal? If the percentage of taxpayers in any tax band increases, does the amount of tax that they pay also increase proportionately and at a similar or the same rate?

Public Audit Committee [Draft]

“Administration of Scottish income tax 2023/24”

Meeting date: 19 February 2025

Jamie Greene

Does that present any risk at all? For example, when we look at the top rate, we see that less than 1 per cent—0.8 per cent—of Scottish taxpayers paid 17.8 per cent of all tax. In other words, less than 1 per cent of taxpayers account for nearly a fifth of the Scottish tax base. Again, the relevance of this questioning will become clear in my later questions on tax behaviour. You have said that it is a UK-wide phenomenon, but irrespective of that, does that present any risk to any Government when it comes to trying to forecast how much revenue it will get in any given year from its tax income as opposed to from the block grant?

Public Audit Committee [Draft]

Section 22 Report: “The 2023/24 audit of the Water Industry Commission for Scotland”

Meeting date: 19 February 2025

Jamie Greene

However, the individual did not face it. That is the problem.

Public Audit Committee [Draft]

Section 22 Report: “The 2023/24 audit of the Water Industry Commission for Scotland”

Meeting date: 19 February 2025

Jamie Greene

Let us ask the new chair of the board. Mr Hinds, if you were sitting in the position that Mr MacRae was in at the time, would you have approved the resignation request or would you have preferred to go down a misconduct route?