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When I was on the Economy, Energy and Fair Work Committee—I think that Michelle Thomson was on it as well—it held an inquiry into town centres and came up with some suggestions. The committees of the Parliament have repeatedly looked at our high streets and town centres and how we can make them sustainable. If we do not get it right, with regard to tax levels, support levels and some of the wider issues around access to town centres, in both this budget and others, then do our town centres and high streets have a future?

Obviously, the 75 per cent rates relief is also for retail. We have all seen, and it is becoming more noticeable, that more and more business spaces are becoming available on our high streets. I was speaking to some local businesspeople about the increases in their rents, which have gone up from around £12,000 to £18,000 for new leases. If increased support is not given to those retail businesses, what are your concerns for our high streets? That is a big issue for all MSPs.

As you mention that, I must obviously declare an interest as a partner in a farming business—but I think that your point is absolutely valid.

I am a Highlands and Islands MSP, so I represent a huge part of rural Scotland. We have talked about housing in rural areas and about the importance of delivering health services—which are more expensive in such areas—as well as local public services, transport and so on. We have also talked about council services in Orkney, and the fact that my council tax bill will be going up. Perhaps starting with Mr Sousa, could the witnesses give me their thoughts on the impact in rural Scotland? Do you have any particular comments or concerns on that, given the difficulties that sometimes arise in delivering services there?

Thank you.

I am very conscious of time, so I will just ask about the tax issue. Professor Roy, this morning you were talking on the radio and highlighting the marginal rates. The marginal rate at £43,000 to £54,000 is 54 per cent, although I understand that that will come down. Obviously, we have talked earlier about the rate on £100,000 to £125,000 being almost up to 70 per cent. Would you comment or give us your concerns or thoughts on that?

This morning, João Sousa was talking after you on the BBC and he recognised that we will not know some of the tax implications of the budget for about two and a half years. He said that he had sympathy with you having to make forecasts, based on the difficulties.

We now have a number of bands and we have some marginal tax rates. We are not going to know the information for a while—how does that impact on your ability to forecast, and what are the dangers of that in terms of accurate forecasting?

For those two rates, we are looking at very different salary bands. Would we be more likely to see behavioural change in people who are in the lower band because a larger part of their income would be affected?

We talked about the behavioural changes that people can or cannot make, depending on their circumstances. If, for example, people on the higher rate are choosing to work less, choosing to incorporate or putting more into pensions, that means that money is potentially not being spent in their local economies. Is there any way of modelling that, or is there any way that that can be identified or forecast?

There is less flexibility.