Finance (No. 2) Bill

Debate between Drew Hendry and Alison Thewliss

2nd reading
Wednesday 17th April 2024 Commons Chamber

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

I beg to move an amendment, to leave out from “That” to the end of the Question and add:

“this House declines to give a Second Reading to the Finance (No. 2) Bill because it fails to make a much-needed reduction in VAT for the hospitality and tourism sectors; fails to reintroduce tax-free shopping for international visitors; does not establish a more progressive tax system by introducing a starter rate, in line with the Scottish Government’s approach; fails to introduce measures through the tax system that would help alleviate the cost of living crisis and reduce inequality; and fails to introduce tax relief measures to enable vital high-growth sectors, like the renewable sector, to grow the economy; and because it derives from a Budget which proposed to extend the Energy (Oil and Gas) Profits Levy, threatening the security of jobs in north east Scotland and the UK’s ability to achieve net zero.”

The Bill falls woefully short of the mark. The Scottish National party has tabled a reasoned amendment on Second Reading because, frankly, its provisions do not rise to the immense challenges faced by our constituents. The UK Government seem to operate under the illusion that the Tory Brexit cost of living crisis has come to an end, yet the reality on the ground, in homes across Scotland and the other UK nations, tells a different story. Indeed, a UK poll out today shows that 61% of people think the UK Government are not taking the measures required for the cost of living. The bad news for Labour is that they do not believe it is proposing the right things either.

The Bill, as it stands, is a stark testament to a Government who are—as we have heard, and I agree—out of touch, out of ideas and soon to be out of office. But let us be clear that the proposals in the Bill are insufficient to support households in Scotland, who continue to bear the brunt of disastrous decisions made in Westminster. The spring Budget brought devastating cuts to Scottish capital funding, yet there remains a pervasive silence among the Westminster parties about the true scale of cuts planned over the next Parliament to meet the arbitrary fiscal rules that they are both slavishly following. I note that the Labour Front Bench said “hee-haw” about public services funding over the coming years, despite the £20 billion hole that we know will lead to further misery in public services. There are elements in the Bill, such as the marginal increase in child benefit and the limited support for the film sector, which we can view as steps in the right direction, but they are but drops in the ocean compared with the vast needs of our communities.

For a UK Government who claim economic competence, it is astounding how little they understand about nurturing true economic growth, or enhancing productivity. Austerity has failed. It cannot be made to work, yet those in the Labour party continue to pretend that somehow it can. We agree with the Labour party that for every £5 coming out of the Budget for people, they are paying £10 back in, so the question that Labour Members must answer is: why are they not voting against Second Reading tonight? Why are they going to, once again, sit on their hands and allow the Bill to go through? As I have said, not a word on public services. The reality is a continuing decline in disposable incomes, a shameful record on inequality—the highest in any major European country—and a GDP per capita on its longest downward trajectory since records began. Moreover, the Chancellor’s measures are predicted to have a minimal impact on economic turnaround this year and it is highly probable that the Government will have overseen the worst Parliament for income growth in recent history.

Scotland has the highest wages in the UK, according to medium gross weekly incomes, thanks to the work of the SNP Government on promoting fairer wages and leading by example. However, the powers to avoid the scale of falling real incomes resides here in Westminster. That fall is unprecedented over the past six decades. Hundreds of thousands of people in Scotland and across the nations of the UK are locked in a vicious cycle of debt, with over 300,000 having missed a debt payment in the past year alone.

According to a report published recently by the Financial Conduct Authority, 7.4 million people across the UK are

“heavily burdened by their domestic bills and credit commitments.”

In January this year, nearly 6 million UK adults reported having no disposable income at all. The ongoing cost of living crisis continues to degrade living standards, with families struggling under the weight of high food prices, exorbitant mortgage rates and escalating energy costs that are pushing more and more households into debt. Food prices are about to spike yet again, and we can put that squarely down to Brexit—the love child of the Tory right, now adopted by the Labour party and the Liberal Democrats. A report from Allianz Trade suggests that controls to be introduced in May will increase import costs by 10% in the first year, imposing £2 billion of extra costs on UK businesses and exacerbating the cost of living crisis.

Food prices have already risen by more than a quarter since a couple of years ago owing to existing Brexit changes. This is a turbo-boost on top of what people have been facing. Where is the help for people as food bank queues grow longer and the ability to donate to those food banks dwindles? It is non-existent. Whatever the cost to households, whoever starves, “make Brexit work” seems to be the consensus of the Westminster parties, and especially this Tory Government. Even if we put aside our squandered EU membership, the fact is that they will not implement the basic food protections that other Governments have used and we have called for. This is Westminster negligence, and a failure to observe the basic values of fairness.

Particularly pressing is the escalating crisis of fuel poverty that grips many of our communities. How can it be right, in the 21st century, that there exists an energy poll tax of standing charges? In the highlands and islands, the electricity standing charge for households— the charge that has to be paid every single day, cold or warm—is 50% higher than it is in London. How can that be fair? Why have the UK Government sanctioned this blatant inequality? Should the Bill not be doing something to fix it?

This Bill could have provided for the scrapping of standing charges. The Government should be acting with urgency to start providing meaningful rebates for the people who live in the areas with the greatest degree of fuel poverty, including extreme fuel poverty—again, by the way, the highlands and islands. The irony is not lost on people living in an area that exports more than six times the amount of the electricity that it uses, and seeing massive tax returns going to the Chancellor’s Treasury while they suffer this injustice. At a bare minimum, the Bill could have ushered in legislation for a long overdue energy social tariff. Citizens Advice has reported a 14-fold increase in the number of clients seeking advice related to fuel poverty since 2019. The average fuel debt that clients present to Citizens Advice Scotland is now more than £2,300. That is not merely a statistic; it is a damning indictment of the current Government’s policies.

