UK Shared Prosperity Fund
Debate between Luke Graham and Drew Hendry(5 years, 2 months ago)
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Luke Graham (Ochil and South Perthshire) (Con)
I congratulate the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) on securing this debate. I thought we were going to be singing from the same hymn sheet today, because in previous debates on this topic we have agreed, but unfortunately he has, yet again, let nationalism get in the way of some of the facts and figures, and the actual impetus and help that these structural funds deliver. He is quite right that in the period 2014 to 2022 the funding arrangement for the EU structural fund is about £15 billion for the United Kingdom. That gets topped up to about £26 billion, I am informed by the Library, with UK match funding.
The hon. Gentleman raised a point about some of the roads being built in his constituency, as did the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone). In those constituencies—yes, they are right—the EU flag does fly, but why does the Union flag not fly proudly alongside the EU flag and the Saltire when the UK has made a contribution, as I believe my right hon. Friend the Minister will be able to confirm?
Scotland received around £1.2 billion from EU structural funds between 2010 and 2016, which is great, and I will come on to say why I want that to be secured and continued. The hon. Member for Inverness, Nairn, Badenoch and Strathspey parades and champions the EU structural funds, as will I, but he was less willing to recognise the £1.2 billion of additional funding awarded to Scotland by the Government in the spending round just yesterday, which will give our devolved Administration in Scotland over not a six-year or 10-year period but a one-year period the greatest settlement we have had in over a decade.
My constituency of Ochil and South Perthshire has only received £1.1 million to £1.3 million a year of EU funds between 2014 and 2020 so far. That is not enormous, but it is helpful. Although Scotland has 8% of the UK population, we receive around 14% of the UK allocation, so it is very important to us. I know from visiting companies such as the Loch Leven Equine Practice in my constituency that these funds can be very helpful to small businesses.
The funds are meant to help combat structural inequality and have a transformative effect on the economy, but from my constituency point of view, they have not been able to do that. In Clackmannanshire, we still have a job density of only 0.5 per head of population. We have higher rates of unemployment and youth unemployment than the Scottish and UK averages. In Perth and Kinross, on the other side of my constituency, we also see it reflected in some of the official figures in terms of deprivation and in the recent increase in the number of drug deaths per 1,000 people.
I am quite excited about the fact that the shared prosperity fund can be a fresh start. Unlike the SNP, Conservative Members will be requesting more funding and coming up with innovative solutions. [Interruption.] If the hon. Member for Inverness, Nairn, Badenoch and Strathspey would like to make an intervention, I will gladly let him. He certainly did not let anyone on the Government Benches intervene on him.
Luke Graham
I will let him intervene, but before I do, the House will be well aware that my hon. Friend the Member for Angus (Kirstene Hair) tried to intervene on the him, and he refused her multiple times. It is a friendly understanding among Scottish MPs, who have to get back to friends, family and constituencies on a Thursday, that we usually let one another intervene because travel is very restrictive. He failed to do that. However, I will extend the courtesy to him in the hope that it will be reciprocated to my colleagues in future.
Drew Hendry
I thought the hon. Gentleman was inviting me to intervene on him. He mentions extra money for Scotland, but he does not take into account the cumulative cuts of £12 billion that we have had over the whole decade.
EU Structural Funds: Least Developed Regions
Debate between Luke Graham and Drew Hendry(5 years, 5 months ago)
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Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)
It is a pleasure to serve under your chairmanship, Ms McDonagh, and I congratulate the hon. Member for Sheffield Central (Paul Blomfield) on securing this debate on an issue that is close to my heart, given the effect of European funding on the highlands and islands over the years. He cited CPMR figures of €13 billion and £11 billion, and as he rightly said, those numbers have been backed up by the House of Commons Library, and may even be an underestimate of the funding available had we remained in the EU. Indeed, if the Government had decided to take a sensible approach, we would still be beneficiaries of that funding.
The hon. Gentleman spoke about the least developed regions, which get a bigger share of that money because they have greater need, and about the EU stepping in where Westminster had not. My constituency contains some big, iconic signals of that. Predating devolution, the Kessock bridge crosses from Inverness to Ross-shire, and it would not have been delivered without intervention from the EU. It has been transformational. Similarly, the University of the Highlands and Islands is now a physical entity, and it has helped hugely with some of the issues described by Members today. There is no town, village or community in the highlands and islands that does not show a wee EU sign to explain how it has benefited from that funding over the years. The hon. Gentleman went on to talk about a range of positive and social economic benefits of European funding, and we share that view.
The hon. Member for Sheffield South East (Mr Betts) asked a question that many of us have asked: why is there no consultation? What is holding up the Government? He raised the important point that we will no longer be a member of the European Investment Bank, and the deficit that that holds. The hon. Member for St Ives (Derek Thomas) said that people are looking not for a handout but for a hand up, and he listed the criteria. That is where the EU has stepped in in the past. He spoke about a protected allocation of funds, and said there is no reason to believe that that is not what is intended. Let us see the evidence for that; let us see the delivery. There is no detail and, as we have heard, not even a consultation.
