Portfolio Question Time – in the Scottish Parliament at 3:03 pm on 30 October 2024.
Bob Doris
Scottish National Party
3:03,
30 October 2024
To ask the Scottish Government what discussions the economy secretary has had with ministerial colleagues regarding how its approach to business taxation supports the economy. (S6O-03851)
Tom Arthur
Scottish National Party
Ministers meet regularly to ensure that the economy is prioritised in work that is under way across Government. Our view is informed through extensive stakeholder engagement with the business community, think tanks, civic society, tax professionals and local government.
Bob Doris
Scottish National Party
I have previously supported that, and I have suggested that the large retailer supplement is an aspect of business taxation that could be revisited, as it is reported to have raised £95 million from 2012 to 2015. Given that the Fraser of Allander Institute has previously suggested that retailers make an excess profit of £30 million per year due to minimum pricing, what assessment has the Scottish Government made of the economic impact and budgetary benefit of a future large retailer levy for large retailers that sell alcohol?
Tom Arthur
Scottish National Party
The Scottish budget for 2024-25 signalled an intention to explore the reintroduction of a non-domestic rates public health supplement for large retailers in advance of the next budget.
The Scottish Government has engaged with relevant stakeholders, including public health organisations and retailers, to explore the potential effects that the reintroduction of a public health supplement might have. We are committed to consulting the new deal for business group on the policy. That will ensure that considered and informed decisions can be made in the context of the Scottish budget for 2025-26.
Murdo Fraser
Conservative
The United Kingdom Chancellor of the exchequer has announced a hike in employers’ national insurance contributions to 15 per cent, which will hammer businesses across Scotland. However, the same budget has delivered substantial Barnett consequentials to Scottish finances.
As we know, in the past two years, the 75 per cent rates relief has not been passed on to retail, hospitality and leisure businesses in Scotland. Given that the Scottish budget might well be enhanced, is it not time to consider supporting our businesses with lower taxes, rather than doing what Bob Doris suggests and hitting them with even further increases?
Tom Arthur
Scottish National Party
As Murdo Fraser will be aware, there are non-domestic rates reliefs totalling £685 million this year. He will appreciate that the budget has just been delivered. Decisions about next year’s taxation regime will be set out by the finance secretary at the budget, and we—rather like the bond market and everyone else—are currently digesting the UK Government budget.
Question Time is an opportunity for MPs and Members of the House of Lords to ask Government Ministers questions. These questions are asked in the Chamber itself and are known as Oral Questions. Members may also put down Written Questions. In the House of Commons, Question Time takes place for an hour on Mondays, Tuesdays, Wednesdays and Thursdays after Prayers. The different Government Departments answer questions according to a rota and the questions asked must relate to the responsibilities of the Government Department concerned. In the House of Lords up to four questions may be asked of the Government at the beginning of each day's business. They are known as 'starred questions' because they are marked with a star on the Order Paper. Questions may also be asked at the end of each day's business and these may include a short debate. They are known as 'unstarred questions' and are less frequent. Questions in both Houses must be written down in advance and put on the agenda and both Houses have methods for selecting the questions that will be asked. Further information can be obtained from factsheet P1 at the UK Parliament site.
The chancellor of the exchequer is the government's chief financial minister and as such is responsible for raising government revenue through taxation or borrowing and for controlling overall government spending.
The chancellor's plans for the economy are delivered to the House of Commons every year in the Budget speech.
The chancellor is the most senior figure at the Treasury, even though the prime minister holds an additional title of 'First Lord of the Treasury'. He normally resides at Number 11 Downing Street.
