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.

Treasury Spending: Grants to Devolved Institutions

Bill Grant Excerpts

Tuesday 3rd July 2018 Commons Chamber

[Kirsty Blackman]

I agree. What we should be doing in this debate, and what I will try to do in this debate, is to lay out what the real-terms cuts actually are. We cannot have constant fudge from the UK Government, whether on the Wales budget or on the Scotland budget. We need to be accurate about how much is being cut from these budgets.

Scotland’s fiscal resource budget has seen a cut of 9.1% over this period, and our total fiscal budget will be cut by 8.4% in real terms. The UK Government have been talking about the Barnett consequentials that are coming to Scotland, but the reality is that most of that money is financial transactions money. Financial transactions cannot be spent on normal day-to-day spending. They cannot be spent on resources for our NHS, for example, because they have to be paid back. This is not real money that the Scottish Government can spend.

We are also seeing a £230 million resource cut in 2018-19, but despite that, the SNP Government at Holyrood continue to protect public services and to invest in measures to unlock innovation and drive increased productivity. On policing, unlike the UK Government, we have not cut the numbers of police. At this point, I would like to congratulate the new Scottish Justice Minister, Humza Yousaf. It is possible that Donald Trump will visit Scotland. I am certainly not a big fan of Donald Trump coming to Scotland, but I am pleased that Humza Yousaf has managed to convince the UK Treasury—I thank the Minister for doing this—to provide an extra £5 million to cover the cost of rolling out the red carpet. I do not want Donald Trump to come here anyway, but he has had the hand of welcome extended to him by the Prime Minister, so it is completely reasonable that the UK Government should cover this cost.

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

In reference to Donald Trump, the President of the United States, does the hon. Lady not agree that he is one of the single biggest investors in Scotland, whether in the north-east in Aberdeen or in Turnberry in my constituency, where he employs 300 people and has invested more than £200 million? I would welcome Donald Trump to my constituency. Does she agree?

[Kirsty Blackman]

I do not give a stuff how much Donald Trump has invested in Scotland, because he is separating families, and that far outweighs any good that he has done with the investment that he has made.

Economies of the UK Islands

Bill Grant Excerpts

Wednesday 9th May 2018 Westminster Hall

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

It is a pleasure to serve under your chairmanship, Mr Rosindell. I congratulate my hon. Friend the Member for Havant (Alan Mak) on securing this important debate on islands of the United Kingdom. Island economies are particularly important to Scotland, which boasts almost 800 islands around its coastline. In 2011, some 93 permanently inhabited islands were recorded, and between them they host almost 2% of the Scottish population. That gives Scotland by far the largest number of inhabited islands in the United Kingdom.

I had the privilege of being the senior fire officer in Argyll and Bute for some five years. I pay tribute to the islanders who provide the personnel for the volunteer units and retained fire stations that serve those communities. They are very much on their own; getting support to them can prove almost impossible. I commend the men and women who support their fire service. At the time I was there, the island populations varied from around 100-plus on Coll and Colonsay to more than 3,000 on the island of lslay, which was mentioned earlier. To complement the population, Islay has eight distilleries, which are a great employer. As somebody said, there are no bad whiskies; some are just better than others. A neighbouring island is Jura, where we also have a distillery that produces a lovely whisky that bears the name of the island.

Tourism, food and accommodation figure strongly in many island economies, along with traditional incomes from crofting, farming, fishing, and, in some cases, fish farming. The right hon. Member for Orkney and Shetland (Mr Carmichael) suggested there might be opportunities post-Brexit to adjust the system to assist the communities further. They really need that assistance. Oil and gas are players in a number of island economies mainly to the north of Scotland. Tiree, which is quite breezy, off the west coast of Scotland, is the most fantastic place in the United Kingdom for windsurfers.

In my time visiting the west coast islands, the provision of fire cover, education and medical services was a constant challenge just to secure the right people for the posts. The additional cost of providing those services is recognised and factored into the Barnett formula under the sparsity factor. May I commend the Scottish Government for the introduction of the road equivalent tariff, which, in conjunction with the ferry operator, Caledonian MacBrayne, has generated additional tourist traffic that in most cases—although perhaps not in all cases—must be welcomed?

