Strengthening the Union

Debate between Douglas Ross and Chloe Smith

Monday 23rd July 2018 Commons Chamber

[Chloe Smith]

I do not think the hon. Gentleman can have been listening when I included, for example, car production and food and drink in my list, but the point is that the Chequers agreement seeks to secure the best deal for the whole UK economy, together. That covers both goods and services in different ways—in ways that will complement our strengths—but it also returns us to the key point about the whole UK economy, together.

Let me now say something about the industrial strategy. It is a vital part of the plan set out by the Prime Minister to drive growth across the whole UK, and to create more highly skilled, highly paid jobs and opportunities. It is intended to address the long-term structural challenges that can hold British businesses back, while building on the country’s strengths. New sector deals and investment and research and development will support the industries of the future where the UK has the potential to lead the world, from electric vehicles to biotech and quantum technologies.

It is important that we continue to look to the future. As was announced earlier this month, a £2.5 million grant has been awarded for a spaceport site in Sutherland, on the north coast of Scotland. That the first ever satellite launch from the UK could be from Scottish soil highlights our commitment to investing in all parts of the UK, and there are other launch sites too, such as those planned in Cornwall, Glasgow and Snowdonia, which will also be boosted by a new £2 million development fund. The UK is set to build on its world-leading expertise in aerospace with the development of these spaceports.

On the city and growth deals, we are supporting clusters of cultural and economic strength concentrated in places throughout the UK, and we want to see city and growth deals across the four nations to ensure that prosperity is shared across the UK. We have already seen important investments in a number of deals such as Cardiff, Glasgow and Swansea, as well as investment in other important cultural work such as the V&A in Dundee. Further deals are being developed. We have recently announced the Stirling and Clackmannanshire city region deal, and negotiations have been opened on the north Wales growth deal and with the Belfast city region partners. These deals make a vital contribution to local economies and, as I have said, provide jobs and growth across the UK. There is more, of course. In Cardiff, we have invested in the development of a compound semiconductor industry cluster, and in Aberdeen we opened the oil and gas technology centre with an investment of £180 million, which will unlock the full potential of the North sea and anchor the supply chain in north-east Scotland.

Transport and connectivity are also crucial themes. As we support clusters of growth across the Union we must be connected geographically through our transport and infrastructure links. The expansion of Heathrow will help with this, creating hundreds of additional flights per week from London to the nations and regions across the UK, with new routes emerging to support our economic co-operation. As well as the importance of being connected geographically, the Government recognise that world-class digital connectivity is essential for the modern world; it is essential to people at work and at home and we are committed to improving that across the UK. We are investing over £1 billion to stimulate the market to build the next generation of infrastructure that the UK needs for the future through both the national productivity investment fund and the digital infrastructure investment fund.

Turning to international benefits, the strength in our unity of nations is demonstrated by our common voice on the international stage. We use our seat at the top international organisations to protect the interests of all parts of the UK, to influence issues that matter to people in the UK, and to make the world a better place. When we faced an attack on our citizens, we worked with countries around the world to respond. We use our influence to pursue issues that matter to people across the UK: leading the way on international aid, leading global action to tackle landmines, stopping the trade in ivory, and combating modern slavery. People across the UK can be proud of the role we can play because we are together in our international approach.

That international standing is also vital to the security of our country. Our UK defence expertise and excellence is joined up across the UK and has been built up across decades, from new radar stations in Shetland and Cornwall, to Scottish-built aircraft carriers based in Portsmouth, fast jet response aircraft in Lossiemouth and Lincolnshire, the SAS in Hereford, GCHQ in Cheltenham and the Royal Marines commandos in Arbroath. This is one very large UK defence network protecting us all at home and abroad. And we are spending across the country to be able to keep the whole UK safe. In the last financial year the Ministry of Defence spent £1.6 billion with Scottish industry and commerce, while a recent review found that defence invests £945 million in Welsh industry. The spectacular fly-past we saw only last month as part of the Royal Air Force’s 100th anniversary celebrations reminds us of the work of all our armed forces, who are drawn from, and based across, the whole of the United Kingdom. We saw the same at last month’s Armed Forces Day in Llandudno; it was a proud display of Wales’s military association, while the Edinburgh Tattoo demonstrates Scotland’s strong relationship with the military.

I am also proud that the UK Government recently announced that we will reimburse thousands of military personnel who would otherwise be negatively affected by the devolved Government’s income tax increases in Scotland. This protects nearly three quarters of all armed forces personnel liable for Scottish income tax and will help with recruitment and retention for our important armed forces.

[Douglas Ross (Moray) (Con)]

May I take this opportunity to congratulate the Minister on the ninth anniversary of her election to this place? Perhaps that is why the whisky and the cake were getting muddled up in her mouth—maybe she has been celebrating early. On the point about the UK Government mitigating the “nat tax” in Scotland, does she agree that it was important for my constituents at RAF Lossiemouth and at Kinloss barracks that the UK Government did something to address the fact that the Scottish National party has made Scotland the highest taxed part of the United Kingdom, which was having a negative impact on recruitment and retention for our armed forces in Scotland?

[Chloe Smith]

Yes, that is exactly why the UK Government took those steps, and we are proud to have done so.