Strengthening the Union
Debate between Ian Murray and Chloe Smith(6 years, 4 months ago)
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Chloe Smith
That is precisely my point. When we see what we can do as a larger economy—when we see how we can attract the finest and the best across the UK economy —we also see that we are in a position to put that back into public services, including the NHS and many other services that are admired around the world, and which work together to make everyone’s lives better. That is true throughout the Union.
Chloe Smith
I must make a few more moments of progress. We have a full debate ahead of us on the strengths of the Union.
Let me say something about the shared economy and the strong internal market, which is one of our biggest strengths, and which is important for all our prosperity. The UK internal market is, of course, the vital first market of the UK. As one of the largest economies in the world, we buy and sell among our nations, and that creates wealth and jobs for every part of the UK.
As we leave the EU, we must protect the benefits of the UK domestic market. We are a world leader in financial services, defence technology, car production, food and drink, digital technology, energy, music, films and television, and all parts of the UK have their role to play in those world-leading industries. Scotland’s exports to the rest of the UK are worth four times more than those to the EU, and 56% of Northern Ireland’s external sales are to the rest of the UK. We as a Government are committed to strengthening these links between the economies of our nations. For example, between England and Wales we are abolishing the Severn bridge tolls and investing in cross-border railway links such as the Halton curve. Let us not forget how many people cross our internal borders every day as part of normal life. As the Prime Minister pointed out during her speech in Northern Ireland on Friday, our Union is rooted in both our history and our collective achievements, but it is our future together that is our greatest strength.
Ian Murray
I am very grateful to the Minister—and may I compliment her on her rather fine Sean Connery impression earlier in her speech?
The Minister has just reeled off a list of service industries in this country, which, of course, are not covered by the Chequers agreement. What analysis has her Department conducted of how much the UK’s GDP will be reduced as a result of that agreement?
Chloe Smith
I do not think the hon. Gentleman can have been listening when I included, for example, car production and food and drink in my list, but the point is that the Chequers agreement seeks to secure the best deal for the whole UK economy, together. That covers both goods and services in different ways—in ways that will complement our strengths—but it also returns us to the key point about the whole UK economy, together.
Let me now say something about the industrial strategy. It is a vital part of the plan set out by the Prime Minister to drive growth across the whole UK, and to create more highly skilled, highly paid jobs and opportunities. It is intended to address the long-term structural challenges that can hold British businesses back, while building on the country’s strengths. New sector deals and investment and research and development will support the industries of the future where the UK has the potential to lead the world, from electric vehicles to biotech and quantum technologies.
It is important that we continue to look to the future. As was announced earlier this month, a £2.5 million grant has been awarded for a spaceport site in Sutherland, on the north coast of Scotland. That the first ever satellite launch from the UK could be from Scottish soil highlights our commitment to investing in all parts of the UK, and there are other launch sites too, such as those planned in Cornwall, Glasgow and Snowdonia, which will also be boosted by a new £2 million development fund. The UK is set to build on its world-leading expertise in aerospace with the development of these spaceports.
On the city and growth deals, we are supporting clusters of cultural and economic strength concentrated in places throughout the UK, and we want to see city and growth deals across the four nations to ensure that prosperity is shared across the UK. We have already seen important investments in a number of deals such as Cardiff, Glasgow and Swansea, as well as investment in other important cultural work such as the V&A in Dundee. Further deals are being developed. We have recently announced the Stirling and Clackmannanshire city region deal, and negotiations have been opened on the north Wales growth deal and with the Belfast city region partners. These deals make a vital contribution to local economies and, as I have said, provide jobs and growth across the UK. There is more, of course. In Cardiff, we have invested in the development of a compound semiconductor industry cluster, and in Aberdeen we opened the oil and gas technology centre with an investment of £180 million, which will unlock the full potential of the North sea and anchor the supply chain in north-east Scotland.
Transport and connectivity are also crucial themes. As we support clusters of growth across the Union we must be connected geographically through our transport and infrastructure links. The expansion of Heathrow will help with this, creating hundreds of additional flights per week from London to the nations and regions across the UK, with new routes emerging to support our economic co-operation. As well as the importance of being connected geographically, the Government recognise that world-class digital connectivity is essential for the modern world; it is essential to people at work and at home and we are committed to improving that across the UK. We are investing over £1 billion to stimulate the market to build the next generation of infrastructure that the UK needs for the future through both the national productivity investment fund and the digital infrastructure investment fund.
Turning to international benefits, the strength in our unity of nations is demonstrated by our common voice on the international stage. We use our seat at the top international organisations to protect the interests of all parts of the UK, to influence issues that matter to people in the UK, and to make the world a better place. When we faced an attack on our citizens, we worked with countries around the world to respond. We use our influence to pursue issues that matter to people across the UK: leading the way on international aid, leading global action to tackle landmines, stopping the trade in ivory, and combating modern slavery. People across the UK can be proud of the role we can play because we are together in our international approach.
That international standing is also vital to the security of our country. Our UK defence expertise and excellence is joined up across the UK and has been built up across decades, from new radar stations in Shetland and Cornwall, to Scottish-built aircraft carriers based in Portsmouth, fast jet response aircraft in Lossiemouth and Lincolnshire, the SAS in Hereford, GCHQ in Cheltenham and the Royal Marines commandos in Arbroath. This is one very large UK defence network protecting us all at home and abroad. And we are spending across the country to be able to keep the whole UK safe. In the last financial year the Ministry of Defence spent £1.6 billion with Scottish industry and commerce, while a recent review found that defence invests £945 million in Welsh industry. The spectacular fly-past we saw only last month as part of the Royal Air Force’s 100th anniversary celebrations reminds us of the work of all our armed forces, who are drawn from, and based across, the whole of the United Kingdom. We saw the same at last month’s Armed Forces Day in Llandudno; it was a proud display of Wales’s military association, while the Edinburgh Tattoo demonstrates Scotland’s strong relationship with the military.
I am also proud that the UK Government recently announced that we will reimburse thousands of military personnel who would otherwise be negatively affected by the devolved Government’s income tax increases in Scotland. This protects nearly three quarters of all armed forces personnel liable for Scottish income tax and will help with recruitment and retention for our important armed forces.