Cost of Living and Brexit Debate

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Department: Scotland Office

Cost of Living and Brexit

Christine Jardine Excerpts
Wednesday 14th June 2023

(1 year, 6 months ago)

Commons Chamber
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Philippa Whitford Portrait Dr Whitford
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I do not think my hon. Friend is reading the Order Paper wrong.

The combination of rising energy, food and housing costs, on top of years of benefit cuts and stagnant wages, means that, for many families, the sums simply do not add up. The Scottish Government are trying to use their now very limited powers of devolution to mitigate the crisis, particularly for those on the lowest incomes. However, the Scottish budget for the day-to-day running of services is less in real terms than it was in 2010, with no uplift for inflation and—as we all know—no significant borrowing powers. Despite that, the Scottish Government have provided additional funding for the fuel insecurity fund and the Scottish welfare fund. Low-income families are now supported through five childhood grants, including the Scottish child payment, which together provide £10,000 of support during the early years and will provide over £20,000 by the age of 16.

Christine Jardine Portrait Christine Jardine (Edinburgh West) (LD)
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Does the hon. Member agree that the way to improve the situation for everyone, not just in the devolved nations but throughout the United Kingdom, is for those who are elected to the Scottish Parliament to work hand in glove with those of us who are elected to this Chamber, and particularly with the other Government for Scotland in the United Kingdom? Rather than set up another cumbersome Committee, which is a process, would it not be better to work together for the benefit of everyone in the United Kingdom?

Philippa Whitford Portrait Dr Whitford
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The hon. Lady knows well that on issues such as trade deals and Brexit, we see very little genuine consultation between the Government here and the devolved Government. She is also well aware of how devolution is being rolled back and hollowed out, with legislation that has been passed blocked and undermined.

Christine Jardine Portrait Christine Jardine
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Will the hon. Member give way?

Philippa Whitford Portrait Dr Whitford
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No, I am sorry. I have just given way to the hon. Lady.

The Institute for Fiscal Studies’ analysis of the Scottish tax and benefit system showed that it was more progressive, with almost 30% of low-income families £2,000 a year better off in Scotland, but Scotland aspires to something more radical than just mitigating Westminster austerity such as the two-child limit or the six-year benefit freeze. Our vision is to be a fairer, greener nation. The Scottish Government founded the Wellbeing Economy Governments Group in 2018 with Iceland and New Zealand, and Finland and Wales joined later. A wellbeing economy does not just focus on GDP, which includes the profits of damaging sectors such as the tobacco industry, but invests in the physical and mental health and social, economic and environmental wellbeing of every citizen. It is a holistic approach that recognises that our society and economy depend on the success of every individual, every family and every community.

Therefore, in addition to the targeted anti-poverty measures, the Scottish Government invest in the wellbeing of all those living in Scotland, from the baby box that welcomes the birth of a child and university tuition that allows our young people to reach their full potential to the free personal care that allows older people to stay in their own home for as long as possible. However, with the tightening limitations of devolution, the Scottish Government do not have the power over their own economy or the control of taxation and social security that are required to deliver the wellbeing economy we aspire to. We all know that we need a different type of economy by the end of this decade, or we will leave our grandchildren to face climate collapse. The pandemic brought everything to a standstill, which gave us a unique opportunity to decide what kind of economy and society we wanted to rebuild.

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John Lamont Portrait John Lamont
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I give way to the hon. Member for Edinburgh West.

Christine Jardine Portrait Christine Jardine
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The Minister knows that he and I will never agree on Brexit and its impact, not just on Scotland—[Interruption.] We do not agree on that. Does he share my amusement that the SNP cannot see the irony in complaining that Scotland was dragged out of the European Union—a successful political and economic union—yet wants to drag Scotland out of an even more successful and economic Union?

John Lamont Portrait John Lamont
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Indeed, there is little consistency in the SNP’s position, particularly given the importance of the rest of the UK market to Scotland’s economy. We cannot blame the poor performance of Scotland’s economy on our departure from the EU. Export figures from the Scottish Government show that the rest of the UK remains by far Scotland’s most important market. Around 60% of total exports are destined for the rest of the United Kingdom, accounting for approximately three times the value of exports to European Union countries. In the opposite direction, around two thirds of Scotland’s imports originate from the rest of the UK.

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David Duguid Portrait David Duguid
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The Government’s objective is to halve all inflation, which would take that into account. I do not have the number off the top of my head and I do not know what the Bank of England’s prediction for that is.

Christine Jardine Portrait Christine Jardine
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Will the hon. Gentleman give way?