[Mr Carmichael]

My constituents would not forgive me if I were to allow this opportunity to pass. I must point out that in the Northern Isles, despite a raft of promises over the years, we are still to see the reduced fares promised by the road equivalent tariff.

[Bill Grant]

I fully accept the right hon. Gentleman’s intervention. I hope that those endeavours will bear fruit and be recognised. I think that the NorthLink Ferries services do not attract the same support.

We also host the world’s last seagoing paddle steamer, the Waverley, based in Glasgow. She is a wonderful way to do what we say in Scotland is a trip “Doon the Watter” that takes people to various islands such as Arran and Cumbrae, which I am sure we will hear about later. It is a great opportunity to see the wonderful west coast. She also plies her trade off season down here in the Thames.

[Mr Seely]

She has also spent much of her time on the Isle of Wight, where she was very welcome.

[Bill Grant]

I thank my hon. Friend for bringing that to my attention. I am sorry for missing out the Isle of Wight. The Waverley is a wonderful asset to the nation and is the world’s last seagoing paddle steamer, supported by a charity and the nation.

Though uninhabited, Ailsa Craig is an island that sits off my constituency in the Firth of Clyde and plays host as a bird sanctuary to gulls, guillemots and puffins. Most importantly, it provides the granite for the best curling stones in the world, hand-crafted by Kays of Mauchline in Ayrshire. When we see curling on television, the curling stone almost certainly originated from the island of Ailsa Craig.

It is important to note in this debate that island communities in Scotland and across the United Kingdom are diverse. No two islands are the same, and although they often face a similar set of economic challenges, they each have their own unique circumstances: for example, population. Scotland has four islands with populations above the 10,000 mark, and those islands’ economies have different needs from the many Scottish islands with populations below 100. In the case of many of those smaller communities, probably the most pressing economic issue requires acting to prevent depopulation and working to secure the long-term future of those communities. Retaining young people on the islands to give them continued vibrancy is important.

The population of Scotland’s islands increased by about 4% between 2001 and 2011. That is a welcome development, which I hope will continue and even accelerate over the coming decades. In many cases it is very challenging to sustain island populations. Although Scotland’s four largest islands recorded an increase in that period, it is sad to note that communities of fewer than 50 inhabitants still experience, in general terms, the risk of a drop-off in population numbers. When we talk about the economies of the islands, therefore, we must be sure to include all the islands and not just the larger and identifiable ones such as the Isle of Wight.

Scotland’s small island communities are some of the most unique and beautiful places in the entire United Kingdom, and it is important that their future is secured as well as possible. Scottish islands of all sizes have great economic potential, and both the Scottish and UK Governments need to work together to ensure that that potential is fulfilled. The right level of investment and support, as mentioned earlier, is needed across the islands, but particularly in areas such as transport, fuel costs and maintaining the vital links that give islanders access to the basic services that people on the mainland simply take for granted.

Connectivity is vital for Scotland’s remote islands. For island communities as well as other rural and remote areas, broadband is necessary to ensure that the communities’ economies do not get left behind. I hope that the UK Government’s welcome intervention in the broadband roll-out in Scotland will deliver results sooner rather than later.

As was mentioned before, 4G and 5G connectivity are vital to local economies across the United Kingdom, and island communities are no different. If our islands keep pace in terms of mobile connectivity, they have a better chance of keeping pace economically, which is essential for a vibrant future for the islands. The Islands (Scotland) Bill, which is currently going through the Scottish Parliament, will be judged on the outcomes it produces, and I hope that islanders will not be disappointed. Our islands, of all sizes, can and should have a bright future ahead of them.

Finally, if anyone is minded to secure a tranquil, peaceful holiday, they would do well to visit a Scottish island.

Banking in North Ayrshire

Bill Grant Excerpts

Wednesday 14th March 2018 Commons Chamber

[Patricia Gibson]

Thank you for that clarification, Mr Speaker. We do know that there has been jiggery-pokery and all sorts of nefarious goings on as to how these figures are presented. [Hon. Members: “Sleekit.”] My colleagues are shouting the word “sleekit” to me, which may well indeed cover the particular practice that is going on. The point is that it is not right for customers to be herded into the pen of online banking, a place where they have up to this point chosen not to go or have been unable to go. We are being forced down this road by banks as they shut up shop. If we insist that we do not want to bank online, the attitude we see from too many banks, including in conversations I have had with banking officials, who shall remain nameless, is that they collectively shrug their shoulders and more or less say, “Suit yourselves, but we are still shutting your bank.”

