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Every contribution to the Official Report — chamber and committee — searchable in one place. Pulled from data.parliament.scot, indexed for full-text search, linked through to every MSP.

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Showing 60 of 2,354,908 contributions. Latest 30 days: 0. Coverage: 12 May 1999 — 25 Mar 2026.
Richard Baker Lab Chamber
15 Sep 2011
Scotland Bill (Corporation Tax)
The Institute of Chartered Accountants of Scotland tells us that there is very little evidence indeed to suggest that corporation tax cuts in this country have resulted in more revenue from corporation tax and more economic activity, so I very much doubt the figure that Mr Ste...
Richard Baker Lab Chamber
15 Sep 2011
Scotland Bill (Corporation Tax)
Such ambitions could be achieved if the Scottish Government used the powers that it has on, for example, business rates. It could be counterproductive to change the headline rate of corporation tax, thereby opening up avenues to the risks that Patrick Harvie talked about. I as...
Richard Baker (North East Scotland) (Lab) Lab Chamber
01 Jun 2011
Taking Scotland Forward: Finance, Employment and Sustainable Growth
I welcome this early opportunity to debate the Government’s strategy on finance, employment and sustainable growth. We want the Government to take our economy forward to greater prosperity, but we are all aware that we still face significant challenges to achieving that. It is...
Richard Baker (North East Scotland) (Lab) Lab Committee
27 Sep 2011
Scotland Bill
Martin Togneri talked about the corporation tax rate in the Republic of Ireland. We have heard from others that corporation tax has been one of a number of aspects of the Republic of Ireland economy that has attracted businesses such as Microsoft. However, the Scottish Governm...
Richard Baker (North East Scotland) (Lab) Lab Chamber
15 Sep 2011
Scotland Bill (Corporation Tax)
When the First Minister announced the Scottish Government’s calls for the Scotland Bill to be extended to give new powers to his ministers, we made it clear that we would not simply reject all the proposals but would judge them on the evidence that was brought forward on how t...
Richard Baker Lab Committee
19 Mar 2014
Scotland’s Economic Future Post-2014
My final question is on corporation tax, which we were discussing earlier this morning. The Scottish Government has said that it aspires to cut corporation tax by 3 per cent. There is a cost attached to that. We heard that it would be around £300 million when evidence was give...
Richard Baker Lab Committee
27 Sep 2011
Scotland Bill
That is an interesting response from Professor Hughes Hallett. The American Enterprise Institute for Public Policy Research has—as I am sure that you are aware—done some work on finding an optimal percentage for corporation tax by comparing OECD economies. It concluded that th...
Richard Baker (North East Scotland) (Lab) Lab Committee
17 Nov 2011
Scotland Bill
In light of some of the evidence that the committee has heard, I want to test the arguments on corporation tax. Last week, Dr Gudgin estimated that a reduction in corporation tax from 23 to 20 per cent would result in a loss of revenue to Scotland of between £300 million and £...
Richard Baker Lab Committee
21 May 2014
Scotland’s Economic Future Post-2014
You must also respect the fact that there are those of us who believe that we benefit financially and fiscally through being part of the United Kingdom. We have more money to spend on public services by being part of the United Kingdom, and we think that being a separate count...
Richard Baker Lab Committee
27 Sep 2011
Scotland Bill
I will be very quick, convener. The position has been taken that the question whether the power should be devolved is separate from the question of the rate of corporation tax that should be set. Is there, at least, a strong likelihood that devolving power over corporation tax...
Richard Baker (North East Scotland) (Lab) Lab Chamber
18 Apr 2012
Scotland Bill
If Scotland cut corporation tax and created a race to the bottom, that would simply mean that businesses would pay less corporation tax and less money would come in to pay for services. In no way could that be called a left-wing position—it is a very right-wing position on tax.
Richard Baker Lab Chamber
08 Jan 2014
Scotland’s Economy
I will come to the oil fund in a moment. We must remember that Norway has significantly greater resources of oil and gas than we have, but I will return to the issue in a moment. Before Christmas, I was surprised to hear the cabinet secretary remark that he could not understa...
Richard Baker (North East Scotland) (Lab): Lab Chamber
17 Apr 2008
Local Income Tax
We have heard many criticisms of the Scottish Government's proposed local income tax, not least because, as Mr McLetchie said, it is not a local income tax at all. There is wide agreement that the term is a misnomer. The tax is indeed a nat tax—a national income tax. I will fo...
Richard Baker Lab Committee
27 Sep 2011
Scotland Bill
