Meeting of the Parliament 12 March 2026 [Draft]
I agree with John Mason that some of the comparators are very challenging. Given the advantages and fiscal position of London and the south-east, it is very difficult for Scotland, Wales, Northern Ireland or, indeed, English regions to compete with them. Given that the fiscal framework is based around some of the very difficult comparators of growth or otherwise, particularly in relation to the population and tax base, it is very challenging.
To answer John Mason directly, it is important that there is a thorough review of the fiscal framework that goes back to some of the fundamentals. We absolutely require fiscal flexibilities. We need only look at the global factors that are impacting on public finances at the moment to see why Governments—whether it is the Scottish Government or other Governments—face headwinds, and we have very limited levers to respond to that. A fundamental review is required at this stage.