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

I thank the hon. Lady on several counts. I thank her for securing the debate, for the good work that she and her fellow councillors have done in her constituency to hold RBS to account and for using the word “jookery-pawkrie” —the “jiggery-pokery” that I can understand.

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

Has that been in Hansard? [Laughter.]

[Bill Grant]

I am left-handed and I am from a different party as well. Will the hon. Lady join me in expressing dismay that none of the 10 banks that was given that reprieve was from Ayrshire? Indeed, the 10-month reprieve is simply a stay of execution and it is derisory for the people of Scotland. RBS could do better for the people, who have been customers for generations. It was a world leader and it has let down the people who made it.

[Patricia Gibson]

The hon. Gentleman is right that giving 10 banks a reprieve is not enough, and I am of course disappointed that none of them is in Ayrshire. I wish the banks that have been reprieved well, but I wish that we could add to that list the other 52 in Scotland that are earmarked for closure. If we could give a reprieve to the banks in my constituency, I am sure that we would make every effort thereafter to persuade RBS that the reprieve should be permanent. Obviously, the goal would be to save every bank, but I shall come back to that later because the Minister is looking at me with a bit of alarm.

I would throw one question out there in respect of digital exclusion. The banks are fond of telling us that we do not need to have branches and that we can bank online. I would particularly like to know what RBS’s advice would be to digitally excluded customers. Where do they go when the last RBS in their town closes? How do they access banking services?

A75 Euro Route: Upgrade

Bill Grant Excerpts

Wednesday 31st January 2018 Westminster Hall

[Mr Alister Jack (Dumfries and Galloway) (Con)]

I beg to move,

That this House has considered the upgrade of the A75 Euro route in Scotland.

It is a pleasure to lead my first Westminster Hall debate under your chairmanship, Mr Betts.

I was elected to this place last June. In my manifesto, I pledged to campaign for more investment in Dumfries and Galloway’s infrastructure, with a particular focus on our roads. No road is more in need of urgent attention than the A75 Euro route, a 95-mile-long stretch of road from Stranraer to Gretna that links the south-west of Scotland to the M74 and M6 and thereby the rest of the United Kingdom. This trunk road is a key artery of Dumfries and Galloway’s local economy, and I fear that if we do not see a sustained programme of upgrades to the A75 in the near future it will have a detrimental social and economic effect, something my constituency can ill afford.

In addition to its critical importance to the economy of Dumfries and Galloway, the A75 is of serious concern to businesses in Northern Ireland, given that 45% of Northern Ireland’s trade with the rest of the United Kingdom transits through Loch Ryan in the west of my constituency. Halfway up Loch Ryan is the port of Cairnryan, home to two international ferry companies that operate ferries to and from Belfast and Larne. It is a route of strategic economic importance and a major hub for freight and tourism, with over 9,000 sailings per annum carrying 1.7 million passengers, 415,000 cars and 410,000 freight units.

Depending on their destination, vehicles will use either the A77 or the A75 when ferries dock, and because of the road conditions that can often cause frustration for convoys and drivers—something I can attest to.

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

My hon. Friend mentioned the ports in Loch Ryan, of which there are two. They are extremely busy and getting busier year on year, but does he agree that there has been little or no investment in the road infrastructure leaving those ports? The road infrastructure in general is badly neglected, but the A75, an extremely busy route for the ferry ports, needs investment and has been neglected over the past 10 or 20 years.

[Mr Jack]

The A77 Euro route to the north of Cairnryan runs through my hon. Friend’s constituency. I both agree and disagree with him: I completely agree that those roads need a lot more money spent on them, but I disagree that they are getting busier. Part of the problem is that they are not getting busier because, as I will come on to in my speech, we are losing hauliers’ business down to Dublin and across to Holyhead and other ports.

Going back to my point about frustration for convoys and drivers, being stuck behind a fleet of lorries on the A75 is not a pleasant experience. The A75 is predominantly a single carriageway road with very limited overtaking opportunities. Poor roads to and from the ports are putting them at an extreme disadvantage and in turn threatening jobs and livelihoods that depend on those ports. Last November, I met representatives from Stena Line, which has invested over £100 million to provide Scotland with a first-class new port facility at Cairnryan. P&O has also invested a lot in its terminal and in its vessels. The investment those companies have made has not been matched with vital road and rail development to help the ports remain attractive and competitive. Frankly, if such private investment is not supported, that is a disincentive for future investment.

