Budget Resolutions

Drew Hendry Excerpts

Tuesday 30th October 2018 Commons Chamber

[Kirsty Blackman]

Do you know what? The reality is that we have argued for a very long time—I have argued for my entire adult life—against the current democratic system, because it does not work for the people of Scotland. We do not get the Governments we vote for and we do not get the result that we voted for in the EU referendum. If the democratic system meant that Scotland’s votes were reflected in reality, we would be in a very different situation today.

On a serious note, every week in our communities and at our surgeries MPs from both sides of the House are faced with the consequences of Westminster’s poor decisions. We see working mothers forced to go to food banks. We see and hear about the Home Office-enforced separation of families. We meet young men struggling with mental health problems who have been sanctioned yet again because they are unable to jump through the unreasonable hoops put in their way by the Department for Work and Pensions. I do not know how anybody, even in this Westminster Government, can believe that their policies are having a positive benefit. The tears and desperation with which we are all faced on a regular basis give the lie to that notion.

The Chancellor has failed adequately to fund our public services in this Budget. He has failed to undo the devastating social security cuts, he has failed to legislate for a real living wage and he has failed to provide adequate support for businesses facing the impending cliff edge of Brexit.

The Budget should have included decisions to help support all those who have been hit by a decade of austerity, and all those who will be hit by the forthcoming Brexit. The roll-out of universal credit should have been halted. A third of working-age households will be entitled to some universal credit. Of those, around a third will be at least £1,000 a year worse off than under the legacy system.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

Does my hon. Friend agree that the Government missed an opportunity in the Budget yesterday not only to correct the injustices of universal credit but to compensate councils such as Highland Council that are having to foot a £2.5 million bill out of council tax funds simply for administering this failed and shambolic universal credit roll-out?

[Kirsty Blackman]

Absolutely. The Highland Council area has been particularly badly hit as one of the first areas in which universal credit was rolled out. It is currently rolling out in Aberdeen, and I am hugely concerned about the impact it will have on my constituents. The roll-out needs to be halted, because the issues that happened in the highlands and elsewhere have not been fixed, and they need to be fixed before any further roll-out can occur.

The benefits freeze should have been lifted, the sanctions regime should be scrapped, support for lone parents under the age of 25 must be reintroduced and the WASPI issue must be sorted, with those women being given the money they are owed. I am pleased that the Government have made a commitment to the pensions dashboard, but they now need to legislate to compel companies to comply so that people can access information about the pensions they are owed, and so that they can then get those pensions. That is important, and lots of people have been calling for it.

Workers’ rights are another reserved issue, and the Chancellor should have committed to increasing the minimum wage to the living wage—an amount people can actually live on—by the end of this Parliament. The Office for National Statistics said this week:

“Among the countries of the UK, long-term pay growth has been highest in Scotland… Median pay for full-time workers was 87% higher in Scotland than it was in 1997.”

The Scottish Government are doing all they can, particularly for staff employed in public sector roles, but we need the powers to do more. In Scotland, our Government have focused on uplifting the pay packets of the lowest paid, which is a progressive choice that makes the most positive difference. The UK Government have not chosen to do that.

We have fought long and hard for a single, real living wage rate. The UK Government need to recognise that it does not cost a 24-year-old less to live than it costs a 25-year-old. If the Chancellor will not make the required commitment to a real living wage for all, he should devolve it so that we can.

Statutory paternity leave should be doubled from two to four weeks, giving fathers even more opportunity to bond with their babies. A complete review of parental leave should be undertaken, including consideration of the start date of maternity leave, especially when a baby is born prematurely.

We propose that the Government set up a labour participation committee to consider groups that are currently under-represented or over-represented in certain sectors, and to examine barriers to work for women, disabled people, parents and other marginalised groups.

The Institute of Directors has called for a pot to be set aside so that small and medium-sized enterprises can bid for advice on how to cope with Brexit. The UK Government’s advice thus far has been wholly inadequate, and we have only five months to go until the UK crashes out of the EU.

Businesses need to be able to access finance in order to grow. To do that, they need to have trust in financial institutions and, crucially, financial institutions need to earn that trust. The Chancellor should have committed to setting up a tribunal service so that those affected by business banking fraud—through the Royal Bank of Scotland’s global restructuring group, Lloyds Bank, Halifax Bank of Scotland or others—can seek affordable redress, rather than having to go through a court process that is too expensive to access.

The UK Government must also ensure that current EU funding will continue until the end of the current multi-annual financial framework. Scotland must not be any worse off in respect of the funding allocations that replace those provided from the EU, and any arrangements must fully respect devolution and must be put in place with the consultation and agreement of the Scottish Parliament.

The Chancellor had an opportunity to make a commitment to the oil and gas sector deal, and he failed to do so. Our industry needs the deal to be signed off now, particularly with the impending lack of access to labour and investment following Brexit. I am pleased that he has heeded calls to make a clear statement on the future fiscal regime, because we cannot have unforeseen, sudden tax hikes like those made by previous Chancellors.

The other part of the jigsaw that is missing is a commitment to reducing the harmful climate change effects of the use of fossil fuels. In 2015, the UK Government cancelled their £1 billion carbon capture and storage competition, just six months before it was due to be awarded, after spending £100 million on it. That left Peterhead—a key candidate for support—behind. After three years of research and development, we have missed out on this vital industry of the future. The UK Government need to make an unequivocal commitment to supporting the development of CCS.

[Drew Hendry]

My hon. Friend makes a powerful point about carbon capture, and about the betrayal of the £1 billion project at Peterhead. Does she agree that, if the UK Government are serious about meeting the climate change targets under the Paris agreement, spending £100 million now, when we are behind the pace after abandoning a three-year £1 billion project, is just not good enough?

[Kirsty Blackman]

Absolutely. The potential benefits of CCS are unquestionable and, as my hon. Friend says, we need to get ahead of the curve again. We need the UK Government to commit to putting the money in now. That is especially important because their pulling the plug means there is now a lack of trust among the companies that are developing CCS. The UK Government need to make a clear and unequivocal commitment.

On evolving technologies, Scotland is a global leader in tidal, and the UK Government must work with the Scottish Government on the contract for difference process to support the technology journey from development to commercialisation, which is particularly important for tidal.

On solar power, we have been contacted by so many individuals who are concerned about what is happening to export tariffs for homes, small businesses and community energy projects from next April. The tariff is a vital support that encourages people to invest in solar power, and it must continue.

Lastly, in order to reduce climate change and to increase the use of healthier methods of transport, this Budget was an opportunity to reduce VAT on bikes. Just as we would like to see VAT removed from digital books, reducing VAT on bikes would make them cheaper for all and would be a real statement of intent from the Government on reducing climate change.