Oral Answers to Questions

Debate between Jeremy Hunt and Alison Thewliss

Tuesday 14th November 2023 Commons Chamber

[The Chancellor of the Exchequer (Jeremy Hunt)]

UK food inflation has been driven largely by global factors and has already fallen from 19.6% to 12.3%, and external forecasts expect it to continue to fall.

[Alison Thewliss]

Between March 2021 and April 2023, the cost of first infant formula increased by 24%, on average, with the cheapest formula on the market increasing by 45%. That is an absolute catastrophe for families who rely on infant formula, but a bonanza for the formula companies, which are making significant profits out of this. Can the Chancellor tell me why he believes it is right for companies to profit while families struggle to feed their babies?

[Jeremy Hunt]

The hon. Lady is absolutely right to draw attention to the pressures on families caused by very high food inflation in a number of areas, but I can tell her that the Competition and Markets Authority, which undertook a review of the groceries sector earlier this year, has not yet found evidence that high food price inflation is being driven by weak competition. But it is continuing its review and looking at the supply chain, and we will wait to hear what it says.

Oral Answers to Questions

Debate between Jeremy Hunt and Alison Thewliss

Tuesday 5th September 2023 Commons Chamber

[Alison Thewliss]

Adam Posen, a former member of the Monetary Policy Committee, has described Brexit as a

“trade war by the UK on itself”.

This unnecessary trade war has had a real impact on small businesses in my constituency such as Guild Antiques & Restoration, which has found that its orders from the EU have fallen off a cliff edge and its costs have increased. Scotland did not choose Brexit and we are all worse off as a result. What can the Chancellor do to fill the economic gaps his hard Brexit has caused?

[Jeremy Hunt]

There is a certain irony in the Scottish National party opposing Brexit at the same time as advocating a far more draconian separation for Scotland, including a new currency and border checks. On businesses in Scotland, as part of the UK, Scotland is now an independent coastal state for the first time in nearly half a century; the 21,000 people in Scotland who work in financial services are benefiting from the Brexit freedoms in the Edinburgh reforms; and there is extra support for Scottish pubs, because, for the first time, we have a lower beer duty relative to supermarkets.

Mortgage Charter

Debate between Jeremy Hunt and Alison Thewliss

Monday 26th June 2023 Commons Chamber

[Jeremy Hunt]

The hon. Gentleman is entirely right to say that the mortgage market has changed, given that 85% of deals now involve a fixed-rate element, but I still think that interest rates are the most effective tool. Other countries that have used them are seeing their inflation starting to fall, and I would expect it to do so here.

[Alison Thewliss (Glasgow Central) (SNP)]

The mortgage crisis is not the only crisis over which this Government are presiding. According to StepChange Debt Charity, 45% of mortgage holders—some 7 million—are now struggling to keep up with all their other bills following the rise in interest rates. What conversations is the Chancellor having with companies providing other forms of consumer credit, and with debt advice charities which are giving support on the frontline to many people who have never had to call on their services before?

[Jeremy Hunt]

We continue to have conversations with everyone who is involved in relieving families who are in distress because of debt arrears, whatever they may be, but I think the most important help we can give people is cost of living support. The extension of the energy price guarantee has reduced people’s electricity bills, and means overall that we have paid about half people’s electricity bills over the last year.

Oral Answers to Questions

Debate between Jeremy Hunt and Alison Thewliss

Tuesday 21st March 2023 Commons Chamber

[Jeremy Hunt]

I recognise the challenges that the distilling industry and many other industries are facing. That is why we are giving more than £100 billion of support to businesses and consumers, but I would say to the hon. Lady that Scotch whisky has received nine cuts or freezes in the last 10 Budgets, so we are doing everything we can.

[Alison Thewliss (Glasgow Central) (SNP)]

It is all fine and well for the Chancellor to say that he is in correspondence with Ofgem, but the business energy sector remains unregulated and many businesses in my constituency are stuck on very high tariffs because of the increase in prices, which have now to some degree gone down. What will he do about those people who are marooned on higher tariffs? It is costing their businesses dearly and those businesses may not even survive.

[Jeremy Hunt]

That is exactly why I wrote to Ofgem. Wholesale gas prices are now lower than they were before the Ukraine invasion. The hon. Lady is right to say it is not a regulated market and I want to find out from Ofgem what it thinks should happen to avoid precisely the problem she talks about.

Autumn Statement

Debate between Jeremy Hunt and Alison Thewliss

Thursday 17th November 2022 Commons Chamber

[Mr Speaker]

I call the SNP spokesperson, Alison Thewliss.

[Alison Thewliss (Glasgow Central) (SNP)]

The current Chancellor comes here today as the seventh Chancellor in seven years, and a mere 55 days after the last Chancellor came to this House to present his chaotic mini-Budget. His predecessor managed to crash the economy in 26 minutes; this Chancellor has spent the past 53 minutes trying to patch up those mistakes. The reality is that we will all be living with the disastrous consequences of Trussonomics for some time to come.

