Budget Resolutions

Angus Brendan MacNeil Excerpts

Wednesday 27th October 2021 Commons Chamber

[Richard Thomson (Gordon) (SNP)]

Owing to the extensive trailing that went on in the press beforehand, this Budget contained far fewer surprises than it properly ought to have had. At the outset, I want to take a moment to salute the bravery of the Treasury spin doctor who allowed the Chancellor to be pictured wearing a pair of flip flops in the Evening Standard the day before delivering a Budget. If we had had rather more flip flops in the Budget than we had in the Evening Standard, we might be having a different discussion and one in which I could be more favourable towards it.

The Chancellor posed the question whether we want to be a country where in every crisis people ask, “What are the Government going to do about it?” To put it bluntly, that is the wrong question entirely. The question that we should be asking, particularly of this Chancellor and this Prime Minister, is “How can we stop them making it worse?” Across a range of issues, of which I will concentrate on three—the cost of living, supply and the environment—the Budget is doing nowhere near as much as it should to tackle the crises that we face.

It is a Budget that appears to be marked by short-termism, with a conceit that it is boosting working family incomes, while still imposing levies. I am careful about treading into the friendly fire that has been exchanged, but there is certainly no arguing with the fact that, even with the reduction in the taper rate, anyone who earns an additional £1 will still lose more than if they were paying the higher rate of income tax on it. That is a marginal rate, if you like, but there is also a very high marginal rate of tax on some of the youngest and lowest earners in society, which this Budget does nothing to tackle in the face of the worst cost-of-living crisis in memory.

I know that we have all been busy gathering external reaction from our various electronic devices as best we can, but I draw hon. Members’ attention to an IFS finding:

“Over the next 5 years real household disposable income is expected to grow by 0.8% per year, well below the historical average.”

The director of the IFS, Paul Johnson, has said:

“This is actually awful. Yet more years of real incomes barely growing. High inflation, rising taxes, poor growth keeping living standards virtually stagnant for another half a decade”.

The Chancellor spoke about the importance of the first 1,000 days of a child’s life. I heartily concur, which makes it all the more extraordinary that in each year of a child’s first 1,000 days on this earth, the Government will potentially be taking £1,000 away from its family by withdrawing the universal credit uplift. In Scotland, that will mean 20,000 children drawn into poverty and thousands more drawn into hardship, undermining the impact of the Scottish Government’s Scottish child payment to families. Those who are earning at the taper will still lose out to a far greater extent for every additional £1 than any objective analysis would suggest they should.

The costs of energy are soaring, the triple lock on pensions has been removed and—lest we forget—we have seen a 1% hike in national insurance, which breaks a Conservative party manifesto commitment and will bake in geographical and generational inequalities for many years to come, but it has all been made many, many times worse by the rising inflationary pressures as Brexit shortages begin to bite. We are seeing what I believe is the most concerted attack on living standards and hard-working, hard-pressed families.

The rising growth that the Chancellor has been relying on reflects a hoped-for return to trend, rather than anything beneficial that has been happening in the Budget, but it is a return to a trend that was very sluggish before covid and is even more so as Brexit continues to bite. On covid, we clearly could not do a great deal to prevent the impact as it hit us, but Brexit is an entirely self-inflicted wound. That has not acted as an existential shock to the economy, stimulating new ways of doing things and jolting the Government into action to counteract the immediate damage. The Chancellor or the Government could have announced measures, and not necessarily even fiscal or economic measures; simply allowing more immigration to fill the shortages that we are seeing in certain sectors would have been hugely beneficial in counteracting the adverse impacts that we are seeing in our supply crisis.

The Chancellor has announced measures to increase R&D funding, which may or may not compensate—we will find out when we delve into the figures—for loss of access to European funding streams for research and innovation, but investment in research and development is a marathon rather than a sprint. The UK’s R&D spending of 1.7% of GDP is still languishing well below the OECD average of 2.5%, while Germany is way out in front with 3.2%. It remains to be seen whether or not the modest changes that the Chancellor has announced—even if they were not announced with a huge amount of modesty—will close that gap.

As I have said, we are seeing significant labour shortages, especially in the haulage and agriculture sectors. Of particular concern to me, as a Member representing a rural constituency, is the fact that an animal and potentially human welfare crisis is looming in the pig industry because there are not enough butchers and abattoir workers to deal with the capacity issues. While this Government may not class those jobs as being particularly highly skilled, they are certainly in high demand at present, and it is in no one’s interest for the demand to be as high as it is now. We are also seeing significant shortages in shops, and I do not think that anyone could reasonably be convinced by the Chancellor’s plea in mitigation that they are a result of “global inflation”. We have already seen a CO₂ crisis; it seems that we have far too much CO₂ where we do not want it and not enough where we do want it. As supply chains continue to be stretched to breaking point, this is a crisis that can only worsen and lead us into a winter of discontent.

