Dave Doogan
Main Page: Dave Doogan (Scottish National Party - Angus and Perthshire Glens)Department Debates - View all Dave Doogan's debates with the Scotland Office
(2 days, 20 hours ago)
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Gregor Poynton
The largest settlement ever received by the Scottish Government in the history of devolution is driving up additional funding that can be spent in Scotland. The SNP has nowhere to hide; it has no more excuses. It cannot continue to blame others for its economic and financial incompetence, because the problems in Scottish public services are not solved by simply having more money to spend. The Scottish Government need to get much, much better at spending it.
Dave Doogan (Angus and Perthshire Glens) (SNP)
I am grateful to the hon. Gentleman for giving way, and I apologise for chuntering from a sedentary position earlier; that was not very polite of me. He says that we need to see an end to the SNP’s “buy now and pay later” approach. Of course, he will be familiar with the fact that the SNP Government, or any other Scottish Government, must have a balanced budget every year, so what does he mean by “buy now and pay later”?
Gregor Poynton
You can borrow to invest. Also, the hon. Gentleman’s party has announced that it is ending the two-child cap but with no money to pay for it—that, to me, is “buy now and pay later”.
Scots can see that the SNP has lost its way and is out of ideas, and that its Ministers are incompetent and wasteful with public money. Scots earning over £29,000 a year pay more in tax in Scotland than people in the rest of the UK, which Scottish Labour will look at if we win the next election. What do Scots get for those higher taxes? They get a Government who waste millions on delayed discharge and agency staff in our NHS, ferries that do not sail and pet projects that do not deliver for Scotland, all while decimating local community funding, which means that vital services are lost.
Where, for example, is the vision for reform of Scotland’s NHS, which lurches from crisis to crisis? What was once an annual winter crisis now stretches further and further into other seasons. Our heroic NHS staff do a fantastic job under the most difficult circumstances, but they and the Scottish public are being badly let down by their political leadership, who waste millions on delayed discharge and agency staff.
This week, we have seen the UK Labour Government commit to a plan to get waiting times down from 18 months to 18 weeks, and to put in place the firm foundations to deliver proper social care services. Where is the SNP’s ambition on either of those two issues?
Dave Doogan (Angus and Perthshire Glens) (SNP)
It is a pleasure to serve under your chairmanship, Ms Vaz—we always have to say that, but in this instance, I genuinely mean it. I am grateful to speak on this issue. When I saw this coming up on the agenda for Westminster Hall, I thought, “Goodness me, who has brought this?” It turns out that it is the Government. I thought, “That is all right. Well, let’s see what the facts are because this Budget had precious little in it to be welcomed in Scotland.”
I will start with that which could be welcomed for Scotland. Thankfully, the Chancellor heeded the SNP’s manifesto call to change the fiscal rules to allow more investment in capital infrastructure. That was good and welcome, and it will be helpful. They also heeded the SNP’s pre-Budget call for greater investment in the NHS, which will be very welcome as we try to recover from covid and staffing challenges. But aside from those two things, on which the SNP gave the Government a menu, the Budget has been an unmitigated disaster for Scotland and Scotland’s economy. It has imposed billions of pounds of service cuts and tax rises that will hit working Scots in the pocket and do very little, if anything, to deliver on the promise that the people of the United Kingdom were offered as a prospectus in the run-up to the election.
Torcuil Crichton (Na h-Eileanan an Iar) (Lab)
Would the hon. Gentleman describe £50 million for Argyll and the Isles and £20 million for the Western Isles as a “disaster”?
Dave Doogan
I hope that that money will be spent and make a great difference, but it will not compensate the Western Isles and the Northern Isles one bit for the money that they have lost as a consequence of Brexit. The hon. Member for Livingston (Gregor Poynton) and many of his colleagues herald this as the largest Budget settlement for the Scottish Government, as though Budget settlements go up and down. But they continually go up: every latest Budget settlement is the biggest Budget settlement since the last one.
As various Bills have passed through the Chamber, I have not run out of opportunities to point out to the Government how the basics of fiscal policy and economics work, and here we are again. All power to the communities of the hon. Member for Na h-Eileanan an Iar (Torcuil Crichton). I hope they get great benefit from that money but it does not fully compensate them for what they have lost, and no mistake.
The tax rise of £40 billion represents the biggest since Norman Lamont in 1993. Do not forget that when this Government came in, they inherited the highest tax burden in living memory, or certainly since the end of the second world war at least—
Dave Doogan
Yes, the highest—so it is not as if there was some kind of low-taxation holiday spree and the Labour Government came in and put taxes up to compensate for it. Taxes were already the highest that anybody can remember and now they have gone up again by the highest amount in 32 years. It is absolutely eye-watering. The Chancellor’s refusal to step back from cutting the winter fuel payment from around 900,000 pensioners is absolutely—[Interruption.] They are chuntering that the winter fuel payment is devolved.
