Achieving Economic Growth
Debate between Bernard Jenkin and Alison Thewliss(2 years, 6 months ago)
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Alison Thewliss
My hon. Friend makes an interesting suggestion because, of course, Northern Ireland has benefited from that.
Investment in our communities has taken a direct hit from the loss of European structural funds. The UK Government’s shared prosperity fund will see Scotland allocated £32 million in 2022, £55 million in 2023 and £125 million in 2024—but even that third year of funding will deliver less than Scotland received before Brexit.
Alison Thewliss
If the hon. Member would like to explain to me why Scotland deserves less now than it had before Brexit, I will take his intervention.
Sir Bernard Jenkin
Would the hon. Lady like to explain to the House how much harder it would be for business and what it would do to living standards in Scotland if Scotland followed the SNP’s suggestion and left the United Kingdom, with a border across the middle of Great Britain?
Alison Thewliss
There are multiple benefits to Scotland being independent, and the greatest one would certainly be not having to live with policy choices made by this Government, for whom none of our people voted.
The Scottish Government have calculated that £162 million per year would be needed to replace the European regional development fund and European social fund, and that increases to £183 million per year when LEADER funding and the EU territorial co-operation programmes are added in. That means there is a significant shortfall for organisations and projects that are already operating with significant challenges from the pandemic and the cost of living crisis. Of course, many such organisations, which fund projects such as bridges and green infrastructure, and retrain those who have lost their job or are far from the labour market, were contributing significantly to economic growth. Without the money to replace them, the areas and people involved will struggle to make progress, just as Bloomberg suggests is already happening with the flawed Tory levelling-up fund.
Before the pandemic, investment was stagnant because of the drawn-out uncertainty of Brexit and an unnecessary commitment to leaving the customs union and the single market. The harm to the economy and to people’s pockets could have been lessened had different choices been made. There has been a lot of talk about the Northern Ireland protocol, but the reality is that Manufacturing Northern Ireland has found that the issue is largely with GB suppliers that are unwilling to send to Northern Ireland, while EU supply chains have recovered. There has been a 28% increase in sales with the EU and manufacturing jobs in Northern Ireland are now growing four times faster than the UK average.
The Bills mentioned in the Queen’s Speech do nothing to redress the damage caused by Brexit. James Withers from Scotland Food & Drink said:
“Had the war in Ukraine not happened, we were already facing energy bills rising, a world waking up from a pandemic…Brexit for sure has made nothing better, but has made a number of things a lot worse.”
Mr Withers also pointed to the labour market being in disarray. This UK Tory Government’s obsession with limiting immigration is causing untold harm to our growth prospects. Yesterday, the Office for National Statistics noted that around half a million people have left the labour market completely since start of the pandemic, and we do not know whether they will come back. Meanwhile, vacancies are running at a record high of 1.295 million. Who will fill these jobs? The Government have absolutely no answer to that. All these vacancies are already having an impact: surveys by the British Chambers of Commerce have found that companies cannot fulfil orders because of a lack of staff, as well as soaring material costs. Perpetuating the hostile environment is bad economics as well as morally dubious politics. It is not a recipe for growth: it is a recipe for self-inflicted economic catastrophe.
Precious little in the Queen’s Speech will help with the spiralling cost of living crisis and soaring energy prices. The April 2022 price cap was already 75% higher than one year ago. Miatta Fahnbulleh of the New Economics Foundation said that
“the government said its priority was…to help people with the cost of living crisis…Yet we had 38 bills that will barely have an impact on that agenda.”
Whether people are in work or out of work, the money in their pockets is being eroded every single day by inflation. The UK Tory Government could choose to put money into people’s pockets. They could introduce an emergency Budget to make sure that the least well-off—those who are really struggling, those who need support with their energy bills to get by—are supported. The SNP Government have uplifted the benefits in their control by 6%; there, again, the UK Tory Government lag behind. People are seeing the money that they receive eroded every single day.
The UK Government should be converting the £200 heat now, pay later loan into a grant. As the chief executive of ScottishPower has said, they should be increasing that grant substantially—he says to £1,000—to help people with their energy bills. Such is the magnitude of the increase in people’s costs. The UK Government should scrap the regressive national insurance tax hike, which is a tax on jobs at the worst possible time; reverse the £1,040 cut to universal credit; and support those on legacy benefits, who have seen very little from this Government. They should also introduce a real living wage—a living wage for all that people can actually live on—rather than their pretendy living wage, which is not even available to all ages, with age discrimination baked in. They should also look at removing VAT on energy bills, which is a significant cost.
The Government have been raking it in: additional money that they did not expect has come in through the taxation system, as set out in the spring statement, and that will increase every day as VAT receipts come in and inflation soars.