Nevertheless, many foreign companies choose to invest here, despite the level of corporation tax.There is one question on which I would like to touch with all our witnesses. We are where we are with the bill and the Scottish Government has highlighted specific areas in which i...
Richard Baker Lab Committee
27 Sep 2011
Scotland Bill
What would be the optimum level of corporation tax in Scotland? What is an optimum level of corporation tax?
Richard Baker Lab Committee
27 Sep 2011
Scotland Bill
We would hope that the discussions on the cap can continue, because it sounds like there may be some disagreement about what the cap should be in order to allow a credible fiscal policy here in terms of stimulating economic growth.I will move on quickly to one other question o...
Richard Baker Lab Committee
08 Nov 2011
Scotland Bill
I want to ensure that I understand Mr Sutton correctly. We are discussing the corporation tax rate for Scotland when across the EU, at the extremes, there is quite a wide variation in rates. I think that what you are saying is that the direction of travel of the OECD and the E...
Richard Baker (North East Scotland) (Lab) Lab Chamber
18 Apr 2012
Scotland Bill
This has been an important debate. After a long process from Calman to the bill, it is good that we can reach a consensus of sorts that the Scotland Bill should be passed, because, as James Kelly and others have said, this is an important moment for the Parliament and devoluti...
Richard Baker Lab Committee
19 Mar 2014
Scotland’s Economic Future Post-2014
My question goes with the flow of current questioning. I will address it to Moira Kelly. We have had a great deal of discussion about simplifying the tax system and structure and how desirable that would be. However, surely, by definition, for individuals and businesses workin...
Richard Baker Lab Committee
28 Jun 2011
Scotland Bill
We could debate that, but perhaps this is not the time.If Scotland goes down the road of lower corporation tax, how would you ensure that we will not just end up with brass-plate exercises in which companies base themselves here to pay lower taxes, taking tax revenue from else...
Richard Baker Lab Chamber
09 Jun 2011
Scotland Bill: Borrowing Powers and Growing the Economy
We are discussing what can be achieved in the current negotiations and through proposed legislation that is in process. From that point of view, I am trying to be helpful to the Scottish Government. In relation to ensuring that the right levels of borrowing are set, that shoul...
Richard Baker Lab Chamber
18 Apr 2012
Scotland Bill
The European Union has been quite clear that it is going to crack down on unhealthy tax competition, and it is right to do so. It is nonsensical for the SNP to say that we can cut corporation tax, lose hundreds of millions of pounds in income, and spend millions and millions m...
Richard Baker (North East Scotland) (Lab) Lab Chamber
04 Sep 2013
Programme for Government 2013-14
Will that tax system include substantial cuts to corporation tax?
Richard Baker Lab Committee
02 Apr 2014
Scotland’s Economic Future Post-2014
I agree with a great deal of what has been said but, as the witnesses will perhaps expect, I want to challenge the assumption that, with independence, by being a smaller economy we would de facto become a more progressive economy. For example, Ireland has a higher incidence of...
Richard Baker: Lab Chamber
17 Apr 2008
Local Income Tax
I am sorry. I must make progress.Many young people are staying with their parents to save money so that they can get on to the housing ladder. They will find it more difficult to save under a local income tax because, although they are not required to pay council tax, they wil...
Richard Baker (North East Scotland) (Lab) Lab Chamber
16 Jun 2011
North Sea Taxation
I congratulate Mark McDonald on securing this important members’ business debate on the changes in taxation for North Sea production that were announced at the last budget. The issue is crucial to north-east members and the decision is detrimental to the vital work of securing...
Richard Baker (North East Scotland) (Lab) Lab Committee
28 Jun 2011
Scotland Bill
I am interested in testing the evidence for some of the financial proposals. That is something that we are going to be particularly interested in.Mr Swinney, what evidence have you taken to the UK Government that your proposals for the devolution of corporation tax will benefi...
Richard Baker Lab Committee
28 Jun 2011
Scotland Bill
Can you clarify that if you gain control of corporation tax, you propose to reduce it to stimulate competitiveness, as you describe it?
Richard Baker Lab Chamber
07 Sep 2011
Scottish Government’s Legislative Programme
We are open to that debate. For example, we have said that the Government should have new and extensive borrowing powers that go beyond those that were proposed in the Scotland Bill. We will be keen to enter into the debate fully. However, the evidence for the need for a range...
Richard Baker Lab Chamber
14 Sep 2011
“The Government Economic Strategy”
