The Economy

Kirstene Hair Excerpts

Thursday 22nd March 2018 Commons Chamber

[David Linden (Glasgow East) (SNP)]

Well, how do you follow that, Madam Deputy Speaker? It is a pleasure to follow the hon. Member for Clacton (Giles Watling), who delivered his speech in his own inimitable style.

I must say that I am a bit disappointed that the right hon. Member for Wokingham (John Redwood) has now left his place; I am sure he is away to have a cup of tea or something like that. He spent a huge amount of time saying how terrible Treasury forecasts were, and the irony of that was not lost on me. I was an activist during the entire Scottish independence referendum campaign, and we were told by the UK Government, Conservative Members and, indeed, Better Together, how terrible the forecasts looked, so it was ironic to listen to him rubbishing such forecasts. I will certainly bear that in mind when Scotland gets another independence referendum.

[Kirstene Hair (Angus) (Con)]

Does the hon. Gentleman agree that the Scottish Government were wrong in their forecasts? They said that £1.8 billion came in from oil revenues in 2015, but that went down to £60 million in 2016. Their White Paper was very much based on such oil revenues coming in, but that would never have been the case.

[David Linden]

At least the Scottish Government produced a White Paper, which was a heck of a lot more than the UK Government provided in the run-up to the Brexit referendum. Perhaps the fact that there was not enough information was the reason why a number of people in the UK felt they could not make up their mind on the referendum.

The right hon. Member for Wokingham spent a lot of time talking about fishing. One of his great heroines is Margaret Thatcher, but it was of course Margaret Thatcher who said that the Scottish fishing industry was “expendable”, so I will take no lessons from him on fishing.

I am very grateful for the opportunity to contribute to this debate on the economy. My Chief Whip, my hon. Friend the Member for Glasgow North (Patrick Grady), who has just come into the Chamber, tells me that the debate can last until 5 pm. I will not speak for the next two hours and 45 minutes, because some members of the Press Gallery would not be happy, but this is a good opportunity for us to focus on the record of a UK Government who are very much asleep at the wheel.

--- Later in debate ---

[David Linden]

Yes, and one of those less wealthy places is my constituency of Glasgow East, but people there do not regularly come to me and say how wonderful the United Kingdom is because it has these lovely nuclear weapons that can defend the foodbank in Parkhead. I welcome the decision to include the police and fire and rescue services in the exemption from UK VAT, but it is only fair that the £175 million is returned to Scotland, so that we can invest.

[Kirstene Hair]

Does the hon. Gentleman agree that the Scottish Government were well aware of the implications of a Scotland-wide police force, yet they still forged ahead with it?

[David Linden]

Indeed, that is correct, and I am sure the hon. Lady will also take the opportunity to place on record the fact that the Scottish Conservative party also went into the election with that as a manifesto commitment. It is not a strong point for the Conservative party.

This Government’s stewardship of the economy is based on the choices they make. In one respect, the Chancellor and his Ministers paint themselves as fiscally prudent Steady Eddies who wish to avoid a spending splurge. They will tell the WASPI women that there is no money for transitional arrangements and implement painful social security cuts for the disabled. They will depress wages for young people who are unfairly excluded from the national living wage. They will tell us that fiscal prudence and sensible spending is the order of the day, but then they will magic up £1 billion pounds for their grubby confidence and supply deal with the DUP. They will magic up £4 billion to tart up this royal palace and all our lovely offices, and £3 billion for Brexit spending. In truth, how we run our economy is about the choices we make, and this Government’s choices have failed the basic tests of investing in people and public services and of delivering social justice for the most vulnerable in our communities.

[Kirstene Hair (Angus) (Con)]

It is now nearly eight years since Labour left this country in the grips of an economic crisis, and it is undeniable that we have come a long way since then. Unemployment is now at lows last seen in the mid-1970s, and not even in the years before the last recession were so few people out of work. Indeed, we used to debate whether such low unemployment rates were even possible in a modern economy and whether “full employment” these days means simply a higher level than it used to be.

