Oral Answers to Questions

Ian Murray Excerpts

Wednesday 4th September 2024 Commons Chamber

[Gregor Poynton (Livingston) (Lab)]

15. What discussions he has had with the Scottish Government on a new industrial strategy.

[The Secretary of State for Scotland (Ian Murray)]

This is, of course, my first Scottish questions on this side of the House, and I am delighted to be joined by so many colleagues from Scotland behind me. I welcome back returning Members from all parties and thank those who have not returned for all their hard work on behalf of their constituents. I thank the former Secretary of State for Scotland, Sir Alister Jack, for his work representing Scotland in Whitehall and the UK Government in Scotland. I also thank all the staff in the Scotland Office for making us so welcome. Their professionalism is unsurpassed.

I am very pleased that we were recently able to welcome 19 female Afghan medical students to Scotland so that they can continue their studies. The work to bring them here was initiated by Sir Alister Jack, and their safe arrival in the UK is a credit to our commitment to helping them.

I congratulate the hon. Member for Berwickshire, Roxburgh and Selkirk (John Lamont) on his new position. I am sure he will be diligent in holding me to account, and I hope that I was diligent in holding him to account.

I am sure the whole House will join me in congratulating Scotland’s Olympians and Paralympians, who have achieved so much sporting success this summer.

This Government will introduce a new industrial strategy to drive long-term, sustainable growth by securing investment in crucial sectors and industries in all parts of Scotland and the UK, which involves working in close partnership with the Scottish Government. That will support our national mission to have the highest sustained growth in the G7.

[Martin Rhodes]

An industrial strategy that embraces the jobs of the future must involve our higher education institutions, including the three world-class universities in Glasgow. What are the Government doing to ensure that that is the case?

[Ian Murray]

I thank my hon. Friend and congratulate him on his wonderful victory in Glasgow North. Scotland’s 19 world-class higher education institutions are an essential part of our economy, culture and global reputation, and they are paramount to the successful delivery of our missions. We punch well above our weight in Scotland, which is something that we need to protect and nurture. By the end of next week, I will have met the principals of all of Scotland’s universities. I want to deepen and strengthen those relationships, and I believe that the knowledge and expertise of those institutions will be crucial to delivering a new industrial strategy and the goals of this new Government.

[Frank McNally]

Coatbridge and Bellshill has a rich history of heavy industry, but following years of empty rhetoric and empty soundbites from the previous UK Government and the current Scottish Government, there has been a failure to honour the legacy of industry across Scotland and deliver a long-term, sustainable and coherent strategy. What steps will the Secretary of State take to ensure that industrial jobs in Scotland are as much a part of its future as they are of its history?

[Ian Murray]

I thank my hon. Friend and congratulate him on winning Coatbridge and Bellshill. Scotland and its world-class industrial workforce will play a driving role in our ambition to become a green energy powerhouse in this country. For example, my right hon. Friend the Secretary of State for Energy Security and Net Zero, the Scottish Government and I met representatives of Petroineos earlier this week to discuss what support can be provided to ensure a sustainable future for the industrial clusters in the wider Falkirk and Grangemouth region, which is crucial to the entirety of Scotland and the UK. That includes our commitment to fund Project Willow with the Scottish Government.

[Gregor Poynton]

I thank my right hon. Friend for his response. A UK-wide industrial strategy that supports jobs in Scotland is incredibly vital. However, this week we have heard the concerning news that the Mitsubishi Electric plant in my constituency is looking to reduce its workforce by 440 from its current complement of 1,600. This is a highly skilled workforce creating world-leading products such as air source heat pumps and air conditioning units, which are vital as we look to decarbonise our economy. Through no fault of its own, however, Mitsubishi Electric has seen its order book fall away due to short-term economic pressures. May I ask the Secretary of State to meet the management, workers and me to see what the UK Government can do to support—

[Mr Speaker]

Order. I think the Secretary of State has heard the question.

[Ian Murray]

I thank my hon. Friend for his question. I am really sorry to hear of the difficulties facing Mitsubishi Electric’s workforce, and of the uncertainty those workers face during this difficult time. I pay tribute to my hon. Friend for his efforts to support the workers in his constituency, and we have talked about this issue already. I will commit as a matter of priority to a meeting with the company and its workforce in the coming weeks.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

I, too, welcome the Secretary of State to his new position and congratulate him on his appointment to what I can tell him is a splendid job to hold in government. On an industrial strategy, will he focus his ministerial colleagues’ minds on the potential development of tidal stream generation? That provides an enormous opportunity for our manufacturing sector to create a supply chain that is based here in the United Kingdom, rather than having to bring capacity from overseas.

