Energy Price Freeze
Debate between Angus Brendan MacNeil and Anas Sarwar
Anas Sarwar
Absolutely, although I imagine my hon. Friend’s constituents would fall asleep after five minutes rather than read the speech in its entirety.
As winter bites and the nights become colder, many of our constituents are again worrying about the cost of heating their home. Wholesale energy costs have increased by only 1.7% this year, but the average bills that Glaswegian families have had to pay have rocketed by more than 10%. According to Fuel Poverty Evidence Review, more than 800,000 Scottish households—almost 35% of Scots—are fuel-poor, and spend 10% or more of their household income on energy.
What my constituents know, what I know and what the entire country knows, with the apparent exception of both the Prime Minister and the First Minister of Scotland, is that the British energy market is broken. It is dominated by only six companies, which collectively supply 99% of British households and generate more than two thirds of the country’s electricity.
Mr MacNeil
According to figures from the House of Commons Library, last year UK electricity prices increased by 5.7% on average, while the EU average was a fall of 3.5%. In fact, the UK had the highest increase of all the G7 and EU countries, bar Japan. Last year, the UK had the third highest prices in this area. Eight years ago it was little better—the fifth highest in the EU. Why does the hon. Gentleman think that the UK consistently pays the highest energy prices in the developed world?
Anas Sarwar
The hon. Gentleman highlights the need to fix a broken market across the UK. The bizarre thing is that he wants to leave the UK, but stay in the UK energy market. That is against the interests of the people of Scotland. I will come on to the wider policy of the Scottish nationalists in a moment.
Given that we have had price hikes of more than £300 since the last election, and at the same time more than £7 billion of profits have gone to the shareholders of the big energy companies, does that not highlight the case for breaking the monopoly of the big six companies?
Anas Sarwar
I am sorry, but I have given way twice already.
Last week, we saw the big six sit before the Select Committee on Energy and Climate Change and claim that prices in the past few years have been driven by wholesale costs, when it has already been demonstrated that that is not the case. That was confirmed by some of the smaller companies, one of which told the Committee:
“I can’t explain any of these price rises… I have been somewhat confused by looking at the explanations for the price rises that we’ve seen in the past three or four weeks.”
There have been billions of pounds’ worth of profit while pensioners in my constituency face the impossible choice of heating or eating this winter. What could be more indicative of a broken market than one that leaves our most vulnerable citizens unprotected at a time of greatest need, solely in the name of higher profits?
The problem is not simply the behaviour of the energy giants. My constituents are literally paying the price of being trapped between an uncaring, out-of-touch Tory-Government pursuing cuts and profit at any cost, and a distracted Scottish Government desperately trying to frame any and every problem as a reason for independence—two Governments more interested in electoral dividing lines and narrow ideology than in improving the lives of the Scottish people. They are choosing to stand up for the vested interests of the big six energy companies and boost their profits while Scottish families struggle to pay their bills. It is indeed a sad day when Governments become a cheerleader for the energy companies, instead of putting struggling people first.
Scots are now faced with a crippling combination of rising living costs and frozen wages that have created a cost of living crisis that both Governments are failing to address. Disappointingly, however, Alex Salmond wishes only to talk about the powers he wants rather than getting on and using the powers he has to make a difference. There is now an interesting coalition in the context of the constitutional debate in Scotland. We have a coalition of the Scottish National party, the Tories, the Liberal Democrats and the big six energy companies all standing up for their own interests, not the interests of the people of Scotland. The Prime Minister’s policy was not announced first by him: the first person to announce the Prime Minister’s policy on energy prices was the Deputy First Minister of Scotland, Nicola Sturgeon, at the SNP conference. She said that the SNP wanted to take the cost off the energy bill and instead put it on the tax bill, meaning that people who are working hard will continue to have to pay the price while big energy companies will get away scot-free. Those are the wrong priorities, and they are damaging.
