Oral Answers to Questions Debate

Full Debate: Read Full Debate
Department: Scotland Office

Oral Answers to Questions

Ian Murray Excerpts
Wednesday 4th June 2025

(2 days, 18 hours ago)

Commons Chamber
Read Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Joe Robertson Portrait Joe Robertson (Isle of Wight East) (Con)
- Hansard - - - Excerpts

1. What assessment he has made of the potential impact of not issuing new North sea oil and gas licences on levels of economic growth in Scotland.

Ian Murray Portrait The Secretary of State for Scotland (Ian Murray)
- View Speech - Hansard - -

This is the first opportunity I have had to apologise to the House for using an inaccurate figure on previous occasions. I had told the House that the Scottish Government had received a record settlement of £47.7 billion this year, but Treasury figures show that the block grant for this year is actually £50 billion. That is the highest ever settlement in the history of devolution, with bells on. That £50 billion is more money for schools, hospitals, policing and housing; it is an end to austerity. That is the Barnett formula in action—the formula that both the SNP and Reform have announced this week that they want to scrap.

Oil and gas will remain a crucial component of our energy mix for decades to come. Our workforce is the most talented in the world, and we are committed to ensuring its future. We have consulted on support for the energy transition in the North sea, including on these issues, and the Secretary of State for Energy Security and Net Zero will respond to that consultation shortly. Economic growth in the UK in the first quarter of the year beat all forecasts, reaching 0.7%—the highest in the G7. Growth in Scotland is more sluggish than in the rest of the UK; if Scotland’s economy had grown at even the low rate at which it grew under the Tories, it would be £10 billion larger. That makes it even more astonishing that the Opposition parties oppose the EU, US and India trade deals.

Joe Robertson Portrait Joe Robertson
- View Speech - Hansard - - - Excerpts

Ministers across various Departments have repeatedly said that oil and gas is here to stay for many years. Issuing new North sea oil and gas licences would support tens of thousands of jobs, return millions in tax revenue to the Treasury and help to grow the Scottish economy. Why are the Government refusing to issue any new licences?

Ian Murray Portrait Ian Murray
- View Speech - Hansard - -

A consultation on Rosebank and Jackdaw is concluding, and the Secretary of State for Energy Security and Net Zero will report on it in due course. There is also the North sea transition consultation, which has concluded, as I mentioned earlier, and which will take into account all those issues. It will be published in due course.

Scott Arthur Portrait Dr Scott Arthur (Edinburgh South West) (Lab)
- View Speech - Hansard - - - Excerpts

Labour’s windfall tax on North sea energy profits is designed to make us less reliant on people like Vladimir Putin. When I was campaigning in Hamilton last week, voters asked me why the SNP, the Tories and Reform were so against our windfall tax. I could not explain. Can the Secretary of State?

Ian Murray Portrait Ian Murray
- View Speech - Hansard - -

I am grateful to my hon. Friend for the question. What astonishes me more than anything is that the shadow Secretary of State for Scotland was the Energy Minister when the energy profits levy was brought in.

Ian Murray Portrait Ian Murray
- View Speech - Hansard - -

The hon. Gentleman shakes his head, but he was the Energy Minister. Indeed, as my hon. Friend the Member for Edinburgh South West (Dr Arthur) may remember, the leader of the SNP in Westminster, the right hon. Member for Aberdeen South (Stephen Flynn), did not support the levy, then did, then did not, and then put in the SNP’s manifesto that it would be extended to every single Scottish industry. I am at a loss, as is my hon. Friend.

Lindsay Hoyle Portrait Mr Speaker
- Hansard - - - Excerpts

We come to the shadow Secretary of State.

Andrew Bowie Portrait Andrew Bowie
- View Speech - Hansard - - - Excerpts

I start by congratulating the famous Aberdeen football club—the only team in red I like to see winning—and the manager Jimmy Thelin, the players and all the coaching staff for winning their eighth Scottish cup a week and a half ago, qualifying for the Europa league in the process. The pride and jubilation on the streets of Aberdeen last Sunday show just how much the club means to the north-east of Scotland. Even more important to the north-east than Aberdeen football club is the oil and gas industry. What does the Secretary of State make of the report published by Robert Gordon University this week that warns of 400 job losses every two weeks in the North sea?

Ian Murray Portrait Ian Murray
- View Speech - Hansard - -

I join the shadow Secretary of State in congratulating—through gritted teeth—Aberdeen on winning the Scottish cup. Speaking as a big Hearts fan, it is always nice to see the smaller clubs doing well in national competitions. [Interruption.] I do not know whether I have lost or won the House there, Mr Speaker.

We have this discussion across the Dispatch Box a lot during questions. We are aiming for clean energy by 2030, and setting up GB Energy in Aberdeen—something that the shadow Secretary of State voted against, of course—to ensure a transition. We have a declining and mature base, and we need to create the jobs of the future and the future industries in Scotland. He should support that, rather than voting against it. The EPL was brought in by his Government.

