Finance (No. 2) Bill (Sixth sitting)

Luke Graham Excerpts

Tuesday 16th January 2018 Public Bill Committees

[Alison Thewliss]

We support the U-turn by the UK Government to allow VAT to be reclaimed by Police Scotland and the Scottish Fire and Rescue Service. I should declare that I was a councillor on the board of Strathclyde fire and rescue when this was being discussed; I know the matter well and know the issues that the Minister referred to. There was a great deal of correspondence at that time from Scottish Government Ministers to the UK Government, requesting that the change be made, so it is with some incredulity that we hear, “Oh wait; all of a sudden we have just realised, yes, we are going to fix it now”—now, rather than several years earlier.

It seems logical that if the argument stands today and it stood in the Budget, then it stood all along, so the Government should do right by the Scottish Fire and Rescue Service and Police Scotland and refund the VAT that we are due. Given that those services’ funding was pushed on to the Scottish Government via the UK Government’s austerity agenda, they very much need that money.

[Luke Graham (Ochil and South Perthshire) (Con)]

The hon. Lady is making a fair point, but the simple fact is that the Scottish Government knew that the changes were going to incur VAT charges. Does she accept not only that the Government have changed their policy position, benefiting police and fire services in Scotland, but that they have increased in real terms the block grant to Scotland? It is not austerity: Scotland is getting more funding under this Conservative Administration, not less.

[Alison Thewliss]

I very much dispute that point, as would the Scottish Fire and Rescue Service.

[Luke Graham]

You can’t—it’s a fact.

[The Chair]

Order.