Royal Bank of Scotland Branch Closures

Deidre Brock Excerpts

Tuesday 14th May 2024 Westminster Hall

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

I beg to move,

That this House has considered Royal Bank of Scotland branch closures.

It is a pleasure to serve under your chairship, Sir Charles. Here we are again. This debate feels a bit like groundhog day. Yet more bank branches are set to bite the dust as the network rapidly shrinks, amid woolly promises of support and training for vulnerable customers. Selective statistics are spun to show that counter services just are not being used enough, leaving most of us puzzled when we see the local branch still bustling with life. That is certainly the case for the Leith Royal Bank of Scotland branch.

I confess that I am surprised that I have had to secure this debate, because I represent an area that was well served by banks until recent days. More often, I have supported the work of Members from rural areas who have fought valiantly against the impact of closures in their communities, but with both RBS and TSB planning to shut up shop, the Bank of Scotland looks set to be the last high street branch in Leith—and who knows for how long? When even the most densely populated part of Scotland is down to the last bank standing, we know we are in trouble.

I first pay tribute to the incredible staff at the RBS branch in Leith, who have been left worrying for their futures after this closure was announced. They are a legendary bunch, well known for going above and beyond for their customers and providing that old-fashioned notion of top-notch customer service. The branch is a well-known and well-used fixture in the area, and it should remain to serve the people of Leith into the future. It is located in a vibrant and growing—my goodness, is it growing—part of the city, and it serves diverse banking needs, from the many small start-ups that rely on cash, to people who are more financially vulnerable and cannot easily head uptown, so I find the decision absolutely baffling.

[Christine Jardine (Edinburgh West) (LD)]

The hon. Lady touches on something common to many of us in Edinburgh, where 70% of the bank branches have been closed down in the past few years. This morning, I heard from a constituent in the Newbridge village who is being hit very hard by the closure of the RBS branch there. Her autistic son needs cash every day, and she will now have to get a bus to a different part of the city to get it for him because there is no post office available either. Does the hon. Lady agree that we cannot allow this situation to go on?

[Deidre Brock]

I absolutely agree, and I will be making those points in my speech. The hon. Lady’s example perfectly illustrates exactly why branches need to remain open, and banks must be encouraged to do that.

These further closures from RBS are a particular disappointment, because that once-proud Scottish brand, which is now a subsidiary of NatWest, can trace its origins to Edinburgh in 1727, at the time of the Scottish enlightenment. It is credited with providing the world’s first overdraft—a mixed blessing, perhaps—and it created a wide branch network as part of Scotland’s successful and stable multi-bank system. Times may have changed, but the move towards more centralised control of banking does not seem like progress to me. For RBS to soon have just three city centre branches in Edinburgh is a sorry state of affairs.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Lady for securing this debate. She is consistent, and I am here to support her. In my constituency, the Ulster Bank, which is a subsidiary of RBS, closed its Ballynahinch branch last February, and it now intends to close the neighbouring Downpatrick branch in November. Does she agree that the abdication of the duty of care to rural banks is unacceptable at a time when profits are so high? Legislation underlining that duty of care should come before this House, as the current guidelines are not providing safeguards.

[Sir Charles Walker (in the Chair)]

Order. Ms Brock, are you happy, as the mover of the motion in a half-hour debate, to take interventions? You do not have to.

[Deidre Brock]

Yes, Sir Charles. A number of people expressed interest in being here and talking about branch closures in their areas, so I have allowed for that in my timing.

I absolutely agree with the hon. Member for Strangford (Jim Shannon) and I will make some points about that later. The impacts on rural areas are particularly stark and I am very much aware of them, having been part of the Scottish Affairs Committee that conducted an inquiry.

[Sarah Dyke (Somerton and Frome) (LD)]

In my constituency, Frome—with a population of 30,000 people —will lose its last bank. It follows in the footsteps of other market towns in my area: Castle Cary, Martock and Wincanton. Many of my elderly constituents are very worried that they will lose their physical, face-to-face contact with their banks. Does the hon. Member agree that, to combat the loss of bank branches, we must support communities by triggering the development of community banking hubs that safeguard people’s right to face-to-face contact with their banks, particularly in rural areas?

[Deidre Brock]

Absolutely, and I will make some points about that later.