[Alison Thewliss (Glasgow Central) (SNP)]

My hon. Friend is making some excellent points about fuel poverty. When I conducted a survey of Dalmarnock residents about its impact, I found that it had a hugely detrimental effect on their health and wellbeing. They could not even invite family members round because their houses were cold and they could not afford to switch the kettle on to give them a cup of tea. Pensioners were going to bed together early because they could not afford to keep the heating on. Does my hon. Friend think the Government understand the dire consequences of fuel poverty for people who are living in it?

[Drew Hendry]

That is a very good point. I do not think that the Government understand what happens to people. I do not think they are paying attention to medical advice, such as an article in The Lancet drawing attention to the health deprivations that result from living in fuel poverty or extreme fuel poverty. They do not understand the effect on children’s learning and wellbeing over this period, or, ironically, the higher costs to public services as a consequence of fuel poverty: for instance, people have to rely on the NHS more because of associated health conditions. The Bill is doing nothing substantial to alleviate such dire circumstances.

Before I move on to other issues, I have to ask why the Bill has no updated actions to stop companies taking advantage of the cost of living crisis. For example, the Government are aware, as is the Financial Conduct Authority, that car insurance in the UK is now 34% higher, and that younger and older drivers have seen bigger premium increases than others. The claims rate is under 18%, premiums have increased by 34%, and average premiums for some age groups have jumped by over 50%.

Surprise, surprise: drivers in Scotland are among those who have seen their premiums rise the most. This time, however, it is something they share with Londoners. The Government cannot put that down to the fact that there are different market forces and so on, because insurance premiums have risen by only 2% in France, 5% in Spain and 6% in Italy, so what is going on? The Bill contains no action on end-of-contract scams by mobile and broadband operators either. The Government are allowing a punishing cost of living free-for-all to continue while they are distracted with feeding their culture wars and giving peerages to their pals and donors.

While the UK Government remain idle, pretending that the cost of living crisis has ended, the Scottish Government have taken proactive steps to tackle inequality and reduce child poverty. They have implemented game-changing policies such as the Scottish child payment, which has lifted 100,000 children out of fuel poverty, yet it is an uphill swim to protect families while Westminster makes the big and wrong decisions. Austerity continues to hinder necessary investments that are essential for Scotland’s burgeoning industries. Brexit has disastrously impacted on our economic activity, international standing and business confidence. Investment in the UK remains the lowest among the G7 countries.

It is common for the Tories, and indeed the Labour party, to say that there is no magic money tree when it comes to public finances, which is why they must always cut, cut, cut to follow their so-called fiscal rules. But here is the rub: the closest thing we had to a magic money tree was our EU membership, which could still be adding to our reserves. According to research by Bloomberg, Goldman Sachs, Cambridge Econometrics and others, around 5% of our annual GDP has been lost because of Brexit. If we had that back, it would generate well over £100 billion per year, generating a potential tax take for the Treasury of over £40 billion per annum. We could plug the holes—we do not have to be going through this—but that is not the path that has been decided for us. The Government have hacked the tree down to mulch, and all that they and Labour can do now is promise more cuts.

The Bill fails business and industry, too. The SNP has long advocated a £28 billion annual investment and a robust green industrial strategy to harness the full potential of the green transition. Labour used to agree—indeed, its advisers are annoyed that the party is not going forward with it—but it has reversed on that policy, as was confirmed earlier. Such an approach is essential if we want to meet our climate change targets. Indeed, as we stand at the moment—with Scotland as part of the UK—it is one of the few industries that the UK could take forward with gusto.

Despite the obvious needs, what have the UK Government done? They have only recently decided to boost funding in allocation round 6 for offshore wind projects—an effort still inefficient to meet the necessary targets. Following the failure of the fifth round of contract for difference allocations to secure any new products, it is unacceptable that the Government have failed to rectify the shortfall in deployed capacity, leaving us well behind our 21 GW target for the upcoming rounds.

This Bill is a testament to the UK Government’s ongoing failure to adequately invest in the renewables sector, thereby endangering our net zero targets, jeopardising energy security and stunting the long-term growth of Scottish communities. It is time for a drastic change, and we need a Government who will be aligned with the needs of the Scottish people in the future—an independent Scottish Government.

Where in the Bill is the action to help our tourism and hospitality industries? Selective cuts to VAT would have been a mechanism that could have been deployed to help those sectors, and it could and should have been used to help struggling high streets and town centres. Where is the VAT-free shopping that business organisations were crying out for?

Economic Crime and Corporate Transparency Bill

Debate between Drew Hendry and Alison Thewliss

Report stage
Wednesday 25th January 2023 Commons Chamber

[Alison Thewliss (Glasgow Central) (SNP)]

It is a pleasure to follow the expertise of the right hon. and learned Member for South Swindon (Sir Robert Buckland), who outlined in great detail the significance and importance of the new clauses. Yet again, the House has the opportunity to get it right, and to get it right now, today, rather than at some point or when parliamentary time allows or after consultation or in due course. Why not do it today?

I have heard no arguments from Ministers in Committee, on Second Reading or here this afternoon to excuse why it cannot be done today, now, with the new clauses that have been so diligently and expertly proposed by right hon. and hon. Members. As I said yesterday, these are cross-party new clauses. They are the most widely supported new clauses I have seen, and there is no reason why the Government cannot accept not only the proposals from this side of the House but the diligent work of their own Back Benchers on the new clauses. It makes absolute sense.

