Oral Answers to Questions
Alister Jack Excerpts(1 year, 7 months ago)
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Chris Law (Dundee West) (SNP)
The Secretary of State for Scotland (Mr Alister Jack)
I take this opportunity to congratulate Humza Yousaf on becoming Scotland’s new First Minister. I look forward to working with him. I heard him say that he wanted to put the independence drive into “fifth gear”; I would gently remind him that most Scots actually want him to put it into reverse and to work with the United Kingdom to tackle the issues that really matter to them, such as cost of living pressures and growing our economy.
The devolution settlement gives Scotland the best of both worlds. Scotland benefits from the wide influence and economic strength of the UK, while also enjoying considerable devolved powers in vital areas such as health, education and justice to tailor policies to meet the needs of people in Scotland.
Deidre Brock
In his response to the hon. Member for Blaydon (Liz Twist) on 22 February, the Secretary of State claimed that the Scottish Government had not asked for an exemption from the UK Internal Market Act 2020 for the Scottish deposit return scheme. The Scottish Government have since published the timeline to show that that is incorrect and that the proposal has been under detailed discussion within the resources and waste common framework since last October, with the final detailed case for exclusion presented on 13 February. In the light of that, will he correct the record and apologise for inadvertently misleading Parliament?
Mr Jack
This is an important point and has had a lot of airtime in the media in Scotland. I can say to the hon. Lady that, while officials and civil servants spoke to one another over a period of time, the official request to Ministers came in the inter-ministerial group meeting, which the Under-Secretary of State for Scotland, my hon. Friend the Member for Berwickshire, Roxburgh and Selkirk (John Lamont) was at, on 6 March. That is all minuted. It is a fact, it is on the record and there is no question. The UK Government have published it. The official request was on 6 March. I would also say that the Scottish Government proceeded with a deposit return scheme that small businesses, consumers and others are very concerned about. Even the chief executive of Tesco, the UK’s largest retailer, said yesterday that it is not the right scheme and it is not fit for purpose. They are concerned about it and they are right to be concerned about it. The Scottish Government asked for their UKIM exemption after they put their scheme together. If I were building a house, I would get planning permission and then build my house, not do it the other way around.
Drew Hendry
The Secretary of State knows that the process for gaining an exemption to the United Kingdom Internal Market Act is through developing the appropriate common framework. He also stated that there had been no request by letter from the Scottish Government, yet the Deputy First Minister wrote to the UK Government on 31 January and even received a positive reply on 10 February. Is the problem here that the Secretary of State just has a very selective memory, or is it that he is so busy preparing for his seat in the House of Lords that his office does not bother keeping him in the loop any more?
Mr Jack
Let us be absolutely clear about this: the letter the hon. Gentleman refers to was a letter to the Chancellor about value added tax treatment of the deposit return scheme. The letter mentioned that an exemption request would be coming forward, but the official request was made on 6 March—there is no question about that—and the detailed arguments were laid out on 6 March at the ministerial meeting.
Chris Law
It is not going too well for the Secretary of State, is it? Environmental charities across these islands have written to him, calling on him not to block the Scottish deposit return scheme. We know there are successful schemes across many other countries, and the British Soft Drinks Association, whose members include Coca-Cola and Irn-Bru maker A.G. Barr, called for it to go ahead as planned. What on earth is the future Baron von Jack thinking of when he ignores those calls and threatens to block the scheme—particularly when his own Government and other UK nations will follow Scotland’s lead and introduce their own scheme from 2025?
Mr Jack
I am not sure that there has been much joined-up thinking on the questions here. Again, I have suggested that the deposit return scheme should be paused. I think a UK-wide solution is right; I think recycling is absolutely right. But I agree with the chief executive of Tesco, Britain’s largest retailer, when he says that this is not the right scheme—it will be inflationary. As I have said before at this Dispatch Box, 12 bottles of Scottish water currently cost £1.59 in Aldi, but under the scheme, that would become £3.99 or even higher if a price is put on top. Although £2.40 of that could be reclaimed, the consumer will also pay an extra cost that is put on by the producer—producers have been clear about that.
We met Coca-Cola, which said that 2p on a can and 5p on a bottle would be passed on to the consumer and could not be reclaimed. There are higher figures from other companies, including one small brewer that said it would have to add £1.40 to a bottle of beer on top of the 20 pence. The scheme is inflationary and very bad for the consumer’s shopping basket. That is why I think we need to pause it and get a scheme that works for the whole United Kingdom.
David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)
What a pleasure it is to see you in the Chair for Scottish questions, Madam Deputy Speaker.
I add my congratulations to Humza Yousaf on becoming First Minister of Scotland, and I recognise the inclusive and historic nature of his appointment. Does my right hon. Friend agree that, based on the experience of our constituents, Mr Yousaf will have to up his game considerably in his new role? As Transport Minister, he came to Dumfries in 2016 to hold a transport summit, and seven years later, precisely zero of the commitments given that day have been delivered.
Mr Jack
Not only did Humza Yousaf fail in the transport brief but, as we know from his opponent, who took almost half the vote—48%—he also failed in his other briefs of justice and health.
Bob Blackman (Harrow East) (Con)
I join others in congratulating the new First Minister. The Barnett formula by which money is devolved to Scotland has existed for more than 40 years. Has the Secretary of State received any representations from the Scottish Government about reviewing that formula?
Mr Jack
At the moment, we are in discussions with the Scottish Government about a review of the fiscal framework. That review has been in train for some time, and the conclusions will be coming shortly.
Robin Millar (Aberconwy) (Con)
I, too, congratulate Mr Yousaf on his appointment as First Minister of Scotland. Does the Secretary of State agree that the effectiveness of devolution arrangements was demonstrated in the use of the Scotland Act 1998—section 35 in particular—to block the Gender Recognition Reform (Scotland) Bill, specifically because it impacted on the effective operation of UK law across the UK?
Mr Jack
Yes. I have heard the new First Minister say that it was anti-devolution to block a Bill that had been passed by the Scottish Parliament, but section 35 exists for that very reason. When a Bill is passed by the Scottish Parliament—if it did not pass it, we could not block it—that has adverse effects on GB-wide legislation, section 35 exists to stop the Bill going for Royal Assent so that those adverse effects can be dealt with.
Madam Deputy Speaker (Dame Eleanor Laing)
I call the shadow Secretary of State.
Ian Murray (Edinburgh South) (Lab)
It is great to see you back in the Chair, Madam Deputy Speaker. Welcome back, particularly to Scottish questions.
There has been a seismic victory—an historic victory—this week: the Scotland football team beat Spain at Hampden last night, so we all send our congratulations to them. May I echo the Secretary of State’s congratulations to Humza Yousaf, the new First Minister of Scotland? The Secretary of State rightly challenged Mr Yousaf to engage reverse gear on independence, but I think he may already have crashed that car. The new First Minister of course inherits a divided party and the SNP’s dreadful record on public services, but he does not inherit Nicola Sturgeon’s mandate—at the Holyrood election, the ballot paper said
“Nicola Sturgeon for First Minister”,
not “Humza Yousaf”. Does the Secretary of State agree with me and with Humza Yousaf himself, who rightly called for a UK general election after there was twice a change in Prime Minister last year? Does the Secretary of State agree that a new First Minister with no mandate means that there should now be not only a general election, but a Scottish election?
Mr Jack
There is a precedent for political parties voting in new leaders who then assume office: Henry McLeish replaced Donald Dewar, Jack McConnell replaced Henry McLeish, Gordon Brown replaced Tony Blair, and even Nicola Sturgeon replaced her at-the-time great friend and mentor—her words, not mine—Alex Salmond. It would be hypocritical of me to say otherwise, because last year, of course, I defended the change of Prime Ministers, and it is hypocritical that Humza Yousaf suggested then that we should have an election and there is now deafening silence.
Ian Murray
That answer shows that both the Conservative party and the SNP are democracy deniers. In January—[Interruption.] In January, Madam Deputy Speaker—[Interruption.] They don’t like it up ’em! In January, the UK Government announced that they had signed a memorandum of understanding with BioNTech and Moderna to conduct trials of vaccines that can attack cancer cells. Such innovative treatments could be a lifeline for those with terminal cancers, such as David Williamson from Glasgow, who contacted me and others to plead to be accepted on to those trials. However, David lives in Scotland, and as it stands the trials are due to take place in England only. He has written to both the UK and Scottish Health Secretaries but has failed to receive a response. David does not want to die knowing that there could be a treatment that could help him. Does the Secretary of State agree that potentially life-saving treatments should be available throughout the UK? Will he work to resolve this matter urgently for David and thousands of others?
Mr Jack
This is a very serious issue and my sympathies are with David and his family. I know that he has written to the Secretary of State for Health and Social Care. I am a great believer in our NHS being reciprocal across the United Kingdom and will organisation a meeting for the hon. Gentleman with the Secretary of State for Health and Social Care at the earliest opportunity.
Madam Deputy Speaker (Dame Eleanor Laing)
I call the SNP spokesperson, Dr Philippa Whitford.
Dr Philippa Whitford (Central Ayrshire) (SNP)
I, too, welcome you to the Chair for Scottish questions, Madam Deputy Speaker, and join Labour’s shadow Secretary of State in celebrating Scotland’s win. It is just a pity that people could not watch it on Scottish terrestrial television.
The devolved Governments have led on many innovative policies, such as the carrier bag charge in Wales and the smoking ban and minimum unit pricing of alcohol in Scotland, with the UK Government following years later, if at all. The attacks on the latter policy at the time show that, had it existed then, the United Kingdom Internal Market Act 2020 would inevitably have been used to block minimum unit pricing, which has recently been credited with a 13% drop in alcohol-related deaths in Scotland. Even the EU single market allows policy divergence to improve public health and the environment, so why are there no such derogations in the internal market Act?
Mr Jack
Let me pick up the hon. Lady’s first point, because we do not want the grievance factory to say, as I have seen on social media today, that the English Government blocked people in Scotland watching the game against Spain last night in which we were so victorious—[Interruption.] I said “on social media”. The Scottish Football Association sold the rights to the football match. It was the Scottish FA’s decision.
On the hon. Lady’s second point, there are opportunities for derogations and exemptions within the UK internal market. We did it in the case of plastic cutlery because the same proposal was coming forward in the rest of the UK six months after it was introduced by the Scottish Government. The schemes worked together and a derogation for six months worked. But derogations do not work when there are different schemes in different parts of the United Kingdom, some of which include glass and some of which do not, and when producers have to sign up to different schemes that have a huge cost implication. We do not think that is the right way forward.
Dr Whitford
It is funny how differences in the different nations worked fine before Brexit. One has to wonder why the UK market does not seem able to cope right now. Is the Secretary of State planning to hold back the devolved Governments repeatedly to avoid making his Government look bad? Or is he just going to seek every single chance to attack devolution and enforce Westminster rule?
Mr Jack
I quoted earlier the chief executive of Tesco, the largest retailer in the United Kingdom. In the paper yesterday he made the very good point that there is one drinks industry across the United Kingdom and we should have one solution to the recycling problem.
Robbie Moore (Keighley) (Con)
The Secretary of State for Scotland (Mr Alister Jack)
My assessment is that the Union is strong, as is support for the Union. [Interruption.] Oh yes, strong—very, very strong. People want to see their Governments delivering, and that is what we are doing, from levelling up to tackling the cost of living and working with the Scottish Government on delivering freeports, investment zones and city and region growth deals.
Robbie Moore
Opinion polls clearly show that the people of Scotland want the UK and Scottish Governments to work together to take Scotland forward, rather than going back to the divisions of the past. Does the Secretary of State agree that the new SNP leader should focus on Scotland’s economy, the NHS, schools and creating jobs, rather than going back to another divisive independence referendum?
Mr Jack
My hon. Friend is absolutely right, and I would call on the new First Minister to seize this opportunity to do things differently. Rather than confrontation, let us have collaboration for a change.
Kevin Foster
I am delighted to hear the Secretary of State’s assessment. Does he agree that growing support for the Union shows that people across Scotland are seeing the advantages of working together as we face challenges such as the war in Ukraine and the cost of living crisis, rather than following the separatists’ path of division?
Mr Jack
Indeed. As we have seen with freeports, as we will see with investment zones and as we have seen with city and region growth deals, when we work together, we are truly better together.