The message could not be clearer. If we continue on the current trajectory of neglecting the A75, the consequences could be grave. The warning signs are already in place. Unfortunately for us, while we continue to talk among ourselves about the need to act, Northern Ireland has stepped up a gear and ensured that its road connections are keeping pace with economic development. That has resulted in a growing number of Northern Irish hauliers diverting their traffic flows to sail from Dublin; in all honesty, who can blame them?

Other UK ports, such as Heysham, Holyhead and Liverpool, are gearing up for the future and the increasing traffic flows of freight and tourism resulting from investment in the surrounding roads, whereas Cairnryan is in clear danger of being left behind. An easy, quick win would be for the Scottish Government to increase the speed for vehicles over 7.5 tonnes on the A75. At the moment they are restricted to 40 mph, but that could be lifted to 50 mph, which in turn would shorten the travel times that hauliers have to face.

However, it is not only ferry companies, visitors and hauliers on whom the condition of the A75 is having an effect. Local people in my constituency who travel the road on a regular basis are just as, if not more, frustrated. I commend the efforts of those involved with campaigning to improve the roads. Both Dual the A75 and the A77 Action Group, which is in the constituency of my hon. Friend the Member for Ayr, Carrick and Cumnock (Bill Grant), have been active campaigners on the issue and have argued their case strongly at every opportunity.

It would be remiss of me not to recognise that there have been some improvements to the A75 in recent years, and they are welcome, but they have not gone far enough and they are just a sticking-plaster solution to a much wider problem. Since 2007, more money has been spent on maintenance issues than on capital investment.

I am pleased that the Scottish Government have commissioned a study to look at the rationale for improving road, rail, public transport and active travel on key strategic corridors in Scotland, including the A75. I look forward to the initial findings of that study being published later this year, and I understand that the outcomes will be fed into a second strategic transport projects review. The Scottish Government have said they recognise the importance of the A75 to the strategic transport network, to the economy of south-west Scotland and to the rest of the country, and I hope they come up with the money to demonstrate it, starting with bypasses for Springholm and Crocketford. Those two villages have been making the case to be bypassed for years, and they are in desperate need of it.

As seems de rigueur in this place at the moment, Mr Betts, I am going to bring the debate on to the subject of Brexit—but, you will be relieved to hear, only briefly. As preparations continue for Britain to leave the European Union, it is important that our economy is firing on all cylinders and ready to embrace the opportunities and rise to the challenges that we will face. It is more important than ever that our road network is able to cope with the demands of a post-Brexit economy, and that means investing in every region of our country. In Dumfries and Galloway, I want an A75 that is not only fit for the future, but one that makes the port of Cairnryan the most attractive port for the transport of goods to and from Northern Ireland, a vital partner in trade and tourism.

Taxation (Cross-border Trade) Bill

Bill Grant Excerpts

2nd reading: House of Commons
Monday 8th January 2018 Commons Chamber

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

I am delighted to speak in favour of the Bill as it provides the next pillar to support the UK’s exit from the European Union. Free and fair trade is fundamental to the growth and prosperity of the United Kingdom and the world economy. Trade with our neighbours near and far is intrinsically linked with jobs, wage growth, productivity and innovation. Trade ensures that more people can access a wider choice of goods and services, hopefully at a lower and competitive cost, and can make household incomes go that bit further.

As we prepare to leave the EU, we are beginning to chart our new course, remaining—as we have always been proud to be—an outward-looking, internationalist nation, and identifying new opportunities with potential trading partners around the world. The UK’s trade with the world is equivalent to over half our GDP. We must therefore do everything that we can to ensure that trade can continue and that all the necessary arrangements are in place after we have left the EU. We need customs, VAT and excise arrangements to support us in both our existing and future trading missions.