I support the Government amendments before us, both the correcting ones and those that allow Scottish Ministers and their responsibilities to be added to the Bill. It is good that they have been brought forward now, although I am slightly wary that that happened at such a late stage and that the problem had been missed. Regardless, I am happy to see them today. I also support the amendments on information sharing between agencies, which make sense.

I am, however, concerned that the Government will not accept the “failure to prevent” amendment. As I said in Committee, when the hon. Member for Thirsk and Malton (Kevin Hollinrake) was a Back Bencher he was very supportive of the “failure to prevent” provisions, right up until 13 October 2022, when he said:

“Of all the measures we have talked about today, this would have the biggest effect in terms of cutting down on economic crime, because lots of our financial organisations are complicit when it suits their interests to be so.”—[Official Report, 13 October 2022; Vol. 720, c. 310.]

There is nothing in the Bill that would change that situation, but the new clause would. As I pointed out in Committee, now he is not just the hon. Member for Thirsk and Malton but the Under-Secretary of State for Business, Energy and Industrial Strategy. He has argued for a “failure to prevent” economic crime offence not just on 13 October last year, but on 7 July 2022, on 1, 22 and 28 February 2022, on 2 December 2021, on 9 November 2021, on 22 September 2021, on 18 May 2021, on 9 November 2020, on 25 February 2020, on 19 July 2019, on 23 April 2019, on 18 December 2018 and on 9 October 2018. Given that the hon. Gentleman has spent his parliamentary career arguing for this, it beggars belief that now he is a Minister with the power to implement it, he is not actually doing so.

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

These are very important points. Given their importance, should the Minister not put down his phone and listen to what my hon. Friend is saying?

[Alison Thewliss]

One Minister is on his phone and the other—the hon. Member for Thirsk and Malton—is sitting at the back of the Chamber having a gab. This is not ideal, but perhaps the Minister has already heard what I have to say and does not want to hear it again.

“O, wad some Power the giftie gie us

To see oursels as others see us!”

United Kingdom Internal Market Bill

Debate between Drew Hendry and Alison Thewliss

Wednesday 16th September 2020 Commons Chamber

[Alison Thewliss]

I am very interested that the hon. Gentleman raises growth deals, because every single growth deal in Scotland has been short-changed by the UK Government. The Scottish Government have put in more than the UK Government to those growth deals and we are still waiting for the money for some of those growth deals to be realised.

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

Does my hon. Friend agree that it is a disgrace that hon. Members are raising that point when in Inverness, the UK Government spent £83 million less than the Scottish Government? When will the UK Government make up that shortfall?

[Alison Thewliss]

This UK Government appear to have no intention of making up the shortfalls on any of those growth deals. The growth deal in Aberdeen was huge and ambitious in setting out to change and challenge the economy in Aberdeen, the end of oil and moving towards that just transition—

--- Later in debate ---

[Drew Hendry]

My hon. Friend is making an extremely important point about Erasmus. In the highlands, we have benefited from the University of the Highlands and Islands, which has only been able to grow and develop over the years and to provide quality education across the highlands because of Erasmus. This is being whipped away from us.

[Alison Thewliss]

My hon. Friend is absolutely correct to point this out. Erasmus is a fantastic programme, and it opens the eyes of young people who would not otherwise be able to participate. It is very cruel for the UK Government not yet to have given any certainty to that programme. I know that there are people who work in international education in Glasgow who are still waiting for answers from this Government about whether their programme will be able to go ahead and whether they will have a job in the future.

Paragraph (f) states:

“supporting educational and training activities and exchanges within the United Kingdom.”

This is a clear area where the UK Government are stepping into devolved areas, because Scottish education is protected not only by the Scotland Act 1998, but by the Act of Union itself, along with the judiciary and the Church. The UK Government must be clear what exactly they intend by this particular provision.

I was quite taken aback by the statement on Monday by the Chancellor of the Duchy of Lancaster stating that there is no risk to water or the NHS. I believe he may be referring to clause 17 on mutual recognition and clauses 18 and 19 on non-discrimination, and to the related schedules, but the difficulty is that these clauses are not set in stone and can be changed further down the line. Subsection (2) tells a further story, because the definition of “infrastructure”—what that autocratic Minister of the Crown can directly fund on a whim—includes

“water, electricity, gas, telecommunications, sewerage or other services (for example, the provision of heat)…railway facilities (including rolling stock), roads or other transport facilities…health, educational, cultural or sports facilities…court or prison facilities, and…housing”.

In areas that are devolved, no UK Government Minister of the Crown has any business acquiring, designing, constructing, converting, improving, operating or repairing our infrastructure. Under this measure, the UK Government could propose to build in Scotland a court or a prison where they have no oversight of the justice system, a school where they have no remit over education, a road where they have no remit over transport, and, yes, a water treatment works where we already have the most successful, publicly owned water company in these islands.

United Kingdom Internal Market Bill

Debate between Drew Hendry and Alison Thewliss

Tuesday 15th September 2020 Commons Chamber

[Drew Hendry]

I will make some progress.

The UK Government say that they want to

“guarantee the continued right of all UK companies to trade unhindered in every part of the UK.”

Under this proposal, businesses simply have to have deep enough pockets to challenge the democratic decisions of the Scottish Parliament and the Members elected by the people of Scotland to represent and make decisions further for them. For some, it will be “Sale of the Century” or “Bargain Hunt” as they go looking for these things. For those who set their sights on Scottish domestic choices, it does not stretch the imagination much to picture private health companies or private water companies operating in England looking at our publicly owned organisations and seeking to claim that, under the UK Government’s auspices, they have a guaranteed right to trade in Scotland. That is the first big flashing red light here.

