Scotland’s Economy

John Lamont Excerpts

Tuesday 15th October 2024 Westminster Hall

[Dr Scott Arthur (Edinburgh South West) (Lab)]

It is a pleasure to serve under you, Mr Dowd. I congratulate my hon. Friend the Member for Glasgow East (John Grady) on securing the time for this debate, and thank him for touching on the university sector in his opening remarks. Scotland’s universities, which are among the very best on the planet, are more than just institutions of higher learning; they are vital engines driving our economy. From groundbreaking research fuelling innovation to nurturing the next generation of talent, universities play a pivotal role in shaping Scotland’s future. Anyone who doubts that only has to look at the support that Heriot-Watt University’s National Robotarium, in my constituency, gives businesses. That is just one example of how knowledge and expertise generated within our universities attracts investments, creates jobs and fosters economic growth.

I am proud that people living in Scotland have access to free university education, but I am ashamed that our universities are not fully funded to deliver that. Universities receive direct funding for each student via the Scottish Government, but that is currently around £2,000 less than universities in England get. The gap is only widening. If we are serious about growing Scotland’s economy, underfunding Scotland’s universities must end.

I am proud that our universities attract the best minds from around the world, both staff and students. This year, however, the number of visas issued to students coming from overseas to the UK overall dropped by 16% due to Conservative immigration policy. That is a failure, and is really concerning given the current state of the sector in both Scotland and England. It also only damages the multicultural vibrancy that should be at the heart of any university experience, such as the one that my son Ben gets at the University of Edinburgh.

In conclusion, Scotland’s universities are not just assets but essential catalysts for economic growth. By investing in education and research, we are investing in our nation’s future. That is why our universities must be nurtured and cherished, and their success should never be taken for granted.

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

The hon. Gentleman makes an important point about Scotland’s universities and the role that they play, particularly regarding investment in our universities. So does he agree that it was a mistake by the UK Labour Government to reverse investment in the supercomputer in Edinburgh?

[Dr Arthur]

It was a mistake for the previous Conservative Government to commit to that project without allocating funding to it. My good colleague, the Secretary of State for Scotland, is working day in, day out to secure that funding.

If we are serious about growing Scotland’s economy, we must ensure that our universities have the funding they need, and that the voice of the UK’s universities is heard when it comes to setting immigration policy.

--- Later in debate ---

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

It is a pleasure to serve under your chairmanship, Mr Dowd. I am grateful to the hon. Member for Glasgow East (John Grady) for bringing forward this important debate on the state of Scotland’s economy. As he highlighted, there can be no doubt that Scotland’s economy has suffered from 17 years of SNP rule. It is impossible for me to mention all the many contributors to this morning’s debate, but I want to mention a few.

First, the hon. Member for Dunfermline and Dollar (Graeme Downie) rightly highlighted the multiple failures of the SNP over the last 17 years, not just in relation to economic policy, but in other areas too. The hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) talked about the importance of skills, particularly in rural areas such as his, and the same applies in my own area in the Scottish borders. Another challenge we face in the borders is access to childcare, which prevents young women from going back to work.

[Jamie Stone]

Does the hon. Gentleman accept my point that these skills are ageing? We still have them but, if we do not pass them on, they could vanish and it will be much harder to train a new generation of welders and fabricators.

[John Lamont]

I totally agree. We need to invest in the skills we have; otherwise they will be lost, particularly for more traditional industries. If the skills are lost there, they might never return.

I do not often agree with the hon. Member for Aberdeen North (Kirsty Blackman), but she highlighted an important point about the gap that is emerging, with skills in the oil and gas sector potentially being lost if the renewable sector does not accelerate more quickly. Those in the sector up in the north-east, in Aberdeen, highlighted that point repeatedly during my time as a Minister. They were concerned that there was such a stigma attached to the oil and gas sector now that new people were not moving into that area and would not then be able to move over to the renewable sector when that opportunity arose.

[Graeme Downie]

Does the hon. Gentleman agree that the failure of both the SNP and Conservative Governments to plan for the site at Longannet, which closed in 2016 and now lies empty, is a missed opportunity? Does he agree that all Governments in the future should be looking to work together on that, to bring thousands of jobs back to that area of west Fife?

