Oral Answers to Questions
Kirsty McNeill Excerpts(1 day, 16 hours ago)
Commons ChamberRead Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Dr Scott Arthur (Edinburgh South West) (Lab)
The Parliamentary Under-Secretary of State for Scotland (Kirsty McNeill)
The Employment Rights Bill represents the biggest upgrade of workers’ rights in a generation, banning zero-hours contracts, ending unscrupulous fire and rehire practices, providing day one protections for paternity leave and against unfair dismissal, and improving access to statutory sick pay. With International Women’s Day fast approaching, we should remember that it is working women who will benefit disproportionately from this groundbreaking legislation. That is what change looks like, and that is the difference that a Labour Government make.
Dr Arthur
Residents throughout my constituency welcome the improvements in workers’ rights, but parents are greatly concerned about the impact of the growing gap in attainment in Scottish schools between the richest and the poorest, and what it means for their children’s ability to find their first jobs. This week I have been inundated with comments from parents who are worried about the recent Audit Scotland report on support for children with additional needs; it is a disgraceful report. Can the Minister assure me that she will use whatever influence she has to ensure that the Scottish Government make education a priority?
Kirsty McNeill
My hon. Friend is right to raise the concerns of parents who are worried about how their kids will get good jobs. The SNP has said that a zero- hours contract is “a positive destination” for a school leaver, but this Labour Government will ban such exploitative contracts. Labour’s Budget delivered an extra £4.9 billion for Scottish public services, but after 18 years the SNP still does not see Scottish kids as a priority. It should stand aside, and give Scotland the chance of the new direction that it deserves.
Jim Shannon (Strangford) (DUP)
I thank the Minister for her response, but more importantly I thank the hon. Member for Edinburgh South West (Dr Arthur) for setting the scene. He has clearly explained the importance of having children, and the importance of their having opportunities. With those opportunities in mind, has the Minister had a chance to discuss with the equivalent Minister in the Northern Ireland Assembly how we can better help our children in Northern Ireland, as she wishes to do in Scotland?
Kirsty McNeill
I have not had that chance, but I would be delighted to do so. Scottish education is, of course, devolved to the SNP Government. SNP Members should think long and hard about the fact that they have claimed that it is their No. 1 priority and yet the attainment gap is growing. Working-class kids’ education and exam results were explicitly downgraded by the serving First Minister. We would be delighted to partner with anyone across these islands who wants to increase educational opportunity for our young people.
Brian Leishman (Alloa and Grangemouth) (Lab)
Harriet Cross (Gordon and Buchan) (Con)
The Parliamentary Under-Secretary of State for Scotland (Kirsty McNeill)
Economic growth is the Government’s No. 1 mission. These changes to national insurance contributions are being made in the context of a resilient labour market, with the estimated employment rate up 0.9 percentage points over the last quarter of 2024. We are creating jobs and opportunities through our plan for change and truly making work pay, to help raise living standards right across the UK.
Harriet Cross
The Labour Government’s decision to hike national insurance is a cost on businesses before they even open their doors. I have spoken to many businesses across my constituency in recent months, and all have said how worried they are about the changes. In response to my recent business survey, one large business said that it is now looking to cut up to 25 jobs because of the NICs changes, and that it is beyond belief that the Labour Government have decided to do this. Given that this example will be replicated in constituencies across Scotland, including the Minister’s, can she really stand at the Dispatch Box and say she believes in this policy, which so directly hits jobs, employment and growth across Scotland?
Kirsty McNeill
I do believe in this policy, in the same way I believe in all the announcements we made in the Budget. As is so often the case with Conservative Members, they will the ends of the Budget but not the means. If the hon. Lady wants changes to the public services that people in both our constituencies rely on, we need to have the revenue to pay for them. That is what this Budget was all about: cleaning up the mess we inherited and getting the investment into public services that is so desperately required.
Graeme Downie (Dunfermline and Dollar) (Lab)
As we know, one of the best ways to grow employment in Scotland is through apprenticeships. A few weeks ago, this UK Labour Government announced changes to apprenticeships in England that will allow businesses to work more closely with colleges and other skills providers to ensure there is a job at the end of apprenticeships. In Scotland, meanwhile, all we see is stagnation in skills policy, which is reducing opportunities for young people in my constituency and across the country. Will the Minister make every effort to press the Scottish Government to properly reform apprenticeships in Scotland and give young people and others the opportunities they need and deserve?
Kirsty McNeill
I certainly will. I pay tribute to my hon. Friend for all he does to promote apprentices and skills, and particularly apprentices in our defence industry, who are doing so much to keep Scotland, the UK and, indeed, the world safe.
