Alan Brown
Main Page: Alan Brown (Scottish National Party - Kilmarnock and Loudoun)Department Debates - View all Alan Brown's debates with the Scotland Office
(11 months ago)
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John Lamont
I am very disappointed that the hon. Member is belittling these important parts of the Scottish economy and how much they contribute to the economic growth of Scotland through trading with and importing from the rest of the UK. More than half of Scottish firms sell to other UK nations, compared with a UK average of just a third. The success of the Scottish economy is dependent on the rest of the UK market.
Clearly Scottish businesses value seamless access to the UK market too, but that could not be guaranteed under the SNP’s plans to attempt to rejoin the European Union. Make no mistake, Madam Deputy Speaker—I do not underestimate the challenges facing the people of Scotland, but it is simply outrageous to suggest that leaving the EU is responsible for driving those challenges.
To give another example, Germany, Sweden, Portugal and a number of other countries in Europe have all seen food price inflation of more than 20% recently. That is driven by global factors, such as the loss of grain supply from Ukraine and unseasonable weather in places such as Spain and Morocco. Do SNP Members really want us to believe that Brexit is responsible for bad weather, too?
Alan Brown (Kilmarnock and Loudoun) (SNP)
Coming back to the Minister’s opening comments, he complained yet again about the SNP bringing forward a debate. He never seems to agree, whatever debate topic we bring forward. If it is independence, he stands up and says, “Why are we debating independence? We should be debating the cost of living.” Now we are debating the cost of living and he is complaining about that. If he fundamentally disagrees that Brexit is having a negative impact, will he start explaining the benefits that Brexit has given us?
John Lamont
I have not complained about the SNP bringing forward this debate. The cost of living is an issue facing every single one of us in this House and each one of the households and residents we represent here. What I am complaining about is SNP Members laughing and trying to shout down Government Members just because they do not agree with the points we are making. I also disagree with the fact that, when we should be talking about the measures that both Governments in Scotland are taking to address the cost of living, SNP Members choose to talk about independence, rather than anything else. Your obsession—
Alan Brown (Kilmarnock and Loudoun) (SNP)
It is a pleasure to follow the hon. Member for City of Durham (Mary Kelly Foy). I agree with what she says, and she certainly gave the hon. Member for Banff and Buchan (David Duguid) a lesson in what “relatively brief” actually means. I am still reeling from his zinger accusing the SNP of pushing a political agenda. Who knew that politicians advance their own arguments and beliefs? It is news to me.
As always, the Minister said that Scotland has all the powers we need—the typical Unionist mindset. Will he explain to me why Northern Ireland has powers over energy, pensions, the civil service and the welfare state, but Scotland is somehow blocked from having these powers? Why is that? Why does Scotland not have better borrowing powers? There is no way that we have the powers we need. It is a weak Unionist argument.
John Lamont
It is unfortunate that the hon. Gentleman is making comparisons with Northern Ireland, which clearly has a very difficult and very different history compared with Scotland. The history of Scotland cannot be compared to the history of Northern Ireland, thankfully. The point I was making in my opening remarks was that, despite all the levers they have, the SNP Scottish Government are failing to expand economic growth or to look after the most vulnerable in society. They continually blame Westminster and ask for another independence referendum, which frustrates me and my constituents.
Alan Brown
The Minister does not explain why Northern Ireland has these powers and Scotland cannot have them. Of course I recognise the difficulties caused in Northern Ireland by the Democratic Unionist party, his brothers in arms. It would be good if it helped to get the Northern Ireland Executive up and running.
We might have thought that Brexiteers, who claim that Brexit is a good thing, would welcome this motion to set up a new Committee. When the Committee looks at the impacts of Brexit, perhaps it will unearth the Brexit dividends that the Minister and the hon. Member for Banff and Buchan have not been able to explain.
We know that Labour and its Front Benchers are not in favour of the motion, hiding behind the fact that the Committee would be too big for a room in Parliament and would cost too much money—the Minister said that, too. Well, I have an idea: we could abolish the House of Lords and the Committee could sit in there. That would save money, too.
As for the omission of the Education Committee, perhaps we should accept members of the Education Committee—Labour could have tabled an amendment—because that would allow greater insight into the impact on higher education in Scotland of the Tories’ student visa rules and of not being in Horizon for two years. Having members of the Education Committee on a cost of living Committee might be quite helpful.