Both the Scottish Trades Union Congress and CBI Scotland oppose the devolution of corporation tax, so do they, too, not understand the needs of Scotland?
Richard Baker Lab Committee
27 Sep 2011
Scotland Bill
No, this is it, I am afraid. Even the Scottish Government said in its paper that the perceived benefits that it argues will come from a corporation tax cut will not come for several years. In the meantime, by the Government’s own estimates, a cut of 2 per cent will cost tens o...
Richard Baker (North East Scotland) (Lab) Lab Committee
08 Nov 2011
Scotland Bill
I am not here to defend UK Government ministers, but they have been pretty clear at the committee and publicly that they are not convinced by the argument to devolve corporation tax. I am therefore perplexed by the great sense of surprise in the committee.
Richard Baker Lab Committee
17 Nov 2011
Scotland Bill
Those forecasts were described by Professor Heady to the committee as “brave”. What would be the impact on your modelling if England reciprocated and cut its rate of corporation tax to 20 per cent too?
Richard Baker Lab Committee
17 Nov 2011
Scotland Bill
We are questioning all hypotheses. If your suggested move is so evidently a good move for the Scottish economy, why has it not received broader support from across the business community? A range of organisations—ones that you might have thought would be leading the charge for...
Richard Baker Lab Committee
17 Nov 2011
Scotland Bill
There is never any harm in asking, though. My question on the overall policy reflects my question to you on corporation tax.You have advocated a more generous excise duty for the whisky industry, for example, yet it still does not support the devolution of excise duty and ther...
Richard Baker Lab Chamber
15 Sep 2011
Scotland Bill (Corporation Tax)
I do not agree with the analysis put forward: there appears to be scant evidence that taking that step will achieve the additional economic activity in areas that has been argued. There are other things that the Scottish Government can do.
Richard Baker Lab Chamber
15 Sep 2011
Scotland Bill (Corporation Tax)
Will the minister give way on that point?
Richard Baker Lab Chamber
31 May 2012
Scotland’s Future
I am sorry, but my time, too, has been cut.Uncertainty about Scotland’s future is not good for our energy industry. As a member who represents North East Scotland, I find that particularly concerning.Financial services is another crucial sector. If Scotland’s financial service...
Richard Baker (North East Scotland) (Lab) Lab Chamber
09 Jan 2013
Oil and Gas Sector
I very much welcome the chance to debate the oil and gas industry’s role in Scotland and I endorse the minister’s motion. The debate is useful. As several members have said, those of us who represent the north-east are, of course, keenly aware of the industry’s central role in...
Richard Baker Lab Committee
19 Mar 2014
Scotland’s Economic Future Post-2014
Based on that argument, the 3 per cent cut in corporation tax may have very little impact on economic growth at all, if it is competing with allowances elsewhere.
Richard Baker Lab Committee
23 Apr 2014
Scotland’s Economic Future Post-2014
Obviously, no one can be satisfied with the levels of inequality in our society, and I support further devolution of welfare powers, but is there not a danger in seeing constitutional change in itself as a panacea? We had the discussion on local government funding, for example...
Richard Baker (North East Scotland) (Lab) Lab Committee
07 May 2014
Scotland’s Economic Future Post-2014
There are certainly interesting resonances in the debate that took place in Quebec. My first question is for Professor Keating. We have heard a lot of debate on the desirability of moving to a social democratic model in Scotland. I could debate the social democratic credentia...
Richard Baker (North East Scotland) (Lab) Lab Committee
21 Jan 2015
Further Fiscal Devolution
One proposal that was floated before the Smith process was the notion of devolving corporation tax with a view to cutting it, but there has been a surprisingly lukewarm response to that idea in the submissions from the panel. The CBI does not support the proposal; Scottish Cha...
Richard Baker Lab Committee
21 Jan 2015
Further Fiscal Devolution
So the point that cutting corporation tax would stimulate the Scottish economy, particularly by giving it a competitive edge over the rest of the UK, did not come out as a general point from your members, whether they are incorporated or not.
Richard Baker Lab Committee
28 Apr 2014
Scotland’s Economic Future Post-2014
Whatever the circumstances, those costs will need to be met, and an independent Scotland will need to meet tax relief on decommissioning to the tune of tens of billions of pounds. That will have a significant impact on tax revenues in the future. In addition to the tax volatil...
Richard Baker (North East Scotland) (Lab) Lab Chamber
29 Jan 2015
Community Charge Debt (Scotland) Bill: Stage 1
As a new member of the Finance Committee, which the convener informs me I am highly privileged to be a member of, I have had the chance to hear the evidence on the bill and, along with the majority of members who have spoken today, I support the legislation. It is quite wrong...
