Cost of Living and Brexit

Brendan O'Hara Excerpts

Wednesday 14th June 2023 Commons Chamber

[Brendan O’Hara (Argyll and Bute) (SNP)]

I would like to begin by thanking my hon. Friend the Member for Central Ayrshire (Dr Whitford) for the way she opened the debate. In her time in Parliament, she has deservedly gained a reputation as being one of those Members people listen to when she speaks. Across this House, she is recognised as speaking with authority, experience and great knowledge of her subject. I am delighted that she upheld her own very high standards this afternoon.

My hon. Friend the Member for Central Ayrshire was absolutely right when she said that the cost of living is the No. 1 issue for all of our constituents and that regardless of how often the Leader of the Opposition says it, it is simply impossible to “make Brexit work”. I have the vision of the right hon. and learned Member for Holborn and St Pancras (Keir Starmer) saying to King Canute, “No, you cannae hold back the tide, but I can; I’ll show you how to do it.” This is utterly delusional because, as she says, we cannot make this work. She laid out brilliantly the case as to why this House should have a dedicated Select Committee, one that will be able to investigate all matters relating to the soaring cost of living and of the contribution made to that cost of living crisis by the UK’s disastrous exit from the European Union.

It is not often I will say this, but I am looking for a Lib Dem—

[David Linden]

Why?

[Brendan O’Hara]

The hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) intervened earlier to complain bitterly that his party was not to be represented on this Committee and that that would be the Lib Dems’ excuse for not supporting this motion. However, as my hon. Friend the Member for Glasgow East (David Linden) said, this is an amendable motion and if the hon. Gentleman felt that passionately about it, he could table an amendment. I wish he was here so that I could remind the Lib Dems that when they proposed the creation of the EU withdrawal Committee, their proposal awarded the SNP precisely zero seats, despite our having the vast majority of Scottish seats. Perhaps the Lib Dems do not want to address this issue and are throwing smoke bombs right, left and centre because they do not want to be reminded that they are where they are because of the dirty deal they cut with the Tories in 2010. I just wish the Lib Dems were here to stand up and face the consequences of it.

No one can deny the detrimental impact that increases in the cost of living are having on businesses and families across Scotland and the United Kingdom, and only the most blinkered Brexiteer would deny the role that leaving the EU has had in driving those increases. Unfortunately, the powers available to the devolved Administrations in Edinburgh, Cardiff and Belfast mean that it is this place that must find a long-term solution to this crisis. As much as I commend the work done in Edinburgh, Belfast and Cardiff, it is this place that has to find those solutions.

That is why we must, with some urgency, establish this Committee. We must put in motion a process whereby the people of these islands can see and understand why food price inflation is through the roof and why mortgages are becoming increasingly unaffordable for so many. The evidence that will come to this Committee and the reports that will come from it will, we hope, furnish this hapless Government with the facts and evidence they need to see where they are going wrong and perhaps allow them to do something about it.

Let us be clear: the economic disaster of Brexit has not just fallen out of the sky. It has not just miraculously appeared. I am reminded of an exchange I had with the right hon. Member for North East Somerset (Sir Jacob Rees-Mogg) almost exactly a year ago, when he was Minister for Brexit Opportunities—I try to get through that title without laughing. I took the opportunity to remind him of his 2019 promise that the “broad, sunlit uplands” of Brexit were just around the corner for the British people and British business. Last year, I described the case of a small Scottish cosmetic company, Gracefruit, whose owners had told me that, because of red tape, soaring costs and loss of markets, they no longer had the mental or emotional strength to make a success of what had been a thriving business. Gracefruit was emblematic of so many small and medium-sized enterprises across the islands whose business had been destroyed by Brexit. In his reply to me, the right hon. Member for North East Somerset said:

“We are freeing people in this country from red tape because we look at the United Kingdom playing a global role—trading with the globe, being as economically productive as anywhere in the world…That is why the EU is a failing economic option and why we sing hallelujahs for having left it.—[Official Report, 9 June 2022; Vol. 715, c. 933.]

That was the Minister for Brexit Opportunities. I thought at the time that his reply was vacuous and glib. Twelve months on, I see it as deluded, arrogant, negligent and dangerous. If there is one reason why the creation of this cost of living Select Committee is essential, it can be found in that single reply. It was he and his well-heeled City chums who sold the people of England a pup in 2016. They sold it as a dawn of a new era of freedom and prosperity and of taking back control, but, instead, we live in a time of uncertainty and grave economic hardship, suffered, ironically, by those who bought into the fantasy that Brexit would be good for them and who have been left with the grim reality that Brexit has been a major driver of spiralling food costs, soaring mortgages and lower wages.

The pain of Brexit has been felt most acutely in our rural communities—communities such as my Argyll and Bute constituency, which had benefited from decades of EU membership and the support that it gave to our agricultural sector and the market that it provided for our outstanding seafood and shellfish sector. All of us who represent rural constituencies such as Argyll and Bute know that incomes are lower and costs are higher. Nearly 70% of households in my constituency are at risk of fuel poverty or extreme fuel poverty. As the hon. Member for Kilmarnock and Loudoun (Alan Brown) said, 56% of my constituency are off gas grid. To avoid fuel poverty, an average all-electric household would need an income of £72,200. To avoid extreme fuel poverty, they would require an income of £39,600. This is in the context of a median household income of just £33,000. Anyone can see the crisis of fuel poverty that is coming down the line, as indeed there will be with so many of my constituents.

The Royal Society of Edinburgh released a paper, “The cost of living: impact on rural communities in Scotland”, which recommended that any piece of legislation related to the cost of living should be “rural-proofed” and I heartily agree. It also recommended that the UK Government recognise the contribution of rural communities—whether it be through their whisky, tourism, timber or fish farming. In areas such as Argyll and Bute, the contribution made by my constituents to the UK Exchequer through whisky production alone is gargantuan compared with what they receive.

Rural Scotland has been hit hard by the cost of living crisis, which is why the people of these islands need the Committee to be set up. They need to have confidence that the decisions that we make here are done with all the available evidence that we can possibly muster. That is what the Committee would do. I say to Members, whether they be from the Labour party, the Liberal Democrats or the Conservatives, to vote this motion down on the minutiae—[Interruption.] The Minister may laugh, but this was an amendable motion, which his party, if it had any real commitment to the cost of living crisis, could have amended. To vote down this motion on the minutiae would be disingenuous in the extreme, because this is a genuine attempt on behalf of our constituents to address the biggest crisis in their lives at the moment. The Government and, sadly, the other opposition parties are playing political games with what should be a motion that unites all in the House.

[Mr Deputy Speaker (Mr Nigel Evans)]

I am calling the wind-ups at 4 o’clock and there are three others wanting to speak, so I ask Members to do the maths and be generous to their colleagues.