Mr Chote says it is important where the SFC influences changes between the draft budget and the final budget. 

The other important factor is the influence before the draft budget and the interaction between the SFC appears to be in private at that stage, he says. 

The UK government said that while the initial remit of the Scottish Fiscal Commission would be "proportionate to the fiscal powers devolved to the Scottish Parliament", it would also create a platform to expand the functions of the Commission as new fiscal powers were devolved. 

Image source, Thinkstock

The bill would require the commission to publish reports setting out its assessment of; 

• forecasts of receipts from the devolved taxes 
• the assumptions made in relation to the economic determinants underpinning 
• forecasts of receipts from non-domestic rates forecasts of receipts from income tax attributable to a Scottish rate 
• Scottish ministers' projections as to their borrowing requirements.  

He says the Treasury needs the OBR more than the OBR needs them. Mr Chote says the fact that Revenue and Customs are at a distance from the Trearsury is reassuring, he says if the SFC is the same distance from the Scottish government that would be reassuring.

He adds that independent scrutiny leads to the government producing better forecasts.

Mr Chote says the amount of resources needed to do forecasts is usually larger than people think so he thinks the Scottish government has got it right on that front. 

He says even the resources the OBR has are not enough to do its job, so it relies on other organisations working with and for it from other departments.

The Scottish government wants the Scottish Fiscal Commission to be given a statutory footing. 

The bill would give the commission the authority to scrutinise tax forecasts and other fiscal projections prepared by the Scottish government. 

Image source, PA

 Mr Chote says, in UK terms, one way of viewing reasonableness of an economic forecast is to look at other forecasts, but in Scottish terms there are not other forecasts in Scotland. 

This may mean the Scottish Fiscal Commission may have to create its own forecasts in time. 

Robert Chote from the OBR says one key lesson from international experience of international fiscal councils, there is no one size fits all answer. 

 Mr Chote says he hopes the relationship between the OBR and the Scottish Fiscal Commission will be open and transparent.

Image source, bbc

The Finance Committee will begin by taking evidence from Robert Chote from the Office for Budget Responsibility via video conference. 

This morning the Finance Committee will hear from Robert Chote from the OBR on the Scottish Fiscal Commission Bill. 

This will be followed by evidence from economic expert Dr Jim Cuthbert, Prof Ronald Macdonald and Mark Taylor from Audit Scotland.

The committee will then take evidence from Professor David Bell on the Scottish Rate of Income Tax.

This afternoon portfolio questions will focus on finance, constitution and the economy.

Scottish Labour will then lead a debate entitled Supporting Scotland’s Children, following Kezia Dugdale’s announcement on Tax Credits at the Scottish Labour Party conference.

Finally the member’s debate will be led by Labour MSP John Pentland and focuses on efforts to save the deeply troubled steel industry.