The most pressing crisis of all is the environmental crisis. The Scottish Government are set to invest more than half a billion pounds in a “just transition fund” to benefit the north-east of Scotland, and have challenged the UK Government to match that, but I am sorry to say that nothing I have seen in the Budget so far suggests that the UK Government are doing so. In fact, what they have done this week is scupper the Acorn project in Peterhead for carbon capture and underground storage, which was the only scheme in the mix that was scalable and deliverable, using an existing infrastructure, and which could have benefited clusters in south Wales and around the Solent because of its ability to accept imports of carbon dioxide. The contrast is striking, and my constituents will see it very clearly: the UK Government roll out the pork barrel for the north-east of England, while sticking two fingers up to the north-east of Scotland.

[Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

What has happened with the Acorn project is doubly galling, given that Scotland’s carbon assets have already been taken and now this carbon-capture asset is not being placed in Scotland, after all that has been taken from it over the decades.

[Richard Thomson]

My hon. Friend makes a powerful point. There has been £350 billion from the North sea since oil began to be extracted, and when it comes to dealing with the environmental consequences of fossil fuel use, we are potentially not even going to be in the pole position that we ought to be in, and will not be able to take full advantage of our geological, geographical, sectoral and intellectual advantages in that field.

This afternoon we have heard a blizzard of spending commitments, un-baselined, some of them doubtless reheating previous announcements. Together with the new fiscal rules, it put me in mind of another Chancellor who for a long time coveted the role of the gentleman next door, and of his desire to mark his own homework. We are told that today’s announcements will be Barnettised, but experience leads me to say that I need to wait, and that the Scottish Government and people in Scotland would be also be wise to wait and see what actually does come through to the Scottish Government.

This Government have demonstrated eloquently, today and in the days leading up to it, that they have no interest in working with the Scottish Government, or working with the grain of Scottish opinion to respect the democratic choices of the Scottish people. Scotland can do better than this, and shall do better, with independence.

[Mr Mark Harper (Forest of Dean) (Con)]

What I have heard from several Members, particularly Opposition Members, suggests that they do not really know what levelling up is. I think it is actually very straightforward. It is about spreading opportunity more fairly and evenly across the country, so that all children, whichever part of the country they live in—in fact, not just all children, but all adults—have the same opportunity to reach their full potential. I do not think that that is very complicated to explain, but it is of course more challenging to deliver.

[Angus Brendan MacNeil]

Surely levelling up should be something very simple, and simply understood. It is a product of UK misgovernance over the years—of governance that has meant only policies for the south-east of England, specifically ignoring much of the rest of the UK. That is why, on our side, we want to do things ourselves in the future.

[Mr Harper]

I took an intervention from the hon. Gentleman because I anticipated what he might say. I listened carefully to the Chancellor, and he set out a Budget that delivers not just for every part of England but for every part of our United Kingdom. We on this side of the House—and I think, to be fair, those on the Labour Benches—want to ensure that we keep our country together. We are spreading opportunity to every part of the United Kingdom. I listened carefully to the Chancellor, and this Budget delivers a significant increase in resources to the Scottish Government. I hope that they spend those resources wisely, although given their track record, I am pretty confident that they will not.

Leaving the EU: Impact on the UK

Angus Brendan MacNeil Excerpts

Wednesday 17th March 2021 Commons Chamber

[Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP) [V]]

Happy St Patrick’s day, Mr Deputy Speaker. Latha Fhèill Pàdraig sona dhut. That completes the triple crown of senior languages of these islands here today. I believe that Welsh and Irish Gaelic have already been used. I just thought I would make that remark, given that St Patrick, celebrated and publicised by Ireland around the world, is the world’s most famous Scotsman. I note that today was a day when the House of Commons celebrated independent Ireland at the same time as it decried the chance for Scotland to be independent. I have to wonder what it is about the people who go to the House of Commons and respect independent countries while talking down the countries that remain in the UK. There might be a lesson for Scotland in that.

