Spending Review 2025: Scotland

Harriet Cross Excerpts

Wednesday 2nd July 2025 Westminster Hall

[Graeme Downie]

I think the Government are already moving towards a focus on outcomes for budgeting, and I would like to see more of that.

As my constituency contains a large number of former coalfields, I have been working closely with colleagues on the replacement of the shared prosperity fund and how we can ensure that it delivers skills and investment for young people and opportunities in all parts of the United Kingdom. I can assure the Minister that I will be working with local stakeholders in Dunfermline and Dollar to ensure that our area secures a fair share of the funding that has been allocated for the many great projects that stand to deliver real benefits to my constituents.

Over the next three years, this Labour Government will provide the Scottish Government with an additional £9.1 billion for Scottish public services. That is the largest settlement in real terms since devolution began, and a historic opportunity for the Scottish Government to invest in the NHS, police, housing and schools—services that are the bedrock of our society, yet are the root cause of much of the correspondence I receive from constituents who are being failed by the current Scottish Government in Holyrood.

One year on from a housing emergency being declared, house building is down in Scotland, and 10,000 children remain in temporary accommodation, with no home to call their own. Indeed, as a former Fife councillor, I know that Fife council is still in the unenviable position of knowing that it breaks the law every single day when it comes to housing, because of the salami-slicing of local government budgets by the Scottish Government. That the SNP Scottish Government knowingly preside over such a situation is unfathomable, having taken their eye off multiple balls during their disastrous time in power.

I must also express my concern that, no matter how much funding is made available, the Government in Holyrood continue to fall back on a familiar pattern of whingeing and wasting. We have seen this time and again, from the mismanagement of ferry contracts to the establishment of overseas embassies that serve little practical purpose beyond a vanity project and a residence for the Minister to have a very nice time on holidays funded by the public purse.

This morning I looked over the caseload in my office, and a third of cases received are from people with problems relating to devolved policy areas. So fed up are the people of Dunfermline and Dollar by the myriad failures of the SNP that they know the best place to come for help is Scottish Labour MPs and a UK Labour Government. This morning, we learned that more Scottish public money will be spent on defending the former chief executive of the SNP in a court case about a caravan found in my constituency.

In England, the UK Labour Government have recruited more than 1,500 GPs since 1 October thanks to Government action and the digitisation of the health service in England progressing more quickly. Meanwhile, in this place I have had to raise issues including access for little boys to timely medical help for Duchenne muscular dystrophy, a lack of local dentists, and care and support for those with Parkinson’s. I am also aware of the case of Vicki Tocher, a constituent of mine who has been battling for almost a year to get her eight-year-old son, Issac, in front of doctors after he suffered a traumatic brain injury while at school.

In Scotland we see delays to national treatment centres. One in six Scots is on an NHS waiting list, there are 50,000 fewer operations than before the pandemic, and a record number have been forced to turn to private healthcare. In February, the Royal College of Emergency Medicine said that the number of patients waiting more than 12 hours in A&E in Scotland is 99 times higher than it was 14 years ago.

[Harriet Cross (Gordon and Buchan) (Con)]

The Scottish Conservatives have suggested that we should be prioritising Scottish-based students for medical places at university, because they are much more likely to stay in the UK and therefore contribute to our workforce. Would the hon. Gentleman support that to help the backlog and health services in Scotland?

[Graeme Downie]

We have actually seen announcements from the UK Health Secretary about prioritising UK students.

In my constituency, a new GP surgery in Kincardine has been promised for well over a decade, but is still awaiting Government funding. That village in the west of my constituency is growing, and its current GP surgery, which is little more than a cottage that used to be a police station, has been there for more than 120 years.

On digitisation, there has been better news in Scotland in the past couple of weeks. The NHS Scotland digital app will launch later this year; however, it will work only in dermatology and one NHS board. I am sure I could make jokes about rash decisions and the SNP getting under people’s skin, but these critical issues are having a real impact across the country. There is a real risk that as football clubs across Scotland begin pre-season training, the Cabinet Secretary for Health and Social Care might stop visiting hospitals and go back to last season’s failed tactics of being driven to the pub and between football grounds.

