Cost of Living Increases Debate

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Department: HM Treasury

Cost of Living Increases

Douglas Ross Excerpts
Monday 24th January 2022

(2 years, 3 months ago)

Commons Chamber
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David Linden Portrait David Linden (Glasgow East) (SNP)
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I beg to move,

That this House notes there is a cost of living crisis hitting homes across the UK; regrets the UK Government’s current plan of reductions in certain benefits and tax rises coupled with rising costs of the UK leaving the EU; is concerned that the UK has the worst levels of poverty and inequality in north west Europe and the highest levels of in-work poverty this century; and calls on the Government to take immediate action with a package of measures to boost incomes and reverse rising poverty, including reinstating the £20 universal credit uplift, introducing a Real Living Wage of at least £10 an hour, introducing an energy payment for low income households, and matching the Scottish Government’s Scottish Child Payment for families across the UK.

Normally, during an Opposition day debate the Tories will berate Opposition parties for not dealing with the issue of the day, crying distraction and somehow suggesting that the discourse in this place of those on the Opposition Benches is focused solely on the interests of the SW1 chatterati, not what matters most to our constituents back home. However, today of all days, not least in the light of what Lord Agnew has just done along the corridor, that seems somewhat ironic, given that the Tories themselves are engaged in a civil war and are besieged by paralysis, with a Prime Minister who might be in office, but is certainly not in power. Let us be clear that we have a British Government and Prime Minister who are so focused on saving their own skins that they are neglecting to get on with the day job; indeed, they are overlooking the biggest issue of the day: the cost-of-living crisis.

The impact of the cost-of-living crisis is far-reaching, but as constituency MPs, we know that it is certainly impacting the poorest and most vulnerable members of society, and yet this British Government indulge in navel-gazing, while our constituents are stuck in the middle of an economic tornado. Simply, the Tories are more focused on saving “Big Dog” than on saving our constituents’ money from spiralling energy bills, and more focused on Operation Red Meat when our constituents can hardly afford red meat, as inflation causes the average supermarket shop to skyrocket.

Like most Scots, I think that the Prime Minister is utterly unfit for office and should have resigned long ago.

Douglas Ross Portrait Douglas Ross (Moray) (Con)
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The hon. Gentleman just spoke about the Government navel-gazing and having the wrong priority. Does he therefore agree that Nicola Sturgeon has absolutely the wrong priority? She was on TV again yesterday, saying that she is going to kick-start yet another campaign for independence, at a time when we should be focused on the economic crisis, the energy crisis, affecting all our constituents?

David Linden Portrait David Linden
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I am grateful to the hon. Gentleman for his intervention. I have great respect for him, and I only wish that that was extended to him by the Leader of the House, who I think said he was a “lightweight”. The reality is that the people in Scotland have voted in successive elections to put Scotland’s future in Scotland’s hands, to ensure that the likes of the Prime Minister and the Chancellor, who are posted missing, do not have the economic levers that are causing such distress just now.

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Douglas Ross Portrait Douglas Ross (Moray) (Con)
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I will begin by picking up a few remarks made by the hon. Member for Glasgow East (David Linden) in opening the debate. First, he criticised the Chancellor for not being here. I apologise for any harm that this does to his career, but I must say that I am delighted that my right hon. Friend the Chief Secretary to the Treasury spoke for the Government in these opening speeches. It did irk me slightly that the hon. Gentleman felt he should highlight that the Chancellor was not here, because I remember being in Holyrood in the Scottish Parliament just a few weeks ago when—[Interruption.] SNP Members can laugh at this if they want, but we were discussing kids dying at the Queen Elizabeth University Hospital, and I led for the Scottish Conservatives, Anas Sarwar led for Labour and Alex Cole-Hamilton led for the Scottish Liberal Democrats. Every party leader turned up to that debate with the exception of Nicola Sturgeon, who is the local MP in Glasgow and was the Health Secretary when that hospital was created. She has many questions to answer, but she could not even turn up to a debate about that. Not only that—she could not even be bothered to vote. When SNP Members pick fights and say who should or should not respond to these debates, they should remember what their own leader does in Holyrood.

