Draft Scottish Fiscal Commission Act 2016 (Consequential Provisions and Modifications) Order 2017

Ian Murray Excerpts

Tuesday 31st January 2017 General Committees

[Ian Murray (Edinburgh South) (Lab)]

It is a great pleasure to serve under your chairmanship, Mr Gray, and I wish to make a few brief remarks from the Back Benches. The order is certainly a step forward, which I welcome.

I am glad that both Governments have been able to come together to provide this independent scrutiny of Scottish Government finances, because for a long time the Scottish Government have been able to mark their own homework on revenues and expenditure. For the first time, there will be independent forecasts and analysis of the spending and revenues of the Scottish Parliament. That is incredibly significant, given that the Scotland Act 2016 turned the Scottish Parliament into one of the most powerful devolved Parliaments in the world. For the first time, it will be fully accountable for the money it has to raise and the spending it will do.

I pay credit to the former Chancellor for establishing the Office for Budget Responsibility at a UK level, because it shone a light on the forecasts for growth—although, as a small addendum, I would say that although it has shone a little on the forecasts for growth none of them has ever been right since the OBR was created in 2010. Setting that aside, it does give an independent forecast of how the UK economy is running, deficit, debt and all the other issues.

That is incredibly important in a Scottish context. The Government Expenditure and Revenue Scotland figures produced by the Scottish Government every year show the position that Scotland is in—it is carrying a significant deficit, mainly because of the collapse in oil revenue—but when they publish the figures, they spend the next few weeks dismissing the very figures produced by their own officials. Something that is robust, independent and reports to the Scottish Parliament is very welcome in shining a light on some of those figures.

My only surprise when selected to be on this Committee to discuss the order was the fact that I tabled an amendment to the Scotland Bill, which became the Scotland Act 2016, to deliver this very principle, which the Conservative and Scottish National parties voted against. That would have set this up an awful lot quicker and been in the Bill, rather than our having had to wait for this order.

I tabled that amendment to the Scotland Bill because the Smith commission recommended that the Scottish Parliament should seek to expand and strengthen independent scrutiny of its own finances, particularly when it had the gamut of income tax-raising powers and pretty much all of the moveable taxes now devolved to the Scottish Parliament. I am delighted that my amendment has finally come into law and I will take full credit for that—particularly in the media in Scotland—if that is acceptable to the Minister.

I thank the Minister for introducing this order and welcome it. I look forward to the body being set up and being transparent about Scottish expenditure and revenue, so that we can truly shine a light on the powers that the Scottish Parliament has at its disposal to change the lives of people who live in Scotland.