Andrew Bowie (West Aberdeenshire and Kincardine) (Con)
The Secretary of State said that the questions just asked were similar. Well, we did not get an answer on either of our two attempts, so I might try on farming. Scotland’s beef sector is at the heart of Scottish agriculture, with 80% of the country’s agricultural land grazing land, yet domestic beef production levels are set to reduce by 5%, with a 12% increase in imports expected to meet our forecasted demand. It is clear that this Government’s tax changes could not come at a worse time for Scotland’s farmers. Will the Minister please stand up for Scotland’s farmers and make the case to stop this madness?
Kirsty McNeill
The hon. Gentleman is perfectly aware that 73% of agricultural property relief claims each year are for less than £1 million, so almost three quarters of those claiming the relief are expected to be entirely unaffected. According to the latest data from His Majesty’s Revenue and Customs, 40% of APR is claimed by just 7% of estates making claims, meaning that just 117 estates across the UK were claiming more than £200 million in relief in 2021-22. Farmers will still be able to pass down their farms to future generations, just as they always have done.
Susan Murray (Mid Dunbartonshire) (LD)
The Parliamentary Under-Secretary of State for Scotland (Kirsty McNeill)
Properly funding public services and restoring economic stability requires difficult decisions on tax, which is why we are asking employers to contribute more. Stabilising the public finances is the only way to create the long-term stability in which businesses can thrive. The Government recognise the need to protect the smallest businesses, which is why we have more than doubled the employment allowance to £10,500, meaning that more than half of small businesses will either gain or be unaffected.
Susan Murray
A constituent has told me about one of their clients, which is a care home owner that is facing an increase in operating costs of £70,000 a year as a result of the national insurance contributions increase. Most of the business’s caring staff work part time, which suits their family circumstances. However, for each part-time member of staff, the business must pay an additional £615 a year as a result of the change to the national insurance contributions threshold in the Government’s October Budget. In Mid Dunbartonshire, and across the UK, there is growing demand for social care. What will the Government do to help businesses in the care sector that have been hit by these increased staffing costs at a time of significant rises?
Kirsty McNeill
I am sure that the hon. Member, and Members across the House, will join me in paying tribute to Scotland’s social care workers for the incredible contribution they make. Social care is of course a devolved matter. The Scottish Government have now received the largest budget settlement in the whole history of devolution, as well as support for additional employer national insurance costs. The Scottish Government can choose to deliver that additional support for social care, and I very much hope that they do so.
Euan Stainbank (Falkirk) (Lab)
The impact of net changes in the Budget is £5.2 billion more for Scotland. That is record funding to invest in our NHS, protect the successes of devolution and fix our local services, but the Scottish Government have squandered the latter opportunity by continuing to underfund our councils, leaving Falkirk council with a £28 million hole to plug after eight years of SNP control. Does the Minister agree that the £5.2 billion secured for Scotland by the Labour Government could have been used to fix local government, but instead the SNP has chosen to leave the people of Falkirk to pick up the bill?
Kirsty McNeill
Not only do I agree with my hon. Friend that the SNP Government are at risk of squandering this historic opportunity for Scotland, but I stress that the SNP Government might like to ask their Members of Parliament why they voted against this historic Budget in Scotland’s interests.
Oral Answers to Questions
Kirsty McNeill Excerpts(1 month, 1 week ago)
Commons ChamberRead Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Wendy Chamberlain (North East Fife) (LD)
The Parliamentary Under-Secretary of State for Scotland (Kirsty McNeill)
The Secretary of State meets the Deputy First Minister on a regular basis and the inter-ministerial group for environment, food and rural affairs convenes regularly to discuss important issues, including agriculture. I am personally looking forward to speaking at the National Farmers Union Scotland conference in February alongside Scottish Government Ministers.
We have been working hard to positively reset relations with the Scottish Government. The recent Budget saw Scotland receive an above-population share for agriculture, and ringfencing of the budget was removed to respect the devolution settlement.
Wendy Chamberlain
I look forward to hearing the Minister at the NUFS dinner. What conversations has she had with the Scottish Government and the Treasury on the agricultural property relief reforms and their impact on tenant farmers? My understanding from answers to the questions I have asked is that they do not have the same opportunities to ameliorate the APR changes as others do, and it feels like that cohort has been completely forgotten by the Government. Can we urgently review that, if that is indeed the case?
Kirsty McNeill
These reforms still provide a very significant level of tax relief, with the first £1 million of combined business and agriculture assets continuing to receive 100% relief in most cases. Additional assets will still receive relief at a rate of 50%. The Budget was designed to protect the payslips of working people while raising record funding for public services in Scotland. The hon. Lady should outline where she thinks that money should come from if she thinks that the wealthiest landowners should not be paying more tax.