Let us be absolutely clear: the decision by the British people in 2016 to leave the EU was one to remove us from all aspects of the EU, not to cherry-pick the ones we want. Indeed, 27 other countries would have a say about any cherry-picking we indulged in. Our departure from the EU includes leaving the customs union. Opposition Members would ignore or put aside the decision by the people of the UK and claim that the country could somehow magically retain its membership of the customs union. This Government have made it crystal clear that the UK will leave the customs union. Anything less would be viewed as a betrayal of the millions of people across the country who voted leave—I am not one of them; I voted to remain—and now expect us in this place to carry out that decision. I hope that those voters will be encouraged by the Government’s steps to implement our own independent arrangements, including on trade, and will feel that real progress is being made towards our exit from the EU.

I would like to deal briefly with an issue of huge importance to businesses in Ayr, Carrick and Cumnock, and indeed beyond—throughout the whole United Kingdom. Business after business in my constituency stresses the same thing: the need for clarity and certainty so that they can begin the process of planning for their futures, and the futures of their staff, suppliers and customers. This Bill takes steps to address their concerns.

Customs and excise are complex issues, and I am not an expert in them, but I understand that more than 17,000 types of goods must be classified, and I am sure there will be sub-classifications as well. It will take time for businesses—and, I dare say, the Government—to adapt to any new changes. I therefore welcome the provisions that facilitate an interim customs arrangement with the EU, remaining true to the Prime Minister’s promise of an implementation period. During such a period, I would like close association with the EU customs union, in much the same manner as we proceed currently, so that we avoid a cliff edge for businesses, which no one wants.

[Stephen Kerr]

My hon. Friend talks about cliff edges. Does he, like me, find it ironic that the Opposition parties that will vote against the Bill’s Second Reading are creating the very cliff edge that our constituents—business operators, directors and entrepreneurs—do not want? That is exactly what Labour and the SNP will be doing by voting against Second Reading.

[Bill Grant]

I share my hon. Friend’s view about the pessimism of some Opposition Members, albeit not all. The last thing that we need is to talk down the United Kingdom and our business communities. At this time, they need our support. We do not need a cliff edge for business in the UK, as well as those in the EU with which we trade.

The next few months will be crucial, and I am sure that the UK’s negotiating team in Brussels will do all it can to agree to the principle of an implementation period. The one thing this Bill must not do is limit our ability to negotiate a future trade agreement with the EU. All options must be on the table for our negotiating team to secure a future trade agreement.

Whatever the future arrangements—we do not know what they are; no deal has been struck and the die has not been cast—at the heart of the UK’s trade policy must be a continued commitment to rules-based free trade. The UK has long led the world in this area, from early trading days with sailing ships such as cutters—[Interruption.] I was thinking more of the Cutty Sark.

We have played a leading role in organisations such as the International Monetary Fund and the World Bank. We in Scotland have made an immense contribution to the UK’s trade across the world, for instance with our shipbuilding. We have done very well. We have sailed the world—I shall never forget it—and our most successful days are ahead as we remain part of the United Kingdom.

Our future trading arrangements with Europe have immense possibility. The UK starts from an unprecedented point of alignment, and I would like both sides to take this opportunity to design a customs arrangement that is both ambitious and innovative. This is not a one-way street; it is a two-way street with many movements on it. Let us imagine the Prosecco producer in Italy, the wine producers in France and Spain, the flower growers in Holland—[Interruption.] Yes, there is whisky, but we are leaving; I am thinking of the ones who remain, such as the car manufacturers in Germany and Spain. They will want a frictionless, seamless arrangement. Let us never forget that the United Kingdom is a good country to do business with. These people, among many others I could mention, will want to continue to do good business with us.

[Wera Hobhouse]

Does the hon. Gentleman not understand that the most important thing for the EU is to maintain its integrity? If everybody would get a better deal by leaving the EU, as the UK thinks it will, everybody would leave. That is exactly why the EU wants to protect its union. Does the hon. Gentleman agree that that is the first thing the EU will have in mind?

[Bill Grant]

I thank the hon. Lady for that intervention, but I think she missed the point of what I was trying to say. This is a two-way street. In fact, the trade deficit is in favour of the EU. I think that we will wish to work together as nations. Although we are leaving the EU, we are not falling out with the EU. We have made a choice. We are leaving, but we want to be friends. Basically, I was saying that the EU will wish to remain our friend for a whole range of reasons.