Dr Scott Arthur (Edinburgh South West) (Lab)
Will the hon. Gentleman give way?
Dave Doogan
No.
Let us get it on the record that the fuel payment did not use to be devolved and that, at the same time as it was devolved, they went and cut the budget. That is the Labour Government at a UK level for you. So yes, I know it is devolved.
Dave Doogan
No. If the hon. Gentleman can get one of his colleagues to intervene, I will give way to them.
The Government’s decision to raise national insurance was like them showing that they do not know how the real economy works without showing that they do not know how the real economy works. It is a punitive lowering of the floor and increasing of the rate to try to wring out of employers the money required to recover the economy. It is a drag on employment, investment and wage rises. It is absolutely unforgiveable and totally counter to what the Labour party stated, ahead of the election, was its aim: to create a Budget for growth. There will be absolutely no growth as a consequence of that autumn statement. The Government think they will raise over £20 billion but, by the Treasury’s own measure, that figure is down to around £10 billion after they have made all the compensations. It is a massive swage of pain for very little gain in investment.
In moving the motion, the hon. Member for Livingston said that we in the SNP are keen to spend the extra money we will get but not to say how we would raise it. Actually, I will tell him how we would raise it, and our way would be much more cogent than what the Labour Government in Westminster have said they will do. Over and above that, in a Scotland-specific context the hike in duty on Scotch whisky was, in the words of the industry itself, “an indefensible tax grab”. Yet somehow we are expected to believe that everything will be okay because Anas Sarwar is going to speak to the Chancellor about it. The Chancellor will presumably then do what the UK Government always do when Labour in Scotland ask them to do something: absolutely nothing, if not the exact opposite.
The hon. Member for Livingston also talked about energy. He should go up to the north-east of Scotland to talk about energy: we are six months into this Government and there is no evidence whatever of GB Energy making any impact in Scotland. The last time I checked, it had one employee and was based in Manchester. The hon. Member also talked about the investment that would be realised. Somehow, the Acorn project in Scotland —the most deliverable carbon capture, usage and storage project across GB—is still not being funded by the Labour Government, despite their funding a further two CCUS projects in England, in addition to the two already there. Sadly, it is England 4, Scotland 0—it is like a football match.
Tracy Gilbert (Edinburgh North and Leith) (Lab)
The point about green jobs and giving consent at Berwick Bank was made earlier. I ask the hon. Gentleman: when will that happen, to enable investment to come forward? That is another example of things being held back.
Dave Doogan
Like the hon. Lady, I am very hopeful that we will see Berwick Bank approved and into the construction phase as quickly as possible, to cement Scotland’s enviable position as the renewable powerhouse of Europe. She shares that ambition with me, but what we are talking about is due process. It ill behoves elected Members of any stripe or any Parliament to meddle in the statutory process of a consenting major development; that will unwind in the way it unwinds, but I very much hope it is positive and expedient.
I turn to the Women Against State Pension Inequality—the WASPI women. They will absolutely have been left wondering what they have done to deserve such a catastrophic betrayal by the Labour party of their very modest and reasonable ambitions. During the debate on the autumn statement, I said that it was fantastic news that the Government, to be fair, had made sure that the money was there for the infected blood scandal and that the postmasters were properly compensated. Neither of those two scandals was of the UK Government’s making—well, not deliberately of their making; certainly not the infected blood scandal—but the WASPI women’s situation was. We now know the Government have turned their back on those people in the most reprehensible way possible.
The Chancellor promised a growth Budget and the hon. Member for Livingston says it is a growth Budget, but sadly it will
“leave GDP largely unchanged in five years”.
The inflation forecast will compound that. Inflation is set to rise to 2.6% and interest rates by 0.25% just; mortgage rates, after a brief period of respite, are on course to rise again. For years, people up and down these islands, especially in Scotland, have been hammered by the cost of living crisis. They, alongside small businesses, will be looking at this hatchet job by the Labour party and wondering what on earth will be coming next. The Institute for Fiscal Studies, no less, has pointed out that somebody will pay for these higher taxes; that somebody will be the ordinary working person. The Office for Budget Responsibility estimates that there is only a 54% chance that the Labour Government will meet their own fiscal rules through this Budget, raising the question of why the Chancellor thinks this amount of economic pain is worth such a low level of fiscal gain.
