Budget Resolutions

Bill Grant Excerpts

1st reading: House of Commons
Thursday 1st November 2018 Commons Chamber

[Bill Grant (Ayr, Carrick and Cumnock) (Con)]

The Budget of Monday past has been welcomed by many but clearly not by all. I have been asking myself: what will it do for the constituents of Ayr, Carrick and Cumnock? It contains a range of measures that will benefit not just my constituents but the whole of Scotland. The Scottish Government will benefit from a funding boost of almost £l billion. I know my constituents will welcome this increase, and I am sure they will keep a weather eye on how it is spent by the Scottish Government. I hope it will be spent on people projects and not pet projects. Indeed, by 2020 the Scottish Government’s block grant will have grown to over £32 billion before adjustments for tax devolution—a real-terms increase over this spending review period.

Those of my constituents who, like me, enjoy a dram will very much welcome the freeze on spirit duty. I was pleased to see the concerted efforts of Scottish Conservatives and others recognised by the Chancellor. Indeed, he was listening—I am sorry for doubting him. I know that the industry in Scotland will welcome the freeze.

I also know a few individuals in Ayr, not least Messrs Brown and McLoughlin, who enjoy a wee dram and I am sure that they will raise a glass as a result of the freeze on spirit duty. I am not linking the two measures in drinking and driving, but the freeze on fuel duty will always be most welcome, particularly in the rural areas of Scotland.

The national living wage, introduced by a Conservative Government, will now increase to £8.21 per hour.

[David Linden (Glasgow East) (SNP)]

Will the hon. Gentleman give way on that point?

[Bill Grant]

I am sorry; no. That measure means that 117,000 of the lowest paid in Scotland will enjoy an increase in their take-home pay. [Interruption.] That is fine. [Interruption.]

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. Can we not have that conversation across the Chamber? We all want to be included.

--- Later in debate ---

[Bill Grant]

Thank you, Madam Deputy Speaker. The measure is very much to be welcomed and, thanks to an earlier than planned increase in the personal allowance, the average Scottish worker will enjoy a £130 tax cut.

I know that, like me, some hon. Members were concerned about the transition period for households moving on to universal credit, and I very much welcome the financial support that the Budget delivers. I sense in the House today that not everyone is entirely happy with that, but again, the Chancellor has been listening.

Tax barriers have been removed in the North sea oil industry to allow further investment, and our fishing community will get the welcome, albeit rather small, £10 million as we move forward and improve our fishing industry post Brexit. However, I would welcome further investment in the fishing industry to improve the quality of the fleet in Scotland as we leave the European Union.

There are many good things in the Budget that will help us. We have the small business bonus scheme in Scotland, but that could be improved. We need to address the problems of our high streets: we can no longer watch buildings decaying year after year. We need earlier interventions to prevent the decay of our high streets, which are part of our future. We will not stop change: the internet and out-of-town shopping are here to stay, but I welcome the Chancellor’s recognition of the need for support for the high street.

Finance (No. 3) Bill

Bill Grant Excerpts

2nd reading: House of Commons & Programme motion: House of Commons
Monday 12th November 2018 Commons Chamber

[Bill Grant (Ayr, Carrick and Cumnock) (Con)]

I am pleased to speak in support of the measures in the Bill. I have previously spoken of a number of reservations about some of its measures. I wish to record my disappointment at the timetable for changes to fixed odds betting terminals. I believe the wait is too long. We can take some comfort from the fact that, while the Government did not oversee their introduction, it is this Government who will see the stake plummet to £2, but not on a timescale that I would have wished for.

I believe the Bill is well matched to our nation’s present circumstances and will do much to benefit my constituents in Ayr, Carrick and Cumnock. Scotland will benefit from the personal allowance being increased by the UK Chancellor to £12,500. That is almost double what it was when we came into power. The Scottish Government do not set that allowance, but they do set the tax bands, which are more numerous. We hear often that there is a tax saving for a certain band. That is indeed correct: it amounts to £24 a year for some, which equates to less than 50p a week—not over-generous. The Scottish Government have it within their gift to vary the tax rates and thresholds of non-savings and non-dividend income for Scottish taxpayers. I await with interest their budget next month, which will be a challenge for the Scottish Government. [Interruption.] Every budget is a challenge. My personal budget is a challenge. Presently, Scotland is the highest taxed part of the UK for income tax and the highest taxed part of the UK in which to run a business.

