The Economy Debate

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Department: HM Treasury

The Economy

Kirsty Blackman Excerpts
Thursday 24th October 2019

(4 years, 5 months ago)

Commons Chamber
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Kirsty Blackman Portrait Kirsty Blackman (Aberdeen North) (SNP)
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I am not standing up to make a job application, as some people have suggested. In fact, we are trying to work ourselves out of a job by securing an independent Scotland, not one that has to send representatives to this place.

I take this opportunity to introduce amendment (h), in the names of my right hon. Friend the Member for Ross, Skye and Lochaber (Ian Blackford), the right hon. Member for Dwyfor Meirionnydd (Liz Saville Roberts)—the leader of Plaid Cymru in the House of Commons—and many other SNP Members.

This place has been nothing short of chaotic over the past few weeks and, in fact, over the past three years. If Members are looking on in horror at the childish behaviour of the UK Government, I can only imagine how people out there are feeling as they watch the utter chaos created by the actions of this Tory Government.

This year’s Queen’s Speech comes in the most turbulent and uncertain times these isles have seen in decades. In the pursuit of a hard Tory Brexit that rips us out of the single market, the Scottish economy is already £3 billion smaller than if none of this had been foisted upon us by this Government. UK in a Changing Europe estimates that GDP per capita will be some 6.4% lower in the long run compared with the UK remaining in the EU. That represents, on average, every person in these isles missing out on £2,000 of income each year.

This deal proposes the loss of the single market. The world’s largest economic bloc gives businesses in Britain access to 500 million customers, with no barriers, no tariffs and no local legislation to worry about. It is no surprise that nearly half our exports go to other EU nations. Those exports are linked to 3 million jobs in the UK. Today, almost 80% of British jobs are in the services sector, a sector with £226 billion of exports, nearly half of which go to Europe.

“I can see why some people want to leave the EU. Arguments about national identity and sovereignty pack an emotional punch. But for anyone who cares about British jobs, it comes down to one key question. Do businesses want the benefits and security of continued access to the Single Market, or the instability and uncertainty of a lost decade?”

Those are not my words but the words of the Chancellor of the Exchequer, who is now willing to tip businesses into that lost decade in pursuit of this hard Tory Brexit.

Luke Graham Portrait Luke Graham
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The hon. Lady talks about childish behaviour, but it was, of course, the SNP that walked out of proceedings in this House rather than participate in debate.

On her point about tipping over the economy, I would say that my right hon. Friend the Chancellor of the Exchequer understands the irony of a nationalist standing up in this House to talk about leaving an internal market, costing billions of pounds, when that is the SNP’s reason for existence.

Kirsty Blackman Portrait Kirsty Blackman
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The SNP only walked out of this place because our leader was chucked out. We followed him out because we were standing up for the rights of the Scottish Parliament to stand up against the power grab this place was foisting on us.

A Panelbase poll came out a couple of weeks ago showing that more people in Scotland believe they would be better off in an independent Scotland within the EU than in broken Brexit Britain. We are winning the economic argument, and the Conservatives are losing it.

The Conservatives know they are losing the economic argument, which is why they are unwilling to publish an economic impact assessment of this deal. They are unwilling to allow the Office for Budget Responsibility to publish the figures on what will happen to the economy as a result of the Prime Minister’s Brexit deal. That is why they are wavering about the date of the Budget. If the Chancellor would confirm that the Budget will be on 6 November and that the OBR’s figures will be published, that would be welcome news, but he does not seem keen to see those figures come forward.

Jamie Stone Portrait Jamie Stone
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A vibrant Scottish economy, whether independent or within the UK, relies on a viable banking network. I will shortly have only one bank branch left in the whole county of Sutherland. Every time I have raised this, the Treasury has given me comforting words about 99% of the population having access to a local post office. Many of my constituents live 20, 30 or 40 miles, or even further, from the nearest post office or bank branch. Surely now it is time to take action on this serious issue, which fundamentally undermines the economy not only of Scotland but of the UK.

Kirsty Blackman Portrait Kirsty Blackman
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I agree. In fact, the SNP has been at the forefront of fighting rural bank closures, saying that post office services are inadequate and unable to take on the role being foisted upon them by the closure of banks. We will continue to do everything we can to support our communities and to ensure they have access to free local banking services, local to them, that they can get to by public transport, if at all possible. We will keep doing what we can.

