Budget Statement

Lord Bruce of Bennachie Excerpts

Friday 12th March 2021 Lords Chamber

[Lord Bruce of Bennachie (LD) [V]]

My Lords, a radio ad currently running in Scotland says, “If you are producing shortbread in the Highlands or prime beef in Aberdeenshire, the UK Government can help you find markets in Toronto or Tokyo.” That could have been done years ago, but what has happened to the established markets in Toulouse, Turin or Toledo?

Facing the combined impact of Brexit and the pandemic, I was looking for a Budget that put recovery first. As we look forward to an easing of lockdown and an uptick in economic activity, should we not be doing more to give our young people the education and skills training that they need? Should we not be making climate change and the digital economy the drivers of recovery?

In Scotland, four sectors are of key importance. Our food and drink industry is creative and dynamic but has been hit hard by lockdown and new frictions in traditional export markets. Fishing has been betrayed. Of course we should seek new markets, but not at the expense of established markets at home and across the EU. What measures do the Government propose?

The hospitality sector has been dealt a body blow and will struggle to survive and rebuild. When will hotels reopen and what will the Government do as furlough ends to enable them, and pubs and restaurants, to recoup losses and thrive?

In our strong financial services sector, jobs and assets are already being relocated out of not just Scotland but the UK. How will the Government ensure that we retain and grow Scottish jobs in the sector?

I live in the north-east of Scotland, which has made a huge contribution to the UK economy over the last 50 years. We have a wealth of resource and expertise of global importance. As the oil price recovers, the sector will pick up, but the industry is fully aware of the drive towards net-zero carbon and committed to using its capital and expertise to contribute to the transition. I welcome the support secured for the sector in the UK and Scottish Government Budgets but urge both Governments to work together with local authorities and the industry to secure jobs and investment for the future, especially in north-east Scotland, which has seen substantial job losses in the past year. What is the Government’s strategy for these key sectors?