[Ian Murray]

I agree with the right hon. Gentleman and congratulate him on his role when he was in the Scotland Office. We hope to emulate much of the work that he did. I have met the European Marine Energy Centre and those involved with tidal resources in his constituency. This is critically important to our net zero ambitions and in getting to clean power by 2030. I am due to meet them when I visit his constituency in the coming weeks, and I will make sure that this is top of the agenda.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Christine Jardine (Edinburgh West) (LD)]

I congratulate the Secretary of State and welcome him to his place. I associate myself with his earlier remarks, particularly about Scotland’s Olympians and Paralympians. I was delighted to hear the recognition in his first answer of the role that our universities will play in a new industrial strategy, which is going to be vital in Scotland, particularly in the light of the recent admissions about the mess that the Scottish National party has made of our economy in Scotland. That is why I was baffled to see the UK Government cutting £800 million from a supercomputer project at the University of Edinburgh that has the potential to support research on drug discovery, climate change and advanced engineering. What discussions did the Secretary of State have with the Chancellor of the Exchequer about the impact of that?

[Ian Murray]

As the hon. Lady will know, the Chancellor of the Exchequer did a full audit of Government spending in the first weekend that she was in office, and found a £22 billion black hole. The exascale computer that she talks about was announced by two previous Prime Ministers and two previous Chancellors, and indeed was in the Budget in the early part of this year, but no money was allocated and therefore the project has been paused, pending both the Budget on 30 October and the spending review next year.

--- Later in debate ---

[John Grady (Glasgow East) (Lab)]

5. What discussions he has had with the Scottish Government on the effectiveness of the relationship between the UK and Scottish Governments.

[The Secretary of State for Scotland (Ian Murray)]

I congratulate my hon. Friend on winning Glasgow East. The people of Scotland want their two Governments to spend more time fighting for them than fighting each other, which is why resetting the relationship has been a priority for this Government and, indeed, the Prime Minister. I have had numerous productive meetings with Scottish Government Ministers, including the Deputy First Minister. We have had 17 days of visits across Scotland, and seven members of the Cabinet have already visited. There have been dozens of calls between Secretaries of State and Cabinet Secretaries. I look forward to working with the Scottish Government to deliver our shared priorities for the people of Scotland.

[John Grady]

Scotland’s official economic forecaster, the Scottish Fiscal Commission, has said of the Scottish Budget that

“much of the pressure comes from the Scottish Government’s own decisions.”

Does the Secretary of State agree that the Scottish Government must accept responsibility for the catastrophic state of Scotland’s public finances?

[Ian Murray]

My hon. Friend is right; the Scottish Fiscal Commission did say that. While this new Government are cleaning up the mess of the previous Conservative Government, the SNP seems to be cleaning up its own mess. In 2023, Audit Scotland said:

“The Scottish Government’s projections suggest that it cannot afford to pay for public services in their current form.”

As we have heard, the IFS said this morning that SNP decisions have reduced the tax take rather than increase it. This is about treating taxpayers’ money with respect and being honest about the tough choices we face. An honest assessment of the SNP Government’s Budget is that these problems have been stored up for years. Tough decisions have been kicked into the long grass, and money has been spent recklessly. It is a problem of the SNP’s own making, and the Scottish people will suffer as the SNP tries to clear it up.

[Mr Speaker]

I call the shadow Secretary of State.

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

I, too, start by congratulating both Ministers on their appointment to the Scotland Office. I loved my time at the Scotland Office, and I know they will be very well supported by the Department’s excellent team of officials, some of whom are in the Box today.

Labour plans to end the winter fuel payment, taking money away from elderly people who have worked all their days. Age Scotland has said:

“At minimum, a quarter of a million pensioners in Scotland on the lowest incomes or living in fuel poverty will no longer receive this vital financial support over the winter months, while hundreds of thousands more on modest incomes are going to struggle”.

Labour has cut the winter fuel payment across the UK, and the SNP is doing Labour’s dirty work in Scotland. What does the Minister have to say to the 250,000 elderly Scots who are in poverty and struggling with the decisions of Labour and the SNP?

[Ian Murray]

I welcome the shadow Secretary of State to his new post.

During the inheritance statement a few weeks ago, the Chancellor set out how the current Government are fixing the foundations and trying to clear up the dreadful legacy left by the Government of which the hon. Gentleman was a member. The Chancellor did not want or expect to make these decisions, but they had to be made to try to get the finances in balance and to make sure that we can fix the foundations to deliver on our manifesto. That is the legacy of the previous Government and, as I said in my previous answer, the SNP has made a mess of the public finances over the last 17 years. As we saw in the Scottish Parliament yesterday, the SNP has one hell of a mess to clear up, and it is Scottish pensioners and the Scottish people who will pay the price.

[John Lamont]

Labour is taking a leaf from the SNP playbook by refusing to take responsibility for its own actions. This is happening because of choices made by this Labour Government that have been passed on by the SNP in Edinburgh. Labour’s election slogan was all about change and, under this Labour Government, pensioners do not seem to have any change to spare. A woman called Lesley told Age Scotland that the winter fuel payment

“is literally a life saver for us.”