The hon. Member for Redcar (Anna Turley) spoke about investment and innovation, business and work skills, youth employment in the Tees valley, and about how essential those things are given this UK Government, and the times of Tory austerity we have been living through. She said that people have no knowledge about what is coming, and with her customary niceness she said that plans are “very light on detail”—I would have used stronger terms, but she is absolutely right. The hon. Member for Truro and Falmouth (Sarah Newton) said that the way the Treasury looks at funding overlooks rural areas, and that she will be working hard to ensure her party honours that commitment. We need to hear the Minister say that the funding will be fully replaced, and whether it will be included in the spending review.
The hon. Member for Sheffield, Brightside and Hillsborough (Gill Furniss) talked about the three years of uncertainty that the communities and recipients of that spending have lived through, and she wondered where we will go next. Importantly, she mentioned the positive impact of the funding on disabled people, because often the best of it goes to those who are left behind in the thoughts of Westminster. She spoke about there being slogans from the Tory Government rather than investment, and today the Minister has an opportunity to put some meat on the bones and give the guarantees that everybody is asking for.
The hon. Lady also mentioned the importance of such funding in the shadow of universal credit, and as an MP for a constituency that has seen UC over six years, from pilot to full roll-out, I know that money from the EU is vital to address some of the deficits caused by that programme. Indeed, we share a rise in food bank reliance as a result. She said that funding should be targeted, focused and devolved, but we are still waiting for a consultation.
The hon. Member for Ellesmere Port and Neston (Justin Madders) talked about how regional equality has dropped, and there are now extra children living in poverty. He asked why in 2019—I agree with this—Westminster still holds all the power. He said that people are fed up to the back teeth with Westminster’s approach, and that we need bottom-up decision making. The hon. Member for Plymouth, Sutton and Devonport (Luke Pollard) spoke about below-average spending from Westminster. He said that EU funds are fairer, and that there is a better recognition of the issues by the EU. He rightly spoke about the risks of a no-deal scenario.
In the short time that she took to make her speech, my hon. Friend the Member for North Ayrshire and Arran (Patricia Gibson) spoke succinctly, and rightly, about the real living alarm over the lack of detail about what is coming. Who will be eligible? How will it work? What will it be worth? Will there be—this has been mooted but not explained in any detail—like-for-like funding? Will that guarantee be yes or no, regardless of a deal or the catastrophe of a no-deal hard Brexit? She pointed out, as have nearly all the contributors today, that the funding formula must respect the devolution settlement, and she said that neither she, her constituency, nor her country should be short-changed. We call on the Minister to give those guarantees.
I am grateful to the all-party group for post-Brexit funding for nations, regions and local areas for its reports. It backed up a lot of the comments made around this room. It had lots of submissions, including from the Welsh Government, the Convention of Scottish Local Authorities, EHRC, and many educational and voluntary bodies, which all said that budget funding should be
“no less in real terms than the EU and UK funding streams it replaces.”
It pointed out that shares for the devolved nations should not be reduced, and that as we have heard, it should be a devolved matter.
The hon. Member for South East Cornwall (Mrs Murray) rightly asked when we will see action, even just the consultation—that is a pro-Brexit Member asking for that guarantee. The hon. Member for Barnsley Central (Dan Jarvis) spoke about the failure of successive UK Governments to address regional disparity, and he mentioned the most centralised political system in the world here at Westminster. I think his four principles are absolutely right: the budget should be no less than it currently is, there should be no competitive bidding, it should be fully devolved, and it must be beyond spending reviews and political cycles.
We have had a promise from the Tory Government, but then delay after delay in getting any information. Evidence from the House of Commons Library shows that we are approaching nearly 300 parliamentary questions, without an answer on any detail of this funding.
Luke Graham (Ochil and South Perthshire) (Con)
The hon. Gentleman makes a point about European funding being replaced by UK funding. If funding does come from the UK rather than the EU in future, will he commit to all projects being branded as co-Scottish Government and UK Government?
Drew Hendry
It would be much easier to respond to that kind of comment if the UK Government had given any details about how this will go forward. While the hon. Gentleman worries about slogans and branding, I worry about getting the detail to explain what communities across our constituencies, including my own, will get from this programme in future. When will we know the detail about what will be spent, who will be eligible, and will it be fully devolved? Once the Minister has answered those questions, we can go back to talking about flags and slogans.
Communities and charities have waited years to find out what will be available post-Brexit. The devolution settlement must be respected. As we have said, since Brexit is distracting the UK Government from doing anything worthwhile at the moment, let us revoke article 50 and get on with doing things properly, which would clear things up right away. Brexit will cost Scottish communities millions, and this particular issue must not add to that burden.
