Oral Answers to Questions Debate

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Department: Scotland Office

Oral Answers to Questions

David Mundell Excerpts
Wednesday 1st May 2024

(6 months, 3 weeks ago)

Commons Chamber
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Alister Jack Portrait Mr Jack
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In the fiscal framework settlement, we made it very clear and agreed with the Scottish Government that resource funding could be reallocated, if they so wished, from the record block grant into capital funding. That is what has happened. Additionally, they have the ability to borrow £450 million, if required.

David Mundell Portrait David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)
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I also begin by passing on my best wishes to Humza Yousaf and his family. I always found him very personable in my dealings with him, although I disagree with virtually everything he has said or done as First Minister of Scotland, particularly putting up taxes and delivering poorer public services.

Is my right hon. Friend aware that businesses in my constituency are struggling to recruit employees from other parts of the United Kingdom because of the higher tax rates in Scotland, which are damaging our local economy?

Alister Jack Portrait Mr Jack
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My right hon. Friend makes a good point. I am well aware, as are businesses in Dumfries and Galloway, that having six tax bands in Scotland but three in the rest of the UK is not the way to incentivise people to go to work in Scotland or even to relocate their businesses there.