Household Energy Bills: VAT

Debate between Jacob Young and Tommy Sheppard

Tuesday 11th January 2022 Commons Chamber

[Tommy Sheppard (Edinburgh East) (SNP)]

The last two years have been brutal and miserable for millions of people in this country, but not everyone has had a bad pandemic. Last year the number of millionaires in Britain increased by 10% and the number of billionaires increased by 15%. In fact, The Sunday Times estimates that, between them, the 171 billionaires in the United Kingdom are worth £600 billion, which is enough for them by themselves to fund every single pound of Government covid support over the last two years and still be the richest people in the country.

[Jacob Young]

I take on board what the hon. Gentleman is saying. I am confused, because the hon. Member for Kilmarnock and Loudoun (Alan Brown) signalled that the SNP will be supporting today’s motion, yet this is a tax cut for the very millionaires the hon. Member for Edinburgh East (Tommy Sheppard) is talking about.

[Tommy Sheppard]

I am not sure of the relevance of that intervention. I was describing the manifest economic injustice apparent in our country, and that is the context against which we need to examine rising energy prices.

It might be thought that any Government would want to do something about the extremes of wealth and poverty in Britain, but in fact this Government are making it worse. Last autumn they chose to cut the household income of the 6 million poorest families in the United Kingdom by £1,000 a year—that was a political choice. They are now preparing to introduce tax increases this April, and tax is always a political choice. One could choose to make the wealthiest pay more or one could choose to tax accumulated wealth and capital, but no. This Government are increasing taxes for average and low earners in order to avoid increasing tax for the wealthiest people in the land, for whom tax is at a historically low level. That is the moral tapestry against which we should judge this.

The Government need to take serious action, because standing aside and doing nothing about the cost of living crisis would be to abdicate government. Of course there should be a cut in VAT on energy bills. In fact, consider what it means not to do that. It means that families the length and breadth of the land will face the misery of higher gas and electricity bills and, at the same time, the Government will profit from that misery by bringing in more money from the tax levied on those bills. That is immoral, and of course this proposal should be supported.

Two other things are required. First, the energy cap must be maintained and the Government must take action to make sure energy suppliers are capable of delivering on it. Secondly, as a matter of priority, the Government need to make a heating and energy payment to low-income families that will allow them to deal with the increases that have already happened.

I would hope that these are reasonable asks of the Government of the United Kingdom, but I do not doubt what is going to happen. I know those asks will be ignored, and I know this Government think their 80-seat majority makes them impervious to reason and logic, so they will continue as they wish. That is why, in Scotland, people will be looking again at whether we have to forever be hitched to this Government—whether we have to go along with them and these policies, which benefit the well-off at the expense of the poorer—or whether it is time to take matters into our own hands and, through the political agency of being an independent country, be able to deliver things in a better way, and build an energy supply system and an economy based on fairness and community solidarity.

Scotland: General Election and Constitutional Future

Debate between Jacob Young and Tommy Sheppard

Wednesday 17th March 2021 Commons Chamber

[Tommy Sheppard]

I have an embarrassment of riches. I give way first to the hon. Member for Redcar (Jacob Young).

[Jacob Young (Redcar) (Con)]

The hon. Gentleman is recalling all these different examples of when people have discussed the claim of right; does he remember when the leader of his party said of the 2014 referendum that it was a “once-in-a-generation” referendum?

[Tommy Sheppard]

All good things come to those who wait, and I can assure the hon. Gentleman that I will be dealing with the “once in a generation” tagline later in my speech.

On referendums and whether they should take place, the question will arise as to who should make the decision. If we believe in the will of the Scottish people to choose their own destiny, then the answer can only be that the people of Scotland should decide whether to have another referendum. I accept that there needs to be a debate about how we gauge their opinion and what democratic mechanism is used for them to express their view. Well, democratic societies will quite often do that by using the electoral process and the process of voting, and in 2016 that is exactly what happened. My party did not go into the election in 2016 saying, “There must be another referendum and, 18 months forward, we disrespect the decision that was taken.” We went to the polls saying: “It looks like things are beginning to happen in the UK that will change the whole nature of the options available to people, and there may be circumstances in which it would be legitimate and proper to go forward and reconsider the question again in a second referendum.” That was the mandate that we were given by the people of Scotland in 2016.

That was six weeks before the Brexit vote in the UK, and no one could have anticipated what would unfold in the years after the May 2016 general election in Scotland. People in England voted by a small majority to leave the European Union and people in Scotland voted, by a much larger majority, to stay in the European Union. Overall, the vote was such that there was a narrow majority to leave, and the British Government began the tortuous process of extricating the United Kingdom from the European Union. That process was made all the more difficult and painful by the Government’s decision not to try to accommodate any of the wishes of the people on the losing side of the argument and to seek the maximum possible dissociation from the European Union. That is what happened, and we remember the agonising twists and turns in that process.

As 2018 moved into 2019 and we watched the process unfold, two things became clear. First, the opinion of the people of Scotland in the matter was to be completely disregarded. Unlike in other parts of the United Kingdom where there was an attempt to try to make the decision that was being implemented fit the aspirations of people who lived there, there was no such attempt in Scotland.