Oral Answers to Questions

Iain Stewart Excerpts

Wednesday 7th October 2020 Commons Chamber

[Patrick Grady (Glasgow North) (SNP)]

What discussions he has had with (a) the Scottish Government and (b) Cabinet colleagues on the effect of the delay to the autumn Budget 2020 on the finances of the devolved Administrations.

[The Parliamentary Under-Secretary of State for Scotland (Iain Stewart)]

I have regular discussions with my ministerial colleagues and Scottish Government Ministers on economic and fiscal matters. The Treasury has made an unprecedented up-front guarantee to the devolved Administrations, guaranteeing that Scotland will receive at least £6.5 billion in additional funding this year on top of its Budget 2020 funding.

[Richard Thomson]

Last year’s delay to the UK Budget saw knock-on delays in the Scottish Government and local government being able to set their own budgets, with the result that many local authorities were forced to separate setting their council tax rate from settling their revenue budgets. Given this year’s delay, which has united devolved Finance Ministers in condemnation across these islands, would the Minister like to take this opportunity to apologise for the further uncertainty and risk that his Government are about to inflict on local and national Government in Scotland?

[Iain Stewart]

First, I repeat the point made by my right hon. Friend the Secretary of State that we have heard this “cry wolf” story before from the Scottish Government. The fact of the matter is that, as well as the guaranteed minimum funding for this year, the Chancellor has asked the Office for Budget Responsibility to provide forecasts next month. Together with the spending review, which will happen this autumn, that will give the Scottish Government plenty of certainty in setting their budgets.

[Patrick Grady]

This is just the disrespect agenda in action. The Tories never really wanted devolution anyway, and now they do not really give a stuff about whether or not it works properly. If they do not think that people in Scotland should not be in control of their finances, why will they not give the Scottish Finance Minister the information she needs to be able to set the budget properly? If they will not give her the information she needs, why not just give her the power to set our budget properly, without any recourse to Westminster at all?

[Iain Stewart]

I shall make a number of points in response to that. First, the Scottish Finance Minister is very welcome to contact me and explain why she has underspent the budget every year since the SNP has been in control of the Scottish Government. I have already explained in reply to the hon. Member for Gordon (Richard Thomson) that there will be plenty of information. The evidence is in the fact that this year we have guaranteed a minimum spend in addition to the usual budget of £6.5 billion. Only the separatists could call that a small amount of money.

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

The Scottish Government’s budget has been boosted by £6.5 billion to help to deal with the coronavirus. That is a true mark of the importance of the four nations working together. However, it was revealed last week by the Scottish Government’s Finance Secretary that £500 million of that has yet to be allocated. Does the Minister agree that the Scottish Government should be prioritising that funding to those people most in need in Scotland just now?

[Iain Stewart]

My hon. Friend makes an important point, and it is not just last year: as I said earlier, in every single year since the separatists took control of the Scottish Government, they have underspent their budget. It may come as news to the House, but under the fiscal framework agreement, which was made between the Scottish Government and UK Government, underspends can be transferred between fiscal years.

[Chris Elmore (Ogmore) (Lab)]

This week is Challenge Poverty Week in Scotland. Statistics show that almost a fifth of people in Scotland are living in relative poverty after 10 years of a UK Conservative Government and 13 years of an SNP Government in Holyrood. This should bring shame on both parties. Councils are critical to looking after the most vulnerable in society, yet they have seen their budgets slashed in recent years. It is not just the Tories who enjoy cutting budgets. The SNP has disproportionately cut local government funding since 2013-14, taking almost £1 billion out of those budgets. Will the Minister press the Chancellor to consider the impact of his economic policies on poverty in Scotland, and while he is at it, in his conversations with Scottish Ministers, will he ask them to stop disproportionately cutting local government budgets in Scotland?

[Iain Stewart]

The hon. Gentleman raises an important point. When we recover from the coronavirus period, we will, to coin a phrase, build back better. To that extent, I have involved the Equality and Human Rights Commission in Scotland in my regular meetings with business groups and others in Scotland to ensure that all parts of Scotland can flourish once we emerge from this. He is also right to highlight the fact that the centralising separatist Government in Scotland suck powers and money from local authorities in Scotland. I have met representatives of the Convention of Scottish Local Authorities, and they are deeply concerned about this.

[Patricia Gibson (North Ayrshire and Arran) (SNP) [V]]

The UK Government’s decision to end the job retention scheme at the end of this month will throw tens of thousands of Scots into unemployment. What effect does the Minister think that will have on poverty levels in my constituency of North Ayrshire and Arran and in Scotland as a whole?

[Iain Stewart]

The job retention scheme was the right intervention at the right time and has supported tens of thousands of jobs in Scotland, but across the world it is right that we move to more targeted measures of support. The job retention scheme was just one part of a whole suite of policies and support that we are putting in place and that will help to support Scottish businesses and employees in the months and years to come.