Richard Baker Lab Committee
04 Nov 2015
Scottish Rate of Income Tax
I was on the Scotland Bill Committee much earlier in this parliamentary session, when we discussed the implications of the full devolution of income tax. There was quite a discussion about the potential for having a predatory tax policy, about cutting the tax rates in Scotland...
Richard Baker Lab Committee
09 Dec 2015
Scottish Rate of Income Tax
That helpfully leads me on to my final question, which is to Rain Newton-Smith. If I heard her rightly in her response to the convener, she said that the CBI does not normally comment on personal taxation or income tax and that it focuses on business taxation more generally. T...
Richard Baker (North East Scotland) (Lab) Lab Chamber
19 Dec 2012
Water Resources (Scotland) Bill: Stage 1
I congratulate the committee on its work on the bill. As is evident from the convener’s speech and from the report itself, the committee has been diligent in its scrutiny and has highlighted the key issues, including those that require more work from ministers and those that h...
Richard Baker (North East Scotland) (Lab): Lab Chamber
05 Feb 2004
Local Government Finance (Scotland) Order 2004<br />(SSI 2004/14)
This year's funding settlement for local authorities is a reflection not only of the importance that the Executive places on the vital public services that local authorities deliver, but of the fact that it is asking local authorities to achieve more than they have done in the...
Richard Baker Lab Chamber
09 Jun 2011
Scotland Bill: Borrowing Powers and Growing the Economy
It certainly made no sense to delay those projects at that time. I make it clear that I am happy that we can instead endorse a strategy on borrowing powers from the Scottish Government that is all about avoiding delay in establishing new infrastructure and, I hope, preserving ...
Richard Baker Lab Committee
14 Jan 2015
Community Charge Debt (Scotland) Bill: Stage 1
In his questions to you, Gavin Brown raised the general issue of the use of the electoral roll to recover debt to councils. You said that you thought that the use of the electoral roll was appropriate in relation to council tax debt. Instead of having a policy of making it cle...
Richard Baker (North East Scotland) (Lab) Lab Committee
23 Sep 2015
Draft Budget Scrutiny 2016-17
I will be brief, as we have covered a lot of ground already. My first question is for Ben Thomson. You have proposed a very neat and, in many ways, attractive package of cutting income tax and giving far more powers to local authorities to raise their own revenue. Obviously, ...
Richard Baker Lab Committee
23 Sep 2015
Draft Budget Scrutiny 2016-17
If the Scottish Government’s first act is to cut tax by 2 per cent, that will be embedded from the beginning, so everything that is raised after that is from a lower base. There may well be political pressure to remain in a tax-cutting situation or to maintain a lower tax base...
Richard Baker Lab Committee
04 Nov 2015
Scottish Rate of Income Tax
The answer to most questions about what would happen if we did X on tax seems to be that we do not really know. Do you think that enough modelling is being done on the potential impacts of various tax changes? I suppose that I am asking whether any such modelling is being done...
Richard Baker Lab Committee
02 Dec 2015
Block Grant Adjustment
We are debating future tax levels in Scotland with the new powers, but there has been little indication from the Scottish Government or others of whether, with those powers, there will be any big move to cut tax rates to attract more people into Scotland. The committee has hea...
Richard Baker (North East Scotland) (Lab) Lab Committee
13 Sep 2011
Scotland Bill
As David McLetchie said, we are reflecting primarily on the new request for additional powers that the Scottish Government has made. Interestingly, that request does not include the devolution of control of oil and gas revenues, so perhaps the Scottish Government is reflecting...
Richard Baker Lab Committee
13 Sep 2011
Scotland Bill
My questions are for Jim and Margaret Cuthbert. I take your point that there should be a wider debate on the interrelationships among the various taxes. However, we are where we are—not only in relation to the proposals in the Scotland Bill from the Government, but in relation...
Richard Baker Lab Committee
13 Sep 2011
Scotland Bill
The local authority analogy is interesting. You quite rightly describe the pressures on the Scottish Government budget, but a five-year council tax freeze is in place, and there is a small business bonus scheme. The Scottish Government—wrongly on the issue of council tax—has d...
Richard Baker Lab Committee
27 Sep 2011
Scotland Bill
If I believe that devolving the tax rate will create tax competition, it is valid to ask what the process of devolution will lead to.If I can cut to my third question, convener—
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Chamber