Another person, Brian, told Age Scotland:

“I would freeze without it, or go hungry.”

Is this the change that Labour meant—taking money away from struggling pensioners?

[Ian Murray]

There seems to be no recognition or apology from the shadow Secretary of State for the legacy his party has left this Government to try to clear up. We knew about the massive overspend in public services by the previous Government, and the audit the Chancellor did in her first weekend in office revealed the £22 billion black hole. These things have to be fixed. We did not expect or want to make such tough decisions, but we have had to make them to fix the foundations of our economy.

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

May I add my congratulations to the Secretary of State? I know it has not always been easy and sometimes it has been a lonely path, so I offer my personal congratulations to him on his appointment and to the hon. Member for Midlothian (Kirsty McNeill) on taking her place.

I will take the Secretary of State at face value on improving the relationship between the Scottish and UK Governments, but he will be aware of the devastating consequences of the cuts in the winter fuel payment for pensioners in both our constituencies and across Scotland. In order to work better with the Scottish Government, will he do better than giving them just 90 minutes’ notice next time?

[Ian Murray]

I welcome the hon. Gentleman back to his place, having won the election for the new constituency of Arbroath and Broughty Ferry. He should look at what the Finance Secretary said in the Scottish Parliament yesterday: she announced half a billion pounds of cuts, including £120 million in health services and £20 million in mental health services, and she has sold the family inheritance by using the ScotWind money to plug the additional funding gaps in the budget. Audit Scotland and the Institute for Fiscal Studies have been clear that this is a problem of the Scottish Government’s own making, so if they want to reset the relationship, they can start by taking responsibility for their own actions.

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

6. What discussions he has had with the Scottish Government on steps to help promote economic growth in Scotland.

[The Secretary of State for Scotland (Ian Murray)]

I am committed to working with the Scottish Government and have already met the Deputy First Minister four times in eight weeks. Resetting the relationship between Scotland’s two Governments is crucial to driving economic growth. Just last week, my right hon. Friend the Chancellor of the Exchequer was in Glasgow and met the First Minister. The Prime Minister has made resetting the relationship a key part of his new way of working in government. He has met with the First Minister to have those discussions and with members of the business community to discuss growing the Scottish economy. It is the choice of all of us to grow the Scottish economy and something we all need to do together.

[Stephen Gethins]

The Secretary of State will be aware that macroeconomic policy sits here in Westminster and that decisions taken here have a huge impact. We have worked on this issue before, so does he agree with the SNP that being outside the customs union and the single market is bad for growth in the Scottish economy, or does he agree with the Conservatives and their Reform party colleagues that it has been good for the Scottish economy?

[Ian Murray]

The hon. Gentleman is taking no responsibility for the decisions that his party makes in the Scottish Government. We saw that yesterday with them plugging the hole in their own public finances. The IFS has been clear that the decisions the Scottish Government have made have taken the tax take down in Scotland, despite being it being the highest taxed part of the country. If we are to reset this relationship, they have to start off by taking accountability and responsibility for their own decisions.

[Rachel Taylor (North Warwickshire and Bedworth) (Lab)]

Sport has played an essential role in economic growth in Scotland. What steps will the Secretary of State take to ensure that the legacy of Sir Andy Murray is recognised in Scotland?

[Ian Murray]

I would like to announce to the House that Andy Murray and I are not related, despite the fact that we share the same physique [Laughter.] I assure the House that the Scotland Office and this Government will do all we can to ensure that the wonderful legacy of one of Britain’s best sportspeople of all time is maintained.

[Torcuil Crichton (Na h-Eileanan an Iar) (Lab)]

7. What steps he is taking to support the energy industry in Scotland.

[Richard Baker (Glenrothes and Mid Fife) (Lab)]

10. What steps he is taking to support the energy industry in Scotland.

[The Secretary of State for Scotland (Ian Murray)]

Scotland is at the forefront of this Government’s mission to make Britain a clean energy superpower by 2030. We will headquarter Great British Energy, a new publicly owned clean energy company, capitalised with £8.3 billion, in Scotland. That will help create thousands of jobs, and deliver energy security and lower prices permanently for consumers. Just this week, the sixth allocation for the contracts for difference scheme was announced, with over 130 renewable projects awarded contracts and 20% of those projects based in Scotland.

[Torcuil Crichton]

I welcome the Secretary of State to his position. We watched him for many lonely years as he held the fort on his own. He was always outnumbered, but never outgunned. Will he now use the full firepower of the Scotland Office to convince Cabinet colleagues and industry players of the vital role and potential of the Arnish fabrication yard in Stornoway and its sister yard in Methil, both of which are coming up for sale as part of the going to market of Harland & Wolff? Will he assure workers at the Arnish yard and at Stornoway port that they will play a big role in the renewables future and in GB Energy?