Secondly, the hon. Member spoke about groundhog day. We are in groundhog day in Scotland because, in the run-up to another party conference and elections, we have got Nicola Sturgeon and the SNP yet again speaking about Scottish independence. She was on the TV yesterday saying that she is putting civil servants to work to get ready to fight the case for another independence referendum. Businesses in Scotland are still struggling as a result of restrictions put in place by the SNP. Even the hon. Member for Perth and North Perthshire (Pete Wishart), who is no longer in his place, said it was a fair point that they went too far before Christmas, yet Nicola Sturgeon thinks that now is the right time to recharge her efforts to separate Scotland from the rest of the United Kingdom. That is the wrong focus, and it is groundhog day all over again.

Finally, the hon. Member for Glasgow East spoke about the economy and currency. The SNP Benches are very full, so I want to ask SNP Members this once more. They all support independence and want to separate Scotland from the rest of the United Kingdom, so who on the full SNP Benches can tell me what currency an independent Scotland will have? I will give way to the hon. Member for Coatbridge, Chryston and Bellshill (Steven Bonnar), who put up his hand—we stand up in this place.

Steven Bonnar Portrait Steven Bonnar (Coatbridge, Chryston and Bellshill) (SNP)
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We will use our currency—the Scottish currency—the Scottish pound.

Douglas Ross Portrait Douglas Ross
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The Scottish pound—there we go. That has answered all the problems. There are no concerns about what the Scottish pound would be or when it would be introduced. I think that the muted response of the hon. Member’s colleagues tells him that that was not the best intervention to make. Yet again, none of them can answer that question. I have asked them many times before, but none of them can credibly say what currency an independent Scotland would have. I think that is telling.

Douglas Ross Portrait Douglas Ross
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They are all excited now. I will give way to the hon. Member for Livingston (Hannah Bardell) in a moment, but we are speaking about the cost of living crisis and the SNP leader in Scotland wants to start the campaign to separate Scotland all over again. If Scotland were to separate from the rest of the United Kingdom—which I hope never, ever happens—surely the SNP can tell us what an independent Scotland’s currency would be.

Hannah Bardell Portrait Hannah Bardell
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I am sure the hon. Gentleman will be pleased to know that in the run-up to the independence referendum in 2014, we offered the public in Scotland more information about the currency alone than his party offered voters across the UK on the whole Brexit debate.

Douglas Ross Portrait Douglas Ross
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I note, having asked the hon. Lady to tell me what currency an independent Scotland would have, that she failed to do so. She did, however, mention the White Paper, which was very detailed. It said that oil would be worth $114 a barrel. I am not sure that oil ever achieved that figure; it is certainly not worth that much at the moment. I really do not think that the White Paper is a strong argument for the SNP to focus on, but—

Nigel Evans Portrait Mr Deputy Speaker (Mr Nigel Evans)
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Order. I know that the hon. Member is having fun, but this is about the cost of living increase and not some possible referendum in Scotland, so could we get back to the subject matter, please? [Hon. Members: “Hear, hear!”]

Douglas Ross Portrait Douglas Ross
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SNP Members are cheering because they are hoping that I move on very quickly. Like any good official, I will follow the rule from the referee and agree to do so. However, I think that many people in Scotland will be watching and will have heard that not a single SNP Member was able to answer such a crucial question for Scotland’s future.

I welcome the opportunity to discuss an important issue for my constituents in Moray and for constituents across Scotland and the United Kingdom. Households are struggling with the rise in global energy prices; with inflation as a result of spending decisions taken by Governments across the world, including this Government, who have invested £315 billion to get us through the global pandemic; and, of course, with rising prices of essential items such as food because of continued supply chain issues, again as a result of the pandemic.

Joanna Cherry Portrait Joanna Cherry
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Will the hon. Gentleman give way?