Above all else, the needs of businesses throughout the UK must be prioritised, which means that we must have a customs arrangement that is both highly streamlined and compatible with our colleagues in European nations. We should not create differences. We have decided to leave—[Interruption.] We can replicate and mimic, but Opposition Members forget to tell us the baggage that comes with membership of the customs union. We cannot cherry-pick; European colleagues—friends of Opposition Members and friends of mine—will not allow that.

The Bill will ensure that the UK can continue to operate as an outward-looking nation after we exit the EU, leaving open options for the Government’s implementation of an effective future trade policy. I have heard repeatedly the pessimism of some Opposition Members, although not all. They are so pessimistic and willing to talk down our businesses, capabilities and competences, and our willingness to innovate and to succeed. We will succeed and we will honour the referendum. The world truly is our oyster and we shall succeed. For that reason, I am delighted to support the Bill.

Finance (No. 2) Bill

Bill Grant Excerpts

Committee: 2nd sitting: House of Commons
Tuesday 19th December 2017 Commons Chamber

[Kirsty Blackman]

The discussion that we had earlier today and that we are having now in relation to tax avoidance really goes to the heart of the question: what kind of country do the Government want to be in charge of. It was clear from the earlier debate that the Government do not want to be in charge of a country that is open and upfront about tax changes and the impacts that they will have. They also have issues with tax avoidance and evasion and with the choices that they make. Their choices are very much not the ones that Scottish National party Members would make, nor indeed, I think, ones that Labour would make.

On the issue of the tax gap in particular, the UK Government took the decision that it was more important to have immigration officers who were concerned with ensuring that the “wrong sort of people” did not get into the country than it was to have customs officers. We have ended up in a situation where there are very few customs inspections, which is a major contributor to our tax gap. We are talking about tax avoidance and tax evasion and about going forward into a situation in which we will need to make many more customs checks, when the UK Government have got rid of most of the people who know what they are talking about in relation to customs. We have a major problem that needs to be solved if we are to fix those issues.

A Transparency International report mentioned 766 UK companies that had avoided tax. A quarter of those companies are still active in the United Kingdom. The UK Government do not seem to have taken any action to ensure that they cannot dodge tax in the way that they have. Among the actions that we have been talking about is protection for whistleblowers. We continue to call for whistleblowers to be better protected. It is really important for people to feel that they can come forward safely and that they can uncover major problems that exist at the heart of some organisations that operate within this country, and at the heart of some schemes that operate within these islands. If the UK Government produced stronger guidance and stronger protection for whistleblowers, it would allow and encourage more people to come forward.

On the issues around the general anti-avoidance rule and the complexity of the tax code, we have been consistent in our criticism of how complex the tax code is. Someone posted a picture recently of the new version of the UK tax code that had just appeared: the thing was almost as tall as me. An absolutely huge number of bits of paper are required to make up the tax code. Is it any wonder that there are unintended loopholes that people can exploit? If the tax code was much simpler, if there were fewer tax reliefs and if the UK Government chose instead to give money to people rather than a tax relief, it would make things slightly better.

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

The hon. Lady suggested that there is a confusion in the tax codes. It is only in recent days that the Scottish SNP Government have introduced a raft of new bands for tax and indeed increased tax. I find that anomaly quite strange.

[Kirsty Blackman]

It is not actually a raft of new tax bands. As far as I know, it is one more band in the tax system with slightly different numbers for the pennies. But that is only in relation to income tax. Some 70% of people will pay less tax and 55% will pay less tax than they would in England. Does the hon. Gentleman believe, therefore, that the English system is taxing people unfairly compared to the Scottish system?

Finance (No. 2) Bill

Bill Grant Excerpts

2nd reading: House of Commons
Monday 11th December 2017 Commons Chamber

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

I think it only right for me to support a comparatively brief Finance Bill in a comparatively brief speech.

The Bill translates into action the autumn Budget’s excellent provisions for promoting innovation. As a member of the Select Committee on Science and Technology, I was looking for ways in which the Government would seek to promote technological innovation in the Budget, and I was not disappointed. Research and development expenditure credit has been increased slightly—by 1%, to 12%—boosting corporation tax relief for companies that engage in R and D. Encouraging more private sector investment in R and D in that way is a welcome step forward.

The Bill also doubles the annual limit for individuals investing in companies through the enterprise investment scheme from £1 million to £2 million, as long as any amount above the old £1 million threshold is invested in knowledge-intensive companies. That is another great measure to promote innovation, and we can say the same for the doubling to £10 million per annum of the amount that knowledge-intensive companies can source through the enterprise investment scheme and the venture capital trust scheme.