Scott Benton
Does my right hon. Friend agree that by extending our cost of living support and taking measures to deliver long-term sustainable growth while reducing inflation, the Chancellor’s Budget strengthened the Union by delivering for all parts of it?
Mr Jack
Yes. The cost of living support package has been a total of £94 billion, an average of £3,300 for every household in the United Kingdom.
Madam Deputy Speaker (Dame Eleanor Laing)
We go to the Chair of the Select Committee.
Pete Wishart (Perth and North Perthshire) (SNP)
Thank you, Madam Deputy Speaker, and it is great to see you in the Chair once again. May I say to the Secretary of State that the Union is in trouble because there is no longer a case for the Union? We know that because a significant number of under-50s now support independence. Could he tell us what the Union’s greatest achievement has been in the past few years? Is it a Brexit that Scotland does not support; is it high-rise energy prices in energy-rich Scotland; or is it being run by a bunch of Tories that most of Scotland rejected?
Mr Jack
I notice that the hon. Gentleman did not quote any opinion polls to me this time. Nor, as he mentions Brexit, did he call for another—[Interruption.] The result was 52% to 48%—[Interruption.]
Madam Deputy Speaker
Order. Scottish questions are very important. There is too much chatting going on, and there are subtleties in the questions and the answers that people are missing.
Mr Jack
Madam Deputy Speaker, I was trying to give the very subtle answer that when the Brexit referendum was 52% to 48%, the hon. Gentleman wanted another referendum. The result of the leadership election was 52% to 48%, and suddenly he is very happy with it. He loves to quote opinion polls to me, but he did not quote any today—I cannot think why. All I would say is that the people of Scotland are seeing the strength of this United Kingdom, whether that is through freeports, investment zones, or city and region growth deals. The desire to stay in the United Kingdom gets stronger and stronger.
Christine Jardine (Edinburgh West) (LD)
It is a delight to see you back, Madam Deputy Speaker, and I hope you enjoyed the football last night and that you are not too hoarse.
I also welcome the First Minister and congratulate him on his elevation to the post, but 13 of the last 15 opinion polls in Scotland have favoured no over yes; the most recent, in The Scotsman, puts support for independence at only 39%; and in a council by-election in my constituency of Edinburgh West, my own party won 57% of the vote and yes parties could barely get 20%. Given those facts, does the Secretary of State think that the new First Minister should focus on the issues that are important to the people of Scotland—the NHS, education and inflation—rather than independence?
Mr Jack
Absolutely. We know from the judgment in November of the UK Supreme Court that the constitution is entirely reserved to the United Kingdom Government, and I therefore ask the new Scottish Government to do the day job: to focus on crime, to focus on drug deaths, to focus on the health service, and to focus on education. That is what devolution is about.
Geraint Davies (Swansea West) (Lab/Co-op)
Oral Answers to Questions
Alister Jack Excerpts(2 years ago)
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Alison Thewliss (Glasgow Central) (SNP)
The Secretary of State for Scotland (Mr Alister Jack)
Scottish National party Members may want independence, but they certainly do not have independence of thought. The UK Government are providing the Scottish Government with a record block grant settlement of £41 billion a year over the next three years. That is the highest spending review settlement since the advent of devolution, and I hope that the SNP will join me in welcoming that, although I will not hold my breath.
Patricia Gibson
So much for “Jackanory”. According to the House of Commons Library, the Scottish block grant was cut by 4.1% this financial year and is set to be cut by a further 6% in the next financial year. That is a two-year real-terms cut of nearly £5 billion. The UK Government repeatedly claim to be increasing the funding for Scotland, but that is clearly not true, so why do the Minister, the Secretary of State and his Government refuse to admit that they have cut the block grant and plan to cut it even further, and when will the Secretary of State for Scotland stand up for Scotland?
Mr Jack
This Secretary of State is standing up for Scotland. The £41 billion settlement over three years was a record figure; it is the highest figure since devolution began and the first grant was agreed in 1999. I am standing up for Scotland, but I recognise that the Scottish Government have tough choices to make. Inflation is affecting the whole world and they will have to make responsible choices. I do not believe that it is responsible for them to cut their public services by £1.25 billion.
Anne McLaughlin
Independent research shows that the Scottish block grant will be cut by £5 billion in real terms over the next two years. What if the Scottish Government have £5 billion less to spend and our councils have less to spend, despite cost and demand going up? Let us consider Glasgow City Council. The city treasurer, Councillor Ricky Bell, said today:
“The consequences of what looks likely to be passed on to Scotland’s public services will be catastrophic and communities, already reeling from 12 years of Tory austerity, are being pushed to the brink of destruction.”
What can he do, other than support independence, to stop those communities being destroyed?
Mr Jack
Supporting independence will certainly not help the finances of Scotland; many independent economists have made that observation. As I said, it is absolutely a choice that the Scottish Government have to make about how they spend their budget. If they need to do so, they have tax-raising and borrowing powers. That is a decision for them, but equally, they have to choose what their priorities are. I would say that keeping £20 million in the budget for an independence referendum that no one wants is not responsible.
Alan Brown
Thanks to Brexit, the UK has the highest inflation in the G7, which has caused an additional £1.7 billion to be knocked off the Scottish budget due to pressures such as energy increases, wage increases and the cost of living. Instead of giving a robotic answer about the biggest budget being awarded—the Secretary of State wrongly stated that Scotland has borrowing powers, which we do not for our revenue budget—will he say what discussions he has had with the Chancellor about additional revenues coming to Scotland to offset the inflationary pressures?
Mr Jack
I must set the record straight: borrowing is available for both capital and revenue, and there is an emergency figure, as was available during covid. The hon. Gentleman raises a point about inflation. Rising energy costs and rising food prices, as a result of Putin’s illegal war in Ukraine, have affected continental Europe and the United Kingdom. This is a global issue. The Bank of England is taking steps, and the Chancellor’s statement will take further steps tomorrow, to stabilise the markets. What we are very clear about is that we have put in place support for people through the household support scheme, the energy price cap and the £37 billion that the Chancellor announced earlier this year. As we have always said, we will protect the most vulnerable in society.
Deidre Brock
Public sector pay increases are a sensible way for a Government to help their citizens with a cost of living crisis, but the UK Government are denying devolved Governments the ability to do that by cutting devolved budgets. Would a better use of public money not be to shut down the Scotland Office propaganda unit and transfer its budget to the Scottish Government to help fund pay rises for tens of thousands of people in Scotland?
Mr Jack
The hon. Lady and I have this discussion on many occasions, because this is one of the points that she is keenest to make in the Select Committee on Scottish Affairs. She knows the answer, which is that the Scotland Office’s spending on its communications pales into insignificance in comparison with the Scottish Government’s.
Martin Docherty-Hughes
The block grant for Scotland covers many of the Government spending priorities that affect the people of Scotland from day to day, such as health, education and local government. However, I am afraid that there are many areas it does not cover, from pensions and most social security to consular services for Scots imprisoned abroad, such as my constituent Jagtar Singh Johal of Dumbarton, who has been arbitrarily detained for five years by the Government of India. We know that the Prime Minister met the Prime Minister of India at the G20 summit. Does the Secretary of State know whether they discussed Jagtar’s detention? If he, as Scotland’s man in the British Cabinet, does not know, why not?
Alison Thewliss
Anti-poverty groups such as the Joseph Rowntree Foundation and the Child Poverty Action Group have praised the Scottish Government for expanding and trebling the Scottish child payment—a watershed moment for tackling poverty in Scotland. Families in Scotland now get £100 every four weeks for each child up to the age of 16, which will have a significant impact. Instead of trying to hamstring such positive anti-poverty activity by cutting the block grant, will the Secretary of State increase spending for Scotland so that we can put it into the pockets of needy families hammered by Tory austerity?
Mr Jack
There has been an increase. As a Barnett consequential, there is an extra £82 million coming to Scotland this year through the household support fund. As a result of the rates cut in England, there is an extra £296 million coming this year. We have devolved some of those benefits, so it is the Scottish Government’s choice how they spend that money.
Douglas Ross (Moray) (Con)
Yesterday, Nicola Sturgeon wrote in the Financial Times that the Scottish Government’s budget this year has
“not received a single additional penny from the UK government.”
The Secretary of State will know that that is completely false. It is another example of this fibbing First Minister, who has recently been forced to correct the official record in the Scottish Parliament for false claims made there. Does the Secretary of State agree that that is a misleading and incorrect quote from Scotland’s First Minister? Will he outline what additional funding has gone from the UK Government to the Scottish Government this year?
Mr Jack
My hon. Friend is absolutely right. As I have just said to the hon. Member for Glasgow Central (Alison Thewliss), the extra funding from Barnett consequentials that is going to the Scottish Government this year from the household support fund is £82 million; it was £41 million last year. The council tax rebate in England has generated another £296 million that is going to the Scottish Government.
Kevin Foster (Torbay) (Con)
In my right hon. Friend’s assessment, did he reflect on what the impact on the Scottish block grant would be if hon. Members on the separatist Benches achieved their ambition of breaking up our United Kingdom?
Mr Jack
My hon. Friend makes a very good point. Scotland is the best-funded part of Great Britain, and there is a Union dividend there of £2,000 per man, woman and child.
Ian Murray (Edinburgh South) (Lab)
The Secretary of State, or should I say Lord Jack-elect, was blindingly loyal to the former former Prime Minister, the former former Chancellor, the former Prime Minister and the former Chancellor over the summer. They crashed the British economy on the back of handing out tax cuts to the richest. The economic crisis was created around the Cabinet table in Downing Street by the people the Secretary of State sits beside, and it will be paid for by working Scots. What price does the Secretary of State think Scottish public services and Scottish working people should pay for his Government crashing the economy?
Mr Jack
First, as I have said in previous answers, we are facing a global economic downturn as a result of Russia’s illegal war in Ukraine. On the hon. Gentleman’s final point, the Prime Minister has made it very clear that he wants to protect the most vulnerable in society.
The hon. Gentleman refers to my previous roles in Cabinet. I do acknowledge that mistakes were made. The Chancellor took immediate steps to restore market stability when he came into his new role.
I am sure that the hon. Gentleman will agree about one other thing. Along with leading economists, we can all agree that the biggest risk to the economy of Scotland is the reckless—[Interruption]—I was just waiting for the temperature to rise—the reckless plans of the Scottish Government.
Ian Murray
It is the reckless plans of both Governments that pose a danger to Scotland, but the point is—and this is what the Secretary of State denies—that it is about not just the last 12 weeks but the decisions of the last 12 years.
A few weeks ago, a constituent came to my surgery in tears. My constituent’s 1.79% five-year fixed-rate mortgage rate was expiring, and the remortgage rate was nearly 6%. That familiar story, which means going from a stable income and affordable bills to the crushing anxiety of being unable to pay for the roof over the heads of one’s family, was totally avoidable, but this Government and Secretary of State chose to ignore the experts, ignore their own officials and ignore independent bodies such as the Office for Budget Responsibility, and the result has been a Tory premium on everyone’s mortgage. Does the Secretary of State think that he and his new Prime Minister should stop refusing to say sorry and give the public an apology, which is the least that they deserve?
Mr Jack
I do understand how concerned people are about their mortgages. Obviously, a number of factors are influencing interest rates, but we are doing all we can to limit those factors and to support the people who need support most at this difficult time.
Mhairi Black (Paisley and Renfrewshire South) (SNP)
It is very concerning to hear the Secretary of State dispute the figures from the House of Commons Library. Let me emphasise that Scotland’s block grant is being cut, our services are being eroded by Tory cuts, the economy is being undermined by Brexit and Scotland, as part of the UK, is facing the deepest recession in Europe. This Government’s response is more austerity, despite Scotland’s rejecting that premise for more than 50 years. Will the Secretary of State and the rest of his disaster capitalist Tories get out of Scotland’s way, stop denying democracy, and allow Scotland to choose its own path out of this nightmare?
Mr Jack
As the hon. Lady knows, the party that is denying democracy is the one that does not accept the result of the 2014 referendum.
Mhairi Black
I would not be here if we had not accepted the outcome of that referendum, and I do not need any lectures on democracy from a soon-to-be-unelected baron. No matter how much this Government deny it, Scotland’s budget is being cut. Let us put independence aside for a moment. Does the Secretary of State think that it is the Tories who are causing Scotland’s demise and short-changing us, or is it this Union institutionally?