[Alison Thewliss (Glasgow Central) (SNP)]

I agree with the points that my hon. Friend is making. Is he as concerned as I am to find that when the CMA arbitrates on a dispute, it does not have to publish the report of its finding, on the basis that such a report contains

“commercial information whose disclosure the CMA thinks might significantly harm the legitimate business interests”

of any person? That means that the CMA could well cover up the report of any dispute in favour of private business.

[Drew Hendry]

Exactly; my hon. Friend makes a telling point. To say that the protections are opaque would be an exaggeration, because they are nowhere near as good as that.

Economy and Jobs

Debate between Drew Hendry and Alison Thewliss

Monday 20th January 2020 Commons Chamber

[Alison Thewliss (Glasgow Central) (SNP)]

I rise to support amendment (b) in my name and the names of my hon. Friends, and I will start where the Chancellor left off—with claims of having a mandate. Well, he certainly does not have a mandate in Scotland, where his manifesto was rejected wholeheartedly and where the Tories lost more than half their MPs; he has absolutely no mandate to preach to Scotland on his austerity plans. In the last few weeks, we have had a new year, a new Prime Minister and a new UK Government. Under any normal circumstances we would be looking at some kind of fresh start, but for the people of Scotland it is the same old situation: a UK Government who they did not vote for, dragging us out of the UK against our will and sidelining the Scottish Government at every turn.

The Scottish Finance Secretary, Derek Mackay, wrote to the Chancellor looking for clarity on the Budget process on 22 December, but I raised this at Treasury questions on the first day back. I am not sure that the Chancellor even knew what I was asking about, never mind coming up with any kind of response. The Scottish Finance Secretary should not be finding out the date of the UK Budget in the media along with everybody else. It reeks of disrespect, and I think the Chancellor has yet to apologise. This comes after a November Budget that was cancelled so that the Chancellor could avoid any OBR scrutiny in the run-up to the general election.

The Scottish Government and local government in Scotland now face the prospect of writing a budget blindfold, and the stakes could not be higher. I urge the Chancellor and his team to do all they can to make amends for this and to work co-operatively to ensure that the Scottish Government can make the best of this situation. If the non-domestic rates order or the income tax resolution were not passed on time, Scotland could face having to take millions of pounds out of public services. It would be catastrophic, and the blame would lie squarely at the door of this UK Government and this Chancellor. Even if everything does go as smoothly as it can through this process, Scottish councils are being left in the unprecedented position of providing the vital services that the public rely on, without having certainty about their budgets. Should the council tax need to go up, for example, the very practicalities of issuing the necessary direct debit notifications will add time and difficulty to the process for councils across Scotland.

On funding, we welcome the Green Book review that the Chancellor is proposing, but we seek clarity on exactly what this will mean for Barnett consequentials, because in Scotland we still have not seen the £3 billion we are due as the share of the DUP’s bung from the previous Government. We still have not seen the £140 million that we were due from police and fire VAT. We need to know exactly what is going to happen with this Green Book process and how the Scottish Government will be involved in it.

The Chancellor has followed the Prime Minister’s lead in showing a total disregard for the people of Scotland. We voted against this hard Tory Brexit at every available opportunity, and again we are being sidelined. The Chancellor was keen to talk about the immigration Bill and how much that will matter, but in fact immigration is something that we need, and value, very much in Scotland. I have people at my surgery, week in, week out, complaining about this Government’s hostile environment, and all I see the Government doing is making it harder for everyone. They are not making it any better for anybody; they are making it even harder with a further hostile environment being rolled out to EU nationals.

Not only are this UK Government charging ahead with a withdrawal deal worse than the one that the previous Government and the previous Prime Minister came up with, but, as we saw in his interview with the Financial Times, the Chancellor is engaging in a race to the bottom when it comes to regulatory standards. He skated over the issue of equivalency, but we need to have a lot more detail on what he actually means by this. His predecessor knew well how important alignment was, and this Chancellor needs to explain why he has decided unilaterally to rip this up. Businesses are concerned that they are going to face tariffs, price rises and the loss of competitive advantage—particularly for Scotland losing out to Ireland. The Government are doing nothing to assuage these fears. This is particularly significant for services, which make up 81% of the UK’s total economic output.

The Chancellor needs to confirm what his statement means for equivalency in financial services. What is outcome-based equivalency and what exactly does he mean by it? Without equivalency, the UK faces losing access to European markets. For those working in services, the Chancellor must confirm that he still intends to guarantee mutual recognition of professional qualifications, without which they cannot work and move across Europe.

This withdrawal deal threatens economic growth across all the nations of the UK. For years after this Brexit, businesses will find it more attractive to take their investment moneys to other countries—to Germany, to the Netherlands, to Denmark and to Sweden. This is not my opinion; it is the opinion of David Blanchflower, the former member of the Monetary Policy Committee at the Bank of England. It is not just those nations that will benefit; we are seeing investment in Ireland booming. That is particularly clear to those of us watching in Scotland. Ireland has gained more than 4,500 jobs from international firms as a result of Brexit-related investment. IDA Ireland, the country’s foreign investment body, said that its annual results had gone up. Moreover, according to the European Commission, Ireland’s economy grew by 5.6% in 2019—the highest in the EU—while the UK’s growth dropped to its lowest since 2012. That is no coincidence.

