(11 months, 2 weeks ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure to serve with you in the Chair, Ms Vaz. I begin by congratulating the hon. Member for Glasgow East (David Linden) on securing this important debate on the cost of living in Scotland. The United Kingdom Government fully recognise the challenges and pressures facing households due to the higher cost of living. We are have taken decisive action to protect struggling families, with the largest support package in Europe.
In total, Government support across the UK to help households with higher bills has been worth £104 billion, an average of £3,700 per household, including households in Glasgow and across Scotland. The UK Government reacted quickly to protect energy consumers, maintain continuity of supply and stabilise the markets, when unprecedented increases in wholesale energy costs from mid-2021 caused significant volatility in energy retail markets. The energy price guarantee and the energy bill support scheme covered around half of a typical household energy bill over winter 2022, and by the end of June 2023, had saved a typical household around £1,500. Businesses across the UK have also received support through the energy bill relief scheme and the energy bills discount scheme.
Wholesale energy prices have now significantly fallen, with the average annualised household energy bill in quarter four of 2023 falling from EPG level of £2,500 in 2022, to £1,834 in 2023, under the Ofgem price cap. The price cap will increase by 5% to £1,928 in the first quarter of 2024, and is expected to fall back to around £1,800 for the rest of 2024.
Hon. Members will be aware that tackling high inflation remains a core priority for the Prime Minister and the UK Government. At its peak, inflation was 11.1%, and that hit families and businesses alike. We remain committed to the challenge, and the latest Office for National Statistics data shows that we have reduced inflation to 3.9%, which is good news for everyone in Scotland and across the UK. When inflation is low, it helps people and businesses to better plan their spending and investments. In turn, that helps the economy to grow by creating jobs and prosperity, which is a key priority for the Government.
So many of my constituents are concerned about the cost of living and how they are going to afford it. Age Scotland says that 50% of people over 50 in Scotland have seen their standard of living decrease. Does the Minister agree that the answer is not constitutional change, but a change of Government?
The hon. Member will have heard about the measures that the UK Government have put in place to support all households with the rising cost of living, including the older groups that she identifies. As Members of Parliament, we all recognise the challenges that our constituents face with rising bills, but what they do not need is the reopening of the constitutional debate in Scotland. They do not need independence for Scotland; they want both of Scotland’s Governments to focus on the challenges that households face not just in her constituency in Edinburgh or in my constituency in the borders, but across Scotland.
This Government passionately believe that the best way to improve living standards in the long term is to get more people into higher-paid jobs, which is why it is so encouraging to see the employment rates in Scotland. The number of payrolled employees in Scotland hit a record high of 2.45 million in November 2023, and the unemployment rate remains below the UK average. This includes the area represented by the hon. Member for Glasgow East, Glasgow city, where the number of people in employment has increased by nearly 18,000 pay-rolled employees since the start of the pandemic to a new record high of over 275,000.
It is not just about getting people into work, but about ensuring that it pays to work. That is why the Government will increase the national living wage by 9.8% to £11.44 an hour and increase the national minimum wage by 14.8% to £8.60 an hour, benefiting around 200,000 people in Scotland. However, we recognise that short-term cost of living pressures remain and particularly impact on vulnerable groups. In addition to UK-wide support for all households, the Government have deployed specific, targeted financial support and tailored interventions to help those most in need. For example, around 680,000 low-income and vulnerable households in Scotland have received additional support through the cost of living payment scheme, with millions more households also benefiting in other parts of the country.
(1 year ago)
Commons ChamberThis Government want to ensure that farmers and food producers get a fair price for their products by tackling unfairness that exists in food supply chains. We are currently pursuing contractual reform in the dairy and pork sectors and we have a new review of the egg sector. This will ensure resilience and fair supply chains across the country.
