OBR Economic Forecasts

Portfolio Question Time – in the Scottish Parliament at on 10 December 2025.

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Photo of Gordon MacDonald Gordon MacDonald Scottish National Party

To ask the Scottish Government, regarding any implications for its work to grow Scotland’s economy, whether it will provide an update on its engagement with the United Kingdom Government regarding the Office for Budget Responsibility’s recent economic forecasts. (S6O-05265)

Photo of Kate Forbes Kate Forbes Scottish National Party

Ahead of the UK budget, the Cabinet Secretary for Finance and Local Government wrote to the Chancellor of the exchequer to set out the Scottish Government’s priorities, but, once again, Scotland did not receive what we had highlighted—I have already talked about changes to the energy profits levy.

The Office for Budget Responsibility’s forecast, which was published alongside the budget, downgraded the outlook for the UK economy, based on weaker productivity growth. Since 2007, gross domestic product per person in Scotland has grown by 10.2 per cent, compared with 6.8 per cent in the UK, while productivity has also grown at a higher average rate.

Photo of Gordon MacDonald Gordon MacDonald Scottish National Party

The OBR has updated its growth forecasts for the next five years. It now forecasts average GDP growth to be slower than was projected in March 2025. It also downgraded its forecast for the UK for 2026, 2027 and 2028. In the light of those forecasts, what policies has the Scottish Government implemented to help to grow Scotland’s economy?

Photo of Kate Forbes Kate Forbes Scottish National Party

Economic growth is a priority for the Scottish Government. We will continue to support businesses through transformative initiatives such as the Scottish National Investment Bank and Techscaler, and through investment of up to £500 million in offshore wind. Scotland is a top destination outside London for foreign direct investment, and Scotland’s green freeports are attracting early-stage investment, such as Sumitomo’s £350 million commitment at Nigg and Haventus’s £300 million commitment at Ardersier. Our strengths are recognised by global credit rating agencies, which gave the Scottish Government a rating that is the same as the UK’s and higher than that of major European and global economies.

Question Time

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.

Chancellor of the Exchequer

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.

Cabinet

The cabinet is the group of twenty or so (and no more than 22) senior government ministers who are responsible for running the departments of state and deciding government policy.

It is chaired by the prime minister.

The cabinet is bound by collective responsibility, which means that all its members must abide by and defend the decisions it takes, despite any private doubts that they might have.

Cabinet ministers are appointed by the prime minister and chosen from MPs or peers of the governing party.

However, during periods of national emergency, or when no single party gains a large enough majority to govern alone, coalition governments have been formed with cabinets containing members from more than one political party.

War cabinets have sometimes been formed with a much smaller membership than the full cabinet.

From time to time the prime minister will reorganise the cabinet in order to bring in new members, or to move existing members around. This reorganisation is known as a cabinet re-shuffle.

The cabinet normally meets once a week in the cabinet room at Downing Street.