Euan Stainbank (Falkirk) (Lab)
Inheritance tax is a necessary tax. That view is tacitly shared by Conservative Members given that they did not lift a finger to abolish it when they were in power. Do Ministers agree that taxing the most valuable farm estates at half the rate that other inheritance tax payers pay is an essential step to enable record spending on sustainable farming and to deliver record high budget settlements for Scotland? If Opposition Members disagree, they should go back to their constituencies this weekend and explain what they would cut, rather than waiting until halfway through the fiscal year, as the Scottish Government are prone to do.
Kirsty McNeill
I could not agree more with my hon. Friend. Opposition Members have told us about how they want to see the benefits of the Budget, but they are not prepared to support any of the tax-raising measures in it. This Budget secured billions for Scotland, but the SNP voted against that. It delivered a pay rise for 200,000 of the lowest-paid Scots, but the SNP voted against that. It ended Tory austerity, and the SNP voted against that.
Andrew Bowie (West Aberdeenshire and Kincardine) (Con)
May I associate myself and the Official Opposition with the Secretary of State’s comments regarding Denis Law, a proud son of Aberdeen who never forgot his home town? Indeed, his legacy lives on through the Denis Law Trust, which does such good work with young people in and around the city.
This Saturday, the National Farmers Union of Scotland is planning a national day of action in protest at the pernicious, ill thought through and destructive changes to agricultural property relief and its threat to the future of family farms in Scotland. I will be attending the local rally in Aberdeenshire to show my and my party’s support of our farmers. I notice that the Edinburgh rally is taking place but a few miles from the Secretary of State’s own constituency in Ingliston. Does the Minister know whether he will be attending the rally?
Kirsty McNeill
We are in ongoing discussions with the National Farmers Union of Scotland. As I have said, I am proactively attending its conference next month. I am slightly surprised to hear the shadow Secretary of State talking about the changes in the Budget and not welcoming their announcement or, indeed, their implications, such as the International Monetary Fund and the OECD both predicting that Britain will be Europe’s fastest-growing economy in the coming years. The UK is the only G7 economy, apart from the US, to have had its growth forecast upgraded by the IMF for this year. It has also gone ahead of Germany, China and India to become the second most attractive company for global investment, trailing only the US, according to PwC’s annual survey. If he wants to talk about—
Andrew Bowie
Of course we do not agree with the policy in the Budget; the policy is purely wrong. Farmers were not consulted on it. Indeed, they were misled by the Labour party when they were told that this would not happen. It will lead to the demise of the family farm and undermine our food security, as farmers will simply stop farming. The concern, worry and fear that these changes have wrought on Scotland’s farmers are real and are on these Ministers and their Government. If the Secretary of State will not attend the rally this weekend, will he and the Minister at least use their position as Scotland’s man and woman at the Cabinet table to urge their colleagues to do as the NFU asked, which is to stop, reset, reflect, properly engage and consult on an alternative approach to stop this change?
Kirsty McNeill
As the hon. Member is perfectly aware, the majority of estates will not be affected. We are in ongoing conversations with the National Farmers Union of Scotland. We have asked it to come forward with some worked examples of estates that may be impacted. It has not done so yet. Of course, we will continue with our ongoing conversations, but the majority of estates will not be affected.
Kirsteen Sullivan (Bathgate and Linlithgow) (Lab/Co-op)
Martin Rhodes (Glasgow North) (Lab)
The Parliamentary Under-Secretary of State for Scotland (Kirsty McNeill)
Our plan for change will benefit workers in Scotland more than most. More than 100,000 workers in Scotland on zero-hours contracts could benefit from the Employment Rights Bill. The Bill will have significant benefits for workers in insecure and low-paid jobs, and central Scotland is one area where those workers will stand to benefit the most.
Martin Rhodes
In 2023, the Low Pay Commission estimated that approximately 13,500 employees who lived in Glasgow were paid at or below the relevant minimum wage—4.8% of all employees living in the city. What assessment has the Minister made of the impact of the Government’s “Make Work Pay” initiative for those workers and others in Scotland?
Kirsty McNeill
The increase in the national minimum wage is delivering on our commitment from day one in government that work should always pay. Modernising the UK labour market, including through extra pay and secure jobs, is at the heart of rebuilding our economy and will help us to achieve our plan for long-term national renewal and growth. In addition to the more than 13,000 workers in Glasgow my hon. Friend mentioned, national minimum wage increases will benefit workers across Scotland, with more than 4,000 in Dundee, 4,400 in the highlands and 2,900 in the Scottish Borders set to benefit, to name just a few.
Sir Ashley Fox (Bridgwater) (Con)
The Government’s Employment Rights Bill will increase costs on small and medium-sized enterprises by £5 billion a year. It will make it easier to strike, and easier for employees to sue their employers. Combined with the tax rises announced in the Budget, is it not inevitable that this Labour Government will increase unemployment?