The Chancellor has brought forward new targets because he is failing to meet the old ones. His difficult choices are of nothing compared with what many of our constituents face. The Tories spent the summer squabbling in a leadership contest when they should have been preparing for the difficult winter ahead. Now the UK is £30 billion worse off because of the incompetence of the Conservative party. Scotland is paying a heavy price indeed for being in this Union.

The Tories are attempting to cut their way out of a recession. It will not work. Public sector workers deserve a proper pay rise to face the cost of living crisis that the Tories have created, and the Scottish Government do not have the same flexibility as this Chancellor to borrow or make changes in-year. Their existing budgets have already been squeezed and reprioritised and there is nothing left to cut.

The Chancellor says Scotland will get £1.5 billion in Barnett consequentials, yet the Scottish Government’s budget is worth £1.7 billion less than when it was introduced last December. Scotland is being short-changed yet again. Will he listen carefully to what John Swinney has asked for and provide the funding Scotland deserves?

The Chancellor is proposing fiscal tightening on a scale not seen since George Osborne—and we are still living with the real consequences of those poverty-inducing policies: the two-child limit, the rape clause, the brutal benefits sanctions. The Glasgow Centre for Population Health has been clear that the previous round of Tory austerity caused 330,000 excess deaths. More of the same from this Chancellor is a price society cannot afford.

Restoring the triple lock and uprating benefits by inflation is not some victory to be celebrated. Barnardo’s has described it as a “minimum first step”. The rate of inflation announced by the Chancellor is not the actual rate of inflation now—nor, perhaps, will it be the rate of inflation by the time the measure comes into force. Again, the Government are not keeping step with the cost of living. Any compassionate Government with an ounce of humanity would not have to be dragged to make such a decision.

The Chancellor talks about uprating the benefit cap—he should scrap the benefit cap. In Scotland, we have introduced the groundbreaking Scottish child payment and increased it to £25 per child per week, now up to the age of 16. There is no two-child limit in Scotland, because we value every child and want them all to have the best future. Will he commit to the same?

The Chancellor mentioned nothing in his statement for those struggling on no recourse to public funds, and nothing either for asylum seekers trying to survive on just 40 quid a week. Will he increase that support or, better yet, allow them to work and to contribute, as so many want to do?

Inflation is running at 11.1%, a 41-year high. For those in lower-income households, the Resolution Foundation says it runs at 12.5%, as more of their income goes on the essentials. The price of food is up 16.4% in a year, with basics such as bread, milk and pasta all increasing and squeezing household budgets. Combining that with the soaring cost of energy, households are finding it impossible to make ends meet.

Cornwall Insight has estimated that the energy price cap next year may come in at an eye-watering £3,702. I appreciate what the Chancellor has said about energy support, but his energy support package must be wider and deeper. It must lift those who are stuck on prepayment meters and make sure they can turn the heating on. Will he listen to National Energy Action, which is calling for a targeted energy price guarantee, similar to a social tariff, set at £1,500 annually until October 2024?

National Energy Action says that should be for all households on means-tested benefits and disability benefits, those in receipt of attendance allowance and carers allowance and those who are living on less than two thirds of the median household income, and it should be targeted to people living in areas of multiple deprivation. We all know that energy bills will not be reducing any time soon. The Chancellor must ensure that people get the help they need to stay safe and warm.

Insulation schemes should have happened already. The UK Government cut back dramatically on schemes while the Scottish Government invested. More than 100,000 homes in Scotland have been made more energy efficient, while the UK Government have ignored the problem. Now they say, “Wait until 2025.” It is not even jam tomorrow; it is, “Huddle under a blanket for three years until we get to you.” It is absolutely ludicrous.

Will the Chancellor consider not a rent cap, but a rent freeze to help renters, as the Scottish Government have done? For those struggling with their mortgages, will he do all he can to encourage banks to support their customers, and will he fix and expand the restrictive support for mortgage interest scheme, to make it more accessible to those who need it?

There is little in this statement to give hope to businesses. Many that managed to survive the pandemic are now struggling to keep going. Increased labour and energy costs, supply chain difficulties and the crash in the pound have all made a difficult situation so much worse.

I have raised many times in this place the impossibly high contracts that companies are having to sign for their energy bills right now, and the Chancellor was not at all clear how he expects them to keep going once the reprieve finishes in the spring. Companies cannot wait any longer for answers, because for too many it will be too much. We know insolvencies are already on the rise, and with companies going bust, rising unemployment will inevitably follow.

We know that recession has a bigger impact on younger workers. When we look at the Chancellor’s statement, the minimum wage rates are still lagging behind for younger workers. They are being discriminated against on the basis of their age, and that continues to be unacceptable.

