Economy Update
Debate between Drew Hendry and Steve Barclay(3 years, 5 months ago)
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Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP) [V]
People and businesses, especially in the hospitality sector, still need urgent and ongoing help to navigate the continuing covid emergency. The UK Treasury alone can help in three ways: it could continue the VAT cut for the sector or, even better, remove VAT; it could continue furlough at its current rate; or, as less than a fifth of the promised £350 billion for covid loans has been used, it could convert a chunk of it to grant funding. Will the Treasury do all or any of those three things?
Steve Barclay
The support package announced by my right hon. Friend the Chancellor was designed to anticipate any potential slippage in the covid road map. The hon. Gentleman specifically mentions VAT, which has not been raised so far. The package of support in terms of reducing VAT totals £7 billion so far, with the 5% rate being extended to 30 September. Then there is a further transitional period for six months at 12.5%. Again, the narrative that VAT reductions are coming to an end, and that that is out of step with the covid road map, is not the case: the VAT reduction has already been extended to 30 September and then there is a transitional period at the lower level of 12.5%, in anticipation of the situation we face.
Oral Answers to Questions
Debate between Drew Hendry and Steve Barclay(3 years, 7 months ago)
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Steve Barclay
The Smith commission set out the conditions, and they already give substantial borrowing powers. That is why there is up to £450 million of annual capital borrowing, £700 million in the Scotland reserve and up to £600 million for resource borrowing in relation to forecast error, and of course that comes on top of the share of UK Government borrowing provided through the Barnett formula.
Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)
Public Health Restrictions: Government Economic Support
Debate between Drew Hendry and Steve Barclay(4 years, 1 month ago)
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Steve Barclay
We have to balance the evidence that the Government receive from a range of quarters. My right hon. Friend will recall that when the initial advice from the Scientific Advisory Group for Emergencies was put forward, the Government came forward with a range of measures, such as the rule of six and the curfew. Indeed, if we look at the projections that were made at that time, we see that we could potentially have had 49,000 or so daily cases by 14 October when in actual fact the figure on that date was 12,872. That indicates the fact that the package of measures put in place by the Prime Minister and the Chancellor of the Exchequer have had an influence. However, listening to the SAGE advice, it is recognised that we need to go further and that is why the tiered approach has been set out.
Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)
The Chancellor of the Exchequer is proving exactly what Tory values are with this dogged determination to return to 1980s levels of unemployment. Switching away from the rhetoric of whatever it takes to hard choices exposes the fact that protecting jobs was an empty promise even before the end of furlough. He is risking more than 60,000 jobs in Scotland alone. The Institute for Fiscal Studies is clear. It says:
“Despite the claim by Chancellor Rishi Sunak last week that he would ‘always balance the books’, this will not happen, and he would be most unwise to try.”
Mass unemployment is a terrible policy, so will the Minister urge his boss to change course even at this late stage and extend furlough to save jobs, to use returned moneys to help those who have been excluded and to listen to the SNP demands for an £80 billion stimulus package? Will he listen to the nearly 70% of the Scottish public who want financial powers devolved to Scotland, or are the Government going just simply to plough ahead ignoring Scotland’s needs and further proving that Scotland needs the powers of independence?
Steve Barclay
It is a slightly odd premise to say that the Conservative Government are not supporting the response when we have spent more than £200 billion as part of that response, when we are currently supporting nearly half a million jobs in Scotland, when 8.9 million people across the United Kingdom have benefited from the furlough scheme and more than half of those are back in their jobs, and when more than 65,000 businesses in Scotland have benefited from our loan scheme. However, the hon. Gentleman is right in one aspect of his question. This Government are true to Conservative values and those are the values of the Union. It is through the shared broad shoulders that we are able to put in place the fiscal package of support that has enabled us to protect as many jobs in Scotland and around the UK as we have.