8. To ask the Scottish Government whether an up-to-date impact assessment on Scottish tax revenues post-Covid-19 and post-Brexit has been prepared. (S5O-04648)

The Scottish Fiscal Commission, as Scotland’s official forecaster, published a report on the likely fiscal impacts of Covid-19 on 3 September. The report shows that the pandemic continues to have a profound effect on the fiscal and economic outlook in Scotland. The Scottish Fiscal Commission’s work to date has been based on an orderly withdrawal from the European Union on 1 January, so it is clear that those forecasts might be worse. The fact that we still do not know the precise nature of Brexit is unacceptable and it makes our modelling and planning very difficult.

Does the Scottish Government have concerns about future Barnett funding arrangements, given the predictions that a lethal combination of Brexit and the winding down of the furlough scheme will be seriously detrimental to the economy?

We have committed to spending all the £6.5 billion of additional Barnett funding to tackle Covid-19. If we are to meet the combined challenges of Brexit and Covid, as well as supporting economic recovery, we need either additional funding or the powers to respond. The fact that, right now, we are overly reliant on policy choices made by the United Kingdom Government means that we are responding to those multiple issues with one hand tied behind our backs.