What about investors in the agricultural sector? Scotland’s agriculture is a very much larger part of its economy than overall UK agriculture is of the UK economy, but I am sure the Chancellor never bothered to speak to anybody in Scotland about her raid on farms through her farmers’ death tax. Labour could have done something progressive to stop outside investment and farmers disrupting that market, but they did not and they threatened the very existence of Scottish agriculture.
What would the SNP have done? We would certainly not have put this colossal fiscal drag on the economy of Scotland. We would have made sure that what we did was progressive and proportionate and that it would increase economic growth. I am sure Labour Members are not very supportive of an income tax in Scotland—
Torcuil Crichton
Can I ask the hon. Member which taxes the SNP would raise?
Valerie Vaz (in the Chair)
Order. I remind the hon. Member for Angus and Perthshire Glens that he has spoken for 10 minutes already. If every other hon. Member takes that amount of time, we will not be able to hear from everybody.
Dave Doogan
That is fine, Ms Vaz; I am just closing now. I do not think Members will be speaking for 10 minutes, but that is not my job.
On the progressive income tax regime implemented by the SNP in Scotland, I should say that Labour criticised us when we had the powers and did not use them, and criticised us when we had the powers and did use them. If the UK Government had mirrored our fiscal policy on income tax, they would have raised about £16.5 billion across the United Kingdom. That would not have been reduced to £10 billion because of compensations that they would have had to make, because there would not have been a raise on employer’s national insurance; they would not have had to compensate anybody. They do not want to talk about Brexit, but I do, because it cost the UK £30 billion a year and Scotland £10 billion a year, which would otherwise have been a great increase in the economic output of Scotland and the rest of the UK.
My final point is that the UK Government could scrap nuclear weapons. In four years, the estimated budget has gone up from £44 billion to £100 billion over a 10-year period. An awful lot of investment could be made in Scottish communities with that money, which would boost Scotland even more. We already enjoy the highest number of GPs, nurses, midwives and teachers per head in Scotland; nowhere else in the United Kingdom can touch our level of provision. The Labour party are just going to have to suck that up.
Valerie Vaz (in the Chair)
The hon. Member obviously has the title of Mr Scotland. I am afraid I will have to impose a very informal time limit of around four minutes so that everyone is able to get in.
Torcuil Crichton (Na h-Eileanan an Iar) (Lab)
It is a pleasure to serve under your chairmanship, Ms Vaz. I pay tribute to my hon. Friend the Member for Livingston (Gregor Poynton) for securing this important debate. I join him in welcoming this record settlement of more than £4 billion for the Scottish Government, but I would not want Members to go away with the impression that the SNP Government are somehow benignly mismanaging the economy, carelessly not controlling the NHS or accidentally running down educational standards in Scotland. They are involved in nothing less than the wilful destruction of the pillars of public life and public services in Scotland, because they are neglecting to make difficult decisions. They are putting off the reckoning that there must be in education; we must leave educationalists to educate and teachers to teach. They are also wilfully neglecting transport in the Western Isles and the west coast, and the health needs of constituents like mine.
My hon. Friend the Member for Livingston said that one in six Scots are on waiting lists. My constituents in the Western Isles are not on waiting lists; they are waiting for the sound of a helicopter to take them to hospital, because the NHS does not properly function in the Western Isles thanks to the Scottish Government’s neglect and the lack of resources given to it. In the Western Isles, people do not take an ambulance or a taxi to hospital; they take a bus to an airport, to take a small flight to another airport, to take a flight to a mainland airport, to take a taxi to hospital to get chemotherapy. That is the state of the NHS in Scotland under the SNP.
Torcuil Crichton
I will give way. I would love to hear the hon. Gentleman’s excuses.
Dave Doogan
The hon. Gentleman mentions the litany of failures, as he sees them, in Scotland’s NHS. How then does he explain that spending per head is greater than it is the rest of the UK, that the number of doctors per 100,000 people is higher than it is the rest of the UK, that the number of nurses per 100,000—
Valerie Vaz (in the Chair)
Order. You have had 10 minutes, Mr Doogan. I am really sorry, but this is unfair to other Members.
Andrew Bowie
There are businesses across Scotland that are now seeking to lay people off, not employ new staff. In Aberdeenshire in the north-east, energy companies are seeking to lay off staff as a direct result of decisions taken by this Government. In fact, the negative impact of the Budget on growth and investment in Scotland will actually have a detrimental effect on all people in the workplace. So no, I do not agree that any of the decisions taken in the Budget will be to the benefit of hard-working Scots. In fact, I believe directly the opposite. This jobs tax—the increase in national insurance contributions —is an attack on our working people, our small businesses and our economy by this economically illiterate, as proven so far, Labour Government.
