Cost of Living

Debate between Hywel Williams and Dave Doogan

Tuesday 16th May 2023 Commons Chamber

[Dave Doogan]

I know better than to disagree with my hon. Friend. She is absolutely right. We heard from the Minister when he spoke to his amendment—and perhaps the hon. Member for Moray, I am not sure—about how the Scottish Government have tax-raising powers and do not use them. Having some tax-raising powers is like having a set of spoons and being told to set the table. It is not going to work. They need the whole suite of fiscal levers to make a difference to the economy. My hon. Friend the Member for North Ayrshire and Arran (Patricia Gibson) is right. We have one hand tied behind our back. We have domestic policy but we do not have the full suite of fiscal policy, and we will never dig into the root causes of the crises faced by communities and businesses in Scotland until we get independence.

The UK is a poor country. The Unionists in the House like to talk up GDP, which is an increasingly meaningless measure of wealth. It has its role, but GDP is largely irrelevant to the ordinary men and women in my constituency. The United Kingdom is so unequal that ordinary people working hard every day of every week of every year still cannot afford to feed their kids or pay their rent at the end of the month. That is not a meaningful economy working in the interests of ordinary people up and down these islands. It would be very different with a Scottish Government and an independent Scotland.

We have heard all about how this is entirely down to the illegal war in Ukraine and the covid pandemic. Interestingly, neither Labour nor the Tories want to lay any blame at the feet of the world’s worst unforced error and self-injury—Brexit. “Brexit has not done anything; it has been nothing but positive for the economy” according to those two delusional movements. In reality, compared with the pre-pandemic level, UK GDP in Q1 of 2023 was 0.5% lower. That contrasts with GDP in the eurozone being 2.5% higher than its pre-pandemic level. In the United States it is 5.3% higher and in Canada 3.5% higher. Among their chums in the G7, the United Kingdom is something of an outlier. I wonder what distinguishes the United Kingdom from those other countries: they did not take the most profoundly daft manoeuvre ever and exit the biggest trading bloc in the world.

[Hywel Williams]

Does the hon. Gentleman share my surprise that the only Brexit benefit that the Government can identify in their amendment is the Genetic Technology (Precision Breeding) Act 2023? Where is the abundance that we were promised?

[Dave Doogan]

The hon. Gentleman is right, and I will get to that in my conclusion. It did not escape my notice that in talking up Brexit the Government came up with the most abstract and niche policy affecting almost nobody.

On future growth, the IMF forecasts that UK GDP will fall 0.3% in 2023—the lowest figure in the G7 and it is the only member expected not to see growth in 2023. Total real-terms pay fell 3% between December 2022 and February 2023 alone, largely due to inflation and low public sector pay increases. On trade, UK goods exports to the EU remain below 2019 levels, but imports of goods from the EU, despite Brexit, were 1.4% higher in 2022 than in 2019. If it is taking back control to end up with a £92 billion trade deficit with the trading bloc that those people were trying to extract themselves from, I am not certain Brexit is going as well as they would have us believe. I smell a rat.

If the macro numbers do not add up—which they do not—I only have to look to my constituency to see the real cost of the Tory Brexit, which Labour will not oppose, on my fishermen and farmers. Fishermen now have to jump through umpteen bureaucratic hoops to get the same fish, caught in the same grounds, exported to the same market in France as before, when they just had to put it on a lorry. The system is in a state of stability and is working but, as Government Members will know, increased bureaucracy is a drag on trade.