There was also nothing in the Chancellor’s statement about carbon capture and storage in the north-east of Scotland. Why not? There was a 45% hike on electricity generators—more than on oil and gas—which will hammer Scotland’s renewables sector.

I will give the Chancellor some opportunities to bring some cash into the UK Government’s coffers. The London School of Economics says that ending the non-dom status could bring in £3.2 billion of additional tax. Taxing dividends at the same rate as income from work would stand to raise more than £6 billion a year.

For some time now, big companies have been engaging in significant share buybacks. Oil and gas, financial services and other companies are using share buybacks because their mega-profits are more than they know what to do with. Those profits are not being invested in new development; they are simply being creamed off. It is estimated that FTSE 100 firms are now due to return £55.5 billion to their shareholders via share buybacks this year.

The Institute for Public Policy Research estimates that a one-off 25% windfall tax on share buybacks of FTSE-listed companies could raise £11 billion in a single year. Even if companies were discouraged from buying back shares under the scheme, it would lead to higher reinvestment in development rather than profits. Why would the Chancellor pass up such an economic opportunity?

The Chancellor should also grow the tax base by increasing immigration and improving the lot of those who have already done us the significant honour of coming to live, work and study in our communities. We should thank them, not tell them they are not welcome. It is beyond time that the UK had a sensible, grown-up conversation about immigration. We on the SNP Benches are clear that immigration is an economic good. The OBR forecasts that higher net migration reduces pressures on Government debt over time. The Chancellor should consider that.

Finally, I come to the policy that unites all the Unionist parties in this House: Brexit. The Tories, Labour, the Lib Dems—all Brexiteers now, fully committed to this futile project of deliberate self-destruction. Dr Swati Dhingra of the Bank of England’s Monetary Policy Committee told the Treasury Committee yesterday:

“It’s undeniable now that we’re seeing a much bigger slowdown in trade in the UK”

than in the rest of the world. Wages are lower, business investment is lower, and the UK is underperforming in both imports and exports. That political choice has brought us here today, to the Chancellor’s decisions, which will affect us all but will hit the least well off the very hardest.

The economist Michael Saunders said this week:

“If we hadn’t had Brexit, we probably wouldn’t be talking about an austerity budget”.

Put that on the side of a bus.

Scotland did not vote for this. We did not choose austerity and we did not choose Brexit. The OBR says that living standards are to fall by 7% over the next two years. It ought to be of no surprise to anybody that just shy of half of Scots think the UK will not exist in its current form in the next five years. This is a UK so weak that no one would wish to join it. Scotland cannot be forced to stay in broke, broken Brexit Britain.

[Jeremy Hunt]

I thank the hon. Lady for her comments. She is complaining about economic instability damaging business in Scotland, but she supports the most destabilising policy of all: separation from the United Kingdom. She complained about Brexit, but 1 million voters in Scotland voted for Brexit, and we are implementing the will of the British people. Behind the sparring in this House, we actually have very good relations with the Scottish Government. My right hon. Friend the Chief Secretary to the Treasury has already met John Swinney, the Finance Minister, and we have good co-operation.

I need to correct the hon. Lady on one point. She said that we are not investing in energy efficiency. What I said—if she listened to my words—is that in this Parliament we are spending £6.6 billion in energy efficiency, and a further £6 billion from 2025. I understand that separation means more to her than anything else in politics, but families in Scotland heard other things today. They heard about the £600 million for the Scottish NHS, £385 million for schools and more than £4 billion to help Scottish families with their energy bills, on top of £4 billion to build the latest frigates. That is because we are more than neighbours; we are family, and Conservatives always back families.

Oral Answers to Questions

Debate between Jeremy Hunt and Alison Thewliss

Tuesday 15th November 2022 Commons Chamber

[Mr Speaker]

I call the SNP spokesperson, Alison Thewliss.

[Alison Thewliss (Glasgow Central) (SNP)]

I welcome this latest Chancellor to his place. Many of our constituents, such as my constituent Angela, have seen their bills double. Angela’s gas bill has gone up from £130 to £260 a month. She lives in a tiny, two-bedroom flat on carer’s allowance and personal independence payment, with a son who has a disability, and she simply cannot afford these bills. Cornwall Insight has estimated that come March, when the energy support ends, the price cap will rise to £3,700. There has been talk of targeting support after that, but National Energy Action has pointed out the risk that many people who are already suffering in fuel poverty will be excluded. What reassurance can he give people out there whose bills are already unaffordable about what will happen in March?

[Jeremy Hunt]

I want to reassure the hon. Lady. My right hon. Friend the Chief Secretary to the Treasury spoke to John Swinney, the Scottish Finance Minister, yesterday. We are thinking very carefully about all these issues, but to correct any misunderstanding, let me add that the energy price support that we give to families will not end next April, and I will announce on Thursday what that support will be.