[Sally-Ann Hart (Hastings and Rye) (Con)]

What steps his Department is taking to strengthen the Union.

--- Later in debate ---

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

What discussions he has had with the Chancellor of the Exchequer on the economic support available to businesses in Scotland during the covid-19 outbreak.

[The Parliamentary Under-Secretary of State for Scotland (Iain Stewart)]

I have regular discussions with my ministerial colleagues, including the Chancellor, on all aspects of the impact of the coronavirus pandemic in Scotland. We have taken substantial action to support the economy from the shock of covid-19—for example, more than 65,000 businesses in Scotland have benefited from more than £2.3 billion of support through Government-supported loan schemes.

[Stephen Crabb]

Productivity rates in Scotland are some of the very best in the UK. Does my hon. Friend agree that the vital extra support going to Scottish companies at this time, as he just mentioned, plus the extra £6.5 billion that the UK Government have made available to the Scottish Government, means that Scottish business will be well placed to help to lead a UK-wide recovery?

[Iain Stewart]

My right hon. Friend is absolutely right. Let me just quantify the support that we are giving on a per capita basis: it is around £1,200 extra for each man, woman and child in Scotland. He is absolutely right that Scottish business is in a good place. I have regular meetings with many companies that are putting forward very innovative schemes that we are supporting through the city and regional growth deal package to help us build back better when we emerge from this crisis.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

What discussions he has had with the Scottish Government on co-operation in response to the covid-19 outbreak.

Oral Answers to Questions

Iain Stewart Excerpts

Wednesday 9th September 2020 Commons Chamber

[The Parliamentary Under-Secretary of State for Scotland (Iain Stewart)]

I have regular discussions with my Cabinet colleagues, including the Chancellor, on all aspects of the impact of coronavirus in Scotland. The unprecedented actions we have taken have supported over 930,000 jobs and more than 65,000 businesses in Scotland. Over £2.3 billion of support for business is being given through the Government-supported loan schemes.

[Andrew Griffith]

With its abundant renewable resources, Scotland has the opportunity to be a world leader in hydrogen technology, a $2.5 trillion global market. Will the Minister inform the House what conversations are taking place between the Government and Scotland to ensure that we seize this opportunity together as a Union?

[Iain Stewart]

The Government are absolutely committed to the development of hydrogen as part of our decarbonisation strategy. I am happy to tell my hon. Friend that in July, the Government launched the Hydrogen Advisory Council, where Government and UK industry will work together to identify and promote the supply of low-carbon hydrogen at scale across the energy system. Scottish companies are members of this council.

[Chris Elmore (Ogmore) (Lab)]

First, I congratulate my hon. Friend the Member for Edinburgh South (Ian Murray) and Mariam on the birth of their baby daughter, Zola. The House will be pleased to hear that she has very robust lungs and her father’s cheeks—that is how it has been put to me. [Interruption.] These cheeks, Mr Speaker!

The Minister knows that businesses across Scotland are in desperate need of additional support specifically in relation to the furlough scheme. The UK Government have in place one of the shortest furlough schemes of any country in Europe. Will he please today, ahead of the Opposition day debate, announce that we will extend the furlough scheme for those businesses that need it most, and particularly in Scotland for the hospitality and accommodation sectors, because they need help from this Government?

[Iain Stewart]

I should also add my congratulations to the hon. Member for Edinburgh South (Ian Murray) on the birth of his daughter. I am delighted to hear that her vocal contributions will be as strong as his.

The hon. Member for Ogmore (Chris Elmore) highlights the furlough scheme, which has been a very valuable tool in our economic response to coronavirus, but I point out to him that it is about giving the right support at the right time. The Chancellor is correct to move us towards supporting people returning to work through schemes such as the job retention scheme and many of the other packages that we are putting in place to support all sectors of the economy.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

Many local newspapers in Scotland were pleased to get UK Government advertising business at the start of lockdown and agreed heavily discounted rates for it. Many of them were surprised then, after invoices had been issued, to get requests from the UK Government for further discounts. Is the Minister content that his Government should be treating Scotland’s local newspapers in that way?

[Iain Stewart]

The right hon. Gentleman raises an important issue. This is a unique partnership to support the newspaper industry. It was agreed by Newsworks on behalf of all publications and the terms of the agreement are commercially confidential. I can tell him that at least 60% of the funding is supporting smaller local titles. If he has any specific issues with titles in his constituency, I am more than happy to explore them with him and raise them with my colleagues in the Department for Digital, Culture, Media and Sport.

[Suzanne Webb (Stourbridge) (Con)]

What discussions he has had with Cabinet colleagues on co-ordinating a UK-wide response to the covid-19 outbreak.