The Government have set the ambitious target of increasing overall R and D funding to 2.4% of GDP within a decade, and they are on course for an eventual 3% figure. That is an unprecedented investment in the future of the United Kingdom, and it represents the forward thinking that we will need if we are to make the most of the technological revolutions that are to come. These provisions are vital to ensuring that the private sector, which is an essential partner, plays its role in achieving our goals.

Alongside the other commitments made in the Budget—the extra £4.7 billion in R and D funding over the next four years is very welcome, for example—there are provisions in the Bill that constitute a great step forward for innovation. The United Kingdom is no stranger to innovation in many respects, but let me select just one. In 1928 the world’s first true antibiotic, penicillin, was discovered by Sir Alexander Fleming, a Scottish physician, biologist and Nobel prize winner, who was born in Darvel, Ayrshire, in 1881. Penicillin has been described as the most important advance ever made in the history of medicine. We await with interest the next generation of innovation.

However, the Bill does more. Having served as a firefighter for 31 years, I am particularly pleased that the Government will mend the muddle of the Scottish Government, namely their poor judgment in surrendering the VAT exemptions for the Scottish fire service and Police Scotland. The Bill creates a special exemption for Scotland’s police and fire services, which lost their exemption despite the SNP in Holyrood receiving the best advice from many sources. My friend the hon. Member for Glasgow Central (Alison Thewliss) shakes her head, but the simple fact is that the SNP Government will never accept advice from the police force, the fire service, the Convention of Scottish Local Authorities and eminent people in Scotland, because of their arrogance and their relentless desire to pursue their centralisation agenda.

[Mike Amesbury (Weaver Vale) (Lab)]

The Bill does nothing to address the shortfall in firefighters, who are essential to my constituency in Cheshire. Since 2010, the number of full-time equivalents has been cut by 160.

[Bill Grant]

I note what the hon. Gentleman says, but how that local authority spends its money on funding the fire service is a matter for the authority itself.

There are innovations in respect of smoke detectors and sprinkler assessments. The Scottish fire service is going through a similar process. It is undergoing a review, with the possibility of the closure of fire stations. We are moving on with a fresh look, and I hope that fire stations will not close, but there is that risk. Having served for 31 years, I know more than most Members in the Chamber about the work that firefighters do. I hope that we can move forward, and that the pay restraints of recent years will be eased.

With the approach of the new year, I hope that we can all raise a glass, in Scotland and elsewhere in the UK, to support the freezing of the duty on spirits such as whisky and gin, and that we will have a joyous and safe new year and enjoy spirits that are mainly produced in Scotland.

The Bill is good for growth, good for technology and innovation, and good for Scotland and the rest of the United Kingdom. I am delighted to lend it my support.

--- Later in debate ---

[Rachel Maclean]

My hon. Friend is absolutely right. He reminds us that, in fact, there are a lot of measures in the Bill that will help low-paid workers in our country. He mentions the tax cut and how people are being taken out of tax, but what he did not say is that the increase in the personal allowance next year will mean that, in 2018-19, a typical taxpayer will pay at least £1,075 less tax than in 2010-11.

I should explain to Labour Members that taking someone out of tax is the same as giving them a pay rise, because they get to keep more of their money. [Interruption.] The hon. Member for Bootle is laughing—perhaps he would like to intervene.

[Bill Grant]

Will my hon. Friend give way?

[Rachel Maclean]

I give way to my hon. Friend instead.

[Bill Grant]

I remind my hon. Friend that Scotland is the highest-taxed part of the United Kingdom. Scottish National party Members will keep me right, but they are minded to alter the tax band and take more money from the pockets of those who are working hard. Does she agree that that is not the best way forward for the economy of Scotland?

[Rachel Maclean]

My hon. Friend is completely right. He reminds us of why we see so many Conservative Members representing Scotland, and I am proud to sit with them. Even though I have a Scottish surname, I am not from Scotland, but I love that part of our country. I am delighted that the Scottish people have Conservative representatives fighting for low tax.

Budget Resolutions

Bill Grant Excerpts

Wednesday 22nd November 2017 Commons Chamber

[Ms Dorries]

The Chancellor made the point that other measures, such as on investment, would need to be implemented in conjunction with the abolition of stamp duty.