As a proportion of income, the rise in the cost of living for poorer families is nine times larger than it is for the richest 5%. Institute for Fiscal Studies figures suggest that although inflation today is at 9%, for the least well-off it is just shy of 11%. The impact of such inflation on people can sound a bit abstract when we talk about percentages here and there, but the Child Poverty Action Group has calculated that with inflation running at 9%, the value of someone’s universal credit falls by £790 per year. That is a lot of money to the people who receive that benefit and the Government should be doing more about it.
All the way through the supply chain—from those growing crops and those processing and transporting food, to those stacking it on the shelves, to those cooking their tea and putting it on the table—costs are increasing. Businesses are being pushed to the very limits to absorb the costs and it cannot continue for much longer.
When I watch Treasury Ministers in this place, it is hard for me to hide my frustration, because they have all the levers that my colleagues in Holyrood do not have, yet not one iota of the ambition or imagination. There is so much that they could do to invest in people and communities, to work towards the promise of COP26 and to build a fairer, more just and more equal society—to grow, but in a way that leaves no one behind. We cannot rely on the Conservatives or Labour—both are now Brexiteer parties—because Scotland wants to take its place in the world. We want to be part of something and to be connected, rather than to rely on the tiny ambitions of this Government. People in Scotland are yearning for a Government with the powers to do better by their people; I hope they will soon get the chance to vote for that in an independence referendum.
Public Administration and Constitutional Affairs Committee
Debate between Bernard Jenkin and Alison Thewliss(6 years, 10 months ago)
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Mr Jenkin
I will leave aside the soundbite that came at the end of the hon. Gentleman’s question, but the substance of his remarks is correct. The system is inadequate and needs to be strengthened and reformed, and I am delighted that Her Majesty’s official Opposition are taking an interest in the matter.
Alison Thewliss (Glasgow Central) (SNP)
It is very good to see you in the Chair, Mr Deputy Speaker.
I thank the hon. Member for Harwich and North Essex (Mr Jenkin) for his statement. The SNP agrees that the business appointments rules should be strengthened, and we are disappointed with the Government’s response to the report. As Burns might have said, “I wad na gie a button for it.” Does the hon. Gentleman agree that the public and the press, specifically Private Eye, recognise that the Government’s response to the evident revolving-door problem smacks of complacency and self-interest? Does he agree that the actions of the former Chancellor demonstrate how little respect there is for ACOBA? Does he also agree that, if the Government and this House do nothing to strengthen the business appointments rules, we risk further undermining trust and integrity in politics?
Mr Jenkin
Our report mentions George Osborne in two respects. First, we state that it was striking and startling that ACOBA appeared to give the former Chancellor a blank cheque in allowing him to join BlackRock on an inflated salary so shortly after he left his office. Secondly, George Osborne also completely bypassed the appointment rules prior to accepting his appointment as editor of the Evening Standard. We regard that as a glaring example not necessarily of any particular dishonour by any particular individual, but of how the system absolutely fails to command public confidence.
Representation of the People (Young People’s Enfranchisement and Education) Bill
Debate between Bernard Jenkin and Alison Thewliss
Mr Bernard Jenkin (Harwich and North Essex) (Con)
I congratulate the hon. Member for Oldham West and Royton (Jim McMahon) on scoring in the ballot. In recent years the question of whether the voting age should be lowered to 16 has attracted a deal of interest and comment, including in inquiries by the Howarth working party on electoral procedures in 1999, the Electoral Commission in 2003, the Power commission in 2006, the Youth Citizenship Commission in 2009 and most recently the Commons Political and Constitutional Reform Committee in 2015, to name but a few. The latter Committee has now merged with the Public Administration Committee to become the Public Administration and Constitutional Affairs Committee, which I chair, although I speak in this debate in a personal capacity.
The issues considered by those inquiries have been wide-ranging, and include comparisons of the voting age in other established democracies, the level of support for lowering the voting age among the electorate, the political maturity of 16 and 17-year-olds, turnout among younger voters, and the age at which people should become entitled to different rights and duties.
Any voting age is somewhat arbitrary. However, there are strong arguments in favour of retaining the status quo, and the arguments in favour of lowering the voting age are, at best, somewhat muddled and inconsistent. A line must be clearly drawn somewhere and the present age of 18 is widely accepted across society, and, indeed, across the vast majority of countries in the world; only a tiny fraction of countries have a lower voting age than the United Kingdom.
Alison Thewliss (Glasgow Central) (SNP)
The hon. Gentleman might not realise that this debate has been pursued by the Scottish National party for some years, including in Winnie Ewing’s maiden speech in November 1967. There has consistently been an argument for reducing the voting age. Does he not agree that it is now time to act on those demands rather than continuing to kick the issue into the long grass?