My constituents in Edinburgh West, like so many others across the country, are finding it increasingly difficult to source affordable nutritious food. The situation has been made worse by flooding in Scotland and by international pressures such as the war in Ukraine, energy prices and Brexit. There are enterprises such as Lauriston Farm in my community that can provide good local food. What are the Government doing to support projects such as those and to offset the impact on our food producers of the recent flooding?
I recognise the points that the hon. Lady makes about the pressures on the food supply chain. The UK Government are closely monitoring the impact on the agricultural sector of the flooding caused by storms and we are working with the Environment Agency to resolve that. The Department for Environment, Food and Rural Affairs can provide financial assistance to the farming sector to cover uninsurable losses incurred as a result of exceptional flooding by activating the farming recovery fund. I would encourage the hon. Lady to contact the Under-Secretary of State for Environment, Food and Rural Affairs, my hon. Friend the Member for Keighley (Robbie Moore), the excellent new water Minister at DEFRA, for more information.
(1 year, 3 months ago)
Commons ChamberOur Government have taken assertive action on the cost of living. UK-wide support for households to help with higher energy bills is worth £94 billion, or £3,300 per household on average. The United Kingdom Government’s focus has been on supporting everyone with the cost of living with specific targeted support and tailored interventions for the most vulnerable.
I thank the Minister for his answer. He will know that, like his constituents, my constituents in Edinburgh West still face the impact of food inflation, higher energy bills and unfair standing charges for electricity. However, we also now face the potential bombshell of a council tax hike by the Scottish Government, which will affect 14,500 households in Edinburgh West that will have to pay more than £2,000 a year. Will the UK Government be speaking to the Scottish Government—[Interruption.] If SNP Members do not mind! Will the UK Government be speaking to the Scottish Government to try to mitigate this, and what steps do they have in mind to do so?
I share the hon. Lady’s concerns about the SNP-Green Government’s bombshell tax plans to hike up the tax burden for many households, with people already facing pressures on their household budgets. As she will know, along with the record block grant, the spring Budget provided the Scottish Government with an extra £320 million over the next two years, on top of the £1.5 billion of additional funding that we provided in the autumn statement of 2022. Our economic priorities of halving inflation and growing the economy are the most effective way of supporting her constituents.
(1 year, 5 months ago)
Commons ChamberThis Government are committed to tackling child poverty and protecting the most vulnerable in society. In the recent Budget, the Chancellor announced additional support measures for households and families across Scotland and, indeed, across all parts of the United Kingdom. A further example of support for families was announced earlier today, with the UK Government making childcare more affordable.
I recognise the work that the hon. Lady undertakes with the all-party group on food banks. The Government are protecting the most vulnerable, with a £94 billion support package for households, and we have helped nearly 2 million people out of absolute poverty, after housing costs, since 2010.
My constituency is not among the poorest in Scotland, but we already have one in 10 children there—in some areas, one in three—living in poverty, with two thirds of them in working families. With the soaring food prices, sky-high mortgage rates and Edinburgh having the highest increase in annual rents in the UK, families are struggling. We know that our Scottish Government are only interested in independence, so will the Minister tell me what the UK Government are going to do for those families?
The Government recognise the anxiety that people feel about rising mortgages, which is why the Prime Minister’s priority is to halve inflation this year. That is the single best way we can keep costs and interest rates down for people, and we have a clear plan to deliver that. The Chancellor also met mortgage lenders last week and has agreed a mortgage charter, covering 75% of the market. We hope that that will provide reassurance to mortgage holders and others affected by this.
(1 year, 6 months ago)
Commons ChamberThe 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?
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.
(1 year, 7 months ago)
Commons ChamberThe Government remain absolutely committed to the levelling-up agenda across all parts of the United Kingdom, including Scotland and the hon. Gentleman’s constituency in Glasgow. I am happy to contact the Department for Transport on his behalf to get him an answer.