Kirsty McNeill
The hon. Gentleman might not be aware that unemployment actually came down in Scotland this week. We promised that there would be no return to austerity, and workers’ payslips across Scotland were indeed protected in the Budget. More than half of employees will see either a cut or no change in their national insurance bill. The smallest businesses and charities are protected, and our decision to increase employer national insurance will raise more than £25 billion to help to rebuild Britain.
Richard Foord (Honiton and Sidmouth) (LD)
Ann Davies (Caerfyrddin) (PC)
The Parliamentary Under-Secretary of State for Scotland (Kirsty McNeill)
The Labour Government’s choice to protect the pension triple lock means that millions of women pensioners will see their yearly pensions rise by up to £470 in April, and by up to £1,900 over this Parliament. That stands in stark contrast to the Conservative party, who cut the state pension of over 1 million Scots. The Conservatives are still in chaos, announcing policies on the hoof that would mean a raid on pension pots. Meanwhile, this Labour Government are taking tough decisions and action to clean up the Tories’ economic mess.
Kirsty Blackman
Do the Minister and the Secretary of State agree with Labour MSPs that WASPI women deserve compensation?
Kirsty McNeill
I appreciate that campaigners are disappointed, but the hon. Lady has got herself in a bit of a fankle and is eliding two separate issues: a decision about the legality of the changes and the question of compensation. The ombudsman’s findings showed that the vast majority of WASPI women knew that the state pension age was changing. It is therefore difficult to justify up to £10 billion for a compensation scheme and conclude that that is a fair, proportionate and good value-for-money use of public funds.
Mr Speaker
Will Members please look at where the questions are coming from? Not doing so is disrespectful and not the way we should be carrying on. I am talking about senior Members who should know better. Here is a good example of a new Member—I call Ann Davies.
Ann Davies
Thank you, Mr Llefarydd. In 2021, the then Secretary of State called for a vote on redress for 1950s-born women, urging the UK Government to get on the front foot and offer serious compensation to those affected, but women in Scotland and Wales have seen the same broken promises from Labour. The now First Minister of Wales pledged in 2018 that a Labour Government would right that injustice. With the Secretary of State, the Welsh First Minister and Labour politicians across these isles turning their backs on 1950s women in Scotland, Wales and elsewhere, why should those women ever again believe a word they say?
Kirsty McNeill
I am afraid that another hon. Member is in a bit of a fankle. The question about the legality of the changes has been settled by the courts. The question that the hon. Lady and her allies must answer is why they think that up to £10 billion of public money should be spent on compensation. Is that proportionate, fair, feasible and value for money? The Government’s view is that it is not.
Chris Kane (Stirling and Strathallan) (Lab)
Does the Minister agree that alongside the triple lock, the most important thing for women pensioners in Scotland is fixing our NHS, and that the SNP Government must act urgently to ensure that vulnerable Scots do not face what even the SNP Health Secretary has described as unacceptable waits for treatment?
Kirsty McNeill
I could not agree more. Scotland’s NHS is in crisis; one in six Scots are on a waiting list. The UK Government have provided a record investment to fix Scotland’s public services. The Scottish Government led by the SNP should get on with it.
Blair McDougall (East Renfrewshire) (Lab)
The most common problem raised with me by women pensioners is, as my hon. Friend the Member for Stirling and Strathallan (Chris Kane) says, the enormous waiting lists. Researchers from Oxford University, Strathclyde University and Edinburgh University have predicted that by the time the SNP leaves office, almost a million Scots will be on waiting lists. How can we ensure that the billions provided in the Labour Budget do not go down the same drain as everything else given to the SNP?
Kirsty McNeill
One in six Scots is on a waiting list today, and we face a housing emergency and a very stubborn attainment gap. Nobody could look around Scotland and say that it is going in the right direction. That is the choice that people will have to make in 2026: is Scotland going in the right or wrong direction? Canny Scots will, I am sure, make choices in the interest of their families and say that it is time to replace a failing SNP Government.
Kirsty McNeill
There is a third Member in a dreadful fankle. We said at the election that we would wait for the ombudsman’s report, we would examine it and we would take a view. We have a taken view: we have taken a view that up to £10 billion of public money should not be spent providing compensation on a decision that was legal and of which it has been concluded that the vast majority of 1950s-born women were aware.
Stephen Gethins
The Secretary of State recently reacted to Labour’s dip in the polls in Scotland by saying that the voters “don’t like honesty”. I wonder if it was more to do with Labour not keeping its commitment to women pensioners, or saying that it would decrease fuel bills—and they went up—or saying that it would tackle child poverty and then taking on some of the most regressive Tory policies on the two-child cap? As we approach Burns night, I wonder if the bard was right when he said:
“Dare to be honest and fear no labour.”
Nowadays, would he say, “Dare to be honest and fear the voters”?
Kirsty McNeill
Polls come, polls go. The fact remains that this Labour Government have provided record investment for Scottish public services. I suggest the hon. Member invests in a notepad so that he can keep track.