The value of being in the EU in a partnership of equals is not lost on my constituents and those across Scotland. I am sure that it will be more pronounced as we see the increasing negative effects of Brexit—because, after all, we have not left yet. The Centre for European Reform says that Brexit has already cost £70 billion, or £440 million a week—something the Chancellor has yet to put on the side of a bus. More and more people in my constituency and elsewhere are realising that this place cannot be trusted with safeguarding Scotland’s interests. The little growth we have seen has been attributed to businesses stockpiling in case of no deal, while investment has stalled since the EU referendum and does not show any signs of recovering soon. Companies cannot be expected to sit on investment for three years; they will move it elsewhere if they can. All the investment lost since 2016 will have an impact on wage growth and job creation for years to come, even if, by some miracle, we can avoid the harshest of hard Brexits. We are already seeing effects creeping into the labour market. The Fraser of Allander Institute estimates that a hard Brexit such as the one that we might face at the end of the month could cost Scotland 100,000 jobs.

Of course, the Prime Minister and his cronies will say that this is all tosh and they are going to get Brexit done—abracadabra and off we go! I am afraid that the Chancellor knows just as well as I do that our relationship with Europe cannot be formed using a three-word magic incantation, no matter how many times it is said. There will be no getting Brexit done this month. There are still years of negotiations ahead. I cannot reassure businesses in my constituency what our relationship with Europe will look like, and I do not think the Chancellor can either.

Turning to other measures in the Queen’s Speech, the Chancellor knows that I have long criticised his pretendy living wage, which fails to meet the aspirations of young people in particular. The gap for young people who will not fall into his pretendy living wage is growing. I do not know—and he cannot explain—why a 16-year-old starting the same job on the same day as a 25-year-old is worth £4.17 an hour less. Why is that? He is extending it to 21-year-olds; can he not see the injustice in not extending it to everybody? He must make it a real living wage. The Living Wage Foundation currently sets the living wage at £9.30 an hour. The Scottish Parliament Information Centre suggests that by 2024, it will stand at £10.90—far short of what the Chancellor is suggesting. He cannot justify that age discrimination in the minimum wage, and no Chancellor has been able to justify it yet. The fact remains that women are more likely to be in part-time, low-wage work, so there is a disproportionate effect on women, who often have families to support. They deserve and are entitled to better than the Chancellor is offering.

I turn to the financial services legislation. Can the Chancellor provide a bit more clarity on the progress of the fifth anti-money laundering directive, which we have to implement, regardless of our leaving the EU at the end of the month? We in the SNP want to see reform of Companies House to uncover the beneficial ownership of Scottish limited partnerships, which were in the papers at the weekend, and other companies and trusts. We want to increase transparency, and we want to ensure that UK company information rules no longer allow illicit businesses to funnel millions of pounds of dirty money from all around the world, using British companies, and specifically SLPs. I wonder, is it any coincidence that in the first four weeks of the election campaign, the Conservatives accepted £567,000 from four companies with links to offshore tax havens in Luxembourg, Guernsey and the British Virgin Islands? I sat on the Joint Committee on the Draft Registration of Overseas Entities Bill. When will we see some progress on that Bill? It has been sitting there for some time, and we have not seen much movement.

It would be neglectful of me not to challenge the Government on their austerity agenda—on issues such as the welfare cuts, the two-child limit, the rape clause and universal credit, which is causing so much pain to so many people across the country.

[Drew Hendry]

My hon. Friend is making a powerful speech. Does she share my dismay that, more than six months after the UK Government said that they would hold a review, Marie Curie and the Motor Neurone Disease Association reckon that over 2,000 people have died before accessing the benefits they should have had through being classed as terminally ill? Is it not time that that scandal was addressed? The Government could take a simple measure to sort that out for these people and their families.

[Alison Thewliss]

I welcome my hon. Friend’s intervention and the work he has done on this issue. The Government have had their eye off the ball on universal credit and so many other welfare measures on which the courts have found against them. We are still waiting to know what they will do to remedy the situation for so many of our constituents who are waiting for their money back from the Government.

Another group of people who are waiting for their money back are the WASPI women. The Government have no plan for the WASPI women, who are entitled to their pension and should not have lost out as a result of successive Governments’ actions. The Chancellor is not even listening to this point, which is a disgrace. There are thousands of women up and down this country who deserve their money back, and this Government need to find a way of addressing that injustice, because these women cannot wait much longer.

This Government need to be a lot more ambitious in tackling climate change, investing in green infrastructure and making real changes that will last for generations to come. They need to look at the way the energy system is set up, so that those who are producing energy in rural parts of Scotland are not penalised because of geography. With the transition away from oil and gas coming up—I understand my hon. Friends will be speaking about that later—we need to be making sure that that is a fair and just transition, meaning that communities will not be left behind, as they have been in the past.

I am pleased to welcome COP26 to my constituency of Glasgow Central next year, but what has to come with that is investment from the UK Government to make sure that that event works as well as it should do: as a beacon to show what can be done and to highlight the very real achievements of the Scottish Government, who have made great strides in tackling climate change. In fact, a lot of the UK Government’s targets are actually being boosted by the actions of the UK Government, and that should absolutely be recognised.

With all of these things in the Queen’s Speech, opinion in Scotland is shifting. People are seeing the difference between what is happening at Westminster and the potential of Scotland as an independent European country—a country where the welfare state could be restored from the tattered, damaged safety net that Tory Governments have left it to a system with a safety net that is full of dignity and has respect for everybody at its core; a country where the Government have all the levers to build an inclusive economy, built on participation and making sure that everybody feels as though they have a part in the economy; a country more equal for women, disabled people and ethnic minorities, where they can play a full part and not feel as though they are being penalised and left behind; and a country where we do not have to rely on mitigating broken Westminster promises. I am determined, as are all my colleagues, that Scotland should have the choice and a right to choose its own future, and to choose it before much more damage is done by this Tory Government.