[Kirsty Blackman]

What does the hon. Gentleman say to the half of English taxpayers who would pay less tax if they were to live in Scotland?

[Bill Grant]

I take the hon. Lady’s point, but I understand that the saving she refers to is very modest to the tune of £24 a year for some, which equates to less than 50p a week. It is a step in the right direction, but a very small step and hardly a progressive tax system. As one whose mother cleaned other people’s houses and made beds at Butlin’s on Saturdays, I am not minded to accept lectures on poverty from Scottish National party Members.

I disagree with the suggestion that the Budget failed to provide funding for a social security system that treats people with dignity and respect. The Chancellor was listening. The entire ethos of the evidence-based and empowering system of universal credit is that work should always pay, and that work brings with it dignity and respect. No one can disagree with that. The dignity of work is important to all constituents in all parts of the United Kingdom.

The Bill will facilitate an additional £1.7 billion per annum being invested to increase work allowances by £1,000 from April 2019. I hear Opposition Members cry “More!” Everyone’s an Oliver—they want more, more. That “more” has to be earned and this Government have an economy that works and is earning more.

[Drew Hendry]

Come to Inverness.

[Bill Grant]

I am happy to join you.

Some 2.4 million households will keep an extra £630 of income per annum, and I am sure that those who need support will continue to receive it. It is no longer a wicked system where if someone wants to work beyond the 16 hours, they lose money.

[Alison Thewliss]

The hon. Gentleman says that it is no longer a wicked system, but it is a wicked system for those who have more than two children. Why does he think it is justifiable to take so much money out of the mouths of kids in his constituency?

[Bill Grant]

The system is set, and it is what is affordable to the taxpayer. You have to plan your children and what you can afford to bring up, as I planned—[Interruption.] It is not a crime to plan—[Interruption.] It is not a crime to plan your children and how you manage those children, and whether you have one—[Interruption.] That is the choice of the individual; it is not the choice of Government.

[Alison Thewliss]

Is the hon. Gentleman aware that this benefit will apply to all children, regardless of when they were born, and could not reasonably have been planned for from next year? Is he also further aware that the social security system is supposed to be a safety net for us all and not meant to punish people for the circumstances they are in?

[Bill Grant]

I thank the hon. Lady very much for that intervention—I do not agree with what she says. It is a safety net—it is a security net. My family have benefited from it. Nobody is saying they want to dismantle the welfare system. It has to be a manageable and affordable welfare system for the taxpayer and it must support the individual, as it does—[Interruption.] Thank you very much.

I have previously in this House expressed my delight at the freezing of duties for beer and whisky. That was agreed on, and we certainly found common ground across the Floor. We all like a dram and I am delighted that duties were frozen, particularly given that businesses in Scotland, not least in the whisky industry, will benefit from that freeze.

Having been a smoker, I was among those who noted an increase in duty, but I believe that this increase is fair. Together with the introduction of a duty on heated tobacco, this may guide people and cause them to reflect on their smoking or vaping habits in future, with the obvious health benefits. As one who has given up, I would advocate giving up smoking, whether vaping or conventional smoking, and that way the Chancellor will not get people with the extra duty. I realise that for many, that can be challenging, but giving up smoking is the best way to avoid tax on cigarettes. [Interruption.] It is lawful tax avoidance, as the hon. Member for Glasgow South West (Chris Stephens) said.

Similarly, the modest increases in vehicle excise duties for cars, vans and motorcycles to bring them in line with RPI inflation from 1 April 2019 may cause people to think about the type of vehicles that they own. People do not need to drive a gas-guzzler that consumes a lot of fuel, and there is the cost of fuel. They could improve the environment and increase the amount of money in their pocket. It would have a positive effect on the environment. The freeze on heavy goods vehicle excise duty for 2019-20 will, however, assist many small and medium-sized businesses throughout Scotland and the UK.

Opposition Members have sought to criticise the Chancellor for the suggestion that the Budget may need to be revised upon our leaving the EU. I do not see any logic in a notion that a reappraisal would be unhelpful after our country has left the EU. Surely such a reappraisal is entirely sensible and pragmatic, if it is indeed needed. The Opposition seem to concentrate on the same old chestnuts, but I would prefer that we concentrated on the little acorns in the Bill—for out of these little acorns, oak trees will grow. They will help the UK to flourish and austerity will indeed become a thing of the past, if we are all self-disciplined and unite behind the Chancellor, his Budget and this Bill.