Cost of Living

Deidre Brock Excerpts

Tuesday 16th May 2023 Commons Chamber

[Deidre Brock (Edinburgh North and Leith) (SNP)]

Lower bills, lower energy costs, tariff-free trade with the EU—would that not make life a bit easier as we contend with this Tory-led cost of living crisis? But those were also the bullish forecasts of Brexiteer MPs and the “leave” campaign back in 2016. Of course, industry groups knew far better than to take their claims at face value. The Food & Drink Federation warned that prices for shoppers were likely to go up as the pound fell. Rising food bills were also predicted by the Resolution Foundation—a finding, we should remember, that was branded “ridiculous” by leading Brexiteers who insisted to us that the opposite would happen. We were all dismissed as “remoaners”. In fact, frustratingly, we have been shown to be Cassandras, which I am sure will be appreciated by Conservative Members who are versed in the classics, although the Minister’s inability even to utter the “B” word in his opening speech suggests that they have learnt absolutely nothing.

Early in 2017, I spoke in this place of the warning from NFU Scotland that Brexit was the biggest challenge to Scottish food producers in generations. Farmers, food processing companies and hauliers needed workers from the EU, access to European markets, and guarantees on future financial support. Many of Scotland’s farmers depended on that financial support to remain viable businesses, as did fishers and so many in our food manufacturing and processing industries. How often did my colleagues and I come to this place to repeat the warnings from industry groups, the Scottish Government and other devolved Administrations? But all that we heard back was ridicule, slander and dismissal.

Fast-forward seven years—and more than three years since we left the EU— and food prices are reportedly at their highest level for 45 years. Research published in April by Which? found that the price of staples such as cheddar cheese and white bread had shot up by as much as 80%, while the cost of porridge oats and semi-skimmed milk had risen by more than a third; and, of course, this is disproportionately impacting the least well-off among us. A recent study by the Co-op and Barnardo’s found that one in three young people aged between 10 and 25 has reported that their family has had to rely on food support.

Yes, the causes of inflation and the cost of living crisis are multifaceted. Yes, covid and the effects of Russia’s war in Ukraine have exacerbated price rises. Those have had an impact the world over, but, nevertheless, cost rises are cutting deeper here. The UK is the worst-performing economy in the G7. As a result of Brexit, GDP has fallen by 4% and exports are down 15%, according to the Office for Budget Responsibility. The European Central Bank’s new report says that Brexit has caused

“a significant decline in trade with the United Kingdom in almost all cases”

of anywhere between 10% and 25%. Goods exports are lagging behind those of all other major economies, which in Scotland amounts to a loss of £2.2 billion since we left the EU.

As we read in The Irish Times yesterday, in its recent update on financial projections for the year and the performances of its principal export economies, Ireland’s Department of Finance noted that

“at the end of last year the level of activity in the UK is not only 7 to 8 per cent below the level implied by the hypothetical no pandemic/no war scenario, it was also below its pre-pandemic level. This is in sharp contrast to other regions such as the euro area and US, where activity has surpassed pre-pandemic levels and…almost back at levels implied by the pre-pandemic trend growth rate.”

Horrifyingly, it is expected that things may well get worse before they get better, partly owing to the new customs checks for EU imports that will be phased in from October. While those prophetic Conservative Members insisted that there would be minimal costs, their Micawberish optimism was not reflected in the UK Government’s own internal estimates, which put the cost to importers of these checks at up to £400 million a year. The British Chambers of Commerce, the British Retail Consortium and the British Meat Processors Association warn of higher inflation and suppliers passing on some of the extra costs, which will mean higher prices in shops.

The Scottish National party welcomes the upcoming investigation by the Environment, Food and Rural Affairs Committee of the cost of producing food and the price burden on consumers. There are growing concerns across Europe, and notably in the European Central Bank, that soaring food prices are also a result of “greedflation”,a trend with which the UK Government unfortunately seem quite comfortable. If they are not, why are they not taking real action to solve the problem? Will they call another food summit at No. 10, where the Prime Minister will pretend once again to listen to the voices of farmers, fishers and food producers of all sorts before, no doubt, trotting off to do exactly as his neo-liberal thinking directs? He did not listen to those voices before his Government negotiated trade deals so bad that the former Secretary of State for Environment, Food and Rural Affairs finally even felt compelled to come clean with the criticisms that he had unfortunately kept to himself before then.