What else have we heard from the nationalists? They want not just to let energy companies off meeting their responsibilities for renewables, but give them a massive tax cut. They want to cut corporation tax, which will mean that after independence they will have more, not less, profits. What is even more confusing is that they say—we have heard it already from the hon. Member for Na h-Eileanan an Iar (Mr MacNeil)—that the UK energy market is broken and that is why we need independence. Their policy, however, is to say, “Let’s break away from the United Kingdom, but let’s share the UK energy market.” That is not in the best interests of Scotland. Scotland makes up 8% of the UK population, yet one third of spending on renewables is spent in Scotland, so the whole of the UK is contributing, through their energy bills, to supporting the renewables industry. Do we honestly think that one third of renewables spending will continue to be spent in Scotland after independence? I do not think so. Independence would break the historic pooling of resources across the UK for the benefit of all.
Mr MacNeil
Is the hon. Gentleman aware of the purchase of renewable energy in the Republic of Ireland?
Anas Sarwar
Absolutely. We have not heard about Ireland for a long time. I am happy to consider the example of Ireland to show why we are better off in the UK. Corporation tax in Ireland is half the UK rate, but unemployment is double that in the UK. That shows us how working in partnership with our friends and neighbours in England, Wales and Northern Ireland benefits bill payers not just in Scotland, but across the UK.
I want to highlight a positive example in my constituency and my city of what a caring administration can do to help people who are struggling at this difficult time. The Labour-led council in Glasgow, which, despite facing more than £150 million in budget cuts from the Scottish Government, has again stepped up to protect Glasgow pensioners over the age of 80 by offering a £100 winter fuel payment to those struggling to meet the costs of energy this winter. That is a Labour council using its powers to protect the most vulnerable in our communities. It is not making excuses about why it cannot or will not act, and it is not looking to pass the buck or put the blame on to someone else. It is not pointing fingers, or using other people’s misery as a basis to promote a political agenda or independence. Instead, it is providing a lifeline to thousands and responding to the cost of living crisis affecting our constituents. I am proud that on the Labour Benches we are standing up for British consumers.
Under a Labour Government, we will not just break up the big six energy companies’ monopoly, but ensure fairness in the system and cut bills. For the people in my constituency, 38,549 households will have their bills cut if a Labour Government are returned at the next general election. We will save a typical household £120 and an average business £1,800, at a time when household budgets are being squeezed. Labour will not stand by but take action, as Glasgow city council has done, to help hard-pressed Scottish and UK families. We will put people first, while others continue to put their ideologies and political obsessions before the interests of the people of Scotland and the UK. We will tackle the cost of living crisis that is denied by the UK Government and the Scottish Government, despite official figures from the House of Commons Library that confirm that working people are £1,500 a year worse off under those Governments. Prices have risen faster than wages in 39 of the past 40 months, on both the First Minister’s and the Prime Minister’s watch; and chief executives have enjoyed pay increases averaging 7%, while public sector workers have had to endure real-terms pay cuts and worsening conditions. Tackling energy prices is crucial to easing the burdens on family incomes, which are symptomatic of a problem that these Governments are simply unable or unwilling to address.
As my right hon. Friend the Leader of the Opposition said yesterday, the Government have nothing to say about our plans for the living wage, the falling value of the minimum wage or zero-hours contracts. They are silent because they believe in a race to the bottom and they know these things create the low-wage, high-profit economy that they seek and fundamentally believe in. It is an economy where profits of £7 billion and tax cuts for the richest peacefully co-exist every single day with millions of people living in poverty. It is an economy that prioritises six large companies over the well-being of 60 million people.
The Opposition want real action to help British families: a price freeze while our broken energy market is fixed; a regulator that can cut unjustified price rises; a ring fence between the generation and supply businesses of the energy companies to ensure proper transparency and to force energy companies to trade the energy they produce in the open market; and a new simple tariff structure that people can understand. People in this country deserve action to help them during the winter months, not the damaging ideology of this Tory Government.
amendment of the law
Debate between Angus Brendan MacNeil and Anas Sarwar(11 years, 8 months ago)
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Anas Sarwar (Glasgow Central) (Lab)
The Budget the Chancellor delivered was not the Budget that my constituents or the city of Glasgow needed. The Budget Glasgow needs is one that gets the economy moving, helps people back into work and looks after the most vulnerable in our society. Instead, the Government are willing to give millionaires a £40,000 tax cut at the same time as 17,000 Glaswegians will have to cope with the impact of the bedroom tax. Thousands more will have to mitigate the damage to their family budget of the cuts to child tax credits, cuts to working tax credits and drastic cuts to the local services that many people rely upon. Wages are falling, jobs are being lost, household budgets are being squeezed and there is still no sign of a rethink. Just when will the Chancellor wake up and smell the Starbucks coffee?
