Alan Brown
Main Page: Alan Brown (Scottish National Party - Kilmarnock and Loudoun)Department Debates - View all Alan Brown's debates with the HM Treasury
(1 year, 6 months ago)
Commons ChamberI beg to move an amendment, to leave out from “House” to the end of the Question and add:
“welcomes the Government’s action to halve inflation, grow the economy and reduce debt; further welcomes the Government’s action to take advantage of the opportunities presented by Brexit, including the passage of the Genetic Technology (Precision Breeding) Act which will boost UK food security; supports the Government’s extensive efforts to support families up and down the country with the cost of living through significant support to help with rising prices, worth an average of £3,300 per household including direct cash payments of at least £900 to the eight million most vulnerable households; and notes that the SNP and Labour would fail to grip inflation or boost economic growth with their plans for the economy, which would simply lead to unfunded spending, higher debt and uncontrolled migration.”
The world has been challenged by a series of events, including covid and the war in Ukraine, with knock-on effects to economies in every continent. In each of those, the Government have risen to the challenge. When covid hit our shores and the entire country had to isolate to save lives, we delivered groundbreaking and historic support to keep businesses afloat and families going. When our ally and friend Ukraine was invaded, we led the way to provide support internationally, and we continue to do so. The Prime Minister just yesterday announced further air defence missiles and support for our ally. Now, with economic challenges at our door, we continue to take the actions necessary to support the most vulnerable and set our country up for long-term, healthy, sustainable growth.
Already, as a consequence of the steps we are taking and decisions we have made, our country has avoided a recession. The International Monetary Fund has said that we are on the right track. Measures in the spring Budget deliver the largest permanent increase in potential GDP the Office for Budget Responsibility has ever scored in a medium-term forecast. That is as a result of Government policy. We have grown the economy faster than France, Japan and Italy since 2010, and at about the same rate as Germany since 2016. Just today, we see the unemployment rate remaining historically low. Inflation of course remains a concern, and we cannot afford to be complacent.
While I would not usually seek to give economic lessons to Members on the SNP Benches, it seems to be worth explaining in this instance that the reality is that high inflation in our country cannot be separated from global events. Other countries are experiencing similar situations to the UK. In the UK, inflation has primarily risen because of Putin’s illegal invasion of Ukraine and global supply chain pressures, which have pushed up the price of energy, goods and raw materials. Domestic inflationary pressures have also risen, as the UK labour market has remained tight, and challenges in recruitment have been reflected in strong wage growth. That has also pushed up the cost to firms of producing their goods and services, and that has been passed on into higher prices.
If we are to answer the challenge of high inflation, we must first accept that high inflation is a global challenge, which many major central banks are tackling. Nevertheless, I know that right now for many in society rising prices, including rising food prices, are causing worry and significant anxiety. People want to know when things will get back to normal and how they will be supported in the interim. Let me answer that directly. The Prime Minister pledged to halve inflation this year, and the latest Bank of England forecast published last Thursday shows that we are on track to meet that pledge. From its peak above 11% at the end of last year, inflation has begun to fall. Both the Bank of England and the OBR forecast that inflation will quickly fall later this year. We are also focused on growing the economy, reducing the burden of public debt, cutting NHS waiting times and stopping the boats. Those are all priorities of the British people, and therefore they are this Government’s priorities, too.
How does stopping the boats help the cost of living crisis?
The point I was making was that stopping the boats is a priority for the people of this country, and this Government are focused on the priorities of the people of this country. We are on track to meet these pledges to make our country and all nations, including Scotland, better off. It is also worth remembering that Scotland already has one of the most powerful devolved Parliaments anywhere in the world. The Scottish Government have substantial tax powers, including in relation to income tax, and agreed borrowing powers to further increase their spending, which I am sure the First Minister will be considering.
I fully acknowledge the pressures of food inflation—they are in line with those of many of our friends and neighbours, but less than in Germany, for example—and I will come on in a moment to set out the interventions the Government have specifically made to deal with that.
In addition, we are investing directly in Scotland, with £349 million of funding allocated through the first two rounds of the levelling-up fund, as well as establishing two new green freeports. As the Prime Minister has already said,
“all this talk of needing any more powers is clearly not appropriate”.