Hannah Bardell Portrait Hannah Bardell (Livingston) (SNP)
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My hon. Friend, as ever, is making a fantastic speech. Does she agree that this Tory Government are the biggest threat in a generation to Scotland and its economy? The tourism sector, in particular, benefits all our constituencies. Scotland is rightly recognised as one of the most beautiful countries in the world, and 70% of businesses in the tourism sector are worried about the end of free movement of people, the loss of access to the vital member states of the European Union and the loss of labour for their businesses.

Kirsty Blackman Portrait Kirsty Blackman
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I absolutely agree. I was about to come on to the details in our amendment about the loss of freedom of movement and the problems it will cause. As our amendment sets out, we believe

“that freedom of movement has brought immeasurable social, cultural and economic benefits to the people of Scotland, England, Wales and Northern Ireland and the European Union as a whole”.

I wish to focus for a moment on the economic benefits of immigration and the significant problems that will be caused by the implementation of the immigration Bill that the Government intend to bring forward.

Each EU citizen who comes to Scotland adds £34,400 to GDP each year. That is not an insignificant number. Those people who choose to come to live and work in Scotland are largely young and working, they have relatively few healthcare needs and are contributing economically to our country’s wealth. Reducing the number of EU migrants by setting arbitrary salary levels and reducing our ability to attract both long-term and seasonal migrants will hit our economy even harder than some of the other things associated with Brexit. We do not want this future. We want our country to continue to be the welcoming, inclusive, outward-looking country that it is and we absolutely reject the Tories’ proposals on immigration.

Ian Blackford Portrait Ian Blackford (Ross, Skye and Lochaber) (SNP)
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Is it not the case that, over the last 100 years, Scotland has faced a unique challenge in growing its population and it is only since being in the EU, with the benefit of EU migrants, that Scotland’s population has begun to grow? What right-minded person would put that rising population—that rising workforce—at risk by ending free movement?

Kirsty Blackman Portrait Kirsty Blackman
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One of the first political moments I remember came when Jack McConnell was talking about Scotland’s population dipping and about the massive concerns there were around the millennium about its population going below 5 million; I think that was the number at the time. I recall hearing that and thinking, even as a 14-year-old in 2000, how devastating it was. I am so pleased that we have had the freedom of movement that has come as part of the EU.

My kids go to school with so many children from so many countries around the world, and a huge number of them are from the EU. They are living in Aberdeen. Outside London, Aberdeen has the highest percentage of non-UK-born people in the UK, which is amazing for a place that people think is quite far away. Actually, we are pretty good at attracting people. But we struggle with the immigration rules. Every week people come to my office and sit around my table crying because the UK Government are saying that, despite the fact that they have jumped through every possible hoop that has been put in front of them, they are not able to stay and they must return to Nigeria, Poland or whichever country it is that they originate from. This UK Government are attempting to make that situation worse, not better.

I wish to look at the economic impact of failing to support technologies that help to meet our climate change targets. In Scotland, we have the skills, ability, capacity and geography to become world leaders in these technologies, but we need the UK Government to stop messing around and to take their responsibilities seriously. We must have immediate action to support and invest in carbon capture and storage technologies. We are uniquely placed, with our geology, to capitalise on this and to become world leaders in this space, and we cannot have the situation that happened when George Osborne was in the Treasury: he pulled funding at the last moment for these vital future technologies for our country.

We also need the UK Government to take their responsibilities seriously on this. They cannot just set a target of 2050 and then refuse to set out a plan for how they are going to get there. They should look at what the Scottish Government have done on the green new deal, which sets our targets and makes clear how we are going to reach our target of 2045, rather than just having an arbitrary, pie-in-the-sky target. As my hon. Friend the Member for Edinburgh North and Leith (Deidre Brock) said, the UK Government are doing lots of talk, but no actual action. So we would like them actually to take action through the environment Bill.

Albert Owen Portrait Albert Owen
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The hon. Lady makes an important point about different devolved Administrations going at difference paces, but we have actually seen cuts to energy-efficiency measures in England, whereas Scotland spends four times more on energy efficiency, Wales spends twice as much, and Northern Ireland, which does not even have a Government, spends one and a half times more than the UK.

Kirsty Blackman Portrait Kirsty Blackman
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This is a hugely concerning direction of travel and it comes despite climate change and things potentially warming up. We need to have energy-efficiency measures. For example, if we want to decarbonise our gas networks, we need to do things such as adding hydrogen and biomethane into the mix. We also need to do things such as ensuring that we have incredibly energy-efficient homes, be that in new homes or through retrofitting older homes. Aberdeen has a campaign to put insulation in granite tenements, which are particularly difficult to insulate and particularly common in Aberdeen. That has made a massive improvement not just in terms of energy efficiency and climate change targets, but in terms of the wealth of those people, who no longer have to pay those immensely high heating bills.