The spending review, driven by the UK Labour Government, rightly puts faith in our young people and the future. It includes investment in AI and the nuclear and defence sectors, alongside £1.2 billion for training and apprenticeships, designed to equip the next generation with skills and give them the opportunities they deserve. Yet in my constituency, Fife college has warned of cuts to courses and campus closures due to the mismanagement of the Scottish budget by the SNP. That is a betrayal of our young people’s potential, and takes money away from the working class kids of Fife to prop up its own failures in higher and further education elsewhere in the country.

While the UK Labour Government are investing in regional transport across England, in Scotland rail fares have increased three times since March 2024 and we have lost 1,400 bus routes since the SNP came to power—something my constituents feel strongly and keenly because of the rural nature of the constituency, including Dollar, Muckhart and the west Fife villages. That is not progress but regression, and is particularly challenging for the rural parts of my constituency.

Moreover, the ideological objection in Scotland to nuclear power and the refusal to embrace new small modular reactors will cost Scotland dearly. We are losing out on jobs, investment and the opportunity to secure our energy future. That is not just short-sighted but a dereliction of duty.

--- Later in debate ---

[Stephen Gethins (Arbroath and Broughty Ferry) (SNP)]

It is a pleasure to be with you this morning, Sir John. I congratulate the hon. Member for Dunfermline and Dollar (Graeme Downie) on securing the debate and on making the points that he made.

The hon. Member, like other Labour Members, in particular, seems to like talking about the Scottish Government, who are not answerable to this place, rather than the UK Government, who are. To be fair, I am not surprised. We saw after last night’s debacle that they would rather talk about anything but the Labour Government, who have delivered very little over the past year apart from chaos and a continuation of failed Conservative policies—not much change there.

The fact is that this place still has a profound impact on the Scottish Parliament. It is where the majority of its budget comes from and it has a huge impact on the policies that can be pursued in the Scottish Parliament, as the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) will be well aware as a founding member of that institution, which he rightly highlighted. Scotland is still hampered by migration policies and the hostile environment, as we have witnessed recently at the University of Dundee, whose losses are overwhelmingly attributable to the drop in international students as a direct result of those policies.

[Harriet Cross]

Will the hon. Member give way?

[Stephen Gethins]

On that point, gladly.

[Harriet Cross]

I thank the hon. Member so much for giving way so gladly. I have visited universities recently, too, and they also point to the real-terms cut in funding from the Scottish Government having a real impact on their budgets. In the interests of fairness, will he reflect on that too?

[Stephen Gethins]

I will gladly reflect on that, but I make the point to the hon. Lady—let us take universities as an example—that at the University of Dundee, the difference between Scottish and English fee income would not even have covered the national insurance increase, and that increase was further dwarfed by the reduction in international student income. Under the Conservative Government, universities had been encouraged to go out and recruit internationally, and they were joined in that venture by Ministers before the Conservatives changed their mind.

I am sure that we will all agree that the internationalisation of our universities has been a positive thing. I refer to my entry in the Register of Members’ Financial Interests: it has been a privilege to work at the University of St Andrews, where internationalisation enhances both the learning process and the research, making us all better off in the process. However, the changes to migration policy had so great an impact—I am sure that the hon. Member for Gordon and Buchan (Harriet Cross) will agree with me about this—that I asked the Home Secretary to come to Dundee and visit the institution, just to see and learn. She refused. Perhaps the Minister could encourage another Home Office Minister to visit.

I touched earlier on national insurance increases, which are hobbling businesses and therefore growth. Those have a particular impact on small businesses, which cannot expand or recruit. That has been raised not just by me and my SNP colleagues, but by other colleagues in the House. Even though Labour MPs want to do anything but talk about a Labour Government —that is quite telling in its own right—the increases have an impact, and the Labour Government deserve to be held to account.

--- Later in debate ---

[Gregor Poynton (Livingston) (Lab)]

It is a pleasure to serve under your chairmanship, Sir John, and to speak in today’s debate; I congratulate my hon. Friend the Member for Dunfermline and Dollar (Graeme Downie) on securing it. This spending review marks a turning point for Scotland. After years of stagnation under two failing Governments—the Tories in Westminster and the SNP in Holyrood—this UK Labour Government are delivering the change that Scotland so desperately needs. This is the most generous funding settlement for Scotland in the history of devolution. Over the next three years, the Scottish Government will receive an extra £9.1 billion for public services in Scotland. That is not rhetoric—that is real investment. Labour is ending austerity and restoring fairness.