The SNP and the Scottish Government do not fully use the powers they have already. While, as we have seen today, SNP Members speak about a referendum that I do not believe they have a mandate for, we are levelling up and investing directly in local communities across Scotland.
Let me address the points raised by the hon. Member for Glasgow South West (Chris Stephens).
If this Union is so successful, so good for Scotland and we benefit so much, why do we need money out of a so-called levelling-up fund?
I think the principle of levelling up across the United Kingdom recognises that we do not have symmetry across the local economies of the United Kingdom, and it is about investing to improve the productive capacity. Let me make some progress.
Let me look at the economic matters at hand. As I mentioned earlier, energy costs have contributed significantly to price rises. That is why we are paying half of people’s energy bills. At the Budget, we announced that the energy price guarantee will remain at £2,500 for the next three months, funded in part by the energy profits levy. Just under £26 billion between 2022-23 and 2027-28 is expected to be raised by the levy, on top of around £25 billion in tax receipts from the sector over the same period through the permanent tax regime. This measure is saving the average family a further £160 on top of the energy support measures already announced. That includes this Government’s help for all domestic electricity customers with £400 off their energy bills through the energy bills support scheme, and in providing a £200 payment for households that use alternative fuels such as heating oil through the alternative fuels payment scheme.
Alongside holding down energy bills, increasing benefit payments, increasing pension payments, a council tax rebate, the multibillion-pound household support fund—attracting Barnett consequentials—and freezing fuel duty, we are giving up to £900 in cost of living payments to households on means-tested benefits. That means that more than 7 million households across the UK have been paid a £301 cost of living payment by Wednesday 3 May as the first of three payments. This will be accompanied by a £150 payment for people on eligible disability benefits this summer, and a £300 payment on top of winter fuel payments for pensioners at the end of 2023. The latest payment follows on from up to £650 in cost of living payments delivered to households on means-tested benefits by the Government in 2022, with an additional £150 for individuals on disability benefits and £300 for pensioner households. Altogether, support to households to help with higher bills is worth £94 billion, or £3,300 per household on average across 2022-23 and 2023-24. Aside from helping the most vulnerable, the OBR’s analysis shows that, taken together, the freezing of fuel duty, changes to alcohol duty and the extension of the energy price guarantee will further lower consumer prices index inflation by 0.7 percentage points this year.
I am very pleased to be able to speak in today’s SNP Opposition day debate on the cost of living crisis, because for thousands of my own constituents—just as this is true for Members right across this House—this is the most pressing issue facing all households. After coming through the pandemic, millions of people have found the biggest health crisis in our lifetime being replaced by the biggest financial crisis in our lifetime, most of it compounded by this Government’s own decisions.
Bills are continuing to rise, and that is against a backdrop of wages failing to grow. The average Scottish worker’s wage is now £800 lower in real terms than it was when Labour was last in government. In my own constituency, it is almost £3,000 lower. At the same time, the price of everyday essentials has risen by an average of £3,500 since 2019. The cost of a typical food shop is up by £700 a year, and food inflation is far outstripping actual inflation, as we have heard. Transport costs are up by £800 and everyday fuel bills are up by almost £1,500. So it is little wonder that so many people are struggling to make ends meet. It is the No. 1 issue my constituents contact me about, and I am sure that is the same for every MP in this House.
The crisis shows no signs of abating; in fact, it is getting worse as the Government’s sticking plaster attitude to politics begins to run out. We used to say that too many are having to choose between heating and eating—we have used that phrase in this House a number of times—but it is becoming much more apparent that some are unable to choose as they cannot do either. Under Labour, we used to celebrate the fact that millions had been lifted out of poverty. Scotland’s two Governments are doing a very good job of thrusting them all back in—and more.
Despite what we have heard from the Conservatives—we will continue to hear this today, no doubt—about the miserly attempts by this Government to resolve the crisis, let us not forget that this crisis was made in Downing Street. They will blame and they have blamed covid and Ukraine, but we have had 13 failed years of this Government. Covid and Ukraine have merely hastened the chickens coming home to roost. Just nine short months ago, the former Prime Minister and the former Chancellor crashed the British economy with a reckless plan to give unfunded tax breaks to the very richest. The Conservative party crashed the economy, but there is no contrition and no acknowledgment of that.