None Portrait Several hon. Members rose—
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Kirsty Blackman Portrait Kirsty Blackman
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You are looking at me, Madam Deputy Speaker, so I will make some progress.

I am going now to focus on tackling inequality. This Queen’s Speech offers no rays of sunshine. In Scotland, we are bringing forward all our spending review plans, our programme for government and our national performance framework and looking at the plans on the basis of the wellbeing of people who live in Scotland. Scotland and New Zealand are leading the way in the world in this space. The UK Government are not taking account of wellbeing, as we can see by the fact that every time Conservative Members stand up they talk about how great it is that we have such low unemployment, how rich everybody is, how well everybody is going and how much higher their wages are. If we ask people in the streets and people at our surgeries whether they feel as though they are richer than they were before a decade of austerity, we find that they all say that they are not richer and that this Tory Government have catapulted them into poverty. We are seeing increasing numbers of children in poverty. In Scotland, we are doing everything we can to combat that, through things such as the baby box and the Scottish child payment. Our Government are doing everything they can but they cannot mitigate every one of the excesses of Tory austerity, no matter how hard we try, because we do not have all the levers that would be available with independence.

Martin Whitfield Portrait Martin Whitfield (East Lothian) (Lab)
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Does the hon. Lady share my disappointment that in opening this debate the Government were unable to give us a date when they are going to close food banks?

Kirsty Blackman Portrait Kirsty Blackman
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I agree. I am incredibly concerned about the increase in food bank use that there has been, particularly among people who are working. The Government talk about the fact that so many more people are at work, but so many more of those people who are at work are having to go to food banks. People are having to make the choice between heating their homes and feeding their children. Half of families have less than £100 in savings and, if their washing machine breaks down and their kid needs a new pair of shoes, they are into debt. That situation cannot continue. We need this UK Government to step up to ensure that people are paid a living wage that they can actually live on. It does not matter what age they are, be it 19, 29 or 59, they should be paid a living wage that they can live on.

Hannah Bardell Portrait Hannah Bardell
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I share my hon. Friend’s sentiments. Our SNP-led Scottish Government are fed up with filling in the black holes of this Westminster Government, who are destroying the fabric of our society. Does she agree that it is time they got their house in order? This week, I have had contact from constituents who are waiting for their maternity allowance and have been told by the Department for Work and Pensions that there is a backlog to June. Families and women who are due to have babies are going to be left in poverty because of this Government’s mismanagement. Does she agree that that cannot continue?

Kirsty Blackman Portrait Kirsty Blackman
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That is genuinely shocking. Maternity allowance is something that people absolutely need to get if they are entitled to it, and this UK Government need to step up to the plate and ensure that the women who are entitled to it get it, without months of backlog.

The Government keep talking about “Getting Brexit done.” But the reality, as set out in the piece the Chancellor wrote in 2016, is that, whether a deal is passed this week or not, there will be years, if not decades, of negotiations with the EU. This Government need to be honest with people about that. The Government are not going to be able to get Brexit done in the next week, whatever happens. We need that extension to happen and we need to ensure that there is no cliff edge.

Liz Saville Roberts Portrait Liz Saville Roberts (Dwyfor Meirionnydd) (PC)
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Does my hon. Friend share my concern at reports that the Chancellor of the Duchy of Lancaster, addressing a Committee in the Senedd in Cardiff, has just told us that there are no impact assessments for Holyhead?

Kirsty Blackman Portrait Kirsty Blackman
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I am shocked that the UK Government would try to convince us to vote for anything that they refused to do an impact assessment on. I take this opportunity to throw down the gauntlet to all MPs who represent Scottish or Welsh constituencies: they should all walk through the Lobby with us to support amendment (h). If they do not support the rights and desires of the people of Scotland and of Wales, they will be doing a disservice to their constituents, their constituencies and their countries. The amendment must be agreed tonight, because we must recognise the importance of freedom of movement and the negative impacts in respect of inequality that the Government are having, and we must do everything we can to recognise that there is a climate emergency and to ensure that solid action is taken to step up to the plate and become world leaders.

None Portrait Several hon. Members rose—
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