Universal Credit and Child Tax Credit: Two-child Limit

Debate between Drew Hendry and Alison Thewliss

Tuesday 27th November 2018 Westminster Hall

[Alison Thewliss (Glasgow Central) (SNP)]

I beg to move,

That this House has considered the two child limit in universal credit and child tax credits.

It is a pleasure to serve under your chairmanship, Mr Streeter. It is surreal still to be here debating the two-child limit in universal credit and child tax credit. When I saw the limit and the cruel and pernicious rape clause that stands part of the policy laid out in the Chancellor’s Budget in 2015, I was sure that I had made a mistake. After all, no humane Government would propose such a blunt instrument as limiting support to the first two children in a family, or making a woman prove that she has been raped just to put food on the table.

Unfortunately, I was wrong. It is three years, four months and 20 days after that Budget, and the UN special rapporteur on extreme poverty and human rights has found that the UK Tory Government is exactly such an inhumane Government. Despite warnings from all manner of groups, cross-party support and U-turns on other policies over the years, the two-child policy is apparently the one that the UK Tory Government will stick to through thick and thin.

The policy stands in judgment on people’s lives and suggests that those who are less well off

“cannot have as many children as they like”—[Scottish Parliament Official Report, 24 October 2018; c. 52.]

as Tory social security spokesperson Michelle Ballantyne MSP said. The policy is damaging in the extreme, and I will outline to the Minister exactly why. I would also like to give him the opportunity to think again before the policy hits its next phase in February.

From February, all new claims will be subject to the two-child policy, regardless of when children were born. That means that, although someone might have planned their family in good times, when they could well afford to support three children, the UK Tory Government do not care—they will support only two. Life is unpredictable: it only takes somebody to get ill or die, a partner to leave, or someone to lose their job for life to turn upside-down. We note the plight of the Michelin workers in Dundee, who were not expecting to lose their jobs. None of us would be prepared for such eventualities.

Contraception can also fail. I note research from the Advisory Group on Contraception, which has produced stark figures on cuts to sexual and reproductive health services in England, so help is being lost to many on the ground. I challenge any hon. Member present to plan out exactly and specifically the financial situation for them and each of their children up to the age of 18. It is impossible.

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

My hon. Friend has been a tireless champion of tackling this issue. Does she agree that cutting child tax credits is tantamount to directly targeting children with austerity?

Budget Resolutions

Debate between Drew Hendry and Alison Thewliss

Wednesday 31st October 2018 Commons Chamber

[Drew Hendry]

I am grateful to my hon. Friend for making that point. He points out exactly where the powers lie to make a real difference for people.

[Alison Thewliss (Glasgow Central) (SNP)]

rose—

[Drew Hendry]

I will give way one last time.

[Alison Thewliss]

Is my hon. Friend as curious as I am about the political influence on this Budget? Belfast has received £2 million from this Government for a fire fund, whereas Sauchiehall Street, which has suffered two recent fires, has not had a single penny from this Chancellor.

[Drew Hendry]

My hon. Friend makes the point succinctly about the way Scotland is treated on these matters and I thank her for that intervention.

This Government’s negligent actions have already drained our economy of much-needed, vital investment. The Chancellor failed to take the steps to support the economy and businesses. The Fraser of Allander Institute estimates that a hard Brexit could cost 80,000 jobs in Scotland between 2020 and 2030. Mark Carney told MPs in this building that Brexit has already cost households—families—up to £900 each. Again, there was no mention of that in the Budget. And we know why. The UK Government’s own figures have shown that there simply is no good Brexit, with a substantial hit to the economy, as a best-case scenario, running to a whopping 8% reduction in GDP. In context, that is a cost of £2,300 per person, per year by 2030. Even if the UK signs a free trade deal with the EU, Scotland’s GDP will be hit to the tune of £1,610 per person every year until 2030.

There was also a failure to support the oil and gas sector in the Budget. The UK Government have now taken more than £350 billion-worth of North sea revenues, and that is excluding, by the way, the supply chain, corporation, employment or business taxes, and we are supposed to cheer when the UK Government do nothing in their Budget for that industry, other than to float the idea of a tax increase and then say they are not imposing it, along with some vague verbal support for decommissioning. Where is the funding from the Secretary of State? Why has he not been arguing for the sector deal for oil and gas?

The Office for Budget Responsibility is stating that the outlook for oil and gas is showing a rise from £1.2 billion to £2.2 billion per year on average. Production statistics are up on 2014-15 levels by more than 23% and oil and gas sales values are up by nearly 20%. New fields such as Capercaillie, Achmelvich and Nexen’s phase two in the Buzzard Field underline the remaining potential. A study at Aberdeen University suggests an extra 4 billion barrels of oil from offshore, on top of 2017 estimates, yet the sector is still ignored. [Interruption.] Some Conservative Members are chuntering that the Greens will not like that. Let me tell them that, unlike the Chancellor’s passing mention or the green UK statement that came out, I intend to mention climate change in my speech. That neatly leads me on to say that the Government, having ignored the oil and gas sector, a sector vital for the coming decades—[Interruption.] I am going to make some progress. The sector is vital in the coming decades while we transfer to low and zero carbon. It is an utter disgrace. A sector deal must be brought forward now. It should include national hubs for underwater innovation, transformational technology and decommissioning.

Where was the UK Government’s manifesto pledge that committed them to working collaboratively with the Scottish Government for an ultra-deep water port for decommissioning? Oil and gas has always been a poorly discharged duty by successive Westminster Governments, complete with ministerial pinball and 20 energy Ministers in 20 years. This Government, however, are also falling asleep over their duties to climate change—

Police Funding

Debate between Drew Hendry and Alison Thewliss

Wednesday 28th March 2018 Commons Chamber

[Drew Hendry]

That is an excellent suggestion for the communities the hon. Gentleman represents.