The shortest-serving Prime Minister in history has left a long-lasting legacy of economic misery that ordinary working people up and down this country will be paying for for many years, and every Conservative MP who supported that reckless Budget was complicit and continues to be complicit. They are complicit in the Tory premium on everyone’s mortgages; they are complicit in the Tory premium on everyone’s food shop; they are complicit in the Tory premium on everyone’s energy bills; they are complicit in the Tory premium on everyone’s cost of living. And while being complicit in the premium, they are complicit in the discount on everyone’s pay.
Because while the former Prime Minister blew the doors off, this is a crisis that has been bubbling away for a long time. Growth in our economy has stagnated for more than a decade. In fact, had the economy continued to grow at the rate it did under the last Labour Government, we would have about £40 billion more to spend our public services and tackling the cost of living, without raising a single tax. That is the elephant in the room for the Conservatives. [Interruption.] They chunter from the Government Benches without any contrition for the fact that they crashed the economy and everyone is paying the price.
Since 2019 alone, there have been no less than 24 separate tax rises, all implemented by the current Prime Minister as Prime Minister or by the current Prime Minister when he was Chancellor. The tax and no spend Chancellor is now the tax and no spend Prime Minister, taking even more from the pockets of those that can least afford it at a time when they need every penny they can get.
Let me mention the story of constituent who came to see me worried about losing their family home because of higher mortgage rates. Those interest rate rises are a direct result of the Tories’ inflation crisis and the crashing of the economy. He said to me that he may lose his family home to pay for this Government being out of touch and their economic incompetence. Just think about that for a minute: a family losing their home as they can no longer afford their mortgage because of decisions made by this Government.
After 13 years, Britain is forecast to have the worst growth in the G7. In fact, if our economy continues along this growth path, by 2030 Britain will be less well off than Poland. The Government just do not get it, and they do not get the cost of living crisis. It is affecting everyone, with a disproportionate impact on the young, the old, the disabled, students and of course, as always, the poorest. The Government are out of touch beyond comprehension and should be out of time.
It is interesting, however, that in the motion and the amendment both the SNP and the Conservatives attack the Labour party. The SNP’s motion rightly talks about the damage caused by the Conservatives’ Brexit. Putting to one side the fact that this is partly an attempt to hide the SNP’s own complicity in the cost of living crisis, the mess the Tories have made of Brexit has undermined our country: we believe that and agree with the SNP on that. The Conservatives failed to negotiate a good deal with the European Union despite their “oven-ready” promises, and instead have left the country with a deal so thin and deficient that it has had lasting repercussions. Their entire Brexit project was driven by their own party interest rather than the national interest. Ever since, the Government have continued to weaken the relationships with our European neighbours and friends, with disastrous consequences for jobs, businesses and Britain’s place in the world. They are viewed by our European and international colleagues as untrustworthy law breakers.
But the SNP motion is completely wrong: Labour does not support a damaging Tory Brexit. The SNP playbook reeks of desperation and SNP Members absolutely know it. [Interruption.] They chunter, and they use that same line again and again, but I remind the House of their track record on Brexit: they would have taken Scotland out of the EU had they won the independence referendum in 2014; they spent less on campaigning to stay in the EU than they did on chasing 3,500 votes in the Shetland Scottish parliamentary by-election; they abstained on a vote in this House that would have delivered a customs union; they pressed for a general election in 2019 for their own party interest rather than continuing to try to fight the Government’s warped Brexit strategy; and we must remember that when the Division bell rang in this House to either back the thin trade and co-operation agreement or plunge the country into no deal, the SNP chose no deal. This Government have fundamentally failed to improve anything and the Brexit situation in the UK has been bad, but no deal would have been immeasurably inferior. Worse still, the SNP has a proposition for a separate Scotland that is incompatible with EU treaties for a new state wishing to join.
Is it not the case that the reason we are not in the customs union is that some Labour MPs backed the Tories, and is it not the case that there are now two Baronesses in the House of Lords who were Labour MPs and have been rewarded for their work in helping deliver a hard Brexit—Baroness Gisela Stuart and Baroness Kate Hoey? That is where Labour were back then.