(4 years, 5 months ago)
Commons ChamberIt is an absolute honour and a privilege to see you in the Chair, Madam Deputy Speaker, and I am very grateful to have the opportunity to speak in this SNP Opposition day debate. The SNP motion calls for an extension to the transition period for negotiations with the European Union. It is important that we are absolutely clear what the motives are for the SNP calling for that extension to the transition period. It is not about protecting Scotland’s economy. It is not about assisting the economic recovery after the coronavirus pandemic. It is all about creating further uncertainty and constitutional chaos to assist in the nationalist dream of breaking up the United Kingdom. That is the SNP’s top priority. That is its only priority. That, in fact, is the only reason that many SNP Members got involved in politics in the first place—[Interruption.] I am pleased that they are nodding in agreement. I am pleased that they are agreeing with me—we agree on something at last. Any proposal from the separatists should be considered in that context. The SNP is aggravating on Brexit simply to push its independence obsession.
There is no doubt that the impact of the coronavirus will be significant on Scotland’s and the UK’s economy, but the answer is not to add further uncertainty to Scotland’s businesses with further dither and delay on Brexit. Businesses want certainty so that they can plan for Scotland’s and the UK’s future outside the European Union. Businesses are already preparing for life outside the EU at the end of 2020. The last thing they need or want is the further uncertainty that has been advocated by the SNP today, so I fully support the UK Government’s commitment not to extend the transition period at the end of 2020, because that would simply risk further economic damage to Scotland’s economy.
I also fully endorse the massive support of more than £13 billion that this UK Government have pumped into Scotland so far during the covid-19 outbreak. This includes nearly £5 billion in furlough payments, £1 billion for the job retention scheme, the kick-start scheme, the VAT cuts, the eat out to help out scheme, nearly £1 billion in the self-employed income support scheme, hundreds of millions of pounds in business loans and increases to benefits, plus £4.6 billion in Barnett consequentials. That is a £4.6 billion boost to the Scottish Government’s budget during this covid-19 outbreak. I know that some in the SNP, including the Scottish Government’s Finance Minister, Kate Forbes, like to pretend that this support does not exist unless the Scottish Government logo is branded all over it, but if Scotland was no longer in the United Kingdom, the safety net of support that the UK can provide during this pandemic and other crises would not have been there for other parts of these islands or, indeed, for Scotland anymore.
The hon. Member and I have disagreed numerous times about the UK’s place in the European Union and what we should do about that, but does he share my confusion about why a party that is so intent on dragging Scotland from one valuable union—indeed, the most successful economic union in history—is so intent on using another to do it?
I completely agree. The points that the SNP’s Westminster leader made earlier could have been made by anybody during the campaign about whether we should leave or remain in the EU; Nigel Farage would be proud of the arguments that he articulated. I am pleased that the hon. Lady is nodding wholeheartedly; it was a very good Farage argument that was put forward by Mr Blackford.
Let me move on to reiterate the support that has been made available by the UK Government and what that means from a practical perspective for Scots. These are not abstract sums of money that have no bearing on everyday lives in Scotland; these are people’s jobs and livelihoods, and the economic wellbeing of our families. Some 800,000 jobs in Scotland have been saved so far during the pandemic, highlighting the strength of our Union. The coronavirus job retention scheme has furloughed 628,000 Scottish jobs, and the UK Government have spent £425 million on supporting 146,000 self-employed people in Scotland through the self-employment income support scheme.
Of course, when talking about jobs, it is worth remembering that nearly four times as many jobs in Scotland are linked to trade with the rest of the United Kingdom as with the European Union. The Fraser of Allander Institute estimates that around 545,000 jobs in Scotland are supported by demand for our goods and services from the rest of the UK. That is why it is so important that we do everything we can to protect the strength of the UK single market, ensuring that businesses across the UK can continue to trade easily. Scottish exports to the rest of the UK are worth £51.2 billion, against £16.6 billion in EU exports. Whether they are in my constituency in the Scottish borders or in Eastleigh, West Bromwich, Brecon or Dudley, our businesses should be able to trade freely in every part of Britain.
