Graham Leadbitter
Main Page: Graham Leadbitter (Scottish National Party - Moray West, Nairn and Strathspey)Department Debates - View all Graham Leadbitter's debates with the Department for Work and Pensions
(1 day, 10 hours ago)
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Torsten Bell
I am going to make a bit of progress, but I will give way soon, because Members have been very patient.
I was coming on to the fact that we are not in the business of delivering regime change from the air, but we do need to de-escalate the conflict and we will play our part in doing that.
Oil and gas prices remain below the peaks they reached in 2022 following the Russian invasion of Ukraine, but I do not want to hide the fact that, as we have just discussed, these are significant increases. Oil is up by 40% and gas prices have risen by around 64% since the end of February. The movement in energy markets we have already seen are likely to put upward pressure on inflation in the coming months—exactly as we have just discussed—but the ultimate size of the effects is highly uncertain. What is certain is that in the face of them, this Government will take the necessary decisions to help protect both household finances and, as I was just saying, public finances. I want to make it clear that, given the very real uncertainty, the policy and approach we are taking does give an assurance to households about how we will act.
Graham Leadbitter (Moray West, Nairn and Strathspey) (SNP)
Without getting into a fight about who has the biggest constituency, Moray West, Nairn and Strathspey is in the top five for geographic size, and my constituents grapple on a daily basis with energy costs across the whole suite of energy measures, whether that is road fuel, heating oil, tank gas, or the electricity prices that they pay. The issue for them is that the combination of all those things is totally disproportionate. The highest prices for road fuel are paid in rural areas such as those in my constituency. The highest price for heating oil is paid there, because there are high distribution costs. The highest price for electricity, because of high standing charges, is paid in my constituency and in constituencies in north Wales and Merseyside, which is the other high standing charge area.
The combination of all that means that my constituents are paying substantially more for their energy than constituents elsewhere in the country. Successive Conservative and Labour Governments have presided over discriminatory—I do not use that word lightly—energy charging for electricity. To have that compounded by the highest fuel charges and the highest oil charges is extremely painful for those households who, like everyone else, are suffering from the cost of living crisis. They also have the coldest temperatures in the UK, and these constituencies are producing the highest amount of energy per capita. The people who are using that energy hundreds of miles away are paying less to use it. The situation is utterly disgraceful and needs to change.
This Government have had nearly two years to make changes to standing charges and electricity prices, but they have not done it. They have not made a decision on it, and decisions are taking far too long to be made. Pace is everything in this. People are suffering every single day, but it is not just the individuals who suffer. Many Members have referred in this debate to the cost to businesses in these areas, generally from high transport costs. For businesses to get around and deliver their goods, to get their goods to market and to get their supply chain to deliver to them frequently involves travelling large mileages. Public services, including our emergency services, are paying vast amounts for fuel.
On Monday, while I was experiencing a very enjoyable walk to work on a bright spring day here in London, my constituents in Aviemore were contending with a temperature that felt like minus 5°, and the Highland council and the trunk road authority had gritters out for a considerable part of the day to keep the roads safe. Those gritters travel hundreds of miles on their routes because that is what they are required to do, which means that local authorities, the NHS boards and other public or emergency services are paying out vast and unpredictable amounts for fuel when budgets have already been set. Capital projects involve built-in risk to cover future price increases that are quite considerable, so they are protected to an extent, but that does not apply when it comes to public authorities’ day-to-day operational costs. The fuel price increases include increases in heating oil prices. Many primary and secondary schools in the Highlands, and Moray and Aberdeenshire and in other parts of Scotland—and, indeed, other rural areas in the rest of the UK—pay for their heating oil, and these increases will have a very detrimental impact on them.
The hon. Member for Gordon and Buchan (Harriet Cross) made many reasonable points about the impact of the energy profits levy and the fiscal regime that governs North sea production, and about the need for us to continue to produce oil and gas for as long as is required, while still making a transition. Let me gently point out to Conservative Members that while I agree with them that the EPL needs to be changed immediately—in fact, it is beyond time for it to be changed—they have drawn away from that transition to renewables because of the pulling away from climate change targets. I know that North sea companies agree with them about the EPL, but they were utterly dismayed about that pulling away from the transition, because the oil and gas majors are the same people who are investing in renewables. We need to get that transition right to avoid the job losses that the hon. Member mentioned.
A number of Members mentioned bus fare caps. Let me, again, gently point out that in my constituency in the north of Scotland, and across the highlands and islands, a pilot is being run for a £2 cap enabling people to travel, in some cases, for hundreds of miles for £2. That is progressive, because people in, for example, Inverness in the highlands who need access to services have to travel hundreds of miles to get it. The cap is about treating people with fairness, recognising that they are at the heart of our energy production and are still paying more for their energy, and giving them some services back for that. Peak rail fares have also been withdrawn.
Unfortunately, the hon. Member for Cowdenbeath and Kirkcaldy (Melanie Ward), who mentioned heating oil support in Scotland, has left the Chamber, but I can tell the House that the Scottish Government have more than doubled the heating oil funding provided by the UK Government—although is still nowhere near enough, because the UK Government should be taking far more responsibility and putting in far more money. People will be able to apply for that support from 1 April, and it will be delivered through Advice Direct Scotland. there is a plan in place, and it is moving forward.
Red diesel used to be available to local authorities for gritting roads. Reinstating it would make a huge difference to the local authorities in the north of Scotland who have to spread grit for considerably longer than those in many other parts of the UK, and I urge the Minister to consider doing so, because it is essentially an emergency service. Our roads would not be safe in the depths of winter without being gritted, and making red diesel available to those vehicles again would not be a bad idea at all.
Finally, let me simply urge the Government to take account of what happens in rural areas—how people commute, how they get to work, and how services are delivered—and to consider that in the context of fuel duty. They have the power to fix fuel duty. Such certainty is important, especially to people who are planning and budgeting for a year ahead, and that applies to public services in particular.
John Lamont
To pick up the hon. Member’s point about fairness, he will be aware that the Institute for Fiscal Studies has highlighted that Scottish taxpayers are £710 on average worse off compared with taxpayers in England as a result of the Scottish Government’s higher rates of income tax. Does he think that is fair?
Graham Leadbitter
I have always believed that the tax we pay is part of a contract with the state, and that we should consider whether it is reasonable to pay that price for the services we get back. I would also observe that we have to look at tax in the round. Broadly speaking, council tax in Scotland is considerably lower than in the rest of the UK. The tax on the accommodation I use in London is certainly considerably dearer than that on my own property at home, which is larger, and that is pretty much the case throughout Scotland. The cost of living is generally cheaper in Scotland than it is in central London.
Graham Leadbitter
And the taxation being paid gives people back more services and better services. Things such as the removal of peak rail fares and the freeze on bus fares—the cap on bus fares has been put in place and is being tested in the north of Scotland—all really benefit people. Beyond that, however, more than half of taxpayers in Scotland do not pay more income tax than people do south of the border. That is a fact.
I urge the UK Government to consider many of these proposals. They could consider measures on bus fares and peak rail fares, but they also have the power over key taxation levers, including fuel duty. They need to make decisions quickly to give people more certainty and a little bit less risk about where things are going. Some things are not controllable, and I wish the Government did not have to consider them, because they are difficult, but the Government have levers that can make it a bit easier for people, and they should use those levers.