Mr Jack
As I have said before, the Union brings a Union dividend of £2,000 per man, woman and child to Scotland. It deals with last year’s deficit of—according to the Scottish Government’s own figures—£23 billion. It is a Union that delivers jobs. As we announced yesterday, it is delivering 4,000 jobs on the Clyde for the building of five type 26 frigates. This is a Union that serves the whole United Kingdom well. At different times, different parts of the United Kingdom pull their weight in different ways, but we are all much stronger together.
Alexander Stafford (Rother Valley) (Con)
The Secretary of State for Scotland (Mr Alister Jack)
I have regular discussions with the Ministry of Defence on matters relating to defence in Scotland. This includes the crucial role of the armed forces presence at our strategic bases in Scotland. RAF Lossiemouth and His Majesty’s Naval Base Clyde are vital to maintaining the security of the United Kingdom and our NATO allies. The defence industry is also vital to Scotland’s economy, and I am delighted to see that the new Type 26 frigates, costing £4.2 billion, will be built by BAE Systems on the Clyde in Govan. This will secure thousands of Scottish jobs for years to come.
Alexander Stafford
The British armed forces are the pride of our nation and represent every corner of our beloved United Kingdom. I am proud that our nuclear deterrent is based at Faslane, with our brave submariners working to keep Britain safe. It is highly regrettable, however, that some would strip us of our nuclear deterrent in Scotland. In an ever more dangerous world, and facing threats from Russia and China, what assurances can my right hon. Friend give me that our base on the Clyde and all other military bases in Scotland are not going anywhere?
Mr Jack
I completely agree with my hon. Friend: our nuclear deterrent plays a key role in protecting every United Kingdom citizen from the most extreme threats and to abandon it would put us all at greater risk.
Mr Speaker
Before we come to questions to the Deputy Prime Minister, I would like to point out that the British Sign Language interpretation of proceedings is available to watch on parliamentlive.tv.
Oral Answers to Questions
Alister Jack Excerpts(2 years, 1 month ago)
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Jeff Smith (Manchester, Withington) (Lab)
The Secretary of State for Scotland (Mr Alister Jack)
I can assure the hon. Gentleman that my Cabinet colleagues and I are committed to ensuring the further success of Channel 4. The Government are determined to support the incredible TV production industry in Scotland, and we believe that in the long run the UK production industry will benefit from a sustainable Channel 4.
Jeff Smith
Channel 4 is a key commissioner for Scottish independent production companies. It spends about £20 million a year on Scottish productions, supporting about 400 jobs in Scotland. Analysis from Ernst & Young says that privatisation could result in £1 billion being lost from the UK’s nations and regions, so for the sake of Scotland’s creative economy, will the Secretary of State make representations to the Secretary of State for Digital, Culture, Media and Sport to follow the evidence and keep Channel 4 in public hands?
Mr Jack
I have had discussions with the Culture Secretary and the previous Culture Secretary. The Government’s position is that we are looking again at the sale of Channel 4, and we will have further details in due course. We want Channel 4 to flourish, and we want independent production companies to flourish and thrive, because we recognise that we live in a challenging and changing media landscape.
Iain Stewart (Milton Keynes South) (Con)
Andrew Bowie (West Aberdeenshire and Kincardine) (Con)
The Secretary of State for Scotland (Mr Alister Jack)
I have held a number of discussions with the Levelling Up Secretary and his predecessors on freeports. This Government are committed to delivering two new freeports for Scotland to boost economic growth. The UK and Scottish Governments will be making an announcement shortly.
Iain Stewart
Five high-quality bids for freeports in Scotland have been received. Only two can be successful in this round. Will my right hon. Friend assure me that he will work with partners in the unsuccessful three so that they can realise their ambitions through other means?
Mr Jack
Before I answer the question, I would like to thank my hon. Friend for his diligent and excellent work in the Scotland Office. He made a huge impact, and I absolutely thank him from the bottom of my heart.
In answering my hon. Friend’s question, the Government are committed to boosting economic growth in all areas of Scotland. We will use all the levers at our disposal to do so, and we will do that in partnership with the Scottish Government, as we are doing with freeports. Hopefully, that will also include investment zones—discussions are ongoing between officials—and I hope that those who are unsuccessful in their freeport bids can apply for investment zone status, which will help them to increase their economic activity, so the answer is yes. Funnily enough, I do not exclude the freeport winners from going for investment zone status, as that is not identical, and there are advantages in their becoming investment zones as well.
Andrew Bowie
Of all the five excellent bids, I know that my right hon. Friend agrees that, given the focus on a North sea revival, the importance of the North sea transition deal to our future energy security, the dynamic and pioneering spirit of business and industry in the north-east of Scotland, and the fact that we will create 30,000 new jobs in my constituency and around the north-east of Scotland, the Aberdeen and north-east freeport bid will be one that he announces as successful.
Mr Jack
I admire my hon. Friend’s enthusiasm for the north-east bid. He is right to be enthusiastic, as he represents that part of Scotland. It is a process, and we are following the metrics, as was done with the English freeports. It is important that we do not make a political decision, and that we make the right decision based on the bids before us. As I say, for those that are unsuccessful, hopefully investment zones will be another route. I have not shown any preference for any bid, and it is right that we do not and do it properly according to the metrics that we set out, because we cannot leave this open to judicial review, which would lead to further delay.
Margaret Ferrier (Rutherglen and Hamilton West) (Ind)
I am glad to hear the right hon. Member say that the Government intend to consider repurposing Scottish green freeports into investment zones. What discussions have been about environmental protection concerns and the removal of EU environmental standards?
Mr Jack
There is a full prospectus explaining all that, which we agreed with the Scottish Government. We have put it out to bid. We have five bids, from Orkney down to the Forth and the Clyde, and they all understand the environmental impacts. A lot of it is about reclaiming brownfield land, which is part and parcel of the levelling-up agenda, and I think everyone understands what has to be done environmentally to reclaim brownfield sites.
Caroline Ansell (Eastbourne) (Con)
The Secretary of State for Scotland (Mr Alister Jack)
We have invested £172 million in Scotland in round 1 of the levelling-up fund, which is around 10% of the total UK funding. In March, we published a monitoring and evaluation strategy for the levelling-up fund. Further updates on the strategy will be published in due course, and results of round 2 will be announced later this year.
Caroline Ansell
That is wonderful to hear. In my beautiful constituency of Eastbourne, we are busy working to ensure that £20 million of Government levelling-up funding is energising and growing the visitor economy. [Hon. Members: “Scotland!”] My question is: how is the levelling-up fund doing the same in Scotland—the land of my forefathers—to ensure that all parts of the United Kingdom can capitalise on and consolidate the staycation market so much born out of the pandemic years?
Mr Jack
My hon. Friend makes an excellent point. Levelling-up measures are all about delivering local priorities and pride in place, which go hand in hand towards creating a sustainable tourist economy. The £150 million community ownership fund is allowing us to put cultural and heritage assets back in the hands of local people across the whole United Kingdom.
Mr Jack
The hon. Member is conflating two issues. The reality is that the levelling-up funds, of which there are £200 million in the current round, are being well received across Scotland. That is real devolution in practice. All local authorities are engaging with the UK Government—and guess what? They are enthusiastic when it comes to applying for money to help local projects.
Allan Dorans (Ayr, Carrick and Cumnock) (SNP)
Deidre Brock (Edinburgh North and Leith) (SNP)
The Secretary of State for Scotland (Mr Alister Jack)
The Scottish Parliament is one of the most powerful devolved Parliaments in the world and we believe that the devolution settlement strikes the right balance. We continue to work collaboratively with the Scottish Government to implement the Scotland Act 2016. This includes passing secondary legislation to deliver the extensive welfare and tax powers granted by the Act.
Allan Dorans
The vast majority of people in Scotland support the continued existence of the Scottish Government. Despite the settled will of the Scottish people for greater autonomy and self-rule, some senior Conservatives—there are Secretaries of State among them—are becoming even louder in their calls for the UK Government to claw back powers from the devolved Assemblies. Will the Secretary of State today commit before the House that the UK Government will not under any circumstances attempt to revoke powers devolved to the Scottish Government?
Mr Jack
Absolutely. In fact, since we left the European Union, we have given more powers to the Scottish Parliament. Actually, whenever asked, not a single Member of the Scottish National party has come up with one power that has been taken away. It is quite the contrary. We have given more powers and will continue to do that, because, let us be clear, we are the party that is strengthening devolution and the SNP wants to destroy devolution.
Deidre Brock
I believe that the EU forecasts that the Irish economy will grow by more than 5% in 2022, showing the real potential for growth that exists for smaller nations that are part of the EU. Meanwhile, on the back of the UK Government’s disastrous fiscal statement, mortgage payments for many Scots are rising dramatically and people will struggle to keep a roof over their heads, let alone to feed and keep themselves warm.
Today, the Office for National Statistics tells us that there was a slump of 0.3% in GDP in August in the UK, before that disastrous event. Why will the Secretary of State and his Cabinet colleagues not accept that their fiddling with devolution while the UK economy burns will never be enough to protect the Scottish people he supposedly represents and accept that an independence referendum has to happen so that the Scottish people can protect themselves?
Mr Jack
You will not be surprised to hear, Mr Speaker, that I think that that is absolute nonsense. This is not the time. A vast majority of Scots do not believe that now is the time for an independence referendum and that is very clear. The constitution is reserved to Westminster—that is in the process of going through the Supreme Court to be determined now. To me it is very clear that the people of Scotland want this Government to get on. The support we gave during covid, with 900,000 jobs furloughed, the support we have given to households and businesses for their energy costs and our helping to grow the Scottish economy through freeports and investment zones: that is what the people of Scotland want.
Douglas Ross (Moray) (Con)
Devolution is about Scotland’s two Governments working together and we have seen the success of that with city and region growth deals and with the progress towards freeports. Does the Secretary of State agree with me that language is also really important? When the First Minister said that she “detests the Tories”, she was insulting—[Interruption.] Cheers are coming from the SNP. She is insulting hundreds of thousands of Scottish Conservative voters when she should be representing the whole of Scotland as First Minister.
Mr Jack
Of course I agree with my hon. Friend. Language is terribly important in politics. We saw the desperate death of David Amess and others before him, and people cannot incite people using words such as “detest”, which, as can be seen in the dictionary, is another word for hate. The irony is that the Scottish Government are bringing forward a hate Bill yet we have language such as “detest”. My hon. Friend is absolutely right to call it out.
Janet Daby (Lewisham East) (Lab)
Debate on the Address
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Ian Blackford
I am very grateful for that intervention, and I agree 100% with what the hon. Gentleman has said; he and I have been talking about that over recent months. There is fantastic potential, not just for the highlands but for the whole of Scotland, to benefit from the industrial revolution that will come from the opportunities in green energy. We need to make sure that we learn from the lessons of the past and that we are able to capture that supply chain. If we go back to the 1970s, Nigg was a thriving industrial base, with thousands of jobs in that community supporting the oil industry.
I know the hon. Gentleman, like me, wants to see the highlands and islands being a thriving area with an industrial future, but we need the UK Government to help us on that. I look forward, together with him, to having discussions with the Government on exactly how we take that forward.
Ian Blackford
I can see the Secretary of State for Scotland nodding, so perhaps we can discuss that over the coming days.
Since the start of this year alone, we know that the UK Government have profited by at least £1.7 billion from the revenues brought in from North sea oil. All that revenue from Scotland’s resources, and still this UK Government refuse to match the Scottish Government’s £500 million just transition fund to help to ease reliance on fossil fuels. Still there is no commitment to carbon capture and storage in Scotland’s north-east. Not only are this Westminster Government harming our planet, but they are holding Scotland back.
Oral Answers to Questions
Alister Jack Excerpts(2 years, 11 months ago)
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Steven Bonnar (Coatbridge, Chryston and Bellshill) (SNP)
The Secretary of State for Scotland (Mr Alister Jack)
We remain focused on delivering for Scotland within a strong United Kingdom. This can be seen by the scale of our investment, with more than £191 million of UK Government funding being invested directly in community projects across Scotland. This is real devolution in action.
Steven Bonnar
People in Scotland have rejected the Tories for the past 50 years. We decisively rejected the Prime Minister’s Brexit projects, and we rejected them once again at the last election. Some 65% of people in Scotland say that the Prime Minister is totally corrupt and 65% of people in Scotland also believe he should resign. Given that this coincides with a surge in independence, with more than half of the population in Scotland now supporting independence and the Scottish National party, does the Secretary of State agree that the corruption of the UK Government is driving Scots away from the Union? If he were truly interested in saving the Union, should he not be joining the rest of us in calling for the PM’s resignation?