As I have said, it is because of the value of local policing that the public continue to have confidence in our police forces in Scotland. However, sustaining healthy police numbers is not an end goal in itself, as we want more police on the beat to create safer communities. It is no coincidence that, as has been mentioned, recorded crime in Scotland has fallen by about 40% in the past decade. It is important to stress that that is down to the hard work of police officers across Scotland in doing their job. Although I am not for one minute saying that everything is perfect in Scotland, the UK Government could follow in the footsteps of the Scottish Government and work with our police forces, instead of against them.

[Alison Thewliss (Glasgow Central) (SNP)]

Does my hon. Friend agree that an excellent example of where Scotland has led on policing and reducing violent crime is the work of the violence reduction unit in Glasgow? It has had a huge impact with a reduction in knife crime and violent crime, particularly among young people, in the city.

[Drew Hendry]

That is an excellent example of an initiative that is delivering real results for people and, in this instance, improving safety for people, and lessons from it are being rolled out across Scotland to improve policing.

As we look to future challenges, it is worth noting that Brexit may pose serious problems about how to tackle crime, terrorism and security threats. Membership of the EU has been massively helpful in the fight against crime and terrorism, due to agencies such as Europol. This allows our countries to work together against criminals and crimes that do not respect national borders—hard or soft. We should all be concerned that the Home Affairs Committee has concluded that it will be incredibly difficult to replicate similar arrangements after Brexit. The UK Government and the Brexiteers have got us into a mess, and they must find a way to ensure that we are able to combat international terrorism and organised crime after Brexit.

European Union Citizenship

Debate between Drew Hendry and Alison Thewliss

Wednesday 7th March 2018 Commons Chamber

[Drew Hendry]

Absolutely. On the principle of extending European citizenship, this is deeper than just a set of rights. This is an historic tie, which we should cherish. That identity is very important to Scotland. We have always been a European nation and we continue to be a European nation.

[Alison Thewliss (Glasgow Central) (SNP)]

My hon. Friend is laying out the connections and ties we have been lucky enough to make across Europe. In 2005, I did an internship at the Committee of the Regions not long after the new accession states joined the EU. It was with great joy that I made new friends from Poland, Slovakia, Hungary and all the other new countries coming into the EU, who valued that citizenship and the links and ties they could make. Does he share my deep regret that we are no longer going to be a part of that shared project?

Budget Resolutions

Debate between Drew Hendry and Alison Thewliss

Wednesday 8th March 2017 Commons Chamber

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

My hon. Friend the Member for Paisley and Renfrewshire North (Gavin Newlands) covered many key issues, and my hon. Friend the Member for Dundee East (Stewart Hosie) gave a forensic critique of the statement’s flaws earlier, so I intend to confine my remarks to what was said, or rather what was not said, about universal credit in the Budget.

The Chancellor opened by saying that he wanted to produce something that was for “women in work” and for people “feeling the squeeze”, and “an economy that works for everyone.” Well, those words ring particularly hollow for people in my constituency who are at the sharp end of the universal credit full service roll-out. My constituency has been one of the first to deal with the roll-out.

People are going months without money, and there is little help in the Budget for them. There is nothing on investment to sort out the system boorach. Highland Council reports that the average housing arrears accrued to date by someone on universal credit is now around £900 and rising. Imagine, they are forced into debt through no fault of their own, and not many landlords are patient with folk who are three months in arrears because of universal credit. Failure to address that today is symptomatic of a failed austerity agenda, a failure to listen and a failure to comprehend the pain that ideological Tory austerity is inflicting. It is causing stress that is impossible to imagine and is leaving families without money for months.

[Alison Thewliss]

My hon. Friend is highlighting the issues with universal credit in Inverness in his constituency. Only 73 homeless people in total are on universal credit in Glasgow, and they have racked up £144,000 in arrears between them. Does he agree that this is just not working for the most vulnerable people in society?

[Drew Hendry]

I completely agree with my hon. Friend. The Budget could have been an opportunity to stop that manifest injustice, but it is another failure. The shambolic universal credit roll-out is pushing women who are returning to work, low-income families, the disabled, those looking for work and the most vulnerable into desperate situations.

By the start of the Chancellor’s statement today, four people had visited my constituency office in tears over universal credit. The DWP service standard for universal credit applications is supposed to be six weeks, but in reality that is the minimum that most people wait. People usually have to wait for months.

I received an email at 11.15 am today from a constituent, Natalie:

“Dear Drew,

I’m writing with an update to the ongoing case.

I attended the jobcentre appointment on Monday morning to advise that the issue with the Childcare payments had still not been attended to. At that point my journal entries had still not been read. I had also been advised for the 3rd time, by the UC call centre, that a mistake had been made and would be escalated urgently. 9 days had passed since I was told this would be corrected.

At the job centre I met with a gentleman”—

I will call him Mr X.

“I first explained the problem, he could also see…the notes from the UC call centre agents agreeing that a mistake had been made. He then looked further into the system and noticed that my most recent declaration of childcare was not on the system. This caused major confusion as there are notes on the system referring to the most recent one, along with the invoices and receipts being on the system. Also, none of the previous 4 agents I had dealt with had flagged up the…declaration was missing. At this point”

Mr X

“decided to add the declaration himself. A message then comes up on the screen to say that the declaration has not been made within the award period. Which essentially means it will not be paid. At that point…the JobCentre manager looks into it and also agrees that the notes from the agents indicate that they are aware a mistake has been made and it needs to be dealt with.”

