Cost of Living Increases

Debate between David Linden and Simon Clarke

Monday 24th January 2022 Commons Chamber

[Mr Clarke]

It is good to see the hon. Gentleman back in the Chamber. The reality is that nobody came into politics to raise the burden of tax on our society. We all feel that keenly, but we are equally clear that we face a £400 billion bill for covid costs. We have a clear programme of targeted investment in the NHS and in social care, designed to alleviate the backlog in treatment and the longstanding challenges that we know we face with an ageing society. We owe it to people to be candid that there are no easy solutions to how to pay for that. I certainly do not want—and I know the Chancellor does not want—to put more borrowing on to the books, when we know that those are structural challenges that need to be paid down, and therefore a tax increase is the most sensible and honest way for us to pay for that. In that spirit of total candour, that is why we are bringing that forward, and we believe that it is the right thing to do. The sadness is, of course, that the Opposition did not support us in that, and persistently criticise us for not spending enough on the NHS when they will not will the means for that investment.

Direct financial assistance, help to find work and support for people in every region and nation of the UK are just some of the ways in which the Government are aiming to secure a more prosperous future for this country. I note that the motion tabled by the hon. Member for Glasgow East (David Linden) calls for the Government to spend more. I should remind him that the devolved Administrations already have the power and the money to make spending decisions of their own. The Scottish Government have significant tax and welfare powers, so they can choose to raise more tax if they want to spend more on welfare.

For our part, we have shown unequivocally that we are not afraid to make the big decisions to do right for the people of this country. That is why we are investing £600 billion in the public sector over the course of this Parliament, on our health service, our education system, and securing our borders. That is why, at the spending review, we took the total we have committed to the economic infrastructure to £130 billion. That is why, to respond the hon. Gentleman’s point, we are spending more on the NHS as a result of the health and social care levy as well.

[David Linden]

The Chief Secretary to the Treasury talks about the big decisions that the UK Government have taken. Of course, part of the reason they can take these so-called big decisions is that they have the ability to borrow; he just talked about £600 billion. He knows fine well that in Scotland we do not have those powers. If he wants people in Scotland to have them, why will he not give Scotland the borrowing powers to do so?

[Mr Clarke]

This Government have worked very closely and co-operatively with the Scottish Government in Holyrood to make certain that we can, together, provide the most effective, targeted package of support for all our constituents. I have talks with Kate Forbes, the Scottish Government Finance Minister, coming up later this week as part of the fiscal framework. We continue to discuss all the issues that fall within the relationship between Holyrood and Westminster, and we do so on a genuinely open and constructive basis. We are quite clear that we have provided the devolved Administrations with a huge—indeed, a record—Barnett settlement precisely to make sure that all contingencies thrown up by the pandemic can be covered.

The broad context of our need to deliver the right package of support does not come at the expense of our commitment to safeguarding the country’s finances. As I have said to the House before, reckless promises are the privilege of opposition; tough choices are the task of parties that are in government. We cannot fritter away our achievements on unfunded pledges. That is particularly true at a time like this when our level of debt means we are vulnerable to shocks, including changes in interest rates and inflation. In fact, a sustained one percentage point increase in interest rates and inflation would cost over £22 billion by 2026-27. Given that this country has suffered two so-called once-in-a-generation shocks in just over a decade, the case for building a stronger economy with the headroom to guard against shocks is clearer than ever. We must act to build on that headroom now, because to fail to do so would be folly.

I recognise, as do all my ministerial colleagues, the very real pressures that are facing families in every part of the United Kingdom right now. I have set out the comprehensive action we are taking to address those challenges. That is why, as my hon. Friend the Member for Moray (Douglas Ross) said, it is so disappointing that Nicola Sturgeon’s first priority, as the omicron wave eases, is not the cost of living but rather another divisive independence referendum. The SNP’s record of failure in government stretches back years. Before the pandemic, the SNP presided over the lowest rate of job creation in the United Kingdom. Under the SNP, Scottish schools have plummeted down international league tables, denying children a good education. Scotland has the highest drug death rate in Europe, tripling on the SNP’s watch.