Mr Jack
I will stick to the question, which is what we are doing to deliver for the people of Scotland, and I am delighted to answer that question. I will give the hon. Gentleman one example: with the Union connectivity review, there are huge opportunities to improve transport links between Scotland and the rest of the United Kingdom, and I am dismayed that Members on the Opposition Benches refuse to support that.
Ian Murray (Edinburgh South) (Lab)
May I pay tribute to my hon. Friend the Member for Ogmore (Chris Elmore), who has left the shadow Scotland team and been significantly demoted in my view to the ministry of fun? I thank him for everything he did in that role. I welcome my hon. Friend the Member for Blaydon (Liz Twist). I do not know what she did in her previous life to deserve it, but she will, as the House has already seen this morning, be wonderful in her new role on the shadow Scotland team, and we welcome her very much.
Every day, there are more and more revelations about the Prime Minister and this Government breaking their own lockdown rules. It truly is one rule for them and one for the rest of us. As the country cancelled Christmas last year, the Prime Minister had a party or three. The Government have lost all moral authority to lead this country, with scandal, sleaze and cronyism writ large. The Scottish Conservative leader was asked three times in the media at the weekend whether he could think of any positive attribute for the PM, and even he could not answer. Can the Secretary of State think of any positive attribute for the Prime Minister? Can he tell me any reason why this morally bankrupt Prime Minister is not a bigger threat to the Union than any nationalist?
Mr Jack
Absolutely, without any difficulty, I can. The Prime Minister is a man of optimism, he is a man of vision and he is a man who delivered the trade deal running up to Christmas last year when no one said he could. He showed courage. He showed foresight in investing in the vaccine development, and he has gone on to deliver the fastest vaccine roll-out in Europe.
Ian Murray
I congratulate the Secretary of State on his reading ability, and I notice that he did not use the word “honesty”—there’s a surprise. I know the Secretary of State has cancelled his own Christmas party this year, so I look forward to seeing the photographs from it in the press shortly.
A major strength of the Union is of course the pooling and sharing of resources. The First Minister has announced a raft of new covid guidance this week that has devastated the hospitality trade. At the same time, she has offered pitiful financial support and criticised the UK Government for not providing funds. Such sectors want our two Governments to work together: they need our help. A hospitality business in my constituency sent me an email last night, saying:
“my customers have been driven away so we won’t survive these latest restrictions without government support. We always need a good festive season to see us through the winter. Where is the financial support?”
Why can the UK and Scottish Governments not work together to provide the financial support that these hospitality businesses deserve and need?
Mr Jack
The hon. Gentleman makes a very serious point. Hospitality is under a lot of pressure across the United Kingdom, not least in Scotland. The Treasury announced yesterday afternoon, just ahead of the First Minister’s statement, that we were giving the Scottish Government certainty over their finances, and that is the first point I would make. What the Scottish Government have failed to do is set out what measures they believe are right for Scotland and how much these would cost, and that is an important thing to understand. They have also failed to explain how they cannot afford to act on their own, given that they have a record settlement this year of over £41 billion of block grant—the highest block grant settlement in real terms since devolution began.
Mhairi Black (Paisley and Renfrewshire South) (SNP)
Following on from the shadow Secretary of State, could I ask the Secretary of State whether he was invited to any of these parties in Downing Street and whether he had any knowledge of these parties?
Mr Jack
If the hon. Lady had been at the Scottish Affairs Committee last Monday, when I was one of the witnesses—or if she had read the briefing from that—she would know that I was asked that question by the Chairman, the hon. Member for Perth and North Perthshire (Pete Wishart), and I answered very clearly that, first, I had no knowledge of the parties, and secondly, I was not at any of them.
Mhairi Black
I am sorry for the floundering social life of the Secretary of State, but if I could, I will move on to the point that my hon. Friend the Member for Coatbridge, Chryston and Bellshill (Steven Bonnar) made. We talk about the Prime Minister’s vision, but does that vision not go against what the majority of people in Scotland voted for, given that they are against Brexit, the majority are against the Prime Minister and they are against the Conservatives? So is it not the case that the best chance this Prime Minister has of saving the Union and rebuilding trust in our covid response is by resigning?
Mr Speaker
Order. I am going to allow that, but we really need to be within the scope of the question. It is party politics, and I do not want us to get into that, but it is Christmas, so I am sure the Secretary of State will want to answer.
Mr Jack
You are right, Mr Speaker. I would say again to the hon. Lady, if we are talking about majorities, that the First Minister failed to get a majority in May. Let us be clear that less than a third of Scots voted for her in May. Our focus, and the Prime Minister’s focus, is on fighting this pandemic and then recovery from this pandemic, and on bringing forward great things for Scotland, such as the Union connectivity review, freeports and investing directly with local authorities structural funds.
Dr James Davies (Vale of Clwyd) (Con)
Andrew Jones (Harrogate and Knaresborough) (Con)
The Secretary of State for Scotland (Mr Alister Jack)
My ministerial colleagues and I regularly discuss oil and gas with fellow Government Ministers and stakeholders. The oil and gas industry is hugely important to north-east Scotland, and most recently the Under-Secretary of State for Scotland, my noble Friend Lord Offord attended the North Sea Transition Forum, alongside the Minister for Energy, Clean Growth and Climate Change, regulators, and representatives from the oil and gas industry.
Andrew Jones
I thank my right hon. Friend for that answer. In the transition period to our net-zero future, we will still need oil and gas for domestic use. What role does the Secretary of State see for UK domestic production to meet that need, because the Scottish economy is well poised to deliver it?
Mr Jack
My hon. Friend is right: we will continue to need oil and gas as we transition to net zero. Developing our own supplies reduces reliance on imports that are produced to less rigorous environmental standards. It will also protect jobs in our oil and gas sector during our transition. Comments by the Scottish Government on this have been, by turn, disgraceful and depressing. As Sir Ian Wood, one of the most respected authorities in the industry said, those Scottish Government Ministers are creating an “adverse investment environment”, to which I would add only this: careless talk costs livelihoods.
Richard Thomson (Gordon) (SNP)
Is the Secretary of State aware of the evidence given to the Scottish Parliament’s Net Zero, Energy and Transport Committee by Professor Stuart Haszeldine, who said that there was no advantage to the Acorn project having been given reserve bidder status, as that merely means “a lot of meetings”, and requires companies to
“run on the spot with very little or no funding”?
Is the professor wrong in his assessment, and if so, would the right hon. Gentleman be good enough to tell us why?
Mr Jack
Acorn is the reserve for this round, and we would like it to be expedited in the next wave. We have met many of the stakeholders involved in the project, and they have agreed that if we can accelerate it to 2023, they can improve the bid and the Government can include it in the next wave. That is very much our focus.
Andrew Bowie (West Aberdeenshire and Kincardine) (Con)
Does my right hon. Friend agree that the complete abandonment of north-east oil and gas workers by the First Minister of Scotland is an absolute disgrace? She did not call for an end just to Cambo; it was to all further exploration in the North sea. Will the Secretary of State confirm that this Government stand full square behind the industry and workers in the north-east, unlike the Scottish Government?
Mr Jack
I would add that the remark of the First Minister’s Minister, the Green party MSP, who said that only “hard-right extremists” want to explore oil, was also disgraceful. Even when we get to 2050, we will need oil for 20% of our power, and we will need gas for 15%, and for producing blue hydrogen. We will need that oil not just for power, but for important things such as the petrochemicals industry and for making instruments for the NHS. It is ridiculous to think that we can just turn off the taps and not destroy our economy.
Stephen Flynn (Aberdeen South) (SNP)
This is not just about what we extract from the North sea; it is also about what we put back in. That is why the Acorn project is fundamental. The Secretary of State mentioned Sir Ian Wood and his views on the oil and gas sector, but he will also be cognisant of Sir Ian Wood’s views about his Government’s decision to turn their back on Acorn. Will the Secretary of State finally admit to regretting the decision of his colleagues?
Mr Jack
I have discussed this matter with Sir Ian Wood, and I do not think the hon. Gentleman reflects his views fairly. Sir Ian Wood understands and agrees with us that the bid can be improved. To be clear, the difference between Acorn and Humberside, Teesside and Merseyside, was that Humberside, Teesside and Merseyside have a huge hinterland of industrial carbon. Acorn was bringing the carbon from all parts of the UK and/or Europe to make the bid work. We are working on how to get more industrial carbon into the project, to make it more viable and to expedite it for 2023.
Scott Benton (Blackpool South) (Con)
Tom Randall (Gedling) (Con)
The Secretary of State for Scotland (Mr Alister Jack)
My office and I have regular discussions with the Ministry of Defence on all matters relating to defence in Scotland, including the latest plans to modernise and restructure the Army. I was pleased that the review included plans for the Army to expand its footprint in Scotland; it is going from six to seven units, and Scotland will have a greater proportion of the Army than today.
While I have the opportunity, I would also like to thank our fantastic British armed forces who are currently supporting the booster programme in Scotland. The Secretary of State for Defence announced yesterday that a further 100 military personnel will support the vital booster campaign, and today the MOD has announced that another 80 medics are going to three NHS boards in Scotland. That means that over 400 military personnel are supporting Scotland’s health services.
Scott Benton
Does the Secretary of State agree that the “Future Soldier” paper shows just how important defence is to Scotland and Scotland is to the defence of the UK and our allies, and does he share my enthusiasm that it delivers £355 million-worth of investment in the Army estate in Scotland?
Mr Jack
Absolutely. Scotland plays a vital role in the defence of the UK. The Army’s future soldier restructuring programme is great news for Scotland. Not only will it deliver £355 million of investment in the Army’s Scottish estate, as my hon. Friend pointed out, but Scotland will gain a major unit and, as I said, we will see a greater proportion of the British Army in Scotland.
Tom Randall
Soldiers from Scotland have had a central role in the armed forces over many centuries, from the charge of the Scots Greys at Waterloo, to the western front, to helping roll out our vaccine programme. Can my right hon. Friend assure me that that proud central role will continue as strongly as ever in Scotland following any restructuring?
Mr Jack
Under the future soldier review, the Army’s footprint in Scotland will be stronger than ever, recognising the immense contribution that Scottish servicemen and women make to the British Army. I am pleased that Scottish troops will continue the tradition, and they will lead the new Ranger Regiment, deploying alongside partner forces to counter extremist organisations and hostile state threats.
Chris Elmore (Ogmore) (Lab)
The Secretary of State for Scotland (Mr Alister Jack)
The Budget and the spending review provide the largest annual block grant to the devolved Administration in Scotland since the Scotland Act 1998. Throughout the pandemic we have provided significant support, including through our furlough and self-employment schemes and additional support to businesses, on top of an extra £14.5 billion for the Scottish Government. We are also investing in new local infrastructure and regeneration projects through the levelling-up fund and community ownership fund, alongside the existing £1.5 billion investment in Scottish city and growth deals.
Chris Elmore
The Scottish Budget last week should have marked the start of an ambitious recovery plan for Scotland, but instead it is a missed opportunity that will not deliver the recovery Scotland needs. Similarly, the UK Government’s Budget offered tax cuts for bankers on business class flights but nowhere near enough for hard-working families across Scotland and the rest of the UK. Does the Secretary of State accept that both the Scottish and UK Governments must go further so we can get the economy firing on all cylinders?
Mr Jack
I accept that both Governments need to work together—the hon. Gentleman is absolutely right about that—but the UK Government are doing their bit, with a block grant of £41.3 billion, £4.6 billion higher than last year and the highest since devolution began; £14.5 billion of covid funding since the pandemic began; a furlough scheme supporting over 900,000 jobs in Scotland, and grants and loans to businesses totalling over £4 billion. The UK Government are doing exactly what they need to do to support the Scottish economy.