Meeting of the Parliament 15 September 2011

15 Sep 2011 · S4 · Meeting of the Parliament
Item of business
Scotland Bill (Corporation Tax)
Baker, Richard Lab North East Scotland Watch on SPTV
The Institute of Chartered Accountants of Scotland tells us that there is very little evidence indeed to suggest that corporation tax cuts in this country have resulted in more revenue from corporation tax and more economic activity, so I very much doubt the figure that Mr Stewart has given.

The Scottish Government often rests on the case of the Republic of Ireland. The minister will no doubt be aware of the report by PricewaterhouseCoopers, “Corporation tax: Game changer or game over?” The report found that there was no evidence that the Republic of Ireland’s corporation tax rate had been the prime driver of overseas investment. In fact, PWC said that 30 years of low corporation tax had delivered “comparatively little” direct foreign investment. In a separate study, PWC concluded:

“Low Corporation Tax is not a key driver of investment for foreign businesses locating in the UK, ranking 17th in a list that prioritised: language; culture and values; infrastructure; skills; and proximity to market”.

Those are the issues that should be the focus of the Government’s activity, with the powers that it has.

Let us consider the international evidence on whether lowering corporation tax benefits the economy. Countries that have a lower rate of corporation tax than the UK include Portugal, Greece, Ireland, Iceland and Spain. Those countries do not appear to feature on the Scottish Government’s current list of members of the arc of prosperity—if it still manages to find an arc of prosperity.

Let us also consider the evidence from the Scottish Government that lowering corporation tax would create growth. The Government published estimates that a reduction in corporation tax from 23 to 20 per cent would increase gross domestic product by 1.4 per cent and increase employment by 1.1 per cent after 20 years. We must wait 20 years in the hope that the estimates will be realised. At the Scotland Bill Committee meeting this week, the economist Professor Chris Heady described the estimates as “brave”, in the finest tradition of Sir Humphrey.

The prediction is brave, indeed. It does not take account of, for example, what happens if other devolved nations cut their corporation tax rates. If we follow the Scottish Government’s logic, why would businesses choose to pay corporation tax at 20 per cent in Scotland if Northern Ireland has cut its rate to 12.5 per cent to compete with the Republic? Where will the Scottish Government’s forecasts be if all that happens is that the devolved nations of the UK embark on a race to the bottom on corporation tax?

The Government’s proposal to cut corporation tax is risky and the establishment of different rates across the UK would be very risky, at the least. The STUC has made a strong point that such tax competition is harmful to sustainable long-term growth and to the fair distribution of the proceeds of growth. The approach might well encourage businesses to ensure that their taxable profits arise in Scotland, but that does not mean that businesses will transfer economic activity here.