Those two Baronesses were put into the House of Lords by the Conservative party, not the Labour party, and the reason they are in there and not in here is that they were on the wrong side of history. I draw the hon. Gentleman’s attention to what actually happened in this House in the two major votes when we had the indicative vote process in this House: I do not remember exactly now, but I think there were 42 SNP MPs, and they abstained on the customs union and the vote was lost by six—and that apparently was our fault. Let me emphasise again that on 12 or maybe 19 December, the Division bell rang in this House to either back the deal, which was not ideal—in fact it was a pretty disastrous deal—or back what was even worse, no deal, and the SNP chose no deal. That is what happened and that is what the Whip record in this place shows. The SNP’s Brexit and EU positions are as dishonest as they are broken.
The next Labour Government will build a closer relationship with the EU so that our businesses have the opportunity to grow and to create wealth and high-quality jobs across Britain. We see the trade and co-operation agreement as the floor of our national interest and not the ceiling, as the current Government do, and it will be up to the next Labour Government after the next election to renegotiate the TACA in 2025, as stated in the agreement. We will tear down trade barriers to help our businesses, we will support our world-leading scientists and service sectors, we will strengthen our security co-operation to keep us all safe and we will turn the UK into a green superpower, working with our EU neighbours and international partners. All of that will be done while repairing our tattered relationship and regaining the trust of others.
There is a reality that the SNP never acknowledges: the UK did leave the EU, and we cannot just wish that away. I know SNP Members like to promise the undeliverable because they know they will never have to deliver it, but anything other than saying that to the public is completely and utterly dishonest. It is only through sustainable economic growth that we can resolve the cost of living crisis, and that is exactly what Labour will deliver after the next general election.
Unsurprisingly, the SNP’s motion fails to mention that the SNP has been in charge of the Scottish economy for the last 16 years. A Scot who was finishing school when the SNP came to power is now in their mid-30s, perhaps with a family of their own, and they have seen that, much like with the UK Government, economic growth has been an afterthought, with Scottish businesses dismissed and jobs shipped overseas—although the SNP has done wonders for the UK motorhome industry, of course.
Huge promises have been made off the back of the renewable energy potential in Scotland, but little has been delivered. The truth is that the SNP Government—I give them credit for this—have created tens of thousands of highly skilled, high paid jobs in the renewables sector; it is just that none of them are in Scotland, but are instead in Denmark, Indonesia and everywhere else where that they have shipped off the contracts to foreign shores. So the renewables potential, which could create highly paid jobs and lower energy bills for everyone in Scotland, is being used to lower bills in Scandinavia, while we pay the highest bills in Europe. That is the work of the Scottish Government—nobody else.
When it comes to child poverty, after 16 years of SNP Government a quarter of Scottish kids are growing up in poverty. All the progress made by the previous Labour Government in lifting millions of people out of poverty has been reversed. Even the Children and Young People’s Commissioner for Scotland said the SNP had “absolutely failed” children and young people. SNP Members may enjoy their rhetoric, but their record of delivery is lamentable.
Their record on public services after 16 years of SNP rule is appalling. Their proposition for an independent Scotland is as economically illiterate as the Conservatives who crashed the economy; it is a proposition that will make the current cost of living crisis look like a tea party in comparison. Despite the SNP’s recent statements—including by their Westminster deputy leader, the hon. Member for Paisley and Renfrewshire South (Mhairi Black), who opened this debate—that they do not want to rid us of this Tory Government, I can assure them and the people of Scotland that a Labour Government will transform the country for every part of our country, because we have credible, fully costed solutions to the cost of living crisis.
The first thing we would do is introduce a proper windfall tax on the oil and gas giants, something repeatedly opposed by the leader of the SNP at Westminster until the polls showed it was popular. [Interruption.] SNP Members chunter again, but the record shows that when we brought to the House our proposition to introduce a windfall tax on the oil and gas sector, the SNP did not support it. Over the last year, the Conservatives have left more than £10 billion on the table which could have been realised by backdating the tax to January 2022, as Labour has been calling for, closing the tax loopholes the Prime Minister helpfully put into his windfall tax and taxing at the same rate as Norway. It is simply not right that oil giants are raking in unexpected billions of pounds off the back of British families. The next Labour Government will put an end to that injustice while the SNP sit on their hands, merely carping from the Opposition Benches.