The importance of the UK internal market is why the suggestion from Scotland’s First Minister, Nicola Sturgeon, that she may close the Scotland-England border or impose quarantine restrictions on people from England is so damaging to Scotland and to our economy. After the First Minister’s announcement, I had tourism businesses, B&Bs and hotels contact me to report that their customers from the rest of the UK had started to cancel their bookings because they were so worried about the border being closed and quarantine restrictions being imposed. That should concern us all, because overnight trips from the rest of the UK were worth nearly £3 billion to Scotland in 2018.
To compound matters, we had the horrific scenes on the Scottish-English border in my constituency, on the A1 north of Berwick, of nationalist protesters shouting—and I quote—“Stay the F out” at English people travelling into Scotland. These racist protesters have admitted taking inspiration from the division stoked by the SNP politicians. They were inspired by comments by SNP politicians. One of the protesters has been pictured with Nicola Sturgeon and other senior SNP figures—
(4 years, 6 months ago)
Commons ChamberI will move on to that point shortly. I have had a very robust conversation with NFU Scotland. It claims to support trade and to support the amendment to the Agriculture Bill that would have stopped our ability to do that trade. It cannot on the one hand say that it wants to support Scottish farmers and food producers to export, and on the other hand support an amendment that would have pulled the rug from under them. That is a conversation I have had with the NFU, and that is the purpose of this debate.
Our import standards, which are enshrined in UK law, include a ban on using artificial growth hormones in domestic and imported products, so that means no hormone-injected beef. Our standards also set out that no product other than water is approved for decontaminating poultry carcases, so that means no chlorine- washed chicken, despite what we hear from opposition parties and some parts of the media. Any changes to existing food safety legislation would require new legislation to be brought before Parliament.
As I have suggested, Scottish and British farmers have a great deal to gain from the lowering of trade barriers, which will allow them to access new markets for our high-quality produce. We need those new trade deals with other countries to enable our farmers and other businesses to expand the range and volume of products for export around the world. Let us take, for example, the export of Scottish malt and grain to non-EU countries such as Japan, or the enormous potential for further growth of Scottish red meat export. Last year, the total value of UK red meat exports rose by 13% to £1.5 billion, with 661,000 tonnes of pork, lamb and beef shipped globally from the UK. It was one of the strongest years on record.
I am sure none of us in the House, regardless of our views on the European Union, American beef or American chicken, wants to prevent our farmers in any constituency from exporting their high-quality food. However, the very consumers the hon. Member mentioned a few minutes ago fill my inbox daily, concerned about the quality of food that will be imported into this country. They are afraid that the food that will appear on supermarket shelves will be cheaper and of less good quality than what is produced in this country. We want to protect those people.
(6 years, 5 months ago)
Commons ChamberThe voters made their decision for a variety of reasons, as voters always do in every election. The fact that some people do not like the conclusion that they reached does not mean that we can simply reject that decision and say that we need to rerun the vote. My experience in my own constituency is that people who voted to leave in 2016 are just as committed to voting to leave again if the question were put again. Indeed, many voters in Scotland, such is their fear of a second referendum to break up the United Kingdom and their feeling that their remain vote has been used by the nationalists as a mandate for a second referendum on independence, may well vote to leave the European Union to try to shut down Nicola Sturgeon and those nationalist pursuits.
Referendums are divisive and distracting, and a rerun of the vote would simply pile on the economic uncertainty. Businesses in Scotland, already faced with the possibility of another vote to drag Scotland out of our biggest market, that of the United Kingdom, would then also be unsure about whether we would actually be leaving the European Union.