Anas Sarwar
I will give way to the hon. Gentleman. He has made many interventions, so let us hope that this one is sensible.
Mr MacNeil
Is the hon. Gentleman not disappointed, and should he not be ashamed, that he supports a Westminster Government over independence, so we have the bedroom tax imposed on Scotland? If he supported independence, we would not have the bedroom tax in Scotland at the moment.
Anas Sarwar
That shows us the myth of the Scottish National party. The hon. Gentleman says that the only way to stop the bedroom tax is independence; the bedroom tax will be introduced on 1 April 2013, but according to the SNP timetable, independence day will be 31 March 2016. Members can work it out for themselves.
Plan A clearly is not working. For some time, the Opposition have been calling for additional infrastructure investment to boost the construction sector and we have been urging the Government to act. The Chancellor could have used the funds from the 4G auction to build 100,000 affordable homes, stimulate the economy and help tackle the housing crisis, but instead he decided that public services and public sector workers should bear the burden. Not content with imposing a 1% pay freeze until 2015, he has extended it to 2016. Given the rate of inflation, that is an effective pay cut for hundreds of thousands of people across the country.
With 80,000 construction workers out of work, construction output has fallen by 8.2%. The Government announced an extra £225 million for affordable housing, but only £125 million of that will be spent before 2015 according to the OBR, and it is dwarfed by the £4 billion cut in funding for affordable housing that the Chancellor made in his first Budget. Even after that investment the coalition Government’s record will still be a cut of around £10 billion in infrastructure projects.
It says everything about the Government’s attitude that they cut real-terms pay for millions of public sector workers, while giving the green light to slash corporation tax for big business. Research by the House of Commons Library, published today, confirms that the reductions in corporation tax will cost £29 billion in total, £10 billion over the life of the current Parliament alone. That policy enjoys the full support of the Scottish nationalists, who want to see a future independent Scotland at the front of a race to the bottom, a low tax country with an economy like Iceland—or perhaps like Ireland. I have not seen the latest Scottish Government press release, so I do not know which country they are modelling their assessment on this week.
Anas Sarwar
No, I am suggesting that while people across the country—especially the most vulnerable—see their household income slashed and the poorest people are having to live in more difficult circumstances, the Government see their priority as giving millionaires a tax cut and cutting taxes for the biggest businesses in the country. I know whose side I am on. I am sad to say that I know whose side the hon. Gentleman is on, and I am sure people will punish him appropriately come the next general election.
Anas Sarwar
I have given way twice already, but if I have any spare time at the end of my speech I might let the hon. Gentleman entertain the House.
The Chancellor claimed the Budget showed he was on the side of people who want to get on; instead it has shown just how out of touch this Government really are. The low-paid workers the Government say will pay less income tax will still be worse off at the end of the month, when that saving is clawed back many times over—clawed back through VAT, clawed back through cuts to tax credits and clawed back from thousands of my constituents through the scandalous bedroom tax.
Yes, the Liberal Democrats can celebrate lifting the threshold to £10,000, but household income for many families in that bracket will fall as a result of the Government’s measures. At the same time, the value of an average worker’s pay has fallen by more than £1,000 and persistently high inflation continues.
In these difficult economic times, the Chancellor should certainly accept our proposals for the funding for lending scheme to be enhanced to target small and medium-sized enterprises better by rewarding banks that expand SME lending regardless of their mortgage book. Now is the time when our banks should be supporting SMEs, not hitting them harder. Throughout my constituency, whether I am speaking to small or large businesses, they all make the same complaint: the banking sector is holding back investment in this country, not promoting it. If we can get our banks lending again and get people investing, we will get more people back to work and see growth and regeneration in some of the hardest-hit communities.
The Chancellor should seriously explore our proposals for new regional banks that are committed to their regions and in touch with local business, making it easier for firms to secure the capital investment they require to create the growth and jobs Britain needs. Sadly, my constituents continue to suffer, trapped between this coalition Government, who continue to look out for the wrong people, and a Holyrood Government, who are distracted by their referendum obsession and happy to double Tory cuts and pass them on to local government, washing their hands of all responsibility and removing £250 million from Glasgow’s economy. We heard earlier from one of the SNP Members that we should recognise that the fall in unemployment was thanks to action taken by the Scottish Government. It is amazing that when unemployment goes up, it is all Westminster’s fault but when it goes down it is all thanks to the Scottish Government. It cannot be both.