Sally-Ann Hart (Hastings and Rye) (Con)
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Kirsten Oswald (East Renfrewshire) (SNP)
The Secretary of State for Scotland (Mr Alister Jack)
This is an incredibly significant week for the whole planet, as countries from around the world gather in Glasgow to negotiate on climate action. We are facing a climate emergency, with no time to lose; we must keep 1.5° alive. I am sure that the whole House will join me in urging all countries at COP to make a real commitment to change. I know that we will all want to take this opportunity to thank Police Scotland for working so hard to ensure a safe and secure COP26. It is supported in that by 7,000 police officers from other UK forces. I am very pleased that the UK Government have brought COP26 to Glasgow, and I am sure the city will receive a long-term boost from being in the world spotlight.
The UK Government have agreed a deal with the EU that fully delivers for Scotland and the rest of the UK. Our deal provides Scottish businesses with exceptional access to EU markets. It is the first time the EU has ever agreed a zero-tariff, zero-quota deal. I regret that the SNP refused to support that deal.
Kirsten Oswald
Brexit-induced labour shortages are having a real impact on several sectors of the Scottish economy, with social care, hospitality, and food and drink among the worst hit. For some, the impact has been catastrophic, with up to a third of Scotland’s harvest of some crops left to rot in the fields. Those are the direct consequences of this UK Government’s hard Brexit deal and their ideological decision to abruptly end freedom of movement. The Secretary of State knows that, and he knows that the EU provided over €1 billion in Brexit support to Ireland, so will he back Scotland’s employers and support a compensation fund to mitigate the Brexit damage inflicted on Scotland against our will?
Mr Jack
The hon. Lady will know that I backed the increase in the seasonal agricultural workers scheme from 2,500 to 30,000. The National Farmers Union of Scotland is well aware of that; I led on those negotiations. She will know that the EU settled status scheme has been successful. We were told that fewer than 3 million people would apply but in fact over 6 million have applied. Some of those workers have remained in their countries; they can come to the UK freely, as she knows, but they remained in their countries during the pandemic, and the pandemic has been a factor. We also have the shortage occupations list, which creates lower salary requirements for skilled workers. This Government are doing everything they can, but we have to recognise that there is a pandemic effect on labour shortages at the moment.
David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)
The Secretary of State will be aware that the principal export market for most businesses in my constituency is in England. Does he share my frustration that the Scottish Government, rather than supporting those businesses with exports to other parts of the United Kingdom, continue to pursue an independence agenda, which could only mean more barriers for those businesses?
Mhairi Black (Paisley and Renfrewshire South) (SNP)
The Secretary of State will remember that Scotland voted to remain part of the European Union, and that despite every compromise offered, this Government ploughed ahead with Brexit, knowing full well the damage that it would do to Scotland and that it was against the wishes of the people in Scotland. Now, the Office for Budget Responsibility has projected that the UK’s economy will be 4% smaller because of Brexit, and Her Majesty’s Revenue and Customs found that Scottish exports were actually higher last year, during the height of the pandemic, than they are this year, after Brexit.
I know that the Secretary of State mentioned the pandemic, but that means that Brexit is having a worse impact on Scottish exports than the pandemic. Although he could have fooled me with his lack of mask, Mr Speaker, I am going to presume that the Secretary of State is not in favour of the pandemic and its effects. Given that the effects of Brexit are worse, why does he support it?
Mr Jack
The hon. Lady quotes the OBR. Actually, the OBR prediction was for economic growth to be 4% in March. The reality is that it has corrected that, and its prediction is now for economic growth to be 6.5% in 2021 and 6% in 2022. Actually, our economy is recovering strongly, and it is the fastest-growing economy in the G7.
Mhairi Black
This alternative reality is an international embarrassment. As my hon. Friend the Member for East Renfrewshire (Kirsten Oswald) already mentioned, the EU provided over €1 billion to Ireland as a Brexit compensation fund to combat its effects. Since we know that Brexit is damaging Scotland’s economy and since this place clearly thinks itself so superior to the EU, without mentioning existing funds can the Secretary of State tell us when Scotland will receive its Brexit compensation fund and how much will be in it?
Mr Jack
We have just had a Budget where the Chancellor has given £41 billion in the block grant, up £4.6 billion and the largest ever block grant received by the Scottish Government since devolution began in 1998. On top of that, this week there was almost £200 million in structural funds support through the levelling up fund, the community renewal fund and the community ownership fund. More money is going into Scotland than ever before to support Scotland as we go through the pandemic. It is a matter of enormous regret that last night, when the Budget vote took place, the SNP did not support all that extra funding for Scotland.
Douglas Ross (Moray) (Con)
The EU announced earlier this week that it would be removing the tariffs on American whisky, in a further de-escalation of the trade dispute between the US and the EU. Clearly, there has already been positive news for the Scotch whisky industry with the five-year suspension, but will the Secretary of State work with me to encourage the UK Government to remove all tariffs on American whisky, which would further support the distillers in Moray and the industry across Scotland?
Mr Jack
My hon. Friend makes a very good point. I know that there are over 40 distilleries in his constituency, so I understand why he feels very strongly about this issue. I agree with him. We were successful in taking the 25% tariff away, but it needs to be removed completely and not just suspended for a number of years. The way to do that is for us to also remove our tariffs on bourbon. I would be very happy to meet him to discuss that.
Pete Wishart (Perth and North Perthshire) (SNP)
Brexit has been nothing other than an unmitigated disaster for Scotland. We now have food shortages, labour shortages, businesses unable to export their products and food rotting in the fields. Is it not about time, instead of all this mealy-mouthed nonsense, that the Secretary of State got to his feet and apologised to the people of Scotland for dragging our nation out of the European Union against its national collective will?
Mr Jack
I simply do not recognise what the hon. Gentleman says. We have been through the pandemic and it is far too early to say what any impacts are to make predictions, but what we do know is that our economy is growing. We are doing fantastic trade deals around the world, which will benefit the Scottish economy, and Scottish food and drink. He just needs to get positive about that: stop talking down Scotland’s businesses, stop talking down Scotland, and start to get optimistic about the opportunities we face.
Mr Speaker
May I just gently say to Ministers that they are meant to speak through the Chair? That was becoming a very personal battle and I am trying to not allow that.
The Secretary of State for Scotland (Mr Alister Jack)
The UK Government’s commitment to shipbuilding in Scotland is unwavering. Over the past 15 years, we have delivered: six Type 45 destroyers, launched from the Clyde; two aircraft carriers, assembled at Rosyth; five offshore patrol vessels, built on the Clyde; and we have ensured a bulging order book for the future—eight Type 26 frigates have been ordered, with three of them already under construction on the Clyde, and five Type 31 frigates have been ordered and are destined for Rosyth.
Sarah Atherton
I am pleased that the first deal has been cut for the Type 31 frigate, HMS Venturer, which is being built at Rosyth. With the fleet’s construction due to support 1,250 jobs and 150 apprenticeships, does my right hon. Friend agree that such projects are integral to the Union?
Mr Jack
I absolutely agree: the shipbuilding industry makes a huge contribution to strengthening the Union. It directly supports UK security and prosperity, and it supports 25,200 jobs across the UK and 7,000 direct jobs in Scotland. I was fortunate to visit BAE Systems in Govan recently and I met the excellent workforce building HMS Glasgow; I am assured that she will be a very fine ship.
Jack Lopresti
Does my right hon. Friend share my disappointment that Scotland’s state-owned shipyard could not even compete for a Scottish ferry building contract, and does he note that the Scottish Government’s failure may cost many shipbuilding jobs?
Mr Jack
I do share my hon. Friend’s disappointment that the Scottish Government-owned shipyard was unable to compete in the tenders for two new ferries for Scotland. That disappointment is shared by the whole of Scotland, particularly island communities, who are suffering every day as a result of the SNP’s self-inflicted ferry fiasco.
Alan Brown (Kilmarnock and Loudoun) (SNP)
The Orbital O2 tidal generator was the first marine vessel launched from Dundee in 40 years. Wave and tidal offer massive opportunities for the wider maritime industry in Scotland. All that is required for these technologies to scale up is a ring-fenced pot of money in the forthcoming contracts for difference auction. Will the Secretary of State, given his power, raise this with the Department for Business, Energy and Industrial Strategy to make sure that that happens? I would be happy to meet him.
Chris Elmore (Ogmore) (Lab)
In 2019, the Scottish Government took shipbuilding company Ferguson Marine into public ownership. The yard was supposed to deliver two ferries by the end of 2019 at a cost of £97 million. The ferries still have not been delivered and the total cost has ballooned to more than double the original budget, leaving islanders without new ferries and taxpayers footing the bill. As we have just heard, rather than now using the shipbuilder to build more ferries, they are sending the contracts abroad to create jobs in other countries. Does the Secretary of State think that that represents value for money for Scottish and UK taxpayers? If he does not, will he raise the issue with Scottish Ministers, because taxpayers really do deserve better?
Mr Jack
The hon. Gentleman makes a very good point. The Scottish Government’s incompetence in this area has cost the taxpayer very, very heavily. Eleven organisations responded to the original procurement process. The three chosen to tender were shipyards in Romania, Poland and Turkey. I would have preferred the Scottish Government to show some loyalty to UK shipyards, even if their own one could not fulfil the contract.
Duncan Baker (North Norfolk) (Con)
Greg Smith (Buckingham) (Con)
The Secretary of State for Scotland (Mr Alister Jack)
I have frequent conversations with Cabinet colleagues about maintaining and strengthening the devolution settlement and ensuring that the Government’s focus is on delivering for Scotland. It is important that all legislation clearly reflects the competence and roles of Scotland’s two Parliaments and two Governments.
Greg Smith
Does my right hon. Friend agree that the key issue here is the need for the Scottish Government to exercise their existing powers more effectively, rather than asking for new powers or seeking to go outside the realms of the Scotland Act 1998?
Mr Jack
As my hon. Friend will know, we routinely engage with the Scottish Government on the use of devolved powers. It is in the interests of citizens across the UK for both Governments to operate within their respective powers, as set out in the Scotland Act. That is why I informed the Deputy First Minister back in March that I felt that the United Nations Convention on the Rights of the Child (Incorporation) (Scotland) Bill and the European Charter of Local Self-Government (Incorporation) (Scotland) Bill contained clauses that were outside the competence of the Scottish Government. Sadly, our warnings and suggestions for changes to the Bills were ignored, so our Law Officers referred the relevant clauses to the Supreme Court. The Court agreed with our views on every count. I hope that the Scottish Government will in future work with us to ensure that their Bills respect the devolution settlement, so that we do not waste any more time and money when enacting important legislation.
Kenny MacAskill (East Lothian) (Alba)
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Douglas Chapman (Dunfermline and West Fife) (SNP)
The Secretary of State for Scotland (Mr Alister Jack)
Let me start by saying that the Scottish athletes of Team GB have returned triumphant from the Tokyo 2020 Olympic games with a record total of 14 medals, surpassing the 13 medals won by Scottish athletes at both the London and Rio Olympics. At the Paralympic games, the Scots of ParalympicsGB won an impressive 21 medals. I congratulate every athlete who competed. I also congratulate the Scottish football team on their victory in Vienna last night.
I regularly discuss a wide range of topics with Cabinet colleagues, including transport and the Union connectivity review. There are of course merits to any direct ferry services from Scotland. I understand that discussions for a new service to mainland Europe have been taking place for some time.
Douglas Chapman
I endorse the comments of the Secretary of State on the Olympic and Paralympic teams, and the tartan army result last night; I am absolutely delighted with second place in the group at the moment, but let us go on to be first and get qualification.
The Secretary of State will be aware of recent dismal export figures in the wake of Brexit, the need to reduce lorry miles to help us get to net zero and the current HGV driver crisis that make up the hat-trick of events that would seem to make the need for a ferry service from Scotland to mainland Europe almost self-evident. However, there are barriers, including the commitment of Border Force to provide the resources and personnel to support that new route. Next week, we celebrate London International Shipping Week—
Mr Jack
I think the hon. Gentleman is requesting a meeting, and I would be happy to meet him. As he knows, the ferry service between Rosyth and Zeebrugge ran from 2002 to 2018, but from 2010 was not a passenger service. We would want any service that comes forward to be economically viable.
Martin Docherty-Hughes (West Dunbartonshire) (SNP)
Patrick Grady (Glasgow North) (SNP)
The Secretary of State for Scotland (Mr Alister Jack)
My assessment continues to be that the United Kingdom is the most successful political and economic union that the world has ever seen. It is the foundation on which all our citizens and businesses are able to thrive. The United Kingdom Government are committed to protecting and promoting the strengths of our United Kingdom.