Why is the threat to Scottish business of a second independence referendum so great? Growth in Scotland is not expected to rise by more than 1% before 2023. In 2017, Scotland’s GDP grew at half the rate of GDP in the United Kingdom. Why is that? Why is Scotland lagging behind the rest of the United Kingdom? Brexit creates uncertainty, but another independence referendum would simply add to that. If the Liberal Democrats and the Scottish National party get their way, Scottish business will see untold levels of uncertainty: uncertainty about another referendum on whether we remain part of the European Union, and uncertainty about another referendum on whether Scotland remains a key part of the United Kingdom. Why can the Scottish Liberal Democrats—led by Willie Rennie MSP—see how damaging and divisive a rerun of a referendum is, while their colleagues in this place cannot?
At the time of the independence referendum, the Scottish National party produced a full White Paper which laid out in great detail what the final deal would be. There was some debate about whether, if it had not done that, there might have had to be a second referendum in the event of a yes vote in Scotland. There is no inconsistency. The Scottish National party put forward a final deal, which was rejected. The Conservatives have yet to discover what the final deal might be, and agree among themselves. The people have no idea what it is they are facing.
I have greater faith in the people of this country to make an informed decision—and, as I said earlier, they are entitled to vote in any way and for whatever reason they choose. Our job as parliamentarians is to accept their ultimate decision.
I want to make a bit more progress, if I may. I will take more interventions later.
One thing is certain: another referendum—a Liberal Democrat referendum—on our membership of the EU would simply play into the hands of Nicola Sturgeon and the separatists who wish to destroy the United Kingdom by ripping Scotland out of the heart of it. I am no fan of referendums, and neither are many of the voters whom I speak to. Referendums cause huge uncertainty, put off businesses, and divide nations. Now that we have a sensible, pragmatic approach to Brexit agreed by the Government and a parliamentary vote, there is little to gain from another referendum and much to lose.
The motion refers to the lack of progress on Brexit. I want to say a little about one issue on which the UK Government have made significant progress, both in terms of their thinking and in terms of their negotiation with Brussels: the issue of fishing. I must admit that when the Government announced that we would remain part of the common fisheries policy during the transition period—a policy hated by fishermen and fishing communities throughout Scotland—I was disappointed, to say the least. But, since then, and since the publication of the fisheries White Paper last week, we have seen concrete action that will work for Scottish fishermen. Despite the delay, we will be leaving the CFP in December 2020, which means that by 1 January 2021, British waters will once again be just that: British. It will be up to us to decide who has access to them and we will be presented with a once-in-a-generation opportunity to change the way in which we operate in them. We will be able to ensure that stocks are fished sustainably, we will be able to negotiate with other countries, and we will have full control over our natural resources.
I was delighted that the White Paper also made it clear that the issue of access to British waters for European boats would not be conflated with access to European markets for British fish. That is crucial, and as the Government continue their negotiations with the EU, they must ensure that they do not allow Brussels to abuse the right of access to British waters.
(6 years, 9 months ago)
Commons ChamberI congratulate my hon. Friend the Member for Angus (Kirstene Hair) on securing this debate on an important issue for so many agricultural businesses across the United Kingdom. She described very well the issues and challenges, and I do not intend to repeat them in the short time available to me this afternoon. A number of agricultural businesses in the borders rely on seasonal migrant workers, although not to the same extent as in Angus, so I thought that it was important to make a short contribution to the debate.
I am delighted to have the opportunity to put on record the fact that seasonal workers are very much welcome in the borders and contribute hugely to the local economy. There are businesses such as that of Neil Thomson—of Caverton Mill farm near Kelso—who employs more than 20 seasonal workers to pick over 200 acres of broccoli and cauliflower. These workers are reliable, hard-working and they contribute to the local economy in the Scottish borders. Indeed, one has been kept on permanently and has moved his family to the area.
As others have mentioned, there have been challenges in recruiting seasonal workers in recent years, but we have to be careful about attributing that to Brexit. Across other sectors, including hospitality and healthcare, the number of people coming from the European Union to work here has been falling. That trend started long before the EU referendum was even announced.
