(5 years, 10 months ago)
Commons ChamberThe Government like to talk about an implementation period, but what are they implementing? They only thing they have come forward with is a deal to leave the European Union. The relationship between the United Kingdom and the European Union is to be left to the future, and there is no knowing how long that will take. According to the papers in front of us, it will supposedly happen within a two-year period, but many believe that it could take five years or perhaps even longer. There is no certainty with what the Government are bringing forward.
We have still not seen any economic assessment of the Government’s deal. Either the Prime Minister has not instructed her Government to conduct one, or they will not publish it due to the reality of the hardship that her deal will bring. We are being asked again to vote for a blindfold Brexit and to sleepwalk into the future without facts and analysis from the Government about what the deal means for our economy. It is an insult to this House and each and every Member in it.
I wish to ask the Prime Minister a question—I hope she reads this in Hansard, as she is not here. Will she publish the details of the impact of her deal on the economy and contrast it with the status quo? The Government are refusing to end the shroud of secrecy and publish an economic analysis, but let me remind the House of the facts. Analysis by Scottish Government officials found that by 2030, under a free trade agreement, GDP would be £9 billion lower than it would have been if we had stayed in the EU—equivalent to £1,600 per person in Scotland. The Bank of England has warned that crashing out of the EU without a deal would be worse than the 2008 financial crisis, with house prices plummeting by as much as 30% and the Bank of England rate being hiked to 4%. Brexit uncertainty is already damaging our economy to the tune of £600 per household per year. Jobs and investment are at risk, and our economy is set to be weaker and smaller. How can any Member of this House countenance that?
We were elected to protect our citizens, not punish them, but Brexit will inflict undue pain across all parts of the United Kingdom. With this deal or no deal our constituents are set to suffer, and we cannot allow that to happen. Some Brexiteers argue that we will be okay without the internal markets of the EU. They are in cloud cuckoo land, harking back to the past. I say this to them: it is over.
Let us look at the facts. The UK’s trade with County Cork is worth almost as much as its entire trade with South Africa. Trade with Ireland is worth more to the UK than trade with India, Japan, New Zealand and Australia put together. As “Scotland’s Place in Europe” demonstrated, even if the UK signs agreements with the 10 biggest non-EEA single country trading partners, including the USA, China and Canada—a process that would take many years—that would cover only 37% of Scotland’s current exports. By contrast, 43% currently go to the European Union. The idea that we will be better off outside the European Union is a fallacy.
If trade volumes are the principal determinant of policy in this area, would the right hon. Gentleman not agree that, given that 61% of Scotland’s exports go to the rest of the UK and only 17% to the EU, the most important Union for Scotland is the United Kingdom?
I find that remarkable. There we have a threat to the people of Scotland from a Conservative Member. I thought we believed in free trade. We are not talking about barriers to trade with the island of Ireland, so why on earth would there be barriers to trade with Scotland? It is about time the Conservatives stopped threatening the people of Scotland, because that is exactly what they are doing.
It is demoralising to sit here today listening to the merry-go-round of Tory infighting and Labour fence-sitting. There is no leadership from these two parties. I genuinely feel for those across the UK who voted for the Tories and Labour and have been so badly let down. Now their cowardice threatens us all: our livelihoods, yes, but also our culture and communities and the type of society we could be. Our cultural ties with Europe run deep throughout Scotland. The auld alliance is perhaps the best known of Scotland’s ancient ties. France and Scotland enjoy deep cultural ties and have agreed a mutual cultural statement of intent, which the Scottish Government signed in 2013. We share a rich Celtic history of story-telling and traditional music and a great love of piping.
Such was the wealth of intellectual exchange between Scotland and Europe that in Kirkwall’s library in the 1680s there were books from Amsterdam, Kraków, Brussels, Rostock, Paris, Leipzig and dozens of other places. Our relationship with Germany dates back to 1297, when William Wallace wrote to the martyrs of Lübeck and Hamburg declaring Scotland open for business. In case Members are unaware, immigration was around long before the EU and will be around long after. It is, after all, a global phenomenon.
(6 years ago)
Commons ChamberThe right hon. Gentleman accuses the Prime Minister of ignoring Parliament. Yet has not she done the opposite? She has listened to the views expressed across the House, heard that there is disagreement with the proposed deal and therefore gone away to try to change it. She has listened to and respected, not ignored the House.
I am almost lost for words. The hon. Gentleman does not accept that the House voted for a meaningful vote, the Government introduced the timetable for it, yet the Prime Minister disrespected Parliament.