[Ian Murray]

I thank my hon. Friend for that question, and congratulate him on winning the Western Isles. He is Mr Western Isles, and he will be a champion for those islands.

The Government will continue to engage with Harland & Wolff, local MPs and the Scottish Government to monitor the situation and support a resolution that provides long-term certainty for the yards and workforces across the whole UK, with all four yards across the UK being treated as one. The Under-Secretary of State for Scotland, my hon. Friend the Member for Midlothian (Kirsty McNeill), recently visited the Arnish yard. I have visited the Methil yard twice—once before the election and once during the election—and I have regular meetings with the Deputy First Minister on this issue and hope to meet her again in the coming weeks. We will do all we can to protect these yards.

[Gordon McKee]

Having spent many years working for my right hon. Friend when he was on the Opposition Benches, may I welcome him to his position as Secretary of State for Scotland? The creation of GB Energy will support 50,000 new jobs across Scotland. It will deliver lower household bills and help us meet our net zero obligations. Given that Glasgow already has a fantastic renewables industry, may I ask what work he has done with his Cabinet colleagues to ensure that GB Energy supports jobs in Glasgow?

[Ian Murray]

I congratulate my hon. Friend on winning his seat in Glasgow South. His question is much better than any that he ever wrote for me.

My right hon. Friend the Secretary of State for Energy Security and Net Zero is due to make an announcement on the location of GB Energy very soon. I regret that, in the interim, I can say no more than that, although I am sure that my hon. Friend’s words of encouragement in respect of Glasgow will not have escaped the attention of my Cabinet colleagues. I can announce exclusively to the House today, Mr Speaker, that GB Energy will be headquartered in Scotland.

[Richard Baker]

My right hon. Friend will be aware that I have been working closely with Unite, GMB and local management at the Methil yard in my constituency during the restructuring process at Harland & Wolff. Does he agree that 200 skilled workers at Methil and those at Arnish have a vital contribution to make to our ambitions to grow our renewable sector, and also that all stakeholders have a vital role in securing the long-term future of these yards?

[Ian Murray]

I congratulate my hon. Friend on winning Glenrothes and Mid Fife. I acknowledge his efforts, and those of many hon. Friends in the House and of people in the local area, advocating for the Methil fabrication yard. The yard, along with many others like it, will have a key role in fulfilling our ambition for Scotland and the UK to become a green energy powerhouse. In addition to GB Energy, there is the national wealth fund, which will help unlock further investment opportunities for ports and heavy industry, and manufacturing companies will have a crucial role to play in creating jobs in our transition to net zero. I have been to the Methil plant twice. It has a world-class workforce, and I can assure them that we will do everything we possibly can to make sure that they have a bright future.

[John Cooper (Dumfries and Galloway) (Con)]

I welcome the Secretary of State to his place and thank him for his generous words about the work of Sir Alister Jack, who was previously in that role. Does the right hon. Gentleman share my consternation this morning that two sanctioned Russian oligarchs now have a share in Harbour Energy, our largest producer of North sea oil and gas? That seems incredible at this time, not least because the company that they are using to have this stake—LetterOne—was forced to divest itself of a broadband company because it was a threat to national security. Can we look again at this decision?

[Ian Murray]

May I welcome the hon. Gentleman to his place and congratulate him on winning his seat? The Foreign Secretary is sitting two seats along from me, and I am sure that he will have heard what the hon. Gentleman said. I am sure that the issue is a concern to everyone in the House, and we will make sure that a written response is given to the hon. Gentleman as soon as possible.

[Mr Speaker]

I call the shadow Secretary of State.

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

The Rosebank oilfield will provide more than £6 billion of investment in UK-based businesses. The Jackdaw oilfield will cater for the energy needs of 1.4 million UK households. This Labour Government are jeopardising all that investment, energy and jobs by dropping the UK Government’s opposition to the judicial review, which aims to block these vital energy projects. Can the Secretary of State seriously tell the 90,000 people whose jobs rely on oil and gas in Scotland that the future of this crucial industry is secure under Labour, when it is his Government’s policy to oppose all new developments?

[Ian Murray]

I thank the shadow Secretary of State for his question, but he should stop scaremongering, given the 90,000-strong workforce in the North sea. Oil and gas will be with us for decades to come. The Finch decision, to which he refers, was something that this Government had to consider very carefully. The Secretary of State has started a consultation on consenting, which will affect Jackdaw and, indeed, Rosebank, and that should conclude within the next six months.

[Brendan O'Hara (Argyll, Bute and South Lochaber) (SNP)]

8. If he will make an assessment with Cabinet colleagues of the potential merits of devolving the power to introduce a Scottish work visa scheme to the Scottish Government.