Andrew Bowie Portrait Andrew Bowie
- Hansard - - - Excerpts

To be absolutely clear, there is no transition under way. It is not the Conservative party saying that; it is the Robert Gordon University Energy Transition Institute. These mythical jobs in renewable energy simply do not exist yet. There is a slowdown in offshore wind deployment and a steep decline in offshore oil and gas activity as a direct result of Labour’s ideological policies—400 job losses every two weeks, a steep decline in skilled roles, nowhere for supply chain jobs to go but overseas, and a decline in the workforce of 25%. Why? Because of massive investor uncertainty due to negative sentiment around oil and gas as a result of the ban on licences and the EPL extension. When will the Secretary of State and the Scottish Labour party grow a backbone, stand up to the Secretary of State for Energy Security and Net Zero, and stand up for Scotland and Scottish workers?

Ian Murray Portrait Ian Murray
- Hansard - -

I do not know whether the hon. Member agrees with net zero anymore—certainly, his party leader does not seem to believe in it—but that is where the jobs are for the future. There is a declining base in the North sea. Companies are making that transition already, and we need to ensure pace; that is the big issue. We need regulatory change and investment, and GB Energy is there to ensure that. The National Wealth Fund is making investments as well. We have seen £600 million invested in Scottish Power’s infrastructure. Things are starting to happen, but we need cross-party support on this.

Martin Rhodes Portrait Martin Rhodes (Glasgow North) (Lab)
- Hansard - - - Excerpts

2. What discussions he has had with the Scottish Government on priorities for the National Wealth Fund’s strategic partnership with the Glasgow city region.

--- Later in debate ---
Ian Murray Portrait The Secretary of State for Scotland (Ian Murray)
- View Speech - Hansard - -

The right hon. Gentleman will have heard me remind the House on a number of occasions that John Swinney said that education was the “defining mission” of his SNP Government, but earlier this year we got the news that standards of attainment in Scotland’s schools are declining across the board and, shamefully, outcomes for young working-class kids are getting worse. The attainment gap is widening. The Scottish Government have failed a generation; they cannot be allowed a third decade in power to continue that damage. Scotland’s teachers, parents and pupils all deserve better standards in our schools.

Desmond Swayne Portrait Sir Desmond Swayne
- View Speech - Hansard - - - Excerpts

What has caused the system, which was once the benchmark for all others, to become such a disappointment?

Ian Murray Portrait Ian Murray
- View Speech - Hansard - -

There is a simple answer to that question: the SNP Scottish Government.

Richard Baker Portrait Richard Baker (Glenrothes and Mid Fife) (Lab)
- View Speech - Hansard - - - Excerpts

When my right hon. Friend discusses with SNP Ministers, through announcements made this week, the huge employment opportunities that this Government have created for young people in Scotland, will he impress on them the urgent need to finally tackle the persistent—and in some areas widening—attainment gap faced by pupils from poorer backgrounds, not only in Fife but in South Lanarkshire? These concerns are often raised by residents of Hamilton, Larkhall and Stonehouse.

Ian Murray Portrait Ian Murray
- View Speech - Hansard - -

The House may not know that last year, 1,351 pupils left high school in Scotland without a single qualification to their name, and one in six Scots is not in education, employment or training. That is the legacy of the SNP Scottish Government. What have they done about jobs and growth? They are against the defence industry and against the trade deals with the EU, India and the US. They are against young Scots in Scotland.

Alex Easton Portrait Alex Easton (North Down) (Ind)
- Hansard - - - Excerpts

6. What discussions he has had with the Secretary of State for Northern Ireland on improving economic co-operation between Scotland and Northern Ireland.

--- Later in debate ---
Becky Gittins Portrait Becky Gittins (Clwyd East) (Lab)
- Hansard - - - Excerpts

9. What steps he is taking with Cabinet colleagues to regenerate town centres in Scotland.

Ian Murray Portrait The Secretary of State for Scotland (Ian Murray)
- View Speech - Hansard - -

As a former publican, I know that these are hard times for businesses on the high street. We are investing £200 million in our plans for neighbourhoods in Scotland, with £20 million-worth of funding for towns including Irvine, Greenock, Kilmarnock, Coatbridge, Clydebank, Elgin, Dumfries, Arbroath, Peterhead and Kirkwall. Of course, it would help if the Scottish Government extended business rates relief to retail and leisure businesses, as has happened south of the border. Many businesses in Scotland are asking where that money went.

Lauren Sullivan Portrait Dr Sullivan
- View Speech - Hansard - - - Excerpts

Does the Secretary of State agree that it was astonishing that the SNP voted against the £8 million to regenerate Hamilton town centre and that only Labour’s Davy Russell will stand up for local people, jobs and services?