Under this Conservative Government, we have proved the doubters wrong. Our economic policies, such as cutting corporation tax from 28% to 19%, have spurred job creation, and our welfare policies—in particular universal credit—have stopped the scandal of people being punished by the benefits system for entering work or increasing their hours.

Employment is not the only area of success. The UK’s economic growth continues to outperform expectations, and the £154 billion a year deficit that Labour left us with has now been cut to just £45 billion. Conservative policies have cleared up the mess left behind by Labour and brought prosperity back to Britain. That makes me all the more angry and disappointed that, thanks to SNP misrule, Scotland is not fully sharing in that prosperity. The story of Scotland under the SNP is an outrage in itself, but it is also a cautionary tale about what the SNP would do to Scotland if it achieved its dream of independence and about what a hard-left Labour Government, propped up by Scottish Labour and the SNP, would do to Britain.

Scotland’s economic growth has been well below 1% for two years in a row, while the rest of the United Kingdom races ahead. Once population growth is accounted for, Scotland is hardly growing at all. Even more shocking is the fact that the Scottish Fiscal Commission expects that stagnation to continue, until growth finally limps above 1% in 2022. That would mean six consecutive years on the brink of recession—a malaise the likes of which we have not seen in 60 years.

[Peter Dowd]

We heard the right hon. Member for Wokingham (John Redwood)—

[Peter Dowd]

Where is he indeed? We heard the right hon. Gentleman completely distance himself from Mrs Thatcher, which is an achievement in itself. I now give the hon. Member for Angus (Kirstene Hair) the opportunity to distance herself from Mrs Thatcher’s policies, which saw mines and shipyards closed down and industry completely decimated in Scotland. Will she apologise for that?

[Kirstene Hair]

I thank the hon. Gentleman for his intervention, but I am most concerned about the Labour leader, the right hon. Member for Islington North (Jeremy Corbyn), leading Britain.

The Salmond-Sturgeon era is turning into a dark period in Scotland’s history. Let there be no doubt that the blame for Scotland’s stagnant economy lies squarely with the SNP, which has made Scotland the most taxed part of the United Kingdom.

[David Linden]

During my time in Parliament as an MP and before that as a researcher, I heard Conservative Members say often that Scotland has tax powers, so why are they not being used. That is precisely what the Scottish Government have done. It may be that I and the hon. Lady will pay more tax, but that is fair because we earn a pretty good salary. In reality, however, most people in Scotland are paying less tax. Will she acknowledge that?

[Kirstene Hair]

I campaigned hard about the fact that some people, such as members of the armed forces, cannot choose where they are stationed. They are being stationed in Scotland not through choice but because that is where they are posted, and they are being unfairly taxed. The hon. Gentleman’s colleagues in the Scottish Parliament stated in their 2016 manifesto that they would not increase rates of tax, and they have yet again broken a manifesto promise. I find that disrespectful to the people of Scotland.

[David Linden]

The hon. Lady is being most generous in giving way, as was I. Does she acknowledge that 83% of members of the armed forces in Scotland will now pay the same or less tax than before?

[Kirstene Hair]

In fact, 70% of members of the armed forces who are stationed in Scotland will be hit by the SNP’s income tax hike. That is a fact and that is why I was so delighted that all the campaigning carried out by my hon. Friend the Member for Moray (Douglas Ross) and me since that announcement was made by the Scottish Government in December has enabled the Secretary of State for Defence to review the situation and consider how the UK Government can try to mitigate that tax increase. We need to encourage people into our armed forces, not push them away.

While the UK Government pursue competitive, pro-growth, low-tax policies, the SNP is taking Scotland in the opposite and, in my opinion, wrong direction. The SNP has created a society where everyone who earns more than £26,000 a year—that includes nurses, primary school teachers, and corporals in the Army and Royal Marines—is labelled a “high earner” and forced to pay more tax than their counterparts in Wales, England and Northern Ireland. Taxpayers in the rest of the United Kingdom should be warned that that is the reality of asking “high earners” to pay more. Despite all that tax, Scottish schools and NHS Scotland services are still chronically underperforming and disgracefully understaffed. That is the picture I see in my constituency in Angus.