Long-term Capital for Business
Debate between Luke Graham and Drew Hendry(5 years, 10 months ago)
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Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)
It is a pleasure to serve under your chairmanship, Mr Walker. I congratulate the hon. Member for Stirling (Stephen Kerr) on securing this important debate. I was not aware that he was unwell over Christmas, but I am delighted to see him in the pink of health.
It is a rare treat to be in a debate with two Tories and a Democratic Unionist party Member where I have to pick my differences in their speeches; they made many points that I agree with. In particular, the hon. Member for Stirling discussed productivity. It has long been an issue that I have talked about. It has been holding back business and people for far too long, and I agree with his sentiment. As a result of paying more in taxation, we can invest more in our services—that is the consequence of getting that kind of result in productivity.
I also agree about the lack of focus across the nations of the UK. It does feel like an English Treasury; we make that point regularly. It is also a fact that the south-east gains far more traction than any other part of the UK, including the regions of England, Northern Ireland and Wales. There was a lot to agree with in that regard as well.
It is particularly poignant to have this debate today, as the biggest threat to business access to finance comes from Brexit. Government Members, particularly those in favour of Brexit, would like that to be ignored in this debate, but I do not think it can be. Brexit is already reducing the number of customers, the size of workforces, and the level of confidence. Instead of building our economy, investors are voting with their wallets by pulling nearly £20.6 billion from UK equity funds since the vote in 2016, according to EPFR.
Luke Graham
The hon. Gentleman makes a point about Brexit being a threat. Does he agree with a developer in Alloa in my constituency that the biggest threat to raising finances is not Brexit but the threat of a second independence referendum?
Drew Hendry
It will come as no surprise to the hon. Gentleman that I do not agree with that. He has gone from making a sterling point about the English Treasury to saying that independence is somehow a threat. I do not think so; I think it is a marvellous opportunity. As he has raised the issue, I will say that it has been brought into sharp focus in this place over recent months.
As Marian Bell of Alpha Economics pointed out, businesses that were told to prepare for a no-deal Brexit have relocated their operations and those decisions may not be reversed, even in the event of the best possible economic outcome—even if that is remaining in the EU. As Brexit inches closer, the UK services sector has recorded the slowest sales growth in two years, according to the British Chambers of Commerce, whose survey of 6,000 British firms shows that labour shortages and price pressures persist.
Scotland is a world leader in patient long-term capital, but Brexit risks lenders following the example of a well-known hon. Member, the hon. Member for North East Somerset (Mr Rees-Mogg), in moving business to Dublin or the continent. We are being Mogged over Brexit.
In the face of austerity, we have to make different decisions to support business. The Scottish Government are introducing the Scottish national investment bank, which will provide patient long-term capital to support Scotland’s firms. In contrast, as we have heard, the UK Green Investment Bank, which was privatised by the Government, is now bereft of its UK focus.
The aim is for the Scottish national investment bank to invest in businesses and communities by 2020, subject to regulatory approval. It is backed by our commitment of at least £2 billion of investment in the first 10 years, which paves the way for a step change in innovative and inclusive growth.
We also welcome the plan for a Scottish stock exchange in the second quarter of 2019, with a focus firmly on social and environmental companies that are worth between £50 million and £100 million. The plan has now secured a partnership agreement with the major European stock market operator Euronext, meaning that the first Scottish stock exchange will operate since the closure of the trading floor in Glasgow in 1973.
That is all being done in the shadow of Brexit, which was a vehicle aroused solely to calm Tory infighting. As chaos reigns on the Conservative Benches, there is as much chance of success for business as for the economy of our people, who will ultimately pay the price in the long term.
Scottish Economy
Debate between Luke Graham and Drew Hendry(6 years, 4 months ago)
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Luke Graham
Not just now. According to figures provided by the House of Commons Library, the unemployment rate for my constituency of Ochil and South Perthshire is 0.5% higher than the UK unemployment rate. Meanwhile, the Scottish Fiscal Commission’s predicted growth rate for Scotland is 0.7% in 2018, 0.8% in 2019 and 0.9% thereafter until 2022. In comparison, the Office for Budget Responsibility forecast the UK growth rate to be 1.5% this year, 1.3% next year and to rise thereafter to 1.5% over the same period.
The more observant among us will have noticed that for every single one of those economic statistics, Scotland lags behind the UK in terms of economic performance. However, it is not just in GDP, employment and unemployment rates or forecast growth that that is the case. Scotland’s median weekly earnings are also lower than those of the UK. When it comes to small business confidence, Scotland lags about 23 percentage points behind the UK. Meanwhile, Scotland has higher public sector expenditure per head yet lower public sector revenue per head than the UK. Put simply, Scottish taxpayers are not getting value for money from their public sector.
Under the guidance of the SNP, the Scottish economy has grown at half the UK rate. It has failed to meet its targets to match the UK GDP growth rate and succeeded only in overseeing the slowest growth rate of any country in the EU.
Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)
Does the hon. Gentleman agree with his right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy that the responsibility for the growth of all the nations of the UK sits firmly with him?
Luke Graham
That is why we