Stephen Flynn
The helping hand of the Union has left Scotland with no oil fund. It sees our renewables projects pay the highest grid charging levies in the entirety of Europe. In 2015, we saw the scrapping of plans for a carbon capture and underground storage plant in Peterhead, so I am simply seeking reassurance from the Secretary of State that the Acorn project will be one of two clusters to receive backing from his Government next month.
Mr Jack
As the hon. Gentleman knows, that is under review. We want Acorn to be one of the tier 1 projects, and we are pressing for that. I think he should press for his colleagues and his Government in Scotland to support the oil and gas industry.
Patrick Grady
How is the Union strengthened by the increasingly divergent franchises on these islands? Scotland’s Parliament was elected in May with an electorate including 16 and 17-year-olds, refugees and EU nationals, while his Government’s Trumpian Elections Bill wants to suppress and restrict voter turnout. Surely that only increases the legitimacy and mandate of the Scottish Parliament and the Scottish Government, and makes this place even more detached from voters in Scotland.
Mr Jack
I think the coalition with the Greens shows very clearly to everyone that one thing that the SNP failed to achieve in May was an outright majority.
David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)
“Shameful” and “disgrace” are words that Nicola Sturgeon likes to bandy at her opponents, but they truly apply to her announcement yesterday that while Scotland continues to have some of the worst covid rates in Europe, she is diverting resources into another divisive independence referendum. Will my right hon. Friend confirm that the focus of this Government will be to work constructively across the United Kingdom to defeat covid, save jobs and restore our economy?
Mr Jack
My right hon. Friend is absolutely right. Our focus is on rebuilding our economy. Our focus is on restoring our NHS. I think most right-minded Scots would agree that using civil service resources to design a prospectus for independence is the wrong thing to be doing at this time.
John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)
Over the summer, new data published by the SNP Scottish Government showed the Union dividend to be worth £2,210 a person in Scotland. Does the Minister agree that those figures simply confirm the benefit of Scotland remaining at the heart of a strong United Kingdom?
Mr Jack
I absolutely would agree with my hon. Friend. I would add that the recent “Government Expenditure and Revenue Scotland” reports in August showed that the deficit last year for the Scottish budget was £36.3 billion. That is more than the Scottish Government spend on education, housing, transport, culture and health.
Tommy Sheppard (Edinburgh East) (SNP)
We know that for the past two years, the Government have been spending taxpayers’ money researching public opinion in Scotland on the state of the Union. For two years, I have been trying to get answers as to what that research says. For two years, the Cabinet Office has refused, including appealing to the court of law and bringing in outside consultants to fund its case. Is it not time, if the Secretary of State believes so much that the Union is such a wonderful thing, for him to tell us what he has found out about what Scottish people think about the state of the Union and publish this research?
Mr Jack
As I have said before at this Dispatch Box, that is a matter for the Cabinet Office, and I suggest the hon. Gentleman raises it at Cabinet Office questions.
Alun Cairns (Vale of Glamorgan) (Con)
Will the Secretary of State update the House on the scale of the additional financial resource that Scotland received as a result of the covid pandemic? Does he agree that it is the strength of the UK balance sheet that allows the UK Government to support every part of the United Kingdom in times of crisis?
Mr Jack
I absolutely agree with my right hon. Friend. The strength of support was over £14 billion during the covid crisis, and the furlough support helped 900,000 jobs in Scotland at the height of the pandemic, which is nearly a third of the Scottish workforce.
Ian Murray (Edinburgh South) (Lab)
May I join the Secretary of State in congratulating our Olympians and Paralympians on their wonderful medals haul in Tokyo? May I also congratulate the Scottish football team on a marvellous result last night? However, he knows, as all Scots do, that it is the hope that kills you, so let us not celebrate too much.
Our shared social security system is vital to underpinning our Union, but by the next Scotland questions the Government will have made the largest ever overnight cut to social security for those in work by removing the £20 from universal credit. Citizens Advice Scotland says that more than half those people are worried about being able to buy food. At the same time, the Government have broken another promise and want to increase national insurance with the highest tax rise in 40 years. The Joseph Rowntree Foundation says that about 150,000 working families on low incomes in Scotland will pay an average of £100 extra in tax while losing £1,000. What advice does the Secretary of State give those families on low incomes on where they should cut £1,100 from their family budgets?
Mr Jack
The uplift in universal credit was always intended to be temporary—it was to help claimants through the economic shock and financial disruption of the pandemic—and we now have the kickstart programme and a multibillion-pound plan for jobs. I understand it is difficult to break a manifesto promise, and the Prime Minister was clear that he was doing that in raising national insurance, but he also had a manifesto promise to address social care, which, since Tony Blair said he would address it in 1997, has not been done.
Ian Murray
There is no money going into social care, but we will leave that for a different time. Last week, Labour’s shadow team visited Orkney and its European Marine Energy Centre. It has facilities such as the most powerful tidal turbine in the world, which results in its having excess energy that it cannot get back to the mainland. At the same time, the Scottish and UK Governments are backing the Cambo oilfield. With COP26 coming to Scotland, should the Secretary of State not lead by example, refuse Cambo and reform the outdated transmission charge regime while providing funding for a new large-capacity interconnector between Orkney and Shetland and the mainland? That would bring huge benefits and innovation to the islands and power large parts of Scotland from renewable resources.
Mr Jack
On Cambo, all our North sea oil licences are factored into the 2050 net zero plan. Discussions are ongoing on the interconnector. It is partly devolved, with Ofgem and others involved. However, leaving that to one side, I take the overall view that there will be multiple uses for oil and gas for years to come—people must understand that—and we may as well get oil domestically rather than import it.
Andrew Jones (Harrogate and Knaresborough) (Con)
The Secretary of State for Scotland (Mr Alister Jack)
I have regular discussions with Cabinet colleagues who are as excited as I am to ensure that we strengthen transport connections across the United Kingdom. We recognise the importance of transport and how it is vital to economic growth, job creation and social cohesion. That is why the Union connectivity review was commissioned. I look forward to the publication of the final report later this year.
Andrew Jones
The family, business and cultural links between Harrogate and Knaresborough and Scotland are growing, but, for them to grow further, they will need better connectivity. The east coast main line is at the heart of that. Will my right hon. Friend therefore welcome the investments being made in that line and highlight its importance in the Union connectivity review that he just mentioned?
Mr Jack
Yes. The Government are determined to level up every corner of the United Kingdom, bringing communities across the country closer together. We recognise that infrastructure projects are important to growing our economy, because wherever we create connectivity, we create economic growth.
Gavin Newlands (Paisley and Renfrewshire North) (SNP)
Fine words. So by which year will the high-speed rail line be extended to the Scottish border?
Mr Jack
Which high-speed rail line does the hon. Member have in mind—High Speed 2 going north or Galashiels coming south? He should wait for the outcome of the connectivity review—which I must say the SNP did not engage in. Not only that; the SNP Government’s Transport Minister, rather irresponsibly, told his civil servant officials that they could not engage with Sir Peter Hendy or give him any data. When we then offered £20 million for feasibility studies, they declined it.
Mr Tanmanjeet Singh Dhesi (Slough) (Lab)
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Tim Loughton (East Worthing and Shoreham) (Con)
The Secretary of State for Scotland (Mr Alister Jack)
I regularly discuss with my Cabinet colleagues opportunities for Scotland arising from the signing of trade deals. This Government have already struck deals with more than 65 countries around the world worth £217 billion a year, including with Canada, Japan and Singapore, with many more to come. This will create new markets for Scotland’s exporters, including for our world-leading food and drink sector.
Tim Loughton
I congratulate the Government on the recent agreement with the US Administration on suspending tariffs on a number of key quality UK goods, in particular Scotch. May I ask the Secretary of State how much that will be worth to the Scottish economy, and will he confirm that this benefit for Scotland would not have happened if the UK were still in the EU or a customs union, as the SNP has advocated, rather than having become an independent trading nation?
Mr Jack
My hon. Friend is absolutely right. This is brilliant news for the Scotch whisky industry, in the same week that the Chancellor announced a freeze on alcohol duty. The UK Government have fought incredibly hard on this issue, petitioning the highest levels of the US Administration to remove these tariffs, which were harming our Scottish exports.
Pete Wishart (Perth and North Perthshire) (SNP) [V]
During the comprehensive economic and trade agreement talks between the EU and Canada, little Wallonia, as part of Belgium, managed to block the agreement until the concerns of its Parliament were resolved. Meanwhile, the Canadian state legislatures were in the next room to the Canadian federal delegation during those negotiations, putting their case. Will Scotland, with the most powerful Parliament in the world, as we are always told by the Secretary of State, have similar powers? If not, what will be the role of the Scottish Government in these trade talks?
Mr Jack
It is a pity that the hon. Gentleman could not bring himself to welcome the suspension of the US tariffs, in the same way that the Scottish National party has not welcomed any of our trade deals, but maybe he and his colleagues have other things on their mind at the moment. I also noticed that he did not raise separation, for the first time in my almost two years at the Dispatch Box—always separation, but not today. I think he has finally thrown that broken record away. We consult the Scottish Government on these trade deals, but they are a reserved matter and they are for the whole United Kingdom. As I stressed in my earlier answer, they will be very beneficial for the Scottish agrifoods industry.
David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)
I congratulate my right hon. Friend and, particularly, the Secretary of State for International Trade on their relentless efforts to remove the unjustified and penal US tariffs on whisky and cashmere, which have been so damaging. Does my right hon. Friend agree that, whatever now happens in relation to the Airbus-Boeing dispute, there can be no return to arbitrary retaliatory tariffs on unrelated industries, and that the decoupling of whisky and other products from that dispute must be permanent?
Mr Jack
I absolutely agree with my right hon. Friend. The UK Government will continue to engage with the US to agree a fair settlement to the dispute and permanently remove these punitive tariffs, and that will be a deal that works for the whole United Kingdom. This agreement just shows that the UK and the US are determined to work together, and I look forward to seeing us strengthen that partnership.
Douglas Ross (Moray) (Con) [V]
The Secretary of State knows how welcome the suspension of tariffs has been in Moray, with its many malt whisky distilleries and, of course, Johnstons of Elgin, which produces outstanding cashmere products. Will he outline what the Scotland Office and, indeed, the whole UK Government will do to ensure that this four-month suspension becomes a permanent removal of those damaging tariffs?
Mr Jack
I know that my hon. Friend has more distilleries in his constituency than any other Member of Parliament—47, I think—and I also know that he has been a great champion for the industry and has pressed very hard for the removal of the 25% tariff. We are very pleased to have negotiated an agreement that suspends the tariffs. We now have a space of four months to find a resolution on what has been a 16-year-long dispute. The Secretary of State for International Trade is ready to engage with the US trade representative, Katherine Tai, to agree something that is fair and balanced just as soon as the Senate confirms her appointment.
Mark Menzies (Fylde) (Con) [V]
As a proud Scot and one of the Prime Minister’s trade envoys, I was delighted by last week’s announcement that the Secretary of State and the Department for International Trade have secured a deal to remove export tariffs on Scotch whisky and a whole number of other products for sale to the United States. What estimate does my right hon. Friend make of the trade and investment benefits resulting from Scotland’s continued membership of the Union?
Mr Jack
This deal will be welcomed by businesses on both sides of the Atlantic because it will hopefully bring an end to harmful tit-for-tat tariffs. I agree with my hon. Friend, but to add to the point, the rest of the United Kingdom continues to be Scotland’s largest market for exports. It accounts for more than 60% of all Scotland’s trade.
Sarah Atherton (Wrexham) (Con)
Alun Cairns (Vale of Glamorgan) (Con)
The Secretary of State for Scotland (Mr Alister Jack)
Last week’s Budget provides continued UK-wide support and security to manage the ongoing impacts of covid-19. One in three jobs in Scotland have been supported by the UK Government’s unprecedented employment support package. Scottish businesses have benefited from more than £3.5 billion of loans and support, driven by UK Government schemes. We have also provided a much-needed boost by extending the reduction of VAT for our tourism and hospitality sectors.
Alun Cairns [V]
Does my right hon. Friend agree that the benefits of the Union of four nations have really come to the fore over the last 12 months, in that the strength of the UK Government’s balance sheet has meant not only that families, businesses and individuals in all parts of the UK have been able to benefit from that strength, but that the devolved Administrations have received the resources that they need to support people in all parts of the country?