For family businesses such as Walker’s Shortbread, William Grant, Tunnock’s or GAP Group, the situation is compounded by the changes to business property relief brought in by the Government. In GAP’s case, that will mean that a company that employs 2,100 people and that already pays more than £50 million in taxes annually will have an additional tax bill of between £50 million and £100 million, simply for wanting to move the business to the next generation. As Douglas Anderson of GAP said to The Times yesterday, this is
“a state penalty on family businesses.”
It is simply unfair.
Dave Doogan
Does the hon. Member agree that money talks? Despite how we might argue here in Parliament, money talks. Is he concerned that the yield on UK Government gilts over 30 years is now 5.22%, which is even higher than when Liz Truss tanked the economy?
Andrew Bowie
I read that a couple of seconds before I stood up to speak, and of course it is extremely worrying. The trajectory of the UK economy under this Labour Government should give us all cause for concern, which is why it is right that we are having this debate today. I am just surprised that it was secured by a Labour MP.
The Parliamentary Under-Secretary of State for Scotland (Kirsty McNeill)
It is a pleasure to serve under your chairmanship, Ms Vaz. I begin by congratulating my hon. Friend the Member for Livingston (Gregor Poynton) on securing this debate on the impact of the autumn Budget on Scotland, and on his very dogged advocacy on behalf of those in his constituency who need the East Calder medical centre.
The UK Government were handed a challenging inheritance: £22 billion of unfunded in-year spending pressures, debt at its highest level since the 1960s, an unrealistic forecast for departmental spending, and stagnating living standards. This Budget took difficult decisions to restore economic and fiscal stability so that this Labour Government can keep the promises we made to the Scottish people. We promised to put Scotland at the beating heart of this Government; we have. We promised to end austerity; we did. We promised we would invest in Scotland’s future; we are.
It is no surprise to me that we have heard the usual carping from Opposition parties. They simply cannot face facts, because the facts are that this was a great Budget for Scotland.
Kirsty McNeill
I will make some progress. The Budget ensured the largest real-terms Budget settlement for the Scottish Government in the whole history of devolution, with an additional £1.5 billion for the Scottish Government to spend this financial year and an additional £3.4 billion next year. It means that the Scottish Government are receiving more than 20% more per person than equivalent UK Government spending in the rest of the UK. It delivered the most for those with the least, because that is what Labour Governments do.
Kirsty McNeill
I will make some progress. The hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) and my hon. Friend the Member for Na h-Eileanan an Iar (Torcuil Crichton) shared moving testimony about the impact of changes by the Scottish Government on rural communities. My hon. Friend the Member for Paisley and Renfrewshire South (Johanna Baxter) talked about the crisis in NHS and social care. The answer to all those challenges is the same: investment in our public services. That is exactly what this Budget is designed to do.
Kirsty McNeill
I will make some progress. I have been listening very intently to the speeches and chuntering from some hon. Members; I have not been taking any notes on economic credibility. The Fraser of Allander Institute, Audit Scotland and the Institute for Fiscal Studies have all confirmed that the challenges in Scotland’s public finances are a mess of the SNP’s making. As for the party that brought us Liz Truss, the verdict of the people of South West Norfolk tells us all we need to know.
I urge everyone instead to listen to my hon. Friends the Members for Dunfermline and Dollar (Graeme Downie), for Airdrie and Shotts (Kenneth Stevenson), for Glasgow East (John Grady), for Edinburgh North and Leith (Tracy Gilbert) and for Glenrothes and Mid Fife (Richard Baker) about how to get Scotland growing. Our objective is not simply to rescue our economy from the havoc wrought by the Conservatives, but to grow it. That is why we support Great British Energy, providing £125 million next year to set up the institution at its new home in Aberdeen. That is a huge boost to the granite city, inexplicably voted against by the right hon. Member for Aberdeen South (Stephen Flynn) and his fellow SNP MPs, all sent here to deliver for their constituents but who instead sought to sabotage investment that would benefit them.
I am also pleased that we have been able to confirm our commitment to invest nearly £1.4 billion into important local projects across Scotland over the next 10 years.
Kirsty McNeill
I will make some progress. Those are all the choices of a Government resolutely focused on the future. In conclusion, the Budget does exactly what Scottish Labour was elected to do. It secured billions for Scotland; the SNP voted against it.
Kirsty McNeill
I am going to make progress. The Budget secured billions for Scotland; the SNP voted against it. It delivered a pay rise for 200,000 of the lowest-paid Scots; the SNP voted against it. It ended Tory austerity; the SNP voted against it. The simple fact is that they are out of road, out of excuses and out of time. This Budget helps us invest in Scotland and rebuild Britain. I am proud to tell my constituents that I voted for it and I look forward to seeing all the ways that it will change Scotland for the better.