I say, with a heavy dose of sarcasm, that banks cannot be expected to cut their profits and serve their customers when they have shareholders to please, even when—in the case of RBS—taxpayers bailed them out when they needed it and still own a third of the business. How often can we in this place bemoan bank branch closures while the Government sit on their hands and refuse to meaningfully intervene? The speedy decline in branches is alarming: almost 6,000 have gone, across the UK, at a rate of 54 a month since 2015. Do we just accept sleepwalking into a cashless society and the deepening of the digital divide? Should we all be forced into using systems that may go against our very human preferences for face-to-face services just because it is cheaper for the banks? What kind of society do we want to be? A society that looks out for everyone, or a society where markets rule and only the fittest survive?

[Brendan O’Hara (Argyll and Bute) (SNP)]

I thank my hon. Friend for securing this debate. She is right: it is like groundhog day. How many times in the last nine years have we discussed this issue in this Chamber? Banking in rural Scotland has been decimated, particularly around Argyll and Bute: recently, the RBS branch in Helensburgh announced its closure. Does my hon. Friend agree that financial institutions are abdicating responsibility to the people who were forced to dig deep to bail them out during the crash? Once again we are seeing those banks putting shareholder dividend ahead of any form of social responsibility.

[Deidre Brock]

I agree with my hon. Friend. He is absolutely correct. I think everyone else here agreed with him as well.

Existing legislation to protect against bank branch closures is far too weak. The Financial Conduct Authority has some powers to protect cash services but not bank branches. Yet, in 2019, the FCA’s own research found that bank branch closures presented particular challenges for older people who would have to travel further to reach a branch. It also said that older people were less likely to turn to mobile banking, which increased their risk of financial exclusion. But it seems the banks can just follow the tick-box guidance and then fire ahead with the closure anyway. We must introduce a community right to physical banking services. I commend the work of my hon. Friend the Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) to introduce a Bill for such a measure. I hope for cross-party consensus to take forward something similar.

I am curious to hear whether the Minister thinks bank branch closures conflict with the Equality Act 2010—specifically part 3, which states that service providers must ensure equal access to services for all individuals? We already have all the evidence we need of the impact on communities, on older people, on people with disabilities, and on small businesses that rely on cash trade.

[Paul Girvan (South Antrim) (DUP)]

There are banks that say that they are offering another service because they will work with banking hubs, but those banking hubs are not there all the time. They work just the hours that suit them, so they do not give accessibility to all. It just suits the banks to tick a box to say that they are available.

[Deidre Brock]

Yes, the hon. Gentleman is quite right, and there are delays around those hubs, which I will reference later in my speech.

Research from Which? Found that 65% of consumers would find life difficult without the option to access their bank branch. Age UK says that four out of 10 over-65s do not manage their money online. We also know that paper documents are just preferred by many people, and can help them keep track of their finances better.

[Michael Shanks (Rutherglen and Hamilton West) (Lab)]

I thank the hon. Lady for bringing the debate, and for being incredibly generous in giving way so much during a half-hour debate. She has mentioned selective statistics being spun. The Rutherglen branch is also earmarked for closure. I stood outside it and heard, particularly from older people, that they were being told to go into the branch to use the app. This then generated statistics to make it appear as though people were transferring from using physical tools to digital tools, even though they had gone into the branch. Does the hon. Lady agree that the problem is that the bank has been dressing up statistics about branch use to try to sell the argument that it should close the branch?

[Hon. Members]

Hear, hear.

[Deidre Brock]

There was a chorus of agreement behind me then, as the hon. Member will have heard. I think that it is felt that some of these statistics are being massaged to suit the bank’s purposes. That is certainly the impression that many of us has gained.

I am not immune to the financial pressures and challenges facing high street banks. Digital banking is cheaper and more convenient, at least when people can get their password to work and for it to recognise their face. It is used by the majority of us, but it is not for everyone, and minorities matter. RBS told me that

“80% of our active current account holders now use our digital services”,

but what about the one in five who do not? A lot of people are being left adrift, losing their financial independence. I accept that keeping branches open is costly, so there need to be greater initiatives to encourage banks to stay in town. Banking hubs, as has been mentioned, have been positively received. They are not a replacement for branches, but they are a helpful option for some places, offering a more personal and private space for banking than post offices alone.

But where are they all? The roll-out may be picking up a bit now, but so far it has been woefully slow. Since 2015, almost 635 branches have closed in Scotland, yet only nine hubs have opened and only 15 sites have been recommended as suitable in Scotland since the trials ended in 2021. At best, that only scratches at the surface of the problems created by the loss of our branch networks. While any community can apply to be considered for a hub, not so many will be successful, as Link has to independently assess the needs of the location using the same strict criteria for all.