I appreciate the hon. Gentleman’s point about seasonal workers, but if he looks at the figures for all of Scotland, he will see that almost 50% of the workforce in hospitality in Edinburgh and Glasgow is made up of people who come from elsewhere in the European Union. How would a seasonal workers scheme help that when at the moment, as members of the European Union, they can come here freely?
I am grateful to the hon. Lady for making that point. I would say that this debate is focused on the agricultural sector. There are definitely challenges in other parts of the economy, but that does not remove anything from the fact that in the past 10 years there has been a downward trend in the number of workers who are coming from the EU to work in our economy.
Seasonal work in the United Kingdom now appears less attractive than it was a decade ago because of a range of factors. A number of Members have described those, but the most notable is the drop in the value of the pound. Many voices in the industry favour the reintroduction of the seasonal agricultural workers scheme, which came to an end following the admission of Bulgaria and Romania to the EU. We now have the opportunity to bring this scheme back or at least to look at something similar—an opportunity that has only been brought about because of Brexit. I join in calls for the United Kingdom Government to look closely at reintroducing the scheme as a way of meeting the seasonal needs of farmers not just across Scotland and in my constituency, but across all the United Kingdom.
A final point I want to make is that this issue starkly highlights the importance of maintaining the United Kingdom’s internal market and the easy movement of staff across the UK—something that the Scottish National party Government in Edinburgh seems unable to understand. Seasonal migrant workers often start working in one part of the United Kingdom and travel across the country on different jobs in one season. The effect of the SNP’s call for a separate immigration policy would make it harder for workers to do that. As Jonnie Hall, the director of policy at the National Farmers Union Scotland said, the last thing that farmers need is a “checkpoint at Berwick”. As is often the case, the needs of the farming sector are the same north and south of the borders, and it is in the farmers’ interest that this is dealt with on a UK-wide basis, rather than on a Scottish-only basis.
Will the hon. Gentleman give way?
I appreciate the hon. Gentleman giving way, but if the last thing that the NFU wants is a checkpoint at the border, why does he think it would appreciate one between here and Europe?
I understand that Lib-Dem party policy is for us to go back into Europe, but the reality is that the British people have voted in a referendum to leave the European Union. We have to accept the democratic decision of our fellow countrymen and women and I do not accept any suggestion that we should veto that or say that they have not made the right decision. We now need to get on with Brexit to deliver the best result for all our constituents—for Scotland and all of the United Kingdom. I appreciate that the Lib Dems do not agree with that, but we must now get on with Brexit as best we can.
As I said, we need to deal with immigration on a UK-wide basis, rather than take a Scotland-only approach. Instead of constantly pushing for differentiation from the United Kingdom, the Scottish Government would better serve farmers by working with their UK counterparts to ensure that we develop a seasonal migrant system to meet the needs of Scottish farmers.
I conclude by congratulating my hon. Friend the Member for Angus again on bringing this important debate to the attention of the House, and I look forward to working closely with her, and the United Kingdom Government, to get the best deal for Scottish farmers.
(7 years ago)
Commons ChamberDoes the hon. Gentleman accept that I and, I hope, the hon. Member for Edinburgh South (Ian Murray) are doing what we believe is necessary to protect the devolution settlement? By doing so, we are doing much more to protect the United Kingdom than the Conservatives, who may actually be undermining it.
It is my colleagues on the Government Benches who have made the Scottish Parliament as powerful as it is today. The Scottish Secretary has given a guarantee that, after Brexit, the Scottish Parliament will have even more powers. The problem with the amendment that the hon. Lady intends to support is that it goes too far. It would harm the internal market of the United Kingdom and undermine Scotland’s place in the United Kingdom. I do not believe that that was what the voters of Edinburgh West or of Edinburgh South voted for when they voted for their MPs, with their Unionist credentials, back in June.
My hon. Friend makes an excellent point. Significant progress is being made between the two Governments, which was why I was so disappointed with the opening remarks of the right hon. Member for Ross, Skye and Lochaber. There is not a million miles between the two Governments.