Ian Murray Portrait Ian Murray
- View Speech - Hansard - -

I have brought glasses to see if I can find an ounce of credibility in the SNP’s candidate in Hamilton for voting against that £8 million. The SNP candidate is a councillor from Cambuslang who stood for election twice in Rutherglen, sought selection in Shettleston and then voted against £8 million for the Hamilton town centre before seeking selection there. In Scotland, we are allowed to elect councillors with a single transferable vote; she appears to be the SNP’s single transferable councillor.

Becky Gittins Portrait Becky Gittins
- View Speech - Hansard - - - Excerpts

A proud industrial heritage, a strong community spirit and an overwhelming feeling of being let down and under-invested in by the previous Conservative Government unite towns in my constituency with those across Scotland, including those in Hamilton, Larkhall and Stonehouse. In Wales, Labour’s transforming towns programme has invested in Holywell in my constituency. Will the Secretary of State join me in calling on the SNP to U-turn and finally back Labour’s plans to invest in Hamilton town centre?

Ian Murray Portrait Ian Murray
- View Speech - Hansard - -

What a wonderful representative my hon. Friend is for her constituency. I could not agree more. The SNP candidate is yet to explain to voters in Hamilton, Larkhall and Stonehouse why she voted against the much needed £8 million investment in Hamilton town centre. I hope she will explain before tomorrow’s vote. If she does not, everyone should back Labour’s Davy Russell.

Stephen Flynn Portrait Stephen Flynn (Aberdeen South) (SNP)
- View Speech - Hansard - - - Excerpts

I will tell the Secretary of State what is bad for town centres, and that is job losses. On this Government’s watch, Robert Gordon University has been forced to publish a report that outlines that there could be 400 job losses in the North sea every two weeks. That is a Grangemouth-type shutdown every two weeks. How many jobs have to be lost in my constituency for his Government to act?

Ian Murray Portrait Ian Murray
- View Speech - Hansard - -

The leader of the SNP in this House voted against the setting up of Great British Energy in his constituency, which is creating jobs in Scotland. He is against the EU trade deal, he is against the US trade deal, he is against the India trade deal; he is bad for jobs and should go.

Harriet Cross Portrait Harriet Cross (Gordon and Buchan) (Con)
- View Speech - Hansard - - - Excerpts

Towns and villages across north-east Scotland, such as Aberdeen, and Inverurie, Kintore and Ellon in my constituency, will all need regenerating in future if the Secretary of State’s Government keep decimating the oil and gas sector. The best thing his Government can do for the north-east of Scotland is allow new licences and cut the increase to the energy profits levy. Will he commit to that? Otherwise, more and more money will need to be put into north-east Scotland to regenerate our towns in future.

Ian Murray Portrait Ian Murray
- View Speech - Hansard - -

This Government are putting money into Scottish towns to regenerate them. As we keep saying from this Dispatch Box, oil and gas will be with us for decades to come. The industry itself is making the transition, and we have to make sure that it happens, and happens for the benefit of workers in the north-east and all over Scotland. I am not even sure, however, that it is a transition that the hon. Lady and the Conservative party now back.

Anneliese Midgley Portrait Anneliese Midgley (Knowsley) (Lab)
- Hansard - - - Excerpts

8. What recent discussions he has had with the Scottish Government on the impact of the Barnett formula on levels of funding for the NHS in Scotland.

Ian Murray Portrait The Secretary of State for Scotland (Ian Murray)
- View Speech - Hansard - -

Following the spring statement, it was confirmed that the block grant for Scotland this year was a record £50 billion. That was no thanks to the SNP and Reform, which both voted against that massive funding boost for Scotland and want to scrap the Barnett formula that delivered it. Despite that record funding, the SNP still has no plan to get waiting lists down, when one in six Scots are stuck on an NHS waiting list and the educational attainment gap is growing by the day.

Anneliese Midgley Portrait Anneliese Midgley
- View Speech - Hansard - - - Excerpts

Despite the record funding provided by the Labour Government, the SNP plans to downgrade the neonatal intensive care unit at university hospital Wishaw, which could force the families of sick babies to travel as far as Aberdeen for treatment and support. Does the Secretary of State agree that the SNP cut should be reversed?

Ian Murray Portrait Ian Murray
- View Speech - Hansard - -

As the father of an 18-week-old daughter, I am absolutely horrified by those proposals and I know that they will be causing anxiety for families across Lanarkshire. That is why it is so disappointing to see the SNP candidate in the Hamilton by-election back the plans to downgrade the Wishaw neonatal unit. The way to send a message to the SNP that that is unacceptable is to vote for Davy Russell tomorrow in the Hamilton, Larkhall and Stonehouse by-election.

David Smith Portrait David Smith (North Northumberland) (Lab)
- Hansard - - - Excerpts

10. What recent discussions he has had with the Scottish Government on the impact of the Barnett formula on levels of funding for local authorities.