Now, instead of supporting Scotland to recover from the pandemic, here we are, on an Opposition day, with the SNP again fixating on issues with the negativity that has become its hallmark. The SNP has entered into a nationalist coalition with the Scottish Greens, taking on extreme policies that will be hugely damaging for Scottish workers, in exchange for pushing ahead with its plans for that divisive second referendum. It is more focused on the break-up of our United Kingdom than on supporting Scotland to recover from the challenges the pandemic has created. By contrast, throughout this pandemic, the United Kingdom Government have taken the difficult decisions necessary to steer the country through the crisis we have faced. We will continue to strive to secure the better and more prosperous future that the people of this country deserve.

Oral Answers to Questions

Debate between David Linden and Simon Clarke

Monday 20th July 2020 Commons Chamber

[Mr Clarke]

Obviously, I do not accept the hon. Gentleman’s characterisation of the Government. We are working very hard to ensure that we deliver on the decision to leave the European Union. We will be in a position to give full details on the UK shared prosperity fund after the cross-government spending review, which will be so important to determining many aspects of our future relationship with Europe, as well as our commitments to our own spending priorities. We will continue working closely as one United Kingdom to understand the changing needs of local and regional economies, and I am happy to meet Ministers from the Scottish Government to find an acceptable way forward.

[David Linden (Glasgow East) (SNP)]

Five months before the transition periods ends, there is still lots of talk from the Government about future funding arrangements but no details. Last month, the Minister told me that he would make inquiries on this, yet his response only promised more details in due course. Does he appreciate that communities cannot afford to wait in perpetuity and need clarity on this now?

[Mr Clarke]

My officials meet fortnightly with those of the Scottish Government, and it is obviously very important that we maintain that dialogue. As I indicated in my reply to the hon. Member for Aberdeen South (Stephen Flynn), we are clear that we are prepared to have talks at ministerial level with our Scottish counterparts. We want to provide that clarity, and we will be in a position to do so when we have had the spending review, which will detail our commitments in the round.

[David Linden]

I am grateful, but endless meetings do not give answers to communities and local governments who need that information and clarity. Another issue is the stronger towns fund. There has been lots of self-congratulatory back-slapping from Tory Back Benchers but very little detail. In the departmental spending debate on the estimates earlier this month, there was still no detail forthcoming. Will the Minister advise us today when Scotland will receive details and a timeline for the stronger towns fund?

[Mr Clarke]

The stronger towns fund is a vital part of our levelling-up work. I make no apologies whatsoever for saying that it is a really important tool to rectify long-standing economic imbalances in the country. The Barnett formula will be applied to investment for England in the normal way at the spending review. The funding is committed to the devolved nations, which means that the Governments in Scotland, Wales and Northern Ireland will receive a share of funding, with allocations to be confirmed in the next financial year.

No-deal Brexit: Short Positions against the Pound

Debate between David Linden and Simon Clarke

Monday 30th September 2019 Commons Chamber

[The Exchequer Secretary to the Treasury (Mr Simon Clarke)]

It is not appropriate for the Government to comment on specific currency market movements, or on market positioning—

[David Linden (Glasgow East) (SNP)]

On a point of order, Mr Speaker. We cannot hear what is being said.

--- Later in debate ---

[Mr Clarke]

As I said in my opening statement, the Treasury keeps these issues under review and is always working to ensure that we regulate this area in a way that is appropriate and proportionate.

[David Linden (Glasgow East) (SNP)]

In the interest of transparency, will the Minister agree to publish details of all call logs and meetings between every Minister and Crispin Odey?

[Mr Clarke]

The Government do not comment on meetings with individuals, and the hon. Gentleman would not expect me to do so now.