Many feel they do not replace the need to access physical bank branches. Yes, post offices have increasingly provided access to cash withdrawals and deposits, but otherwise they offer only limited services. In 2020, Citizens Advice found major issues surrounding the post office’s ability to provide even those services, which included limited training on personal and business banking, cash supply issues and security concerns. For many, a bank branch offers access to the wider economic network, where people can seek financial advice and make enquiries about other financial products such as mortgages. These services cannot be provided by the post office and alongside this, the post office’s ability to fill the gaps left by branch closures is limited because of reductions over the years in the number of post offices themselves.

Perhaps the criteria of the bank hubs proposal need to be loosened up a little. Perhaps communities should not have to wait until the last branch leaves their town or area before banking hubs will even be considered, then face lengthy delays before anything gets going. With co-ordinated efforts from everyone involved, locally and nationally, surely we can get the roll-out widened and accelerated to better fill the digital divide that is deepening every day. I would be interested to hear the Minister’s thoughts on that.

[Jonathan Edwards (Carmarthen East and Dinefwr) (Ind)]

The hon. Lady is right about the need to look at the criteria for community banking hubs. My constituency has been left with one bank in one town, Ammanford. All the other market towns have lost their banks, but the community banking hub is not an option because the towns are so small. The current criteria work against the interests of rural Wales, so is there not an argument that the criteria should be extended to take into consideration an amalgamation of rural towns within 20 or 30 miles of each other, so that the community hub could serve two or three towns put together?

[Deidre Brock]

The hon. Gentleman will be more familiar than I am with the needs of those communities, but I think any proposal is worth looking at. That is certainly true of community banking for several towns, though it might depend on the distance between them. My mother-in-law lives in the highlands and has to travel 10 miles to get to her nearest bank branch. These are all things that need to be considered carefully.

I would like to give a nod to the Castle Community Bank, a fantastic community bank in my area of Leith, for the work it is doing in filling the banking gap for many people where the other banks have failed them. As a credit union, it has been a real asset to the community, supporting vulnerable people to break cycles of debt and get affordable access to loans and other financial services. Its focus is on helping people, not serving shareholders, and I am very happy to give it my thanks and my support for its efforts.

Perhaps RBS should take a leaf from its own book and remember the people it serves. Its website proudly claims that

“the bank has a history of making life easier for its customers. The bank is committed to serving Scottish communities and putting the interests of customers first.”

It is time for that commitment to be made clear in bricks and mortar, not just words.

[Sir Charles Walker (in the Chair)]

I thank the hon. Lady for her excellent speech. I call the Minister to respond.

--- Later in debate ---

[Bim Afolami]

The answer is that sometimes keeping branches open makes sense and sometimes it does not. I cannot say from the Dispatch Box that in every instance it is right to keep all branches open, because the rate at which people are moving online is very rapid. Sometimes it does not make sense, but sometimes of course it does. It is that judgment that the firms have to make independently and commercially. We do not want to live in a world where Government Ministers determine which branches close and open across the country—I do not think that is sensible. It is important that those are independent commercial decisions.

[Deidre Brock]

The Minister says that it is not appropriate for Ministers to get involved with individual branch closures, but will he tell us what discussions he has had with the banking industry about bank closures and what the response has been?

[Bim Afolami]

I am happy to talk to the hon. Lady about that in more detail outside the Chamber. On the record, I will say that I have had many discussions about branch closures with UK Finance, the body that represents all the banks, and have worked with it to see if we can speed up the roll-out of banking hubs.

In the remaining time that I have, I will restate that just a few weeks ago the 50th banking hub opened, and Link has recommended over 70 more so far. That includes 15 hubs that have already been announced across Scotland. It is a priority for me that industry continues to deliver, to ensure that customers maintain appropriate access. UK Finance has committed to 225 hub locations to be announced by the end of 2024, up from 120 currently.

To conclude, it is important that those hubs provide a good service to customers. Following my recent discussions with high street banks, I am pleased that industry has agreed to improve the services in hubs to ensure that customers have a positive experience. I communicated those in a “Dear colleague” letter to Members of the House, and I have written to the Chair of the Treasury Committee. We are not in a completely perfect place, but things are improving. Taken together, the measures represent a significant step forward from industry to ensure that all customer needs are appropriately met. I will continue to monitor the roll-out of future banking hubs closely, as I will the whole issue.

Question put and agreed to.