Mr Jack
My right hon. Friend is absolutely correct and, more importantly, the majority of people in Scotland agree with him. Not only did they emphatically reject independence in 2014, but the most recent opinion polls show that they have realised that neither the Scottish National party nor its leader can be trusted, and that independence would make everyone in Scotland significantly worse off.
Mr Speaker
We now come to the shadow Secretary of State for the first of two questions.
Ian Murray (Edinburgh South) (Lab)
I am sure that the Secretary of State would like to join me—I am sure he accidentally omitted it—in congratulating Anas Sarwar on becoming leader of the Scottish Labour party, the very first ethnic minority leader of any UK political party. I am sure that his positivity and optimism will transform Scotland when compared with what we have at the moment.
Business covid support in Scotland has been sporadic at best, and I hope that the Government will tell us how we will get a full transparent audit from the Scottish Government, following the Audit Scotland report last week that estimated that £2.7 billion was unspent, not including the £1.2 billion from last week’s Budget. Every penny needs to be spent now.
This Government talk a lot, as we have heard already, about a post-covid levelling-up green agenda, yet they are pursuing a policy in offshore renewables that benefits its business solely in the south-east of England. The Government’s fourth contracts for difference auction at the end of this year actively disadvantages viable Scottish offshore renewable projects, as the Department for Business, Energy and Industrial Strategy includes out-of-date and expensive transmission charges in auction bids. What is the Secretary of State doing to ensure that the Government ditch this unfair renewables policy that advantages south-east England at the expense and detriment of perfectly viable offshore renewables projects off our Scottish coasts?
Mr Jack
May I begin by agreeing with the hon. Gentleman in welcoming Anas Sarwar as leader of the Scottish Labour party? I also completely agree with the hon. Gentleman that we need more transparency on the spending of the £9.6 billion of covid support and business support that the Scottish Government have received. On the transmission issue, as he will know, by law, transmission charging is a matter for Ofgem, which is an independent regulator. However, Ofgem is currently considering some aspects of the transmission charging arrangements through its access and forward-looking charges review, and I encourage all Scottish generators to engage with that review at the earliest opportunity.
Ian Murray
I accept the Secretary of State’s answer, but it will disadvantage projects. BEIS has said that it will not change the auction requirements and, therefore, unless the wind blows in the south-east estuary of England, renewables, including in Scotland, will be significantly disadvantaged.
Given the mess that the Scottish Government are making of business and industry in Scotland, from steel to airports, to ferries, to aluminium smelters, I hope that the UK Government deliver on their promise to protect the Scottish financial services sector post-covid and post-Brexit. Financial services have done very well from Brexit, as long as they are in Amsterdam or Frankfurt. In Scotland, the sector employs 162,000 people and is nearly 10% of the Scottish economy, but despite its importance, it was not included in the Brexit deal at all. Will the Secretary of State guarantee today that the sector will get a much needed post-covid boost by ensuring that the memorandum of understanding on financial services, which is due to be signed in a matter of days with the EU, gives this critical industry the equivalence and access to EU markets that it was promised by this Government?
Mr Jack
The UK and the EU have agreed in a joint declaration to establish structured regulatory co-operation for the financial services industry. A memorandum of undertaking will be agreed in discussions between us and the EU to establish a framework. Those discussions are currently ongoing at official level, but as with the Brexit negotiations, we cannot give a running commentary.
Rob Roberts (Delyn) (Con)
Dr Neil Hudson (Penrith and The Border) (Con)
The Secretary of State for Scotland (Mr Alister Jack)
I have regular discussions with Cabinet colleagues on transport connectivity in Scotland and throughout the United Kingdom. I welcome Sir Peter’s interim report and I look forward to his final report in the summer.
Rob Roberts
As connectivity and transport infrastructure are of vital importance not only for business but for the UK’s tourism industry, does my right hon. Friend agree that taking steps such as electrifying the north Wales coast line and improving links with north-west England will not only enable my constituents in Delyn to enjoy the delights of Scotland more easily but allow our Scottish cousins to have greater access to the beauties and wonders of our fantastic north Wales area?
John Lamont
The Minister will know that cross-border transport routes are vital for my constituents, for educational and career opportunities as well as many other day-to-day tasks. That is why I want to see the Borders Railway extended and to see improvements to the A1; these are both vital routes for the Scottish borders. Does he share my frustration and shock that the SNP Scottish Government are failing to engage with and support the connectivity review, which could be an opportunity to accelerate these two projects?
Mr Jack
I share my hon. Friend’s frustration, I really do. This review is part of our levelling-up agenda to improve the national infrastructure and create jobs and prosperity, and I think it is pathetic of the Scottish nationalist Government not to have engaged just because it is a “Union” connectivity review.
Dr Hudson [V]
As an MP for a borderlands region, I know that strengthening and enhancing our Union is of huge importance to my constituency of Penrith and The Border. Does my right hon. Friend agree that projects such as extending the Borders Railway down to Carlisle are a clear example of how the UK and Scottish Governments can work together to improve transport links in the region? Does he also agree that this would be a great boost to the economies of both the north of England and the south of Scotland, and provide a gateway to unlocking the potential of both regions?
Kenny MacAskill (East Lothian) (SNP)
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Marco Longhi (Dudley North) (Con)
The Secretary of State for Scotland (Mr Alister Jack)
My Department meets regularly with the Ministry of Defence to help raise concerns that are specific to Scotland. British armed forces personnel in Scotland play a crucial role in defending the whole of the United Kingdom, keeping us safe both at home and abroad, and assisting with such dedication at the height of this covid-19 pandemic.
Marco Longhi
I welcome the landmark £24 billion investment in our UK armed forces, as announced by the Prime Minister just last month, bringing economic and security benefits to all four nations of our great United Kingdom. Does my right hon. Friend the Secretary of State agree, therefore, that this demonstrates the true value of the Union to Scotland, bringing jobs to Scotland, enhancing the security of the nation, and delivering on the Prime Minister’s levelling-up agenda across the country?
Mr Jack
I absolutely agree with my hon. Friend. Scotland has always played a crucial role in the UK’s defence, and the projects that are supported by this spending, including shipbuilding on the Clyde, will directly benefit the people of Scotland, bringing security and economic benefits. This level of spending and investment is only possible through Scotland’s place in the United Kingdom.
John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)
I very much welcome the Secretary of State’s response, but can he set out what support the British Army is providing to the Scottish Government to ensure the efficient delivery of the coronavirus vaccine in my constituency in the borders, but also across Scotland more widely?
Mr Jack
The Scottish Government requested a military planning team to assist with the planning for the roll-out of the vaccine in the borders and across Scotland, and I am very pleased that I was able to approve that request. The scale of the task is very considerable, but the logistics expertise with the British armed forces is making a huge difference.
Douglas Ross (Moray) (Con)
The Secretary of State will be aware of the work that soldiers from Kinloss barracks in Moray have done throughout this pandemic in our fight against covid-19: they have been in Liverpool since last month, and earlier this week started assisting Wirral Metropolitan Borough Council in its community testing programme. This is in addition to the work they did throughout the highlands in the summer, covering 80,000 miles and conducting well over 3,000 tests. Will the Secretary of State join me in congratulating everyone at Kinloss on the effort they have put in during this pandemic, and agree that it underlines yet again the outstanding work they do in Scotland and across the United Kingdom?
Mr Jack
I absolutely join my hon. Friend in thanking everyone at Kinloss barracks. At the start of the pandemic our British armed forces distributed essential equipment and personal protective equipment. They helped build hospitals across Scotland and were instrumental in getting vital equipment to the Glasgow lighthouse lab. They operated the mobile testing centres, and, currently, as I said to my hon. Friend the Member for Berwickshire, Roxburgh and Selkirk (John Lamont), there are 21 military planners working with Scottish health boards and the Scottish Government on logistical planning for vaccine deployment. Our offer remains open: if the Scottish Government require further assistance from our amazing armed forces, they are standing by and are ready to help.
Wendy Chamberlain (North East Fife) (LD)
Stephen Flynn (Aberdeen South) (SNP)
The Secretary of State for Scotland (Mr Alister Jack)
I have frequent discussions with Cabinet colleagues on the United Kingdom Internal Market Bill, which is vital to protect seamless trade and jobs across all four corners of the United Kingdom following the end of the transition period.
Stephen Flynn
Of course, what the Secretary of State did not say is that the internal market Bill is a blatant attack on devolution. That should not come as a surprise, because just three weeks ago the Prime Minister said that devolution was Tony Blair’s biggest mistake—a bigger mistake than even the illegal Iraq war. Does the Secretary of State disagree with the Prime Minister?
Mr Jack
What the Prime Minister said was that devolution was a mistake when it was set up to be put in the hands of separatists, and I completely agree with that. I totally agree with it. The Scottish National party is a campaigning organisation for independence—for separation of the United Kingdom—masquerading as a party of Government.
Mhairi Black (Paisley and Renfrewshire South) (SNP) [V]
The Secretary of State has regularly explained that, as we leave the EU, the United Kingdom Internal Market Bill will serve to strengthen the UK’s economy and the Union as a whole. Does he feel that the announcement yesterday from the Chancellor of the Duchy of Lancaster and Minister for the Cabinet Office that Northern Ireland will have the “best of both worlds”, meaning that Northern Ireland will still have access to both EU and UK markets after Brexit, undermines his claims about the Bill?
Mhairi Black [V]
As the Secretary of State knows, Scotland voted to remain in the EU. The Scottish Government subsequently published a framework for how Scotland could still have access to the single market post Brexit. That was rejected outright by the UK Government. Given that Northern Ireland has been promised the very same thing, will he now make the case for Scotland to get the same concessions, and, like his predecessor, will he consider his position if such a request is not granted?
Hannah Bardell (Livingston) (SNP) [V]
The Secretary of State would do well to remember that the SNP is a democratically elected party of Government in Scotland. Although we take nothing for granted, pollsters continue to suggest that the SNP will win a majority of seats in the Holyrood elections this coming May, and 15 consecutive polls show a clear majority mandate for Scottish independence. Does he believe that his Government’s disastrous internal market Bill has contributed to that rise in support for the SNP and Scottish independence?
Mr Jack
There is nothing disastrous about a United Kingdom Internal Market Bill that has mutual recognition and non-discrimination at its base, and that protects jobs in Scotland and people’s livelihoods, when 60% of Scotland’s trade is to the rest of the United Kingdom, worth over £50 billion and, as the Fraser of Allander Institute said only last week, providing 554,000 jobs.
Mr Speaker
As Mark Fletcher is not here, would the Minister like to give the answer to his substantive question? Then I can bring in shadow Minister Elmore.
Gavin Newlands (Paisley and Renfrewshire North) (SNP)
The Secretary of State for Scotland (Mr Alister Jack)
I have regular conversations with the Scottish Government on preparedness for the end of the transition period, including meetings of the EU Exit Operations Cabinet Committee and the Joint Ministerial Committee on EU Negotiations.
Andrew Bowie
I thank my right hon. Friend for that answer. I know he will agree with me that the Scottish Government have failed to prepare for the end of the transition deal and are letting the Scottish people down, in particular by failing to recruit the required number of environmental protection officers to assist our fishing industry as we leave the transition deal at the end of this year. Will he confirm that the British Government stand ready to assist the Scottish Government, should they require it, to get the required number of protection officers in place to support our fishing industry?
Mr Jack
As my hon. Friend knows, it is the Scottish Government’s responsibility to ensure adequate certifier capacity for exports to the European Union. The UK Government have been engaging closely with the Scottish Government, Food Standards Scotland and Scottish local authorities to clarify the capacity in Scotland for certifying export health certificates, and with them, we have determined the level of additional capacity that is needed. That is the sort of boring answer. I would add that we have provided the Scottish Government with £138 million of Brexit preparedness support for this purpose.
Gavin Newlands
Dearie me, Mr Speaker. Let me try this one. NHS Tayside has stated that a hard Brexit could
“lead to an inability to deliver safe and effective care”,
and NHS Lanarkshire says that Brexit poses a “very high” risk to the delivery of healthcare services. We also know that the Ministry of Defence is putting plans in place to fly the Pfizer vaccine into the UK to avoid the Government’s entirely self-inflicted border ports chaos. Given that we did not vote for any of this and that 15 polls in a row now show support for independence, does the Secretary of State still believe that the Union is “firing on all cylinders”, as he wrote at the weekend?