We have reached a critical point. It is crystal clear that the Prime Minister is focused on running down the clock. Rather than buying time, she wants to run out of time. Her strategy now seems to be to present a binary option—her deal or no deal. That is not the case before us. Let me be clear: the Prime Minister has options, but she will not take them. She has checked out of listening mode. Despite facing resounding defeat, she is burying her head in the sand. We cannot let her. We cannot stand for this treatment. The Government cannot be allowed to treat this place with contempt.
That is why I wrote to the right hon. Member for Islington North (Jeremy Corbyn), alongside Plaid Cymru, Liberal Democrat and Green colleagues, to urge him to table a motion of no confidence in the Prime Minister. I say respectfully to the right hon. Gentleman that he will have our support if he tables a vote of no confidence. It is time for this Prime Minister to go. This is a time not for floundering, but for leadership. The Prime Minister has shown nothing but contempt.
We need answers. When will the House get to vote on the deal? Yesterday, the Prime Minister offered no assurances on the timeline. If her plan is to run this to the wire, to take all other options off the table and rob Parliament of its say, she should be ashamed of herself.
Today’s Treasury Committee report expressed disappointment that the Government's analysis did not model the deal. It also affirms that UK firms have no sympathy for a Government too frightened to put their deal to a vote, despite the fact that UK firms lost 2% of their value yesterday with the pound’s fall. Business is losing faith. The Prime Minister has put us in an economically and constitutionally unsustainable position. The SNP will not stand by while the clock ticks down. We will not allow the Prime Minister a free hand to reduce our options to a binary choice. Parliament cannot allow that. We must now take back control. It is time for the Prime Minister to move aside and let Parliament lead or let the people decide.
I say respectfully to the Leader of the Opposition that we want to work with him. We have a choice to put this matter above party politics, bring it to an end and bring this shambolic Government to an end with a motion of no confidence.
He can shout all he likes. I will tell him what is shocking: the Budget from the Chancellor today.
Ten years after the onset of the last recession, history tells us that, statistically, we are likely to be closer to the next recession than to the last. The UK’s preparedness and ability to respond is impacted by the failure of leadership of the Chancellor and his Government. How ill-prepared has the Chancellor come to the Dispatch Box today! It is a pity he is not here; what disrespect he has shown.
Over the weekend, the Chancellor said that he might have to change his forecast if there was a no-deal Brexit. Can we even believe this Budget? What price will we all have to pay for a no-deal Brexit? Perhaps the Prime Minister does not believe it. Hours after the Chancellor made his announcement that a no deal would require a change in forecast, No. 10 said that it would not. What an utter shambles. Whose Budget is this, the Chancellor’s or the Prime Minister’s?
The Chancellor comes before us today without adequate planning to give us any of the assurances that his Government can protect our economy over the next few months, never mind the next few years. To add insult to injury, we were promised £350 million a week as the Brexit dividend—it was on the side of a bus—
Instead, we are getting 50p: a shiny new 50p to distract us from the devastation that the Government walk blindly into, as they railroad ahead with their Brexit plan.
(6 years, 7 months ago)
Commons ChamberI think the hon. Gentleman is correct. Let me say this respectfully: we are living in challenging times; we all agree on that. We had the attack in Salisbury, and it is important that we tried to reach as broad a consensus as we could have done on that matter. I simply say to the House that it is in all our interests that we are able to debate these matters. Nobody is talking about tying the hands of the Prime Minister; all we are asking is that democracy can take place.
First, we should keep it in mind that last week’s action was limited and targeted, not a more general engagement. To the right hon. Gentleman’s specific question on why Parliament was not recalled, let me provide this answer. First, to have provided full justification to the House would have entailed the disclosure of confidential intelligence. Secondly, it would have inhibited our ability to co-ordinate with international allies. Thirdly, it would have given our adversary some sense of the—
(9 years, 1 month ago)
Commons ChamberI am pleased to have the opportunity to debate tax credits today, particularly in light of the wholly inadequate time we had to debate tax credit changes on 15 September in connection with the statutory instrument. Would it not have been better if the proposed changes were made part of the Finance Bill so that they could have been properly scrutinised and debated and so that many Conservative MPs would not have been made deeply unhappy about what their Government have done?
During the week of the tax credit debate, a damning report from the House of Commons Library was published on the effect on many people of the changes consequential on these proposals. Let me state that the Scottish National party wholly opposes the changes to tax credits, which are nothing less than an attack on low-income families in this country.
The Prime Minister told his party conference that he wants a “war on poverty”. I would tell the Government that actions speak louder than conference rhetoric when cutting tax credits is going to increase poverty, particularly child poverty. The reality is that this is not a war on poverty, it is a war against the poor. All of us came into politics to make a difference. I say to the Government and to all Conservative Members that they should examine their consciences. Do they want to push through these cuts that will damage millions of families, increasing inequality in this country?