He

“raises the issue with the UC…manager. He then phones me to advise that he has to escalate the issue even higher as no one has responded to his request to look into the matter.”

Natalie finishes by saying:

“It’s now the morning of the 8th, still no resolution. This issue was raised on Friday 24 February, the date that payment was due. The date that any errors need to be corrected to enable…payment to be issued within the award period. Since then I have been continually fobbed off. Admittedly I am…fobbed off in the politest of ways with each and every person advising that they are going to help and have this addressed within 24hrs. It’s now been 287hrs since my original phone call and I’m still waiting.

I’m at my wits’ end here. I’ve followed their procedure, none of them are following theirs.”

Do not take my word for it or, indeed, Natalie’s. Citizens Advice says:

“Universal Credit is failing to live up to its promise. Right from the outset people have experienced problems…delays to claims and errors in their payments.”

As I have said, my team and I see that for ourselves every single day, with people facing months of anguish and hell.

The Chancellor could have helped people today, but he has not. He has failed to take any action, other than to tinker with the taper rate, which will not stop the continuing and damning litany of failure, confusion and heartache, or the crushing drive to increase poverty that the universal credit system is creating. It is a shambles. There are long delays to payments, short payments, lost sick notes, misplaced documents and data, and failures to respond, and there is confusion between departments and crushed morale. Please spare a thought for the poor Jobcentre Plus staff at the centre of this. There is an inability to act on common sense.

In Inverness, we held a roundtable with the local welfare support team, the housing department at Highland Council, Citizens Advice and local DWP staff, to try to deal with this mess. The problem is not with local staff; it is with the system. I have invited the Secretary of State for Work and Pensions to come to my constituency to hear these people and see what is happening at first hand, but to date I have had no response. Perhaps the Chancellor would like to come to see what the failure to address the problems with universal credit is actually doing.

The introduction of the universal credit full service is failing. It is adding to poverty for children and families, and it is time to halt it. Today’s Budget will simply accelerate poverty and suffering.

International Women’s Day 2016

Debate between Drew Hendry and Alison Thewliss

Tuesday 8th March 2016 Commons Chamber

[Alison Thewliss (Glasgow Central) (SNP)]

When we miss out women from our legislatures, we make grave errors that seriously affect women and their families: we do not give the attention we should to maternal health and breastfeeding; we do not consider the impact of legislation on women; we leave women destitute without recourse to public funds; we get a Chancellor who believes that women paying the tampon tax for their own domestic abuse services is appropriate; and we see the introduction of welfare reforms such as the household payment in universal credit, the two-child tax credits policy and the rape clause.

In the brief time I have, I would like to concentrate on the two-child policy and the rape clause. It is a vindictive piece of policy that passes judgment and says the Government consider only the first two children worthy of support. To ask a woman to prove that her third child has been born as the result of rape to gain eligibility for child tax credits is utterly abhorrent. It stigmatises that woman and her child and is inconsistent with our obligations to treat children equally under the UN convention on the rights of the child.

There seems to be an assumption by some that rape just happens somehow. It is not acknowledged that it is most likely to happen to women already in coercive, abusive relationships. These women are in a particularly vulnerable place.

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

My hon. Friend will be aware of the additional funding announced by Scotland’s First Minister today to help abused women get back into work. Does she agree that we need more of these initiatives across all Governments to help women in such positions?

[Alison Thewliss]

I absolutely agree with my hon. Friend.

Members will be aware that I have been questioning the rape clause since last July’s Budget, but I have still not had a satisfactory answer to explain why this policy is required and how it will work. Lord Freud suggested on 27 January in the other place that proof that a woman’s third child was born of rape might not come via the criminal justice system, but instead come from a third-party official such as a GP or a social worker. This does not, however, resolve the problem. For many reasons, these women may not be able to tell their GPs about their circumstances, and there may be no social work involvement.

I am not sure how many women will end up claiming under this policy. If a woman is in a relationship and suffering domestic abuse, she might be putting herself at serious risk by making the claim in the first place. A similar issue arises in the household payments system and universal credit—if a woman requests a split payment, her partner will almost certainly know about it. She may well be doubly damned by this Government, because Lord Freud has also refused to allow an exemption to the two-child policy for women escaping abusive, controlling relationships, which is what the Scottish Government are trying to counteract.

There is still a distinct possibility that a woman could tell her story to the Department for Work and Pensions and Her Majesty’s Revenue and Customs and not be believed. Those organisations are not known, after all, for taking people at their word. There is not yet guidance, and the Government will not say who they are consulting.

The two-child policy also fails completely to recognise the complex nature of families in 2016. A couple who have children from previous relationships will, under the two-child policy, lose their child tax credit eligibility when they come together. There is no detail yet on exactly how multiple births will be protected. There is no acknowledgement of the impact on those who, for religious reasons, may traditionally have larger families. That is hardly fitting for a Government who vaunt their “family test”.

I have heard it said that families should have only the children they can afford, but that point of view does not acknowledge the challenges that life presents. A family may have three children and be well able to afford them, but what if one parent loses their job, takes ill or dies? There is no safety net whatever in the two-child policy to cover that eventuality, particularly if the remaining parent is required to work less to care for the family.

The two-child policy is rigid, ineffectual and unnecessary. The rape clause stigmatises vulnerable women and their families. This is a policy made on the hoof for the sake of a Daily Mail headline and a Tory conference press release. It is tantamount to social engineering. My plea on International Women’s Day 2016 is that we reject this kind of policy—the two-child policy and the rape clause—and we support every woman and every child equally.