Oral Answers to Questions

Deidre Brock Excerpts

Tuesday 19th March 2024 Commons Chamber

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

11. What assessment he has made of the potential impact of the Spring Budget 2024 on levels of block grant funding for Scotland.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

17. What assessment he has made of the potential impact of the Spring Budget 2024 on levels of block grant funding for Scotland.

--- Later in debate ---

[Laura Trott]

The hon. Gentleman is aware that the block grant has been going up in real terms. He will also be aware that the Scottish Government can switch resource to capital—unlimited amounts, if they choose to do so. He will also be aware, I am sure, that the Scottish Government can borrow up to £400 million of capital each year if they so wish.

[Deidre Brock]

The Tories have failed to invest in our public services and high-growth industries, dragging the nations of the UK into recession and increased income inequality. The UK Government continue to impose hard cuts to public services. The Commons Library has found that the Scottish block grant will have fallen in real terms in every year since 2020, yet UK Government Ministers continue to deny that fact. Does the Minister understand what “real terms” actually means, and does she see the devastating impact that this is having on public services?

[Laura Trott]

Just to be absolutely clear, the Scottish Government’s total departmental expenditure limit is growing in real terms over this Parliament by over 1% a year on average.

Independent Complaints and Grievance Scheme

Deidre Brock Excerpts

Thursday 30th November 2023 Westminster Hall

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

It is a pleasure to serve under your chairmanship, Sir Robert. The SNP welcomes the progress made on the work of the ICGS. We support all efforts to improve the system and to stamp out all bullying, harassment and sexual misconduct, in this place and beyond. Everyone has a right to a safe workplace and to live their lives without fear or intimidation. All employers have a duty of care to protect the health, safety and welfare of their workers, and that means having robust processes for reporting and dealing with harassment, bullying and sexual misconduct. At a time when trust in politicians is, unfortunately, at an all-time low, it is more important than ever that we treat those who work in this place with dignity, courtesy and respect, and that we ensure that those who do not treat people in that way are held to account.

The SNP very much appreciates the work of the Independent Complaints and Grievance Scheme team in providing confidential guidance, advice and support to anyone who has experienced bullying, harassment and/or sexual misconduct. We welcome the ICGS’s fifth annual report and pay tribute to all those who have helped to drive improvements across the work of the ICGS.

I very much appreciate the comments made by the right hon. Member for Basingstoke (Dame Maria Miller), who I know is standing in, extremely capably, for another Member, and I know that that Member— the right hon. Member for South Northamptonshire (Dame Andrea Leadsom)—has a particular and very close interest in the debate. The right hon. Member for South Northamptonshire will also be aware that my hon. Friend the Member for Perth and North Perthshire (Pete Wishart) is very sorry that he could not make it today, but I am sure that he will be watching closely.

The report found that the ICGS team has responded to criticisms and made improvements that have—it must be acknowledged—reduced the time taken to carry out investigations. That improvement was due in part to the welcome addition of extra investigators to the team. It has been a big source of concern for many in this place that some of these investigations have taken so long, and I certainly look forward to further improvement in the time taken.

The team has also provided extra guidance resources for service users to support them through the process, and it has implemented 32 out of 33 of Alison Stanley’s 18-month review’s recommendations. We welcome the fact that the remaining recommendation, on governance, will be considered in the upcoming review and that an interim governance arrangement has been established.

However, there are still shortcomings in the system that need to be addressed. It is vital that complaints are dealt with confidentially, but through a transparent process. The scheme was set up to shed a light on matters that had been shrouded in darkness previously and that reflected badly on the House and its Members. It is important that we are clear about the processes the different complaints go through, while of course making every effort to make those processes confidential for the individuals involved. It is also important that we do things in a timely manner, as I mentioned, and that we improve the process so that complainants feel listened to and receive the support they need.

The report highlights key trends, including a

“power imbalance between the complainant and the respondent…In a number of cases, the blurring of personal and professional boundaries”

and

“the presence of alcohol and the culture of drinking in Westminster.”

We agree with the ICGS director, Thea Walton, that the organisation should escalate action against individuals if they are the subject of three allegations of bullying and harassment—the current trigger is five—even if those fall short of a formal complaint. Although the ICGS is well placed to investigate allegations of sexual misconduct, harassment and bullying, it is incumbent on all of us in this place to improve the working culture and to ensure that everyone who works here feels safe and is treated with dignity and respect.