Douglas Ross Portrait Douglas Ross
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I have given way quite a few times—[Interruption.] Okay, I am happy to give way, but my answer to the hon. and learned Lady will be that, as the Chief Secretary to the Treasury has said, this is a global problem. We are seeing problems with shortages—[Interruption.] She says that she has not asked the question. I am about to give way, but I am pretty sure that her question is going to be about the British Retail Consortium and the points it has made, because she has asked it three times already.

Joanna Cherry Portrait Joanna Cherry
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Clearly the hon. Gentleman, having been described as a lightweight by his colleagues, is planning a future career as Madam Zelda looking into a crystal ball, because he seemed to think that he knew what I am going to ask.

The hon. Gentleman’s constituents in Moray, like mine in Edinburgh South West, will have noticed a very significant increase in food prices in supermarkets. The British Retail Consortium—I know how much he loves British things—says that labour shortages, including shortages of HGV drivers and warehouse workers in the supply chain, are contributing to those increased prices. Many commentators have said that the red tape on food imports from the EU is contributing to those increases, too. In the interests of the hon. Gentleman’s constituents and mine, and given his lofty standing—in the Scottish Conservative party, at least—will he tell us what request he has made of the Treasury to assess the impact that leaving the European Union in the middle of a global pandemic will have on the cost of living crisis?

Douglas Ross Portrait Douglas Ross
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It turns out that that was exactly the same question and the same point that the hon. and learned Lady has already made three times. She mentions the British Retail Consortium, but she also has to accept that there have been labour shortages and driver shortages in other parts of the European Union, the United States and many other parts of the world. I understand that it fits her narrative to paint her question in that way, but we also have to remember that these are global issues that Governments across the world are having to address.

Governments in this country have to think carefully about the effect that their policies have on family budgets. That is why I was amazed, but sadly not surprised, that there was not a single mention in the SNP motion calling on the nationalist coalition of the SNP and the Greens in Holyrood to take some decisions itself that could make an immediate and direct impact on the cost of living in Scotland. The SNP motion that we are debating makes reference to tax rises, which is very interesting given that for the past decade and a half SNP colleagues have been running the country that is the highest-taxed part of the United Kingdom. [Interruption.] The hon. Member for Na h-Eileanan an Iar (Angus Brendan MacNeil) says it is about the rich, but it is not; it is about the 1.1 million Scottish taxpayers who earn more than £27,393. That is not rich; that is 1.1 million people across Scotland. Those who earn just over £27,000 are not the rich; people across Scotland are being punished by SNP decisions.

David Linden Portrait David Linden
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It is reassuring that at least today the mantra from the Tories is that Scotland is the highest-taxed part of the United Kingdom, because sometimes we are told we are not doing anything with our tax powers.

To go back to the point of what we are doing for people on low incomes, the hon. Member will know that the regressive tax hike in national insurance will take away 20% of the pay increase for a band 5 nurse in Scotland. Does he support the Government’s plans for a tax hike in national insurance?

Douglas Ross Portrait Douglas Ross
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I have listened carefully to the hon. Gentleman, and I make this point: the tax rises that his Government are introducing in Scotland have made Scotland the highest-taxed part of the United Kingdom, and that is affecting nurses, teachers and police officers. That is who it is affecting right now in Scotland.

Ian Murray Portrait Ian Murray
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Does the hon. Gentleman think that his Government’s national insurance tax rise in April helps or hinders that?

Douglas Ross Portrait Douglas Ross
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We have been clear, as my right hon. Friend the Chief Secretary to the Treasury said, that the Government have taken a difficult decision to focus that vital funding on health and social care—an issue that has not been grappled with for decades by parties on either side of the Chamber. It certainly has not been grappled with by the Scottish Government. Sometimes difficult decisions must be taken to ensure that we have a health service and support for older people in this country that has not always been available.