The money raised from that would help Labour alleviate the pressure on families across Britain and would pay for our plan to help energy-intensive industries such as food manufacturers and processors with the cost of energy, helping to keep down prices in the supermarket. That point was also made by the Minister, although his means of doing that was not the same. We would cut business rates for small businesses, paid for by taxing the online giants, who have raked in huge profits in recent years while our high streets have suffered, and we would reverse the Conservatives’ decision to hand the top 1% of savers a tax break, while introducing specific measures to keep doctors in work. We would close the non-dom tax loophole—much to the frustration of the Prime Minister—and break the Tories’ high-tax, low-growth trap that is breaking our economy.
Listening to the hon. Member for Paisley and Renfrewshire South, it would seem that none of that matters and that we would be just as well off to keep the Tories. I do not agree, I am not sure that her constituents agree, and I am sure that the people of Scotland definitely do not agree. If the new First Minister and the SNP really thought that the people of Scotland were on their side, they would put their game playing to one side and call an election in Scotland so that the people of Scotland could choose their next First Minister. While we are on elections, perhaps the best way to resolve the cost of living crisis would be for the UK Government also to call an election so that we can kick this out-of-touch and out-of-time Government to one side.
Thank you, Madam Deputy Speaker. I will not do it again so that you do not have to interrupt with a sweetie in your mouth.
There are opportunities for SNP MPs to speak throughout the debate, and they have not turned up. Three quarters of them are not here for the debate; they have refused to be here. This is an important debate, and there are lots of issues that we need to discuss, but many other topics could have been chosen by the SNP. When I was waiting for the motions to come in last night, I thought that we might have a debate about what our two Governments can do together to improve the lives of young people in Scotland, because that is a crucial issue. Just this week, we heard that the former Children and Young People’s Commissioner for Scotland, Bruce Adamson, said that the previous SNP leader at Holyrood had “absolutely” failed young people.
I thought that was the most extraordinary thing that we had heard on the subject—and it was until, in response to the intervention by my hon. Friend the Member for Bosworth (Dr Evans), who quoted those comments, the hon. Member for Kilmarnock and Loudoun (Alan Brown) said, “Woo hoo—the big dog.” Is that the official SNP position on the previous Children and Young People’s Commissioner for Scotland rightly being critical of the abject failure of the hon. Member’s party in government for young people in Scotland?
I know that a lot of people down here pretend that they cannot understand what I say because of my accent. It is quite embarrassing if the hon. Member does not understand what I said. I did not say words remotely close to that, so he can withdraw the remarks.
I am happy to give way again to the hon. Member if he will tell us what he was saying about the former Children and Young People’s Commissioner for Scotland. If I have got it wrong, please tell the House what you said.
In a minute.
It is not just the fishers, because Angus is the garden of Scotland and its farmers are subject to the real constraints of Brexit. People talk about farmers as though they are just a guy with a tractor, but modern agricultural enterprise is a vast undertaking involving plant and seed suppliers, as well as any amount of different subcontractors and small businesses, so when I talk about agriculture I am talking about hundreds of small businesses across Scotland, and thousands across the United Kingdom.
My farmers in Scotland are subject to the UK Internal Market Act 2020, for which my colleagues in the Scottish Government would not give legislative consent, because it is so damaging to Scottish agriculture, even before the introduction of the Australia trade deal on top of it, which undercuts with lower standards. That has created a market in which we cannot possibly compete, where they do volume and we do quality. Scottish agriculture is different to English agriculture, which is much bigger. We do not do bulk in Scotland, which gets to the heart of how broken the Union is. Did the UK Government try to construct that system to promote enterprise, jobs and prosperity in agriculture in Scotland? No, they did not. They did it on the basis of their ideology.
Turning back to business investment, where there is a thriving business community, there are jobs and upward pressure on wages. That is what we need to get people out of poverty—
Will my hon. Friend give way to the hon. Member for Edinburgh West (Christine Jardine)?
As parliamentarians, we must be democrats first and foremost. We must accept the democratic decision of the British people in the EU referendum, and we must accept the decision of the Scottish people in the independence referendum; I wish the Scottish National party accepted that. As the Member of Parliament for Hexham, which goes to Carter Bar and the border, I was proud to campaign from Aberdeen to Annan, from the Borders to Edinburgh, to make the case for the Union. I believe we should continue to do so in this place.