We are very much in favour of the proposed expansion of the Members’ Services Team, which has come to provide a really invaluable and professional service over such a short time, as I am sure other Members will appreciate. The recommendation that the team should evolve into a Members’ and Members’ staff service is commendable. As small employers, MPs should have access to better human resources support, but staff should also have access to guidance and advice independent of their employing MP.

The Speaker’s Conference report, published a couple of weeks ago, describes Members’ staff as “uniquely vulnerable” and found the current Members’ support service to be “under-resourced”. It recommended creating a new “restorative practice” for workplace dispute resolution. That welcome recommendation would help to create uniform procedures for MPs’ staff across the House. Inadequate provision of employee support, employer guidance and qualified HR experts directly impacts on the experience of staff. We are highly supportive of recommendations to improve those and the great work of the current Members’ Services Team.

In closing, I acknowledge the cross-party group of MPs—the initial working group—who worked so diligently in the initial stages to arrive at various recommendations, which were acted on. In particular, I acknowledge my hon. Friend the Member for Perth and North Perthshire, who was the SNP shadow Leader of the House at the time, and the former Leader of the House, the right hon. Member for South Northamptonshire. They made what some might say was an unlikely couple, but they were able to put aside political differences to take that important work forward—with the assistance, of course, of other members of that working group, and I pay tribute to them.

Autumn Statement

Deidre Brock Excerpts

Wednesday 22nd November 2023 Commons Chamber

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

Thank you, Madam Deputy Speaker. The Chancellor announced £960 million for a new green industries growth accelerator focused on offshore wind; electricity networks; nuclear; carbon capture, usage and storage; and hydrogen. But there was no mention of reliable, clean, cheaper energy sources such as tidal or pump storage hydro. Why not?

[Jeremy Hunt]

We are always open to investing in new technologies, and in this country we are extremely good at developing them. We will continue to look at all new opportunities, including things like tidal.

Provisional Collection of Taxes

Motion made, and Question put forthwith (Standing Order No. 51(2)),

That, pursuant to section 5 of the Provisional Collection of Taxes Act 1968, provisional statutory effect shall be given to the following motion:—Rates of tobacco products duty (motion no. 1).—(Jeremy Hunt.)

Question agreed to.

Oral Answers to Questions

Deidre Brock Excerpts

Tuesday 14th November 2023 Commons Chamber

[Alison Thewliss (Glasgow Central) (SNP)]

3. What recent assessment he has made of the implications for his policies of trends in the level of food inflation.

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

4. What recent assessment he has made of the implications for his policies of trends in the level of food inflation.

[Patrick Grady (Glasgow North) (SNP)]

20. What recent assessment he has made of the implications for his policies of trends in the level of food inflation.

--- Later in debate ---

[Jeremy Hunt]

The hon. Lady is absolutely right to draw attention to the pressures on families caused by very high food inflation in a number of areas, but I can tell her that the Competition and Markets Authority, which undertook a review of the groceries sector earlier this year, has not yet found evidence that high food price inflation is being driven by weak competition. But it is continuing its review and looking at the supply chain, and we will wait to hear what it says.

[Deidre Brock]

Recent research showed that the most significant decline in UK children’s height in the global ranking came after the UK coalition Government launched their austerity programme in 2010. An expert in child growth rates at the Great Ormond Street Institute of Child Health said of that 30-place drop in ranking that austerity

“has clobbered the height of children in the UK.”

What lessons has the Chancellor learned from the UK Government’s previous disastrous errors of judgment in this area, and how will he be supporting vulnerable groups in the future?

[Jeremy Hunt]

The lesson I have learned is straightforward: if we had not reduced the deficit by 80% between 2010 and the start of the pandemic, we would not have been able to help families across the United Kingdom with payments of more than £3,000, on average, including 700,000 households in Scotland and more than 1 million pensioners.

Oral Answers to Questions

Deidre Brock Excerpts

Tuesday 5th September 2023 Commons Chamber

[Alison Thewliss (Glasgow Central) (SNP)]

5. What recent assessment he has made of the potential impact of withdrawal from the EU on the economy.

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

12. What recent assessment he has made of the potential impact of withdrawal from the EU on the economy.

[The Chancellor of the Exchequer (Jeremy Hunt)]

Good morning, Mr Speaker. Brexit was a choice made by the British people and it remains a big opportunity for the economy. Rather than relitigating that debate, this Government are committed to embracing those opportunities.