Mr Jenkin
Without wishing to introduce a partisan or discordant note, it is possible for another party to be consistently wrong for a very long period of time, and I believe that that is the case in the matter that the hon. Lady has raised.
The Electoral Commission’s consultation paper on the voting age in the UK was published in 2003, and it examined the voting age in other countries. At that time, all EU member states had a minimum voting age of 18 in national elections. The voting age has subsequently been lowered to 16 in Austria.
Finance Bill
Debate between Bernard Jenkin and Alison Thewliss(9 years ago)
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Alison Thewliss
As I suspect the hon. Gentleman well knows, the Scottish Parliament does not have jurisdiction over this matter, but the SNP feels sufficiently strongly about it that we put it in our party manifesto for this place, and the First Minister has been vocal in speaking out in support of zero rating for sanitary products. We would very much like this to happen, and we will give any support that we can in the Scottish Parliament as well as from our Benches here.
This issue has been very protracted over many years, and this House cannot resolve it alone, but we can make a start. VAT has already been reduced by a previous Labour Government, and we have a good deal of cross-party support here tonight. I think that we can do much better than the Prime Minister, who, during the election campaign, described this as a “difficult” issue and said that he “can’t remember the answer”. The answer, of course, is that we can take a lead on this. In June 2015, the European Commission, which is yet to have a female President—perhaps that would make a difference on such issues—gave an answer that was not entirely positive. It set out the background to its reasons why this cannot be done, but it also said:
“As part of its upcoming work on a definitive VAT regime based on the destination principle, the Commission will assess the functioning and possible improvements to the system of reduced rates.”
So we have an opportunity to get involved in this debate to say that this is an important issue for us as a nation and for women across Europe.
We have an opportunity and an obligation to try again to resolve this issue. Members may not know this, but the Republic of Ireland entered the European Union at the time of a 0% rating on sanitary products that it was able to retain in much the same way as we have derogations in different areas, so there is already a precedent within the EU of a zero rating in a European member state. I urge the Government to take a lead on this for women across these islands and across the EU. Let us end this bloody unfairness.
Mr Bernard Jenkin (Harwich and North Essex) (Con)
This debate is like history coming back to me, because not only does the hon. Member for Glasgow Central (Alison Thewliss) now represent the constituency that I stood for in 1987, but I was first made aware of this issue by the hon. Member for Walthamstow (Stella Creasy), who, when she was an A-level student in my constituency, berated me for the inequality of this tax. Ever since, I have been convinced that it is an unjust tax. Indeed, on that occasion I raised the matter in the shadow Cabinet, which was then under the leadership of William Hague. I got a very frosty and uncomfortable reception for raising such a matter in a semi-public meeting, including from some of our right hon. and hon. Friends who are female and hold extremely senior positions in Government to this day.
That demonstrates an important point about how attitudes change. Whatever we might have agreed to in our original agreements with the European Union that lock this tax in place, albeit reduced by the previous Labour Government to the minimum of 5%—I celebrate that—we are now, within the European Union, operating in a system based on a different principle—the principle that taxes should be harmonised as part of the single market. I refer the House to article 113 of the treaty on the functioning of the European Union, which says:
“The Council shall, acting unanimously…adopt provisions for the harmonisation of legislation concerning turnover taxes, excise duties and other forms of indirect taxation to the extent that such harmonisation is necessary to ensure the establishment and the functioning of the internal market and to avoid distortion of competition.”
So taxation has crept into the idea of being part of the single market. At the point at which this country signed up to the Common Market, or even at the stage of the Single European Act or of the Maastricht treaty, this principle crept into the acquis communautaire of the European Union rather than being something that was expressly agreed by this House.
I very much hope that the Government will negotiate something fundamental on this particular tax, and I am looking forward to what the Minister has to say about it. However, I make no apology for raising the far more general principle that different taxation regimes in different countries represent different social settlements and the development of our societies in different ways at different paces. That is why we are separate nations and separate peoples with separate democracies.
The attempt to use the pretext of the single market to harmonise taxes is one of the most democratically regressive manoeuvres the European Union could adopt. France puts VAT on food and children’s clothes, but this country would not put VAT on such items. Ever since we adopted the cheap food policy following the abolition of the corn laws in the 1840s, that has been part of the fabric of our social settlement. It is the right of an individual nation state to continue to evolve its social settlement, and the conduct of Government and the imposition of taxes are inseparable from that democratic social settlement.
The treaties as currently formulated are a denial of national democracy. This House should not have to go and beg 27 other member states in order to change a rate of tax on an issue that we think is socially important. This is a matter of national democracy, and that is why the treaties are unfit for purpose.