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

I share the desire that people be able to purchase their own home. I have a niece who lived in a council flat until two years ago. She chose to purchase that flat before the Scottish Government banned the sale of council houses, which would have denied her home ownership. In purchasing her flat, she saved herself £150 a month.

[Ms Dorries]

That is another illustration of how important it is that people can purchase their own homes.

In response to the hon. Member for Leicester West (Liz Kendall), I could list the measures announced today: the abolition of stamp duty and the investment of an additional £15 billion in house building, taking the total this Parliament to £44 billion. So it is not just the abolition of stamp duty; other measures are being put in place. People cannot own their own homes if there are not people to build those homes. I also welcome the review of the 270,000 planning permissions in London and why those homes have not been built—and it is not just in London; it is in my constituency and across the country.

Measures are being put in place to help councils build more. It is vital that we have more council homes and that local authorities have the powers to build them. We also need the targets for these urban and brownfield sites that have been lying dormant. We all know the areas—around Heathrow and in outer London. People work in London and want to live and be able to buy in London, rather than having to commute for two hours into London. All this is being looked at, and it will support the many young people in the capital who want to buy but have not been able to do so—and not just in the capital; in my constituency too. The complaint I get more than any other in my mailbox is from young people who want to stay and buy a home in Mid Bedfordshire but cannot and so are forced out.

I know that not everyone in my constituency will welcome my declaration that I want to see more house building, but I absolutely do. We must accept that we have reached a point at which we need to build more homes, and now is the time to do so. Throughout my 12 years in the House, I have been distressed by how little understanding there has been of the psyche of people, and how little emphasis has been placed on their need and desire to live in and purchase their own homes. I am delighted and relieved that that has finally been addressed today.

The Chancellor also announced investment in both road and rail in the east-west arc—the varsity arc, from Cambridge to Oxfordshire—which will go right past my constituency. I am delighted that that will bring high-tech jobs, build skills and infrastructure, and drive growth forward. As the Chancellor said, it means embracing innovation—embracing the future and change—and it is what we will need for a post-Brexit Britain. We need those high-tech jobs and growth corridors, as well as, in the midlands, the west-east link has been needed for so long. That investment is important; it is vital; it is essential for post-Brexit growth.

I think that we will become an island of opportunity, an island of development, an island of investment and growth. As well as the financial measures that are needed for the preparation for Brexit, I welcome all the other measures that have been announced today. I believe that, with the east-west corridor, the midlands growth engine and the northern powerhouse, we will be ready to embrace the post-Brexit world.

Scotch Whisky Industry

Bill Grant Excerpts

Tuesday 31st October 2017 Westminster Hall

[Andrew Jones]

The hon. Gentleman makes an important point. I have to say, though, that I have been talking to the industry and will continue to do so. One thing I have learned in the preparation of Budgets is that a significant number of representations are made either for Government spending or relating to duty. My door is open. I want to hear from the industry and ensure it understands that it can access the Treasury, which will be entirely supportive of British companies developing, investing and exporting. I particularly include the Scotch whisky industry. I have been trying to get across my support for it, and my door will be open for future meetings.

Let us get to the issue of duty rates. The actions taken by this Government are estimated to have reduced all alcohol duty receipts by around £2 billion since 2013. That is a significant duty cut. The actions taken to freeze or cut spirits duty at Budgets in 2014, 2015 and 2016 mean that the tax on a bottle of Scotch is now 90p lower than it would otherwise have been. I understand the point made by the right hon. Member for Orkney and Shetland about price elasticity within the marketplace. The £4 billion of exports per year are unaffected by duty changes as no duty is paid on exported spirits. No UK duty is paid therefore on around 93% of all Scotch whisky produced.

As we approach the Budget, the Government face some pretty tough choices. As I said, I cannot pre-empt what my right hon. Friend the Chancellor of the Exchequer may announce. However, it is the Government’s policy for our public finances to assume that alcohol duties will rise by retail prices index inflation each year.

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

We had a success in reducing corporation tax, which increased the tax take, and we are minded to further reduce corporation tax to achieve the same goal. Does the Minister think that that would also apply to a reduction in the duty on spirits? Would that generate an increased tax take, as per the corporation tax?