Mr Jack
The Union is absolutely firing on all cylinders, whether it is the support of over 900,000 jobs in Scotland, the UK Government procuring, supplying and paying for all the vaccines for the United Kingdom, or the armed forces helping with the roll-out. As regards the scare story the hon. Gentleman is trying to start over the MOD flying the vaccine into the United Kingdom, all good Governments have robust contingency plans. That is No. 5 on the list of contingency plans, and they are not just for the transition period outcome. Those contingency plans are made for potential strikes, weather events and so on. It is entirely responsible to plan that way.
Stewart Hosie (Dundee East) (SNP)
The end of the transition period has been described by Scottish businesses as a “catastrophic” situation. Some have argued that if they cannot trade with the EU, they are out of the game—it is an existential threat. Can I ask the Scottish Secretary to actually show some authority in the Cabinet and insist on a minimum six-month grace period, so businesses do not fall foul of regulations which are not yet developed for a deal that is not yet agreed, but which is supposed to be in place in barely three weeks’ time? This needs to be done; it needs to be done today. Otherwise, businesses will struggle dreadfully on his watch.
Mr Jack
There has been a major public information campaign running for businesses and citizens, telling them exactly what they need to do. We have always been clear that, whether it is deal or no deal, there are steps that have to be taken when the transition period comes to an end. We are not going to delay the end of the transition period, because it is only by sticking to that date that people can prepare responsibly, and it also holds the EU’s feet to the fire in getting a deal. We have been clear what measures they need to take. They need to look at the UK Government website, where they can see very clearly what preparations they need to make for the end of this month.
Mr Tanmanjeet Singh Dhesi (Slough) (Lab)
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Margaret Greenwood (Wirral West) (Lab)
The Secretary of State for Scotland (Mr Alister Jack)
I would like to take a few moments to pay tribute to Glasgow’s emergency services for the enormous courage they showed in dealing with last week’s shocking knife attack. Our thoughts are with all those who were caught up in that terrible incident. In particular, I know that the whole House will join me in wishing Constable David Whyte a speedy recovery from the injuries he sustained in trying to help others.
I have regular discussions with my Cabinet colleagues, including the Chancellor, on all aspects of the impact of the coronavirus pandemic in Scotland. As we emerge from tackling this global crisis, we are determined to get Britain’s economy back firing on all cylinders, and as we do, protecting people’s health remains our top priority. However, just as we entered lockdown together, the best way to ensure the recovery of our economy is by working together across the United Kingdom.
Richard Thomson
May I associate myself with the Secretary of State’s opening remarks?
In his insipid word salad of a speech yesterday, the Prime Minister committed barely more money to rejuvenate the British economy post coronavirus than we have committed to refurbishing the Palace of Westminster. The Scottish Parliament lacks the powers to properly borrow and invest that other tiers of government take for granted. Will the Secretary of State commit to look again at the fiscal framework and giving Scotland the borrowing and investment powers it needs for the future?
Mr Jack
As the hon. Gentleman will know, the fiscal framework is due to be reviewed in 2021. In the interim, we have given huge support to Scotland from the British Exchequer, with £3.8 billion in business support for the covid crisis, and the furlough scheme, which has supported almost 800,000 jobs. There is a capital budget for Scotland this year of £5.4 billion, and there is no shortage of projects that need to be done, so I ask him to encourage the Scottish Government to get on with them.
Drew Hendry [V]
Some people are facing much more than just a financial meltdown as we emerge from this crisis. A year ago tomorrow, the all-party parliamentary group on terminal illness published a report on heartless Department for Work and Pensions rules that mean terminally ill people can only access fast-track benefits if they can prove that they have six months or less to live. Under pressure from the APPG, Marie Curie, the Motor Neurone Disease Association and others, this Government launched their own review, yet we have had only silence since. In the meantime, thousands of people have died waiting for support. The Scottish Government have already committed to scrap the arbitrary six-month rule when they take over the personal independence payment, but universal credit and employment and support allowance are reserved. Will the Secretary of State urge his colleagues to finally end this pernicious policy?
Mr Jack
As the hon. Gentleman knows, universal credit support has been increased during the covid crisis, but the point he makes about the last six months of life is one that I would like to raise with the Secretary of State for Work and Pensions. If he writes to me on the subject, I would be pleased to push the case for him.
Janet Daby [V]
Mr Speaker, I do not need to tell you that Scotland has some of the most beautiful landscapes across our country. My nephews are Scottish, and like many young people, they rely on the tourism and hospitality industry for work. Those industries are likely to take a lot longer to recover. What discussions has the Secretary of State had with the Chancellor of the Exchequer to ensure that businesses and young people employed in those sectors will continue to receive the Government support they need?
Mr Jack
As the hon. Lady will know, the Chancellor is making a statement a week today. I have had discussions with him about the support. The furlough will continue for another four months, until the end of October, and there is a variable element to it now, so that people can go back to work part time. The tourism and hospitality industry will effectively go through three winters unless we get it up and running this summer. It is deeply regrettable that the First Minister has encouraged reckless talk. This talk of quarantining people from other parts the United Kingdom is disappointing and divisive, and it is not the language we should be hearing from a First Minister because it undermines the joint efforts we have made in tackling covid-19, and it is bad for business—especially the tourism business.
Margaret Greenwood [V]
Unemployment very often causes misery and can lead to a downward spiral of opportunity. With the unemployment rate in Scotland the highest in the UK, what steps will the Secretary of State take to protect and create jobs in Scotland?
Mr Jack
The unemployment rate is going up faster than anywhere else in the United Kingdom, and we are proving in Scotland to be slower at reopening our economy—something I regret. It is important that we get our economy reopened as quickly as possible, because that is the best way to save jobs. As I say, we are currently supporting almost 800,000 jobs through the self-employment support scheme and through the job retention scheme. It is important that once we get back to near-normal, our economy bounces back as quickly as possible. The best way to achieve that is to keep money in people’s pockets, and the 80% furlough has done just that.
Ian Murray (Edinburgh South) (Lab)
I echo the Secretary of State’s remarks about our heroes in the public services in Glasgow who responded to the stabbings last Friday. I am sure that he, and the whole House, would wish to join me in expressing our deepest sympathy and all our thoughts to the family and friends of the three-year-old boy who was tragically killed yesterday when a car went out of control and mounted the pavement in Morningside Road in my constituency—a very young life taken far too soon.
As lockdown measures are eased, some sectors of the Scottish economy, as we have heard, will take much longer than others to return to some sort of normality, particularly tourism, hospitality and the creative industries. It is vital that both Governments continue to protect jobs and support businesses by extending the current furlough support to those hard-hit sectors. Even now, far too many are falling through the cracks of Government schemes—for example, many freelancers working through pay-as-you-earn contracts. With many taxpayers in this situation going from full income to no income, will the Secretary of State commit to raising in Cabinet the need for Government to support those taxpayers who have received nothing, and for an extended sectoral furlough scheme for Scottish industries?
Mr Jack
Let me start by echoing the hon. Gentleman’s remarks about the shocking incident on the pavement in Morningside Road yesterday.
The Chancellor acknowledged right at the beginning that we cannot save every business and we cannot save every job, but there has been a huge rapid response from the United Kingdom Government to covid-19, with unprecedented sums going to Scotland in the form of £3.8 billion for business support and, as I mentioned, the 800,000 jobs that have been supported. I have raised this with the Chancellor and we have talked about how we go through to the next stage. He will be addressing that when he speaks to the House a week today.
Ian Murray
I appreciate that answer from the Secretary of State, but there are still too many people who have gone from full income to no income while paying full taxes.
The former SNP finance spokesperson and author of the First Minister’s Growth Commission report has said that Scotland will have the worst performing economy in the developed world post covid. The response by the SNP Finance Minister was to reignite the demand for full fiscal autonomy, which would have the effect of creating a multi-billion-pound black hole in Scotland’s public finances. First, has the Secretary of State undertaken any analysis of the impact that this policy would have on post-covid recovery in Scotland? Secondly, rather than both Governments playing politics, will he work collaboratively with the Scottish Government to seek solutions to the immediate post-covid budget challenges so that we can save as many jobs, businesses and public services as possible?
Mr Jack
The Scottish Finance Minister, Kate Forbes, has questioned the Barnett formula and has raised full fiscal autonomy as a preference. I would say to the people of Scotland that, for £100 of spending per head in England, the Barnett formula guarantees £125 per head of spending in Scotland. The Barnett formula has produced the extra £3.8 billion of covid support. Last year, the Barnett formula plugged a £12.6 billion deficit in Scotland’s spending. Along with the furlough scheme, these things would not have been possible under full fiscal autonomy. In fact, had the Scottish Government imposed that on the Scottish people, I would call it full furlough absence.
Mr Speaker
We now go to the SNP spokesperson—[Interruption.] Order. Who is clapping? We do not clap. We want to hear the SNP spokesperson, Mhairi Black.
Mhairi Black (Paisley and Renfrewshire South) (SNP) [V]
I would like to echo the remarks of the Secretary of State with regard to the events in Glasgow. Our thoughts are with all those affected.
The Secretary of State says that the Chancellor will be updating the House with regard to the furloughing scheme, so I will note that with interest, but could he tell us specifically what recommendations and requests he has made to the Treasury with regard to Scotland?
Mr Jack
Discussions that we have with the Treasury ahead of a statement are confidential, but I have highlighted the threats around tourism and hospitality, and I say again to the hon. Lady that the First Minister’s remarks about the border are irresponsible. If we think back to 26 April and “The Andrew Marr Show”, she admitted that it was a border that she had no control over, so let us not undermine the Scottish economy by moving too slowly as we come back—we need to crack on—and let us not undermine Scottish business by talking about keeping people from other parts of the United Kingdom out of Scotland.
Mhairi Black
Let us also not undermine public health when it comes to the decisions that we make. Scotland has sought to trial universal basic income in four separate locations. Given that the Scottish Government would be providing the funding for this, does the Secretary of State know why the UK Government are blocking it, and what assistance will he provide in unblocking it?
Mr Jack
On the hon. Lady’s first remark about public health, it is absolutely imperative that we protect lives, but we must also protect livelihoods. On universal basic income, we do not believe it is the best way to deliver social security because it is not targeted at those who need it most. We believe universal credit is the best thing because it gets people back into work, and getting people back into work gets them out of poverty. Countries such as Finland and Canada have tried universal basic income and walked away from it. The Joseph Rowntree Foundation also found that it can increase poverty and it said that it is not the way forward in the report that it released two years ago, so we will not be moving towards a universal basic income.
Andrew Rosindell (Romford) (Con)
Greg Smith (Buckingham) (Con)
The Secretary of State for Scotland (Mr Alister Jack)
I have regular discussions with the Chancellor of the Duchy of Lancaster on EU transition matters, including the end of the transition period and the benefits to Scotland of once again being able to control our own laws, our own trade and our own fishing waters.
Greg Smith
I thank my right hon. Friend for that answer. Does he agree that while it is outrageous that even last month the Scottish Government were wasting resources on fighting the battles of the past with regard to the transition period, the UK Government are focused on delivering the benefits of free trade not just for Scottish businesses but for all businesses in our United Kingdom?
Mr Jack
Yes, I agree. I think Scottish Ministers need to wake up to the fact that we have left the European Union and we will leave the transition period on 31 December. I know that the Scottish Government do not like the outcomes of referendums when they do not go their way, but this is another one we are delivering on.
Pete Wishart (Perth and North Perthshire) (SNP)
An opinion poll recently found that 63% of the Scottish people back a Brexit extension—that is on top of the overwhelming majority who oppose the Brexit disaster in its entirety—and the Secretary of State has probably seen an opinion poll that found that 54% of the Scottish people now want an independent Scotland. What does the Secretary of State believe links those opinion polls, and what does that tell him about where our country is heading?
Mr Jack
I was going to say I was pleased that for once that the hon. Gentleman had not made it all about independence, but he managed to weave it in. I think the whole House would like to congratulate him on giving up his own independence by getting engaged last weekend.
The answer is that we had a general election and we had a resounding majority across the United Kingdom for a manifesto that said we would honour the result of the referendum. We are going to honour that result: we are going to take back control of our laws, borders and money and we are going to leave the hated common fisheries policy and become—here is the independent bit for the hon. Gentleman—an independent coastal state.
Mr Toby Perkins (Chesterfield) (Lab)