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Chamber

Meeting of the Parliament 19 June 2024

19 Jun 2024 · S6 · Meeting of the Parliament
Item of business
Growing the Economy
Fraser, Murdo Con Mid Scotland and Fife Watch on SPTV

I apologise for being unable to take the intervention.

Our ambition, which is set out in our amendment, is to keep taxes in Scotland competitive with those in the rest of the UK so that they create an incentive for individuals to move here, in order to help to address skills shortages and grow our economy. Our policy paper “Grasping the thistle”—which I commend to the Deputy First Minister, if she has not already read it—sets out a range of ideas on competitiveness, skills, regulation, infrastructure, innovation and entrepreneurship.

The Government’s change in rhetoric on the economy is welcome, but it will be meaningful only if it is matched by action. This Government should start by addressing the tax differential. That is the point that we make in our amendment, which I am pleased to move.

I move amendment S6M-13679.2, to insert at end:

“; recognises that the best way to grow Scotland’s economy is to attract people to come and work in Scotland and to ensure that economic and fiscal policy is focused on removing the barriers that have hampered business expansion; acknowledges that many businesses, particularly in rural areas, have been let down by the Scottish Government’s anti-growth agenda and the supposed New Deal for Business; believes that the income tax differential between Scotland and the rest of the UK is damaging business and is an obstacle to economic growth; notes that this tax differential has become more pronounced due to the recent introduction of the new 'advanced' tax band; agrees that continually raising taxes over the long term ultimately reduces public revenue and creates disincentives in the economy; further agrees that broadening Scotland’s tax base is essential to improve fiscal sustainability, and calls on the Scottish Government to take steps to make income tax competitive with the rest of the UK, to unleash Scotland’s economic potential.”

15:49  
References in this contribution

Motions, questions or amendments mentioned by their reference code.

In the same item of business

The Deputy Presiding Officer (Annabelle Ewing) SNP
The next item of business is a debate on motion S6M-13679, in the name of Kate Forbes, on Scottish Government priorities: growing the economy. I call on the ...
The Deputy First Minister and Cabinet Secretary for Economy and Gaelic (Kate Forbes) SNP
When I took up the role of Deputy First Minister and Cabinet Secretary for Economy and Gaelic—six weeks ago, I believe, although the election has distracted ...
Liz Smith (Mid Scotland and Fife) (Con) Con
Kate Forbes is correct to say that, but why did the Scottish Government feel the need to cut the budget for the university and college sector, which is instr...
Kate Forbes SNP
Liz Smith is right that the college and university sector is critical; I am about to talk about education and skills. She will recall that our public finance...
Murdo Fraser (Mid Scotland and Fife) (Con) Con
Will the member take an intervention?
Kate Forbes SNP
Why not?
Murdo Fraser Con
At the launch of the Scottish National Party manifesto this morning—which, I believe, the Deputy First Minister attended—I was intrigued to see that the SNP ...
The Deputy Presiding Officer SNP
I will take the opportunity, at this early stage in proceedings, to remind members that the debate is about matters for which Parliament has responsibility. ...
Kate Forbes SNP
I am sure, having shared multiple platforms with Mr Fraser in various hustings around the country, that I will shortly have the opportunity to answer his que...
Fergus Ewing (Inverness and Nairn) (SNP) SNP
I am most grateful to the Deputy First Minister for giving way. Does she agree that economic growth is not all about more money and more cash—it is also abo...
Kate Forbes SNP
I agree that we need to ensure that Scotland is a great place to do business. I will perhaps come on to that in the limited time that I have available. For ...
Paul Sweeney (Glasgow) (Lab) Lab
Will the member take an intervention?
Kate Forbes SNP
Do I have time?
The Deputy Presiding Officer SNP
There is a bit of time in hand.
Paul Sweeney Lab
I thank the cabinet secretary for giving way. She raised an important issue about the growth and scaling of firms in Scotland. One of the concerns that has o...
Kate Forbes SNP
Paul Sweeney has put his finger on it when it comes to our ambition for Scottish start-ups. In supporting companies to start up and then scale up, we do not ...
Murdo Fraser (Mid Scotland and Fife) (Con) Con
As the Deputy First Minister fairly said, she and I, as well as Mr Johnson and others, have been doing the rounds with various debates during the course of t...
Kate Forbes SNP
Who would the member say has been responsible for Scotland outperforming the rest of the UK economically in recent times?
Murdo Fraser Con
The Deputy First Minister needs to look at the wider picture, because, since 2014, the Scottish economy has grown, on average, at half the rate at which the ...
Fergus Ewing SNP
Would Murdo Fraser agree that, as far as the development of renewables in the UK is concerned, which both Governments and all parties agree is a huge opportu...
Murdo Fraser Con
Mr Ewing makes an important point. I do not like making off-the-cuff responses to ideas that I have not heard before, but I think that he identifies correctl...
Keith Brown (Clackmannanshire and Dunblane) (SNP) SNP
I hear what Murdo Fraser says. However, does he congratulate the Scottish Government on the fact that the majority of people in Scotland pay less in income t...
Murdo Fraser Con
The benefit with regard to income tax is a few pennies a week and it makes no substantial difference to people’s household incomes. Anybody who earns more th...
Paul Sweeney Lab
Will the member give way on that point?
The Deputy Presiding Officer SNP
The member is bringing his remarks to a close.
Murdo Fraser Con
I apologise for being unable to take the intervention. Our ambition, which is set out in our amendment, is to keep taxes in Scotland competitive with those ...
Daniel Johnson (Edinburgh Southern) (Lab) Lab
I will start by approaching the debate very much in the spirit that the Government is offering—the economy is too important to be discussed only in the narro...
Fergus Ewing SNP
I must say that I agree with the principles behind what Mr Johnson has said. Does he agree that, to achieve that growth in renewables, it is essential that w...
Daniel Johnson Lab
I agree with the broad sentiment. I suspect that there might be some points of disagreement implied, but I will acknowledge two things. First, transition is ...
The Deputy Presiding Officer LD
I can be relatively generous.