In the same item of business

The Deputy Presiding Officer (Elaine Smith) Lab
The next item of business is a debate on motion S4M-00856, in the name of Fergus Ewing, on the Scotland Bill and corporation tax.15:23
The Minister for Energy, Enterprise and Tourism (Fergus Ewing) SNP
I welcome this opportunity to debate a key policy lever that should be at the heart of our strategy for sustainable economic growth in Scotland: corporation ...
Gavin Brown (Lothian) (Con) Con
I agree entirely that we ought to have a detailed and mature discussion, but why has the Scottish Government not published the modelling that it claims to ha...
Fergus Ewing SNP
We do not agree with that proposition. We believe that we have published proper detail on the principle of our proposals, and I will come on to address some ...
James Kelly (Rutherglen) (Lab) Lab
What would the impact of the minister’s corporation tax proposals be on the Scottish budget?
Fergus Ewing SNP
I am coming on to that. We believe that the impact will be positive for Scotland, which is why we propose it, as opposed to the impact of the Westminster Gov...
David McLetchie (Lothian) (Con) Con
Will the minister give way?
Fergus Ewing SNP
Not just at the moment; I want to cover the matters that I know will be of interest to all members.It is the lack of economic levers that is important to our...
Gavin Brown Con
Will the minister give way?
Fergus Ewing SNP
I will move on. There are other matters that Mr Brown would expect me to cover, and I wish to do so within the time that I have available.Clearly, parts of t...
Patrick Harvie (Glasgow) (Green) Green
Will the minister give way?
Fergus Ewing SNP
Not just yet. I am in the middle of this point, but I will give way to Mr Harvie later on.HM Treasury has stated that, in Northern Ireland,“A lower corporati...
Patrick Harvie Green
What safeguards does the minister think ought to be in place, if corporation tax were devolved, to prevent the already scandalous problem of corporation tax ...
Fergus Ewing SNP
No, we would not. I accept that there is a serious problem with the avoidance of corporation tax as it is administered by the London Treasury. The problem ha...
Gavin Brown Con
Will the minister give way?
Fergus Ewing SNP
I must make progress to cover the important matters that Mr Brown and others are interested in.I am confident that there would be far greater benefits to Sco...
Richard Baker (North East Scotland) (Lab) Lab
When the First Minister announced the Scottish Government’s calls for the Scotland Bill to be extended to give new powers to his ministers, we made it clear ...
John Mason (Glasgow Shettleston) (SNP) SNP
Does the member agree that the debate goes much wider than the headline rate? There is also the opportunity to target particular industries or small business...
Richard Baker Lab
I do not agree with the analysis put forward: there appears to be scant evidence that taking that step will achieve the additional economic activity in areas...
Kevin Stewart (Aberdeen Central) (SNP) SNP
Can Mr Baker provide one international example of a country that cut its corporation tax rate and did not generate an overall increase in corporation tax rev...
Richard Baker Lab
The Institute of Chartered Accountants of Scotland tells us that there is very little evidence indeed to suggest that corporation tax cuts in this country ha...
Patrick Harvie Green
I do not argue that safeguards against avoidance behaviour are impossible to achieve; I am concerned that the Government does not seem to place a high priori...
Richard Baker Lab
Such ambitions could be achieved if the Scottish Government used the powers that it has on, for example, business rates. It could be counterproductive to cha...
David McLetchie (Lothian) (Con) Con
The purpose of the Scotland Bill is, first and foremost, to improve the financial accountability and responsibility of the Scottish Parliament by extending i...
Fergus Ewing SNP
In that case, can Mr McLetchie explain why the UK Government recognises why it would be advantageous for Northern Ireland to have the power to reduce its cor...
David McLetchie Con
If Mr Ewing followed the subject more carefully, he would know that the UK Government has just completed the consultation on the matter and has not yet taken...
John Mason SNP
Will the member give way?
David McLetchie Con
No, I will not; I would like to move on to my next point.The central proposition behind the Government’s proposal—which is that the lowering of the rate of c...
Willie Rennie (Mid Scotland and Fife) (LD) LD
I apologise to the Presiding Officer and members in the chamber for arriving marginally late; I need a better alarm clock in order to arrive on time.Legislat...
John Mason SNP
I accept the historical account that Willie Rennie has given us, but does he accept that the election in May this year somewhat changed the political landsca...