Labour obviously does not support the Committee because it would expose Labour’s mantra of making Brexit work without rejoining the internal market, rejoining the customs union or restoring the free movement of people. Their mantra is a vacuous statement. Their position, like the Tory position, means continuing labour shortages in the health and social care sector. It means crops continuing to be left unpicked, and it means the home-grown food stock will shrink because farmers will plant less in future. It means continuing rules of origin issues that affect manufacturing in the automotive industry. And it will mean food prices increase further, given the imminent checks that will be made on food imports.
Shane Brennan, the director of the Cold Chain Federation, has said:
“It is crazy that one week the government is holding a crisis meeting in Downing Street to discuss out-of-control food inflation and the next is willing to nod through a multimillion new import tax on EU food imports.”
Meanwhile, despite what Conservative Members have said, farmers will have to compete with Australian and New Zealand lamb imports, thanks to the deal that a former Secretary of State for Environment, Food and Rural Affairs has said was an absolutely duff deal pushed through by the former Prime Minister.
The biggest issue created by Brexit and Tory Government policy is the cost of living crisis, which has too many aspects to quantify and discuss. That is why a cross-party Select Committee would be kept meaningfully busy.
Another great Brexit lie is that energy bills would be cheaper if we left the EU. That one has aged as well as Scotland being told in 2014 that our energy bills could only remain as they were, or be lowered, by staying in the UK. We have acknowledged that the Russian invasion of Ukraine is, of course, the main factor in soaring energy bills, but there is a quantifiable Brexit impact. By leaving the single electricity market and creating a standalone trade and co-operation agreement, the post-Brexit cost of trade in electricity is higher. Energy UK estimates that these arrangements cost more than £1 billion a year, which is added directly to our electricity bills. There is a so-called Brexit dividend: higher energy bills. We were promised that VAT on our energy bills would be cut post Brexit, which is another broken promise that has not materialised.
This is in stark contrast to the 2016 Vote Leave briefing on taking control of energy, which said:
“Because of silly EU rules”—
Vote Leave loved that phrase—
“EU energy regulation will cost the UK economy about £90 billion… Instead of spending money on patients, the NHS has to instead spend millions every year on energy costs.”
Can anybody with any credibility tell us that, post Brexit, the NHS is saving money on energy and other matters? And where is the mythical £90 billion saving we are supposed to see?
Another Brexit dividend and cost impact on both energy and wider goods comes from the drop in the value of the pound. This means higher costs on imported goods, and the fact that oil and gas are traded in dollars means another financial hit for the UK. The EU is moving much quicker to decouple gas and electricity prices, to bring down the cost of electricity, and it has also taken much stronger action to try to combat the US Inflation Reduction Act.
And what do we hear from the Energy Secretary? “Oh, everyone else is 10 years behind the UK, so we do not need to do anything because the US is playing catch-up.” The reality is that investors are looking at moving elsewhere. If the Government will not do anything about it, it will have another long-term impact on the green transition.
The Government argue that they have led the way on renewable energy, and they have been a leading light at some points in the deployment of renewable energy, but the reality is that there have been so many missed opportunities in supply chain development. We are always told that it was the EU that prevented contracts for difference auctions from incentivising UK and local content in the supply chain, which is, frankly, utter rubbish. Over the years, their narrative was always that EU procurement rules meant lowest price only. People said that other countries did not stick to the rules, unlike the good old Brits, and that that hampered us.
We are talking about the same leavers who now want to break international treaties. The reality is that tender assessments can consider wider impacts and quality. More than 20 years ago, I was procuring civil engineering contracts under EU laws, so I have always been well aware that if a robust scoring assessment system is in place, the argument that we need to go only for the lowest price is false.
The notion that the EU is forcing imports from the far east because of competition laws is also palpable nonsense, because that is where so many of the components come from. So it is high time that the procurement process for the contracts for difference auctions suitably incentivises the creation and establishment of a UK-based supply chain. What is the point of talking about energy security when so much of the renewable energy deployment and so many of the ongoing grid upgrades depend on imports and there are waiting lists of years for some of the components?
The UK Government have at least finally acknowledged the need for some change in supply chain development, but they have cut the overall CfD budget for allocation round 5 by 30%, at a time of rampant inflation. That is happening with projects already struggling to hit allocation round 4 strike prices. That is further proof of their saying one thing and doing another. Tidal stream technology needs to be backed; with 80% of its supply chain content being UK based. However, the ringfencing for that has been halved.
Alan Brown
I am sorry, but I am not going to give way.