The reason why I and countless others in the House went into politics was to help build stronger communities, not to use the poorest and most vulnerable people as electoral or political dividing lines, writing off millions of people as a drain on the economy for electoral advantage. We want to help to create a sustainable economy to fund world-class public services, ensure that society’s resources are distributed equitably and protect the most vulnerable people in our communities.
Last Wednesday I sat and listened to the Chancellor lay out his vision for the coming years. It is a vision that I and, I am confident, the majority of people in Britain reject.
Cost of Living
Debate between Angus Brendan MacNeil and Anas Sarwar(12 years, 6 months ago)
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Mr Davey
I will not give way, because I want to make some progress and address the Queen’s Speech.
We need to make dramatic changes to our energy policies in the longer term. The right hon. Member for Don Valley said, in a rather bizarre passage towards the end of her speech, that we were not really reforming the electricity market—but we are making the biggest reform of the electricity market since privatisation. It is the sort of reform that Labour Members failed to get their head around and failed to deliver, despite 13 years in power.
There are huge challenges for our electricity market, with 20% of our power plants coming offline during the next decade. There is an energy security issue. We will have to ensure that the infrastructure is brought forward in the most competitive way, otherwise there will be a big impact on bills. We will have to attract more than £110 billion of investment in a way that ensures that low-carbon technology can be introduced, so that we can meet our carbon budgets. That is a heck of a challenge, and this Government have developed the policies to meet it.
If we do not act now, we estimate that by the mid-2020s up to 2.5 million households will be affected by blackouts, costing the economy more than £100 million a year. Even without interruptions to supply, our consumers would be exposed to volatile global energy markets if we did not do anything. Wholesale energy costs already make up half of the average consumer bill. Last year, the winter gas price was 40% higher than the year before. That is the real reason why bills have been going up so dramatically. We have to act and make the strategic changes to tackle that issue.
Tuition Fees
Debate between Angus Brendan MacNeil and Anas Sarwar(13 years, 11 months ago)
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Anas Sarwar
I absolutely agree with my hon. Friend and that is why we need a wider debate on the role of the state in educating our young people.
Anas Sarwar
Not just now; I will give way in a wee moment. I am coming back to the Scottish angle, and I am sure that the hon. Gentleman will want to intervene on that point.
The question is who benefits from a university education. Is it, as the coalition believes, only the student who benefits, which means that they should pay most, if not all, of the costs? Or does the country as a whole benefit from a well-educated work force driving our economic prosperity? That is the ideological debate we need to have in this House.
No matter where one goes in the world, unrivalled importance is attached to education. When the Business Secretary and the Prime Minister had their bonding session in China, they might perhaps have learned the Chinese proverb: “If you are planning for a year, sow rice. If you are planning for a decade, plant trees. If you are planning for a lifetime, educate.”
Anas Sarwar
I absolutely agree with my hon. Friend and I hope that the Minister will respond to that point when he makes his speech.
Right hon. and hon. Members may be forgiven for thinking that this issue solely affects England, but that could not be further from the truth. The proposals will have profound and far-reaching consequences for the rest of the United Kingdom. I have two universities in my constituency in Scotland and 80% cuts in higher education funding in England mean that Scottish universities stand to lose at least £400 million a year. It also has consequences for Scottish students who wish to study in England and English students who wish to study in Scotland.
Mr MacNeil
Does the hon. Gentleman feel that it was a mistake that the Labour party first introduced tuition fees in this country—and will he say sorry?
Anas Sarwar
I thank the hon. Gentleman for that intervention but I will take no lectures from a Scottish Government and an SNP who stood at the election promising to scrap student debt for every student across Scotland and who failed on every single promise. The hon. Member for Perth and North Perthshire asked why young people would ever vote for the Labour party in Scotland, but he should look at the polling data for the general election and the opinion polls for the Scottish elections that are coming up. We outpolled the Scottish National party in the youngest bracket—18 to 24-year-olds—and I think that that will be reflected in the results in May.
I also want to take the opportunity to say that the Scottish Government must stop dithering.