--- Later in debate ---

[Jeremy Hunt]

There is a certain irony in the Scottish National party opposing Brexit at the same time as advocating a far more draconian separation for Scotland, including a new currency and border checks. On businesses in Scotland, as part of the UK, Scotland is now an independent coastal state for the first time in nearly half a century; the 21,000 people in Scotland who work in financial services are benefiting from the Brexit freedoms in the Edinburgh reforms; and there is extra support for Scottish pubs, because, for the first time, we have a lower beer duty relative to supermarkets.

[Deidre Brock]

It is not just Brexit trade barriers having a devastating impact on Scotland’s economy, because the loss of freedom of movement has hugely damaged our businesses’ ability to recruit staff. Many businesses have had to reduce their offer, cut their opening hours or close altogether. It is estimated that over the bank holiday UK pubs alone lost out on £22 million because of staff shortages. Does the Chancellor accept that small businesses such as those cannot keep picking up the tab for his Government’s disastrous Brexit? What is he doing to solve these staff recruitment problems?

[Jeremy Hunt]

May I gently say to the hon. Lady that this country has actually grown faster than France or Germany since we left the single market? This is a bit of a smokescreen for the SNP’s economic policies, which have led to more people out of work and fewer people in work in Scotland than in England.

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.

Oral Answers to Questions

Deidre Brock Excerpts

Tuesday 21st March 2023 Commons Chamber

[Jeremy Hunt]

We think these reforms will make a big difference to all parents. Our priority is parents who want to work and who are prevented from working by the expense of the current system. I would remind my right hon. Friend that we still have a 15-hour free childcare offer for all parents, irrespective of whether they work, for three and four-year-olds.

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

Researchers at Warwick University and the London School of Economics estimate that the non-dom regime denies the Exchequer about £3.2 billion per year. Why did the Chancellor not take steps to abolish that in last week’s Budget, instead of creating more hoops for universal credit claimants to jump through?

[The Financial Secretary to the Treasury (Victoria Atkins)]

We have looked very carefully at this, because we know that many in the House have been citing this figure. What concerns us about that analysis is that the study does not appear to take into account the behavioural ramifications of changing the current regime or of making it less competitive than that of our international partners. We do have to remind ourselves that non-domiciled taxpayers pay UK tax on their UK earnings to the tune of £7.9 billion.

Oral Answers to Questions

Deidre Brock Excerpts

Tuesday 15th November 2022 Commons Chamber

[Jeremy Hunt]

Absolutely. I say to my right hon. Friend that it is the good voters of middle England who want us to be a country that pays its way, that does not borrow at the expense of future generations, and that can be trusted when it comes to sound money. That is what we will deliver.

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

Skyrocketing inflation, much of it caused by calamities on the Government Benches, means that the Scottish Government’s annual budget is worth up to £900 million less than it was just a few weeks ago. When will the UK Government devolve more borrowing powers to Scotland, so we can give the extra, desperately needed assistance to those struggling the most in our country?

[John Glen]

I spoke about such matters with Jon Swinney, in my second conversation with him since appointment three weeks ago, last evening. We discussed a range of matters, and I will always try to be as constructive as I can to find ways forward when the whole of the United Kingdom faces the inflationary scourge everywhere.

Economic Situation

Deidre Brock Excerpts

Wednesday 12th October 2022 Commons Chamber

[Chris Philp]

We certainly do stand with the working poor. That is why we have increased the thresholds to ensure that people on lower incomes pay very little income tax and national insurance. It is why we froze petrol duty, and, indeed, cut it by 5p earlier this year. It is why we have increased the national minimum wage by such a large amount, from just £5.93 an hour under the last Labour Government to £9.50 an hour today. So we do stand on the side of the working poor, and I will certainly continue to work with the hon. Gentleman to ensure that his constituents are looked after and protected in the years ahead.

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

Given that the UK Government, in the run-up to their fiscal statement, chose to ignore warnings from anti-poverty campaigners about the devastating impact that a lack of targeted support for lower-income households would have on those households, will the Chancellor now be making some sort of assessment of the impact that that will have on levels of poverty in the UK?

[Chris Philp]

I dispute the claim that there was no targeting. I have already pointed out that the minimum wage has risen hugely under this Conservative Government, from £5.93 an hour to £9.50 an hour. When we made the first energy intervention this year with the £37 billion package, that was targeted: it was targeted, rightly, at people on lower incomes, so that those on the lower one-third of incomes received £1,200 per annum, and people with disabilities, and some pensioners, received even more than that.