[David Linden]

I am genuinely grateful to the hon. Lady for giving way again. She talks about the NHS and schools being underfunded. How on earth does she expect to fund them by cutting taxes?

[Kirstene Hair]

I strongly believe that we should allow working people to keep more money in their pockets. The Conservative party has always been the party of low tax, and the contributions from Conservative Members today have shown how that is in the best interests of growing our economy.

The Scottish Government have made an immense mess of business rates, with Scottish businesses having to pay £14 million more in tax than they would if they were based in England. Small wonder that Scotland now has the lowest rate of business growth in the United Kingdom. Of course, it is again the nationalists who are holding Scotland back with their constant threats of putting us through a second independence referendum, which the people of Scotland do not want.

The SNP’s goal of independence inside the EU single market would destroy the internal market of the UK, which accounts for 61% of Scotland’s exports, yet the SNP turns a blind eye to that. Is it any surprise that businesses and investors are deterred by the SNP holding the threat of a second independence referendum over their heads? The Scottish Government want to sacrifice the UK internal market on the altar of the EU single market, which is almost four times less important to Scotland’s economy. They want to take Scotland back into the EU and—inevitably—subject Scottish fishing communities to the unjust common fisheries policy in perpetuity. For coastal communities in Angus and across Scotland, getting out of the CFP is the first, necessary step towards reviving our fisheries and wider coastal economy. Fishing already contributes greatly to the Scottish economy, and once out of the CFP, it will have even more to offer. I have said openly that this week’s transition deal was disappointing, and the UK Government will have to be extremely vigilant to ensure that the interests of our fishing industry are defended until the end of 2020.

[Kelvin Hopkins]

I apologise for intruding on private Scottish grief. Does the hon. Lady not accept that the real reason we have sluggish growth in the United Kingdom as a whole is because of Tory austerity, cuts in public spending and low wage growth?

[Kirstene Hair]

The contributions from my hon. Friends, which I do not need to reiterate, showed the very positive steps the United Kingdom as a whole has taken. Scotland, however, has done less than half of that, which is why it is incredibly important to highlight.

Moreover, the UK Government must deliver full control of our waters, with no compromise on any final Brexit deal that sells out our fishermen in exchange for something else. But the facts remain the same: the Conservative UK Government want us out of the EU and out of the CFP so that our fishing industry can flourish again. The SNP Scottish Government want to fail coastal Scotland again by taking us back into the EU and back into the CFP.

The truth is clear. While the rest of the United Kingdom shares the fruits of successful Conservative policies, Scotland stagnates under the SNP. If anyone wants to know about the SNP’s attitude to economic growth, know simply that in 18 months it still has not spent a penny of its own £500 million growth scheme. I very much welcome the UK Government’s investment in the Tay cities deal. This will be a welcome boost to my local economy in Angus and I am working incredibly hard to ensure that rural areas receive their fair share.

I am counting down the days, as are many others, until 6 May 2021, when Scottish voters will give their verdict on the SNP’s era of stagnation and bring it to a close. In the meantime, we can only point out what must be done if Scotland is to return to prosperity: an end to the menacing speculation about indyref 2; a clear commitment to preserving the UK internal market through Brexit and beyond; the abolition of the “Nat tax” to ensure that Scotland is no longer the most taxed part of the Union, either for individuals or businesses; and the cutting out of waste and diverting that money to promote growth and make our public services functional again. I hope that, at some point in the next three years, the Scottish Government will see the light and allow Scotland to fully benefit from the strong UK economy that the Conservatives have built, but it is looking increasingly likely that that task will fall to our next First Minister, Ruth Davidson.