[John Lamont]

I will push back slightly on the narrative that, up until the election of the new Government, the Scottish Government and the UK Government had not been working together on the project that the hon. Gentleman mentions, or on other areas. The reality is—as, again, I know from my own experience as a UK Government Minister—that there were huge amounts of co-operation between the Scottish Government and the UK Government latterly. Yes, we did not agree on the question of independence, but it is a myth to say that just because there is a new Prime Minister, a new Labour Government, all of a sudden there is a reset. I know the UK officials behind the scenes were working incredibly hard with officials in the Scottish Government to achieve the best for all of our communities; for all of us who represent Scottish constituencies. The project he highlights is an example where both Governments should be, and have been, working together to try to achieve positive outcomes.

The last Member I want to mention is the hon. Member for Edinburgh South West (Dr Arthur). I have to say I was very disappointed that he refused to oppose the new Labour Government’s decision to scrap the supercomputer project for Edinburgh University. I know it was going to be a huge boost to the university. I know that even in my own area, again in the borders, there were a number of people directly employed with that project and they were mightily disappointed when the new Government decided to rip up that deal.

[Blair McDougall (East Renfrewshire) (Lab)]

Will the hon. Member give way?

[John Lamont]

I will make some progress, if I may, as I have taken a number of interventions.

Our workers and businesses have been poorly served by a nationalist Government who have too often been distracted from the day job and who have too often overlooked and sometimes even ignored what small businesses have said.

Let me outline how stark the situation has become. A recent survey by the Fraser of Allander Institute at the University of Strathclyde highlighted two key points. First, just 9% of Scottish firms agree that the Scottish Government understand the business environment in Scotland. Secondly, just 8% of businesses agree that the Scottish Government engage effectively with their sector. Those statistics should have been a wake-up call for the SNP to reset its relationship with the business community. It has been promising that reset for years, but it simply has not happened and the consequences are now becoming clear.

Compared with 10 years ago, the Scottish economy has also grown more slowly than the United Kingdom’s economy overall. GDP in Scotland is 8.4% larger in quarter 2 of 2024 compared with in quarter 2 of 2014, whereas UK GDP is 14.3% higher. Although the nationalists may try to claim an excuse by citing different population-based figures, the Fraser of Allander Institute have already dismantled that, too. Its most recent economic commentary found that,

“even when the differential population growth in the UK and Scotland is accounted for…growth in Scotland per person over the last 10 years has been 6% for the UK, compared to 4.3% for Scotland”.

It is crystal clear that ever since the independence referendum, Scotland has suffered from an SNP slowdown. The SNP’s damaging business policies and harmful decision to bring the Greens, who do not even believe in economic growth, into government has cost our country dearly. Scotland’s economy is crying out for something different, but it is not happening at the moment. Labour and the SNP offer only more of the same old ideas. John Swinney and Anas Sarwar favour most of the same policies. They both want higher taxes on workers. They both expect businesses to pick up the bill for a bigger state. They have the same socialist ideology that has failed Scotland for decades.

The left-wing parties in the Scottish Parliament have become disconnected from the lives of normal people. They spend too much time on divisive policies and fringe obsessions like gender reform and they do not spend enough time, energy, and resources on driving Scotland’s economy forward. Scottish Conservatives are proudly standing up against that left-wing consensus of the political establishment in Scotland. Scotland’s workers, businesses and indeed our entire economy need a different approach. They need a new way forward.

[Tracy Gilbert]

Does the hon. Gentleman agree with me that the new deal for working people would lift hundreds and thousands of families out of poverty, and that can only be good for Scotland?

[John Lamont]

I am grateful for that intervention. I did not quite catch the first point, but the previous Government had a proud record of improving the lives of people across the length and breadth of Scotland by lifting people and families—and children in particular—out of poverty. That is a record the previous Government are rightly proud of.

I wait to hear what the new Government are going to do, and what the Budget will contain. I know from businesses, many communities and residents that there is a great fear of higher tax and more money going out of people’s pockets, which will do nothing to deal with poverty in many communities the length and breadth of Scotland.

The Scottish Conservatives are determined to deliver the stronger economic growth our country desperately needs. Under our new leader, Russell Findlay, the Scottish Conservatives will put forward a positive vision for the future of our country that champions the values of mainstream Scotland—opportunity, aspiration and decency. We will present positive new policies to fire up Scotland’s economic growth, create opportunities for workers and businesses, and reward aspiration with lower taxation.