That record money is a powerful opportunity to rebuild Scotland’s NHS, our schools, our transport system and our housing stock. The problem is that we cannot trust the SNP Government to use that money wisely. For too long, Scotland has seen taxpayers’ money squandered by a Government with no strategy and no clue what they are doing. After almost two decades in power, the SNP have lost their way and have now failed to deliver on the basic promise of competent government. They declared a housing emergency then slashed the housing budget. They promised 130,000 green jobs by 2020 and delivered almost none. They pledged £80 million for the Acorn carbon capture and storage project in 2022, and that money remains unpaid. Locally, residents, the local NHS and clinicians have all said that the East Calder medical centre needs to be replaced. The SNP Government have given warm words to that community, but they have nowhere near delivered anything. They have the money now to deliver a new medical centre in East Calder. They should get on and do it.

Meanwhile, the UK Labour Government are investing in our clean energy future, with £2.3 billion for nuclear energy and SMRs, but the SNP’s ideological block to new nuclear power means Scotland is missing out on jobs and investment.

[Harriet Cross]

The hon. Gentleman talks about ideological blocks. The oil and gas sector, as he well knows, is crucial to Scotland, especially to the north-east of Scotland. Allowing it to flourish and to be supported into the future will have just as much of an economic benefit. Will he reflect on that and perhaps have a word with his Front Benchers, to try to persuade them that supporting the oil and gas sector has benefits for the whole of Scotland and the UK, particularly at the moment, when we are suffering so much with economic growth?

[Gregor Poynton]

I agree with the hon. Lady on that point; I think the oil and gas sector is vital. I am on the record saying that I support Rosebank and Jackdaw, and I think we should get on and do it. We need to invest in that sector, because ultimately, those are the people with the skills and supply chains that will allow us to transition to the green jobs of the future, at the same time as securing jobs now. I agree with much of what she said.

The SNP Government have presided over an NHS in crisis, with one in six Scots on a waiting list and a generation of young people growing up in temporary accommodation. They have no plan and no urgency, and we have seen absolutely no progress. That is why next year’s Scottish Parliament election is so important. If Scotland is to make the most of this historic Labour investment, we need a Scottish Government we can trust, and that means voting for change. It means voting for a Scottish Labour Government. When Labour governs, we do not just talk about fairness; we fund it and deliver it.

Let me turn to what the spending review means for my Livingston constituency. I am proud to represent a community with ambition and innovation at its core. Now, thanks to Labour’s investment, that potential has been matched by real support. The Falkirk and Grangemouth growth deal, with £100 million in joint funding for both the UK and Scottish Governments, is a huge vote of confidence in our region’s industrial future. Grangemouth, just down the road, is key to Scotland’s energy transition, and the Labour Government are stepping up where others have failed.

The spending review also confirms £750 million for a new national supercomputer in Edinburgh, which places Scotland at the forefront of high-performance computing. That is not abstract. It means new opportunities for medtech, life sciences and clean tech industries in my constituency. These are well-paid, high-skill, high-quality jobs for my constituents. Scotland is also now benefiting from £8.3 billion for Great British Energy, headquartered in Aberdeen, ensuring that we lead the world in clean, affordable and home-grown energy. For our communities, the spending review has delivered £234 million in new local investment funds, empowering towns and local councils to invest in what really matters to people: revitalising high streets, upgrading infrastructure and supporting jobs and investment.

Let us not forget our role in global trade, too. Thanks to the Government’s leadership, new trade deals are opening doors for iconic Scottish products. In India, Scotch whisky, our largest export, is getting a tariff cut, boosting a £180 million market. US steel tariffs have come down, helping manufacturing jobs across the UK, including in Scotland.

That is what serious government looks like: ambition backed by delivery, and investment guided by our values. The spending review represents a huge opportunity for Scotland, but only if we have a Government in Holyrood who can rise to the moment, and that means change. The SNP Government have had their chance, and after nearly two decades, frankly, if they were going to fix our NHS, deliver green jobs or improve education, they would have done it by now. They did not, they cannot and they will not. It is time for a Scottish Labour Government who will.