These two debates today, on independence and Brexit, work hand in hand. They are perhaps either side of the same coin, and it is important that they should both be looked at and discussed. It is good that we have this second one on Brexit, which more of us can participate in than managed to get into the oversubscribed earlier debate, such is the keenness to talk about independence—particularly, I noted, among Tory MPs. Perhaps that is a sign of things to come. There will be a lot more talk on independence as time goes on.

I want to reflect on what is really happening with Brexit. I noted the hon. Member for Moray (Douglas Ross) condemning the idea of independence at this moment. Independence at this moment would, of course, be the escape from the Brexit that he foisted on us in the middle of a pandemic—a pandemic that he used as a pretext for not launching the lifeboat in Scotland, which is something that we need to do with great urgency. It would be far better being in the club of 28 equal nations than being talked down to at Westminster in the way we were today, but such is life. I say to the hon. Member for Moray: let the people choose, and if his party wins the election in May, we will accept that the Scottish people do not want independence, but if we win the election in May, I hope he will have the democratic grace to realise that, with an SNP victory, that is exactly what the people have in mind.

We know where we are at the moment. We have no new trade deals adding to GDP, and we have a Brexit that is going to take away 4.9% of UK GDP over the next 10 years. The trade deals that have been signed are merely roll-over trade deals. On this St Patrick’s day, it is interesting to look at where Ireland was at one time. In 1940, 90% of Irish trade went to the UK. Now, 11% of Irish trade goes to the UK. It has not that Ireland has stopped trading with the UK; it is just that it has discovered the rest of the world, through independence and through being part of the European Union. In fact, there are more jobs in the UK dependent on Ireland than ever there were when Ireland was part of the UK. That goes to show not only the benefits that independence have brought to Ireland, but those it is bringing to people in the UK who are finding that their own jobs and prosperity are dependent on a successful neighbour next door. When we make Scotland independent and as successful as Ireland, there will be even more jobs in England dependent on that success of Scotland, so it will be a win-win situation. Ireland’s GDP was once 80% of the UK’s, and now it is 172% of the UK’s.

In my constituency, we are seeing the problems with Brexit. Salmon going to Austria is getting returned. Shellfish problems are legion, as we all know. From islands, ferries have to leave earlier and the admin costs are going up. Arts organisations such as Ceòlas in Uist, which had European structural funds, are unsure if they are going to get UK prosperity funds. The reality is that there are difficulties every step of the way.

In truth, Scotland, in the referendum of 2014, said that we will stay in the UK if it is in the EU—that was supported by 55%—but in 2016, 62% of Scotland went for the EU alone. The EU is more popular than the UK. Let us have our next say, and let Scotland decide which way it is going.

[Mr Deputy Speaker (Mr Nigel Evans)]

Happy St Patrick’s Day to you, Angus, and I know where we would have been celebrating later on this evening, had these been normal times, but they are not.

Future Relationship with the EU

Angus Brendan MacNeil Excerpts

Tuesday 9th June 2020 Commons Chamber

[Penny Mordaunt]

I thank my hon. Friend for that well put point. The EU’s proposals would bind us into EU law and impose controls over our domestic legal regimes, which cannot be acceptable. It is not in the political declaration and it is certainly not in any free trade agreement that I know of.

[Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP) [V]]

Tapadh leibh, Mr Speaker, and thank you for enabling this. During the covid crisis, people are getting a taste of border restrictions and they do not like it. Leaving the customs union and the single market would give businesses more significant Brexit borders. Anybody worth their salt in business and trade negotiations knows the numbers. Given that there is no good Brexit for the economy and that the damage to the economy was reckoned by the UK Government at one stage to be between 6% and 8% of GDP, does the Minister have updated figures for the damage, deal or no deal, to the UK economy, jobs and business, or are we still looking at 6% to 8%?

[Penny Mordaunt]

The Government’s policy is that, over the medium to long term, our approach to Brexit will maximise the economic benefits to the United Kingdom. That needs to be our focus in not just our negotiations with the EU but the work we are doing on rest-of-world trade. There are massive benefits for every part of the UK from that, and that is what we should all be working together to achieve.

Covid-19

Angus Brendan MacNeil Excerpts

Monday 11th May 2020 Commons Chamber

[Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP) [V]]

Thank you, indeed, Mr Deputy Speaker, and a special hello from the Hebrides. I wish all Members overseas who are partaking in the debate well. It is of course an important debate that is taking place in a Parliament of the Union, although virtually for some of us who are not there. It is the UK Union Parliament but it is certainly not for our nation. That is a term that is often lazily used at Westminster, but last night when the Prime Minister spoke, the region in question was certainly England. In our nation, the First Minister of Scotland was very clear: stay at home, protect the NHS and save lives. Just what the Prime Minister of Westminster meant when he said that we should stay alert for a virus that is measured in nanometres is quite another matter altogether. Certainly there seemed to be confusion, listening in, and this has given Scots a real, tangible taste of the benefits of independence. We see that independence today in our health policy.

