Oral Answers to Questions

David Linden Excerpts

Tuesday 26th January 2021 Commons Chamber

[David Linden (Glasgow East) (SNP)]

What discussions he has had with his Scottish Government counterpart on the effect of UK fiscal policy on living standards in Scotland.

[The Chief Secretary to the Treasury (Steve Barclay)]

I have frequent discussions with the Scottish Government’s Finance Minister, and may I take this opportunity to add my congratulations on the announcement yesterday of her engagement?

[Steve Barclay]

It is a little odd, in a year when Scotland has received £44 billion through the Barnett formula, to be talking of cuts. The hon. Gentleman refers to the Scottish Budget, and he will be aware that there are opportunities with the powers that the Scottish Government have, whether that is to exercise their flexibilities on elements of universal credit, to top up benefits and create new ones, or to introduce new tax powers. The Scottish Parliament has powers, and we wait to see how the Scottish Government use them.

[David Linden]

In asking the public to stay at home, protect the NHS and save lives, there must be an understanding that in doing so consumers are running up higher electricity and gas bills. Does the Minister understand that 2.1 million people are behind in their energy bills at the moment, and that one way to help them would be to reduce VAT temporarily on home energy bills?

[Steve Barclay]

The hon. Gentleman makes a fair point; there are household costs. That is why my right hon. Friend the Chancellor, through the package of measures, has supported the incomes of the poorest. The distributional analysis from the Treasury shows that the poorest working households have benefited most from the measures introduced by my right hon. Friend. The best way of supporting those families is through schemes that the UK, through its broad shoulders, is able to offer, such as the furlough scheme and the self-employed income support scheme, which have supported so many jobs across Scotland.