[Martin Vickers (Cleethorpes) (Con)]

What discussions he has had with Cabinet colleagues on co-ordinating a UK-wide response to the covid-19 outbreak.

[The Parliamentary Under-Secretary of State for Scotland (Iain Stewart)]

We can respond effectively to covid-19 only if we have a UK-wide approach. Pooling resources and using the strength of the UK economy enables the Government to support jobs and business and to provide the extra funding and other resources to the devolved Administrations to help them combat the virus.

[Suzanne Webb]

The UK Government have delivered an extra £12.7 billion to the devolved Administrations throughout this pandemic, including £6.5 billion for the Scottish Government. Does my hon. Friend agree that the enormous level of financial support that has already been provided showcases the strength and value of this great and united Union?

[Iain Stewart]

I very much agree with my hon. Friend; the strength of the UK economy and the Treasury’s international standing means that we have been able to fund the covid-19 response across all parts of the UK. Given those facts, it is worth considering the point made last week by Alex Salmond’s former adviser:

“Thirteen years in government and the SNP have yet to show their workings”

on how a separate Scotland would manage financially.

[Martin Vickers]

There is no doubt that some confusion is caused when the different Administrations come to different conclusions based on our advice about quarantine, numbers of people who can gather together and so on. The Minister has just spoken about a UK-wide approach. Would it not be better if some of these regulations were decisions for the UK Government?

[Iain Stewart]

I am grateful for my hon. Friend’s question. We have already had examples of collaboration during this period. For example, on 23 August, the chief medical officers for all parts of the UK issued a joint statement on the current evidence of the risks and benefits to health from schools and childcare settings reopening. UK and devolved Administration Ministers meet regularly to explore and discuss these issues. Although it is right that across the UK different authorities should be able to respond to specific circumstances, I hope that political considerations do not lead to this being difference just for the sake of it.

[Andrew Bowie (West Aberdeenshire and Kincardine) (Con)]

Will my hon. Friend expand on the success and the effectiveness of the Joint Biosecurity Centre in informing decision makers around the UK on our best way to combat coronavirus?

[Iain Stewart]

My hon. Friend highlights just another example of where working together strengthens our response. I am delighted that legislation has been passed enabling the Scottish Government and the UK Government to allow the JBC to provide services to Ministers and officials in both Administrations.

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

If he will hold discussions with the Scottish Government on reports that hospital patients who tested positive for covid-19 were subsequently discharged into care homes in Scotland.

[The Parliamentary Under-Secretary of State for Scotland (Iain Stewart)]

The UK Government and the devolved Administrations regularly discuss all aspects of the coronavirus response. Public health and social care are devolved matters for the Scottish Government, but we do provide support to the devolved Administrations where necessary, including increasing testing capacity.

[Mr Dhesi]

My brother-in-law’s father somehow contracted covid in a care home and, sadly, passed away. Like us, many families will have had to bear the tragedy of not being able to comfort their loved ones as they grieved their loss. Scotland has the highest care home death rate in the UK, and last month it was revealed that at least 37 hospital patients who had tested positive for coronavirus were discharged into care homes, which helped to turn them into breeding grounds for the virus, resulting in the loss of invaluable lives. So what discussions has the Minister had with Scottish Ministers about why that was allowed to happen?

[Iain Stewart]

First, may I extend my sympathy to the hon. Gentleman for his family’s loss? There are so many examples where families are grieving because of the loss of loved ones. He raises a devolved matter, and I know that Scotland’s Cabinet Secretary for Health and Sport is looking at what caused this situation and that there will be an inquiry into it. This Government stand ready and we do help the Scottish Government in increasing testing capacity so that these instances are not repeated.

[Bambos Charalambous (Enfield, Southgate) (Lab)]

What steps his Department is taking to assess the effect on the Scottish economy in the event that the UK does not reach a deal with the EU by the end of the transition period.

[The Parliamentary Under-Secretary of State for Scotland (Iain Stewart)]

We left the EU on 31 January, and negotiations for a future trade partnership are ongoing. Over time, the economic benefits of departing from EU law will clearly offset any short-run and often hypothetical problems, and those benefits will be felt both in Scotland and across the UK.

[Bambos Charalambous]

Yesterday’s admission by the Northern Ireland Secretary that the Internal Market Bill would be breaking international law will make many countries question the trustworthiness of the UK’s trade negotiations and the reliability of any deals. What impact does this Minister think that will have on the Scottish economy?

[Iain Stewart]

I simply point the hon. Gentleman to the development today that will help the UK join the trans-Pacific trade partnership, which will benefit companies in Scotland and across the whole UK.

[Kim Johnson (Liverpool, Riverside) (Lab)]

If he will make a comparative assessment of the effect of covid-19 on the black community in Scotland and England.