The hon. Member for Glasgow East mentioned local government, and I suddenly got excited, because I thought we were finally going to hear an SNP politician standing up against the disastrous cuts that Nicola Sturgeon and the SNP are imposing on local government, but he said “local government”—Hansard will show this when the report is published—and then did not say another word. The SNP has the highest ever block grant since devolution. Since 1999, more money than ever before has been going from the UK Government to the Scottish Government, and what do they do to local councils? They cut the local government budget by £371 million. That is a cut from the SNP Government to local government, when the UK Government are giving them more money than ever before to spend.

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Douglas Ross Portrait Douglas Ross
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I will give way in a second, if the hon. Gentleman will show that he stands up for his constituents, just like SNP council leaders have stood up to the Scottish Government and said, “That is a cut too far”, and that they should change their view on the £371 million cut to local government.

David Linden Portrait David Linden
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I know the hon. Gentleman is used to running the line on a Saturday, but we are not all going to play his game this afternoon. On the issue of local government, will he pass comment, given that he has the floor, on Councillor Tim Eagle from his council in Moray, who suggested that free school meals, free tuition and free bus travel for under-22s are somehow “little treats”?

Douglas Ross Portrait Douglas Ross
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The hon. Gentleman knows that that was taken completely out of context. If he wants to repeat to the House the entire comment that Councillor Eagle made to the Moray Council committee meeting, he is welcome to do so. I gave way to the hon. Gentleman, so I will do so once more: does he agree with the SNP council group leaders who are saying to the SNP that the cuts are too much?

Owen Thompson Portrait Owen Thompson (Midlothian) (SNP)
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On a point of order, Mr Deputy Speaker, I beg your forgiveness—I am not an expert in “Erskine May”—but I understand that if a Member resumes their seat without an intervention, they are deemed to have concluded their contribution.

Nigel Evans Portrait Mr Deputy Speaker (Mr Nigel Evans)
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As Christmas has just passed, let us be a little generous. Have you finished your contribution, Mr Ross?

Douglas Ross Portrait Douglas Ross
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I am grateful for your generosity, Mr Deputy Speaker, and I will begin to conclude my speech.

It is interesting that the Scottish National party uses such tactics when the hon. Member for Glasgow East (David Linden), who introduced the debate, cannot stand up against the party in Holyrood and say that its cuts have affected the cost of living in Scotland.

Angus Brendan MacNeil Portrait Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)
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On a point of order, Mr Deputy Speaker. If the hon. Member for Moray (Douglas Ross) sits down, how is that an SNP tactic?

Douglas Ross Portrait Douglas Ross
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I would think a bit more about that comment if the hon. Member for Na h-Eileanan an Iar (Angus Brendan MacNeil) had not arrived in the Chamber about five minutes ago for a debate introduced by his party.

Stephen Flynn Portrait Stephen Flynn (Aberdeen South) (SNP)
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The hon. Gentleman will be cognisant of the fact that Norway has an oil fund that is worth more than $1 billion, while Scotland’s oil fund is worth absolutely nothing on his party’s watch. Does he regret the fact that the UK Government have mismanaged Scotland’s resources for decades?

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Douglas Ross Portrait Douglas Ross
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It is not worth nothing, because time and again we have seen the UK Government supporting Scotland. Indeed, during the pandemic, £15 billion or £16 billion has gone from the UK Government to the Scottish Government.

Douglas Ross Portrait Douglas Ross
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I have given way to the hon. Gentleman. That money was provided to support individuals, families and communities across Scotland. No matter how the SNP tries to paint it, its position on oil and gas is fundamentally different from what it was only a few years ago, and people in the north-east can see that and what it means for their jobs and communities. On the topic that we are discussing today, they can see what it means for the energy bills that they will receive in the weeks ahead.

Douglas Ross Portrait Douglas Ross
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I have given way a lot, and I realise that your patience is being tested, Mr Deputy Speaker.

I am grateful for the opportunity to discuss all these important issues. I only hope that SNP Members reflecting on today’s debate will begin to ask serious questions of their Government in Holyrood, as they have been in power for a decade and a half and have many of the tools, levers and, indeed, the funding to deal with this issue right now in Scotland.