--- Later in debate ---

[Alison Thewliss (Glasgow Central) (SNP)]

Thank you, Mr Speaker. Austerity is a damaging Tory political choice, which is responsible for 330,000 excess deaths. A responsible and compassionate Government would explore all options to avoid it. Will the Chancellor consider taxing share buy-backs, as the US and Canada have done? The Institute for Public Policy Research and Common Wealth have pointed out that oil and gas, financial services and other companies have funnelled their mega-profits into share buy-backs. Does the Chancellor agree that that is inexcusable when he wants to hike taxes on working people and slash public services?

[Jeremy Hunt]

The hon. Member had better listen to what we say on Thursday before she jumps to conclusions. We will approach the difficult situation that we face progressively. We will ask those who have more to give more. I advise her not to talk down the financial services and energy industries, which employ thousands of people in Scotland.

Economic Update

Debate between Jeremy Hunt and Alison Thewliss

Monday 17th October 2022 Commons Chamber

[Mr Speaker]

I call the SNP spokesperson.

[Alison Thewliss (Glasgow Central) (SNP)]

Thank you, Mr Speaker—[Interruption.] I see that the Prime Minister has urgently run off to something else rather than stay to listen.

When the previous Chancellor came to give his mini Budget three long weeks ago, I called it economic chaos. What an understatement that turned out to be. I am not sure that words have yet been invented to describe the scale of unmitigated disaster which the Prime Minister and her Chancellors have created in the past 24 days. We are back where we started but significantly worse off due to Tory incompetence. Is it not just as well that, in Scotland, the Scottish Government did not take Tory MPs’ advice to copy and paste from here before Government Front Benchers delete all? People will be paying the price for many years to come through higher interest and borrowing rates. Will the Chancellor apologise for the increased costs that his colleagues have inflicted on people? He has not been clear at all, so will he confirm the status of the bankers’ bonus cap—has it been scrapped or not?

There is little by way of detail from the current Chancellor about doubling down on austerity and what that will mean for people. However, the Institute for Government and the Chartered Institute of Public Finance and Accountancy have been clear that there is no fat left to cut after a lost decade for public services under the Tories. Where does the current Chancellor expect to make these cuts or “efficiency savings”? We know what he means when he says that. We already know the terrible price of austerity, because the Glasgow Centre for Population Health has attributed 330,000 excess deaths to Tory austerity policies: an unacceptable human cost. Again and again, the Tories bring forward harmful policies that they never feel the consequences of.

We know that guarantees mean nothing under the Tories, either. The so-called energy price guarantee turns out to be for six months, not two years, with a cliff edge looming next April. National Energy Action has said:

“Many vulnerable people were holding on by their fingertips. Government has to be very, very careful it doesn’t prise them away.”

Will the Chancellor tell us exactly what will happen for households in April? The scale of increases makes almost everybody vulnerable—except, perhaps, his banker pals. What will happen to the most vulnerable when inflation soars as a result of the return of spiralling energy costs?

The previous Chancellor never got round to telling me what will happen to businesses’ energy costs at the end of their six-month reprieve. Will the current Chancellor tell me what support businesses signing impossibly expensive contracts as we speak can expect? Will he, as the former, former, former Chancellor did, commit to uprating benefits with the rate of inflation? Will he also increase support for those languishing in the asylum system and end the punishing “no recourse to public funds” regime? Will he cancel the benefit cap and scrap the two-child limit, which is trapping so many children in poverty? Where is his compassion for them?

Will the Chancellor invest in renewables, carbon capture and storage, and a comprehensive energy-efficiency and insulation package? Does he really understand, when looking at broken Britain, the chaos that the Tories have wreaked and the prospect of a bleak Brexit future under both Labour and the Tories, that more and more of Scotland’s people are looking at the comprehensive independence prospectus set out by the First Minister today and moving towards the vision of a fairer, greener, more prosperous Scotland back in the heart of Europe where we belong?

[Jeremy Hunt]

It is a pleasure to exchange comments with the hon. Lady and I look forward to working with her closely in the months ahead. I remind her that this Conservative Government are spending £37 billion this year to support people across the United Kingdom with cost of living concerns. That is possible because of difficult economic decisions that the SNP has opposed at nearly every stage, and that includes large support for businesses up and down the country. The main thing I would say to her very gently is that she cannot claim to be concerned about the economic turmoil of the last few weeks when the central policy of the SNP—independence—would leave turmoil for Scotland not for a few weeks but for many, many years to come: a new currency; somehow finding a way to trade with the UK internal market but also the European single market; border checks between England and Scotland, as announced today by the First Minister; and a massive gap in public finances that would have to be breached. That is a recipe for precisely the austerity she says she is worried about. Let me say this: if we want economic stability and if Scotland wants economic stability, to coin a phrase we are stronger together.