Will the hon. Gentleman confirm that it is now the policy of the SNP to use the new tax-raising powers shortly to be introduced to increase income tax in Scotland in a year or two’s time to increase tax credits in Scotland?
I find that extraordinary. We fought in the general election on delivering home rule to Scotland, which meant full fiscal autonomy. Given the damage that the hon. Gentleman and the Conservatives are going to do to hundreds of thousands of families in Scotland, they should give us the power over our economy and over welfare so that we can protect people in Scotland from the damage they are going to do.
We hear that individual Tory MPs have been summoned to speak to the Prime Minister and Chancellor to be straightened out. I appeal to them not to be bought off. They should do the right thing and support today’s motion. This is a Government who cut inheritance tax for those wealthy enough to have £1 million-plus properties and punish those on low incomes. “All in this together”?—well, we can reflect on that line.
(9 years, 5 months ago)
Commons ChamberThat comment from a sedentary position is correct. We used to talk about the nasty party when Thatcher was in power; it seems to have returned.
SNP Members will reflect on the choices made by the previous Government and this one. Some £375 billion of new money has been created through the quantitative easing programme. We recognise that some of that was necessary, but it created circumstances in which those in the financial markets benefited massively. A 90% increase in the value of the FTSE 100 since 2009, a huge increase in the value of financial assets, and banker’s bonuses that continue to reach eye-watering figures are the impact of this Government’s political choices. They have created the circumstances that have delivered increased value in financial markets; they have not created the circumstances in which wages could rise and the country as a whole could benefit. “All in this together”? You’ve got to be kidding!
Will the hon. Gentleman join me in welcoming the fact that inequality actually fell during the past five years?
I must tell the hon. Gentleman that according to the figures released two weeks ago, child poverty in Scotland is up by 20,000. That is the reality of what his Government have done to people in my country.
I look forward to hearing the point after the debate, perhaps.
Let me turn now to the topic before us. When Gordon Brown introduced these measures in the early 2000s, he told us that tax credits would cost perhaps a couple of billion pounds a year. The truth is that today they cost £30 billion a year, an astronomic burden on the Exchequer.
Let us think for a moment about what tax credits mean. They are a subsidy paid to top up wages because employers are not paying their staff properly. I deplore the fact that some employers are not paying their staff properly and are effectively abusing the generosity of the Government by underpaying their staff. Any reforms in tomorrow’s Budget that end that abuse will be extremely welcome.
Tax credits provide disincentives to work, as some of my colleagues have pointed out already. They are withdrawn at the same time as income tax and national insurance kick in. Effectively we have marginal tax rates at around the 75% to 80% mark, so it is no surprise that employees in the companies run by my hon. Friend the Member for South Suffolk (James Cartlidge) were reluctant to take pay rises when marginal tax rates were so high. One Member mentioned the 16-hour-a-week limit, now raised to 24 hours a week. I know people who have employed part-time staff who refused, understandably given the system, to work extra hours for fear of losing those extra tax credits. That is all wrong. The fundamental fact is that people are helped out of poverty not through Government handouts but through hard work and earning more money.
The hon. Gentleman was asked about food banks in Yorkshire and we have heard a lot about facts, so perhaps I can give him a fact. Between the end of 2012 and September 2014, nearly 150,000 sanctions were applied in Scotland, affecting 85,000 individuals. That is what is driving people towards food banks. Does he think that that is right?
It is right that wages are now rising, that people on low incomes have been helped with tax cuts and that the Government are directing assistance to people on low incomes. That is what is right. Over time, as the cost of living issues that have been mentioned are eroded by rising wages combined with zero inflation, the problem that the hon. Gentleman has referred to will without a doubt be alleviated.
There are other issues with tax credits. Employers who abuse tax credits by underpaying their staff have no incentive to invest in education, training and technology and, unfortunately, that contributes to our productivity problems. I believe that tax credits, introduced by the previous Labour Government, are a symptom of failure. They encourage companies to underpay their staff and place the burden of that underpayment on the general taxpayer. Any move in tomorrow’s Budget to reduce the burden of tax credits on the Exchequer while improving the earnings power of people on low pay will be very welcome. I join many colleagues on the Government and Opposition Benches in supporting moves towards a higher minimum wage. I have publicly called for that in London and I think that it would be a good move for the country as a whole.
We have heard about another cost of living issue: housing. There will be a housing Bill in the autumn that will promote house building and therefore affordability, but I point out to Opposition Members that the number of housing starts last year was about 50% higher than the number of starts in 2009-10. The Government have already made fantastic progress.
The foundations of prosperity and the way out of poverty lie in work, not benefits, and I endorse the Government’s approach.