But does the hon. Gentleman accept that this is not just about how well Scotland’s two Governments are talking to each other? It is also about Wales and Northern Ireland—it is about each devolution settlement. We should not expect the situations in Wales and Northern Ireland to be dependent on the outcome of talks between Scotland’s two Governments.
I accept that the UK Government are holding discussions with the other parts of the United Kingdom, but I am here to represent a Scottish constituency and my Scottish constituents. I would not be doing my job properly if I did not focus on Scotland and the challenges that Brexit will present there.
(7 years, 1 month ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I want to make some progress.
I have been critical of Digital Scotland and the Scottish Government for their failures to deliver for Scotland a broadband network fit for the current age. However, BT and Openreach are not without blame. Following negotiations and demands from Ofcom, Openreach is now a legally separate entity, but it is still wholly owned by BT’s parent holding company, BT Group plc. The situation we find ourselves in, with the digital divide between urban and rural, has been created by historical decisions made by BT. Had BT invested in our network in the way that I believe it should have, we would not be facing these challenges today. It has picked off the low-hanging fruit in broadband roll-out, focusing more on cities and commercially viable areas. I suggest that it has ignored the harder-to-get residents and communities because it knew it would cost too much. Too many communities have been forced to look at self-help options to find solutions for their poor broadband connections when Openreach has refused to help. My constituents are innovative and smart, but many have struggled with the bureaucracy of the schemes and the cost involved.
Ofcom’s December 2016 report, “Connected Nations”, which has been referred to, describes the urban-rural divide well. While 89% of premises in the United Kingdom can receive superfast broadband, there are 1.4 million premises that cannot get download speeds greater than 10 megabits per second. Those are disproportionately in rural areas, and the problem is particularly bad in Scotland.
I have no reservation about interfering in an argument between the Tories and the SNP. Does the hon. Gentleman see any connection between these rural broadband figures, particularly in the highlands, and the way in which Highland and Islands Enterprise, which was originally closely involved in the roll-out of broadband, has slowly been denuded of all its funding and powers and was recently under threat from the Scottish Government?
The hon. Lady makes an important point, which demonstrates yet again the centralising tendencies of the nationalist Government in Edinburgh and their focus on the central belt, rather than devolving powers to the communities that we all represent.
The “Connected Nations” report highlights that only 46% of premises in rural Scotland can access superfast broadband, compared with 62% of rural premises in England. It is those premises that will benefit from the universal service obligation. I fully support the universal service obligation contained in the Digital Economy Act 2017, but I would argue that the minimum speed should be higher than 10 megabits per second, as originally suggested. I know that the Minister is considering a proposal by BT to deliver the USO outside the 2017 Act, which BT says it will be able to deliver quicker. However, I believe that BT has had its chance to deliver and has failed. The 2016 report from the British Infrastructure Group highlighted that in 2009 BT promised that 2.5 million homes would be connected to ultrafast fibre to premises services by 2012, which was 25% of the country, yet by September 2015 BT had managed to reach about 0.7% of homes.
Lastly on BT, residents in many rural communities feel angry—frankly, I share their anger—when Openreach tells them that it is not commercially viable to invest in their broadband connections, and yet they read in the press about BT splashing out £1.2 billion on the rights to televise the champions league. No, BT and Openreach have had their chance and they have failed to deliver for rural Scotland.
I suspect we will hear similar experiences from other Members, so I will draw my remarks to a conclusion. Ofcom’s “Connected Nations” report describes the situation well when it states:
“Fast, reliable communications enable businesses to generate prosperity and employment, and our countries to compete. They empower every citizen to take a full part in society and benefit from life’s opportunities. Communications also save lives, bind families and friends together, and keep us entertained.”
We need to act to bridge the broadband gap between urban and rural Scotland—the broadband haves and the broadband have-nots.