The truth of the matter, however, is that we should be continuing with lockdown because we have to continue with lockdown. Unfortunately, the seven weeks of lockdown have to a large extent been wasted, because the testing policy, instead of being one of test, trace and isolate has been one of test, find and ignore. It has been obsessed with daily targets and the media have not questioned the why. It is a policy that has spurned many opportunities to track and stop the virus. We should have been hunting the virus, not waiting for it to come among us all. The policy was to test the symptomatic, but only those who had been symptomatic for 48 hours. It has been clear from many other countries, especially those such as Iceland and the Faroes, which have a great record in fighting the virus, that 80% to 85% of covid-19 carriers are asymptomatic. They are the ones who will unwittingly be spreading covid-19 among the population. I am grateful to the Faroese Health Minister—the former Prime Minister, the esteemed Kaj Leo Holm Johannesen—for his information, support and offers of testing to the Scottish islands to help us to get test, trace and isolate on the go a number of weeks ago, rather than the situation that we were in, with seven weeks of lockdown during which we found people but did not go on to test others in their household. That has been a wasted opportunity.

The other important area we need to consider is finance, especially given the divergence within the United Kingdom due to English politicians taking an independent approach. Of course, I support the independence of England—the sooner it happens, the better—but only wish that in this instance it had been done with greater thought. The Treasury, which has underpinned health policy up to now, should continue to underpin the health policies of all the nations of the UK. Treasury support should not be kicked away when the health policy of England dictates that it is no longer required in England. Treasury support should be there to help the health policies of all across the UK. That is what Unionism should mean, and I would expect Unionists to support that and not to be followerists, taking instructions without making representation. We have to make sure that the welfare of everyone is looked after, especially when Governments are having to make choices and take steps for public health.

In Na h-Eileanan an Iar, test, trace and isolate has begun, but with so few cases it has not got properly started yet. Surely we should be using our new capacity, which is underutilised, to search for the asymptomatic. Thankfully, we have had no cases for a number of weeks, but we have to remain in lockdown due to a lack of knowledge and having to make decisions based on the lack of a proper testing system.

I hope that the UK has learned a lot. The UK has certainly learned that it is not exceptional and that it can be as vulnerable as anywhere else—more so when not following best practice and trying to reinvent the wheel. In contrast to what is commonly viewed as a debacle south of the border, we in Scotland have tasted what an independent health policy is like. We just need to taste independence in every other policy area. As Iceland, the Faroes and smaller nations such as Scotland have shown, smaller nations fight epidemics better. Incidentally, they do economic recoveries better as well—and that, of course, will be the next step.

The Economy

Angus Brendan MacNeil Excerpts

Monday 27th April 2020 Commons Chamber

[Rishi Sunak]

My hon. Friend is right. When I say that we are all in this together, I mean every part of our Union. The Government are steadfast in their support and are determined to get through this crisis by supporting and working very closely with all members of our Union. I can tell him that from the Budget onwards £4 billion in Barnett consequentials have been provided to Scotland, £3.5 billion of which relates specifically to the range of announcements in response to the coronavirus. Those numbers are in addition to the UK-wide measures that support business, such as the jobs retention scheme.

[Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP) [V]]

I hope you are all doing well overseas in London.

Last week, a member of the Bank of England Monetary Policy Committee said that monetary financing for financial fiscal spend with central bank money rather than Government bonds is something that central banks are always doing. Direct funding of Governments by their own central banks is therefore a fact. Can we remember the words of the late American economist J. K. Galbraith, who said that the process by which money is created is so simple, the mind is repelled? Will the Chancellor take this opportunity not to repeat the socially divisive policy of austerity? Coming out of this crisis, the last thing any of us needs is another round of austerity.

[Rishi Sunak]

Rather than commenting on monetary policy, which it is obviously not my place to do, I can tell the hon. Gentleman that we are determined, as I have said, to preserve as much of the productive capacity of the UK economy as we can throughout this crisis. Such interventions will ensure that we can bounce back as strongly as possible and recover as much of our potential output as possible. Hopefully, that will put us in a strong position to carry on delivering on the agenda that we set out at the Budget: spreading opportunity to every part of the country and levelling up through investments in education, infrastructure and ideas.