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Chamber

Meeting of the Parliament 01 April 2015

01 Apr 2015 · S4 · Meeting of the Parliament
Item of business
Economy and Finances

The Scottish Conservatives want to have a focused and analytical debate on the subject, specifically on the issue of full fiscal autonomy and the likely effect of that on the economy and public finances of Scotland.

Since September, the Scottish Government has had a clear stance on the issue. It wants full fiscal autonomy as soon as possible. Mr Swinney said in the chamber three short weeks ago:

“I believe that Scotland should be fully responsible for raising and spending all its own resources.”—[Official Report, 11 March 2015; c 26.]

There are three reasons why we want to have this debate today. First, we do not think that anywhere near enough attention has been given to an issue that would represent a fundamental change to Scotland, and it could be a potential reality if the Scottish Government is in a position of influence in the coming months.

Secondly, a number of experts have suggested that we would be worse off under full fiscal autonomy—not just slightly worse off, but markedly worse off, with some frightening figures out there from independent experts. We have seen such figures from people who are against full fiscal autonomy—that is to be expected—but we have also seen them from people who are neutral as regards full fiscal autonomy. This morning, we saw them from somebody who is in favour of full fiscal autonomy but who has the maturity to accept and admit that there would be challenging times for Scotland, particularly in the short term, were we to go down that path. If only the Scottish Government was as open and candid as the person we heard this morning.

This is important, because the entire package is being sold by the Scottish Government and the Scottish National Party at this election as the only way to end austerity. They are not saying that we might be round about the same or that we might be slightly worse off. They are saying that we will be so much better off that there will be no requirement for any spending reductions whatsoever over the course of the next Parliament. They even have the audacity to suggest that the proposal would boost the revenues that are available for the Scottish Government to spend.

In the same item of business

The Deputy Presiding Officer (Elaine Smith) Lab
The next item of business is a debate on motion S4M-12857, in the name of Gavin Brown, on Scotland’s economy and finances. 14:40
Gavin Brown (Lothian) (Con) Con
The Scottish Conservatives want to have a focused and analytical debate on the subject, specifically on the issue of full fiscal autonomy and the likely effe...
John Mason (Glasgow Shettleston) (SNP) SNP
I wonder whether the member accepts the principle that the Scottish Government and the SNP want both more powers for Scotland and the best possible deal for ...
Gavin Brown Con
I am not sure whether Mr Mason simply does not understand the arithmetic or whether that is actually an admission from Mr Mason, who is a straightforward cha...
Mike MacKenzie (Highlands and Islands) (SNP) SNP
Will the member take an intervention?
Gavin Brown Con
Perhaps we are about to get the answer to my question from Mr MacKenzie.
Mike MacKenzie SNP
I wonder whether the IFS calculation that the member has laid out has taken into account the potential outcomes of the forthcoming UK election and how it has...
Gavin Brown Con
The IFS figure is based on the projections set out by the UK Government at the time of the March budget, so no—the IFS figure does not take into account what...
Chic Brodie (South Scotland) (SNP) SNP
Will the member take an intervention?
Gavin Brown Con
Not at the moment, Mr Brodie. We see from Fiscal Affairs Scotland, another expert group, figures for 2019-20. I have given members the likely figure for 201...
Chic Brodie SNP
Will the member take an intervention?
Gavin Brown Con
If we look at the projections for next year’s GERS figures, we see that that is not true. Not a single independent respected economist or forecaster on the p...
Chic Brodie SNP
A man of great thought. Mr Brown goes on about the numbers. Can he explain why, under the country and regional analysis adjustments in 2012-13, which fed th...
Gavin Brown Con
I am not quite sure whether that was Chic Brodie playing sudoku with a few numbers. It was probably nothing much more than that. In all seriousness, the Sco...
The Deputy First Minister and Cabinet Secretary for Finance, Constitution and Economy (John Swinney) SNP
Scotland requires the social and economic powers that are necessary to reflect the people of Scotland’s needs and preferences and to enable the people of Sco...
Murdo Fraser (Mid Scotland and Fife) (Con) Con
Will the cabinet secretary give way?
John Swinney SNP
If Mr Fraser allows me to make a bit of progress, I will give way in a second. In considering those issues and making our case, I should point out that we a...
Gavin Brown Con
Will the cabinet secretary give way?
John Swinney SNP
I will give way to Mr Brown, and I remember that I promised to give way to Mr Fraser, too.
Gavin Brown Con
I certainly do not think that we are incapable of doing what the cabinet secretary has suggested, but I do think that the Scottish Government should be candi...
John Swinney SNP
That was not the inference that I took from Mr Brown’s speech. With the full policy levers of independence, we could improve on the performance that we have ...
Murdo Fraser Con
The question that I wished to ask the cabinet secretary is this: if he is right in his analysis and if he is right in saying that the Scottish Government is ...
John Swinney SNP
I will come on to address how that will come about, but first I want to go through some of the implications of different responsibilities being exercised in ...
Jackie Baillie (Dumbarton) (Lab) Lab
The IFS also said that there would be a £7.6 billion gap. If we take the assumptions about the country’s economic performance that are made in the Government...
John Swinney SNP
Jackie Baillie passes by the caveat that the IFS included, which is that the economy’s performance can be influenced as a consequence of exercising the respo...
Gavin Brown Con
I am grateful to the cabinet secretary for giving way for a second time. In his view, the correct timescale for independence was 18 months. In his view, what...
The Deputy Presiding Officer Lab
You are in your final minute, cabinet secretary.
John Swinney SNP
Thank you, Presiding Officer. The timescale would inevitably be a product of negotiation with the UK Government. I can set out my view all I want, but I mus...
Jackie Baillie Lab
The cabinet secretary will hear from the Labour Party.
The Deputy Presiding Officer Lab
Order, please. The cabinet secretary is closing. We must hear him.