[Dave Doogan]

Does my hon. Friend agree that the Home Secretary’s remark that there is no reason why ordinary British people cannot pick fruit demonstrates that this Government—regardless of who is in office in which Department—have zero understanding of modern agricultural methods, and are not to be trusted with rural environments?

[Deidre Brock]

I absolutely agree with my hon. Friend. I was shocked to read the Home Secretary’s comments, which I thought were patronising and did not reflect the reality of modern agriculture, or, indeed, the real skills that are needed by, for example, berry-pickers—which is certainly something that the Scottish Affairs Committee learnt when some of its members took part in that activity a few years ago.

When will the UK Government follow the lead of other European countries, and intervene to bring down the price of food and other necessities? France, for example, introduced a “price block” on staple products. What pressure will be put on major retailers to pass on falling wholesale prices to shoppers? It is vital for the Competition and Markets Authority to utilise its full powers and impose maximum fines where evidence of price-gouging is found.

Although Brexit offers nothing to Scotland except economic hardship, the SNP is now the only major party that opposes it. Labour is not only pro-Brexit, but seems to be set on preserving some of the Tory Government’s most damaging policies. Even the DWP has at last admitted that benefit sanctions do not work, but I was shocked to learn that Labour’s shadow Work and Pensions Secretary has U-turned on the promise to scrap them, instead characterising people who are out of work due to health problems as a “growing burden” on the economy and individuals.

In the last couple of years, food security has become an issue of huge significance, and yet agricultural production in Scotland and the rest of the UK is set to slide. Immigration policy still falls short by some way of the numbers needed by our once thriving berry, brassica and other foods, fishing, food processing and manufacturing sectors, already hit by skyrocketing inflation, fuel and fertiliser costs.

Judging by their amendment, the UK Government seem to think that their failings in other areas can be compensated for by silver bullets such as gene editing. In January, the Scottish Parliament declined to give legislative consent for the Genetic Technology (Precision Breeding) Bill, which along with the United Kingdom Internal Market Act 2020, is yet another attack on the integrity of the Scottish Parliament in specifically devolved areas such as agriculture, aquaculture and animal welfare. The impact assessment for the Bill recognised that

“products entering the market in England would also be marketable in both Scotland and Wales.”

Yet, wholly predictably, the Tory Government made no attempt to work closely with the Scottish Parliament. We now face the prospect of gene-edited products being sold in Scotland, unlabelled, unauthorised by Scottish Ministers and without consumers in Scotland having been properly informed or consulted on how they feel about that. It also means undermining once more the Scottish Government’s aim of staying aligned with EU regulation as far as possible and practicable. We do not want to erect further barriers to our largest market, so sensibly we are waiting to see the outcomes of the EU review of gene-edited products before acting—unlike the UK Government.

Amid this mess, we are stuck between the Conservative party, many of whose deluded members appear to think Brexit would work if only us miserable remoaners wished hard enough, and the Labour party, which seems to think that offering better administration of Brexit will do the trick rather than being brave enough to admit to the electorate what a disaster it has been. Ultimately, until Scotland becomes an independent nation and full member of the EU, we will be constrained by Westminster’s two-party consensus, unable to harness all the powers needed to tackle the cost of living crisis, fund our objectives in food production, set our own immigration policies or fully realise the potential of our food and drink export industries.

Nevertheless, Scotland is thankfully taking a very different approach to social security. The IFS found that the lowest income families in Scotland are significantly better off thanks to the Scottish Government’s progressive tax and benefit policies. The Scottish child payment, for instance, has been further expanded to eligible six to 15-year-olds and increased in value to £25 per child per week—a real game changer. But our hands will always remain tied while 85% of welfare expenditure and income-replacement benefits remain reserved to Westminster.

[Madam Deputy Speaker (Dame Rosie Winterton)]

Before I call the next speaker, colleagues will be aware that another debate follows this one, so my advice is for Members to stick to around 10 minutes each.