Seòmar agus comataidhean

Evidence on behavioural responses is an essential consideration for tax policy decisions.

The Scottish Government is acutely aware of the risks and benefits arising from behavioural responses to changes in devolved taxation policy, and actively works with stakeholders, such as HMRC, and subject matter experts, to monitor and continually improve the evidence base to help inform policy development. We will consider opportunities to update Parliament in the future, when appropriate.

In line with our Framework for Tax, and to further transparency and public debate, HMRC and the Scottish Government published studies on the Scottish Government’s 2018-19 Income Tax reforms which showed limited evidence of Scottish taxpayers lowering their taxable income in response to increasing tax rates.

Alongside regular monitoring of the tax base, the Scottish Government also works with tax administration authorities to proactively consider and address any possible emerging compliance issues.

The Resource Spending Review included commitments to hold the total public sector pay bill (excluding Local Government) at around 2022-23 levels whilst returning the overall size of the public sector (excluding Local Government) broadly to pre-COVID-19 levels. The overall aim was to ensure sustainable public bodies.

Following further analysis and engagement, our proposal on how we achieve sustainable public bodies evolved and in the 2023-24 Budget, we set out that it is for individual public bodies to locally determine the target operating model for their workforces and to ensure workforce plans and projections are affordable in 2023-24 and in the medium term. This approach recognises the accountability of public bodies to deliver efficiently and effectively within their budget and that budget allocations reflect our priorities.

Our Public Sector Pay Strategy for 2023-24 published on 22 March 2023, recognises that pay and workforce must, more than ever, be explicitly linked to both fiscal sustainability and to reform, to secure the delivery of effective public services over the medium term. It set out that bodies may need to consider the size and shape of the workforce to ensure affordability, alongside opportunities around, for example, digital reform, revenue generation, estates rationalisation and improved procurement and that where a reduction in workforce is required, we would expect this to be through natural turnover wherever possible given our on-going commitment to No Compulsory Redundancies. There are no centrally set targets.

The Bank’s three missions are - achieving a Just Transition to net zero carbon emissions by 2045; extending equality of opportunity through improving places by 2040; and harnessing innovation to enable our people to flourish by 2040. These missions, which reflect the ‘grand challenges’ facing Scotland over the coming decades, were set by Scottish Ministers in December 2020 to give the Bank long term strategic direction for its investment activity. Given the long term nature of these challenges and that the Bank is only just entering its third full year of operation, Ministers have no plans to review the three missions at this point.

The Bank’s recently published Impact Report provides an assessment of the Bank’s performance, including against its three missions, in 2022. This report was published on the Bank’s website on April 3 2023 ( Impact Report | Scottish National Investment Bank (thebank.scot) .

The Scottish Government’s Ministerial Population Taskforce recognises the significance of long-term projected demographic change and since publishing the Population Strategy in 2021, it has focused - across government, and with local and regional partners – on ensuring Scotland’s population profile provides a platform for sustainable and inclusive economic growth and wellbeing.

The Scottish Government have engaged with the Bank regularly throughout the recruitment process for a new CEO including over the last few weeks.

Ministers and officials meet regularly with wellbeing economy stakeholders, including the Wellbeing Economy Alliance, to discuss our shared commitment to Scotland’s transition to a wellbeing economy. On 4 April 2023, within one week of my appointment as Cabinet Secretary for Wellbeing Economy, Fair Work and Energy, I met with representatives from the Wellbeing Economy Alliance Scotland as part of a roundtable discussion with wellbeing economy stakeholders.

The £202.6 million is the cost included in David Tydeman’s letter to NZET committee of 28 September 2022. The breakdown of this figure is:

£202.6m split

The chief executives of the enterprise agencies meet regularly with Scottish Government ministers. Arrangements are currently being made for future, regular engagement between the agencies and the new Ministerial team.

Empty Property Relief was devolved to councils on 1 April 2023, including non-domestic rates exemptions for unoccupied listed buildings. Listed buildings were specifically included following discussion with the Convention of Scottish Local Authorities in 2019, as set out in a letter from the then Minister for Public Finance and Digital Economy to the Local Government and Communities Committee dated 7 October 2019.

The Scottish Budget 2023-24 confirmed a financial transfer of £105m to local authorities to spend at their discretion, concurrent to this devolution. This allows local authorities to tailor any support for unoccupied property, including listed buildings, to best support their local needs.

The Scottish Government will collect data from local authorities on any local relief awarded to unoccupied properties, including listed buildings, which will inform an early evaluation of the impact of the devolution of EPR in advance of the next revaluation.

My officials in Scottish Enterprise remain in regular contact with the Joint Administrators (Interpath Advisory) and continue to work with them to consider all viable options for the Stoneywood site in Aberdeen.

The administration process continues to progress and, prior to formal marketing of the site, Interpath Advisory had re-engaged with potential interested parties in February 2023. Discussions between the Joint Administrator and interested parties continue.