If we look at Westminster energy policies over the years, we see that the biggest disgrace is the lack of a sovereign wealth fund from oil and gas. Norway has the biggest sovereign wealth fund in the world, and it only started that in the 1990s. That shows what can be done when a country looks after its assets and plans for the future. When Labour came to power in 1997, oil dropped to $12 a barrel. When Labour left office in 2010, the price was close to $100 a barrel. Why was there no creation of an oil sovereign fund then? Where is that legacy of that price increase bonanza that Labour had? It was completely frittered away. Governments of any colour down here take Scotland’s assets and resources and fritter them away, with no long-term planning.
To add insult to injury, we supply the energy, yet those who stay in the highlands and islands help pay for the gas grid, even though, in general, they are not connected to it. They see the renewable energy going south, but they pay a supplement in their electricity bill. They are also more likely to be energy poor. The situation is unbelievable.
Our hands are being tied by being part of the UK. It is time we were able to make decisions for ourselves, like any normal independent country. This Committee, if established, would expose that and the fact that independence, in the EU, is the best way forward for Scotland.
Several hon. Members rose—
The Parliamentary Under-Secretary of State for Wales (Dr James Davies)
I thank Members across the Chamber for their contributions to this debate on the cost of living. We have heard extensive and thoughtful contributions from those on the Front Benches, as well as from an array of Beck Benchers, including my hon. Friend the Member for Banff and Buchan (David Duguid) and the hon. Members for Midlothian (Owen Thompson), for Cynon Valley (Beth Winter), for Coatbridge, Chryston and Bellshill (Steven Bonnar), for City of Durham (Mary Kelly Foy), for Kilmarnock and Loudoun (Alan Brown), for Argyll and Bute (Brendan O’Hara), for Glasgow East (David Linden), for Motherwell and Wishaw (Marion Fellows), and for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry)—I agreed with some of them more than with others.
Although I am pleased that we are having this debate, I emphasise that the cost of living challenges faced by people across the United Kingdom are a global challenge. We are not alone, and countries across western Europe and, indeed, the rest of the world are seeing the same trends, driven largely by Putin’s illegal war in Ukraine, and the aftermath of the covid pandemic—that has been acknowledged by many if not all Members.
The Conservative Government have been taking action to help people by providing cost of living payments. This year, we have provided £900 for households on means-tested benefits, £300 for pensioner households and a £150 payment for people receiving disability benefits. In Wales, those payments have supported more than 400,000 people through some challenging times. In fact, last winter, the UK Government paid almost half of household energy bills through the energy price guarantee and by providing £400 off those energy bills. In addition, last year we provided £650 for households receiving means-tested benefits, £300 for pensioner households, £150 for the disabled, a £150 council tax rebate for households in council tax bands A to D, a 5p cut to fuel duty, which has been extended to 2023-24, and a permanent increase in the amount that someone can earn before national insurance contributions are charged. That is, of course, on top of a 40% real-terms increase in the personal allowance since 2010. Going forward, the removal of the premium paid by those on prepayment meters will save 4 million of the poorest households £45 a year. All in all, the Government’s cost of living support amounts to an estimated £94 billion.
Of course, we as Conservatives believe that work is the best way out of poverty. We are extending the support that our jobcentres offer to low-paid workers so that they can increase their hours and move into better paid, higher quality jobs. In the Budget, we on the Conservative Benches confirmed the biggest expansion of free childcare in living memory. That will reduce costs for parents, who can get back to work, and ensure that a career break does not become a career end. Alongside that, we will see universal credit provide childcare costs up front. We are supporting people with the largest ever increase to the national living wage.
Alan Brown
I thank him for giving way. Rather than just reading his pre-prepared speech, will he answer any of the points raised in the debate? For example, I pointed out that Energy UK has observed that post-Brexit energy trading arrangements are adding £1 billion to our energy bills. What Brexit dividends are offsetting that £1 billion that has been added to our bills?
Dr Davies
I will come to the benefits of Brexit in due course, if the hon. Member will kindly wait.
We have increased the national living wage to £10.42 an hour in recent times, which is an increase of 9.7%. We have also cut the universal credit taper rate and increased the work allowance. We are supporting those on the state pension and those receiving pension credit and working age and disability benefits with a 10.1% uplift to match inflation.
What have the Opposition parties done? The SNP’s motion fails to recognise the support given by the UK Government to people across Scotland and commits instead to spending almost half a million pounds of taxpayers’ money every year on an unnecessary Select Committee. SNP Members say that they want to investigate matters relating to increases in prices, but while we know that global factors are at play, they seem to blame Brexit alone. That is the same Brexit that has enabled us to take back control of our laws, our money and our borders, and the same Brexit that is enabling UK fishermen to catch an additional £146 million-worth of fish a year.