It is unquestionably the case that the Government fully appreciate, and are assessing and assisting with, the pressures that households face across the United Kingdom. It is quite clear that these derive from the challenge of high inflation, the impact of covid and the impact of global issues, most particularly Putin’s invasion of Ukraine. That is why we continue to take extensive action to help households. In 2023-24, we have increased benefit rates and state pensions by 10.1% and we will spend around £276 billion through welfare support in Great Britain. We have never spent more in this country on low-income families, the disabled or pensioners.
In respect of the cost of living, the steps we have taken over the last year show that this is a Government that will always protect the most vulnerable. The total support package we have provided to help with rising bills is worth over £94 billion across 2022-23 and 2023-24—that is more than £3,300 per UK household on average. Included in that are the cost of living payments made to over 8 million low-income households, around 6 million disabled people and over 8 million pensioner households last year. There has been a 170% increase in applications for pension credit.
The Government paid out £37 billion in the summer of 2022 and billions in the autumn of 2022, and the Department for Work and Pensions has made cost of living payments worth £2.2 billion so far this year. This year, more than 8 million households will get additional payments of up to £900. Over 99% of eligible households on a DWP means-tested benefit have now received their first cost of living payment during 2023-24 of £301. Over 6 million people across the UK on eligible disability benefits will receive a further £150 disability cost of living payment this summer to help with additional costs. More than 8 million pensioner households across the UK will receive an additional £300 cost of living payment this winter. We have also provided ongoing support with the cost of living through the energy price guarantee, which continues for the summer.
We believe strongly that work is the best way out of poverty, and we have the opportunity through our jobcentres up and down the country to assist people and provide support for them. Whether that is youth hubs for young people, the 50Plus offer, the in-work progression or the massive increase in disability employment, we are progressing and supporting those people who are in work to get better jobs and a better opportunity for the way ahead. That is why we are extending the support our jobcentres offer to low-paid workers so that they can increase their hours and move into better paid, higher-quality jobs.
For those on universal credit, we are increasing the childcare cap to £951 for one child and £1,630 for two or more children. We are paying childcare costs up front when parents move into paid work or increase their hours. We are further supporting working people with the largest ever increase to the national living wage—an increase of 9.7% to £10.42 an hour from this April. That represents an increase of over £1,600 to the annual earnings of a full-time worker.
There has been much criticism of the UK economy, but we have to bear it in mind that the UK has the fourth highest employment rate in the G7—higher than the US, France and Italy. Our unemployment rate remains low at 3.9%. We have more people in payroll employment than before the pandemic, at 30 million. A substantial package of labour market interventions, part of which I have outlined, was announced at the spring Budget. That was a huge boost to our efforts. We see youth unemployment—
As the hon. Gentleman’s colleague said, probably not.
Our record on youth employment is the second best in the G7, our economic inactivity is back at 2018 levels and the number of vacancies has dropped for 10 quarters in a row. We heard much from the SNP during the debate, but there was no talk whatsoever about luxury camper vans worth £100,000, missing auditors or ferries to the Western Isles that do not exist. Presumably those ferries have both the auditors and the camper vans on them. There was no talk of the comment from the Children and Young People’s Commissioner for Scotland that the SNP Government had failed their people; no talk of the 16 years of failure on police, education and health; and no talk of their total abandonment of the oil and gas sector.
We are discussing the cost of living, but the SNP would rather import oil and gas from overseas than support more than 100,000 jobs in the north-east of Scotland and support the businesses that we have there. The truth is that it is in partnership with the Greens, who are closely related to Extinction Rebellion and have stated explicitly that they are anti-economic growth. Why would we import oil and gas when we can address the cost of living with something that is home-grown and supports more than 100,000 in the north-east of Scotland? That is what this Government are doing and what my hon. Friend the Member for Moray (Douglas Ross) is doing, and we should support him wholeheartedly.
We have just passed the 400th anniversary of the publication of Shakespeare’s “Macbeth”—a tale, interestingly, of a husband and wife in Scotland whose misdemeanours finally catch up with them. I am absolutely sure that that has no relevance whatsoever to the present day. I am absolutely sure that the discussion of independence is always
“Tomorrow, and tomorrow, and tomorrow”.
I am absolutely sure that no one in the Chamber today is
“full of sound and fury,
Signifying nothing.”
However, I am absolutely certain that this Government are assisting on an ongoing basis, and I strongly commend the Prime Minister’s amendment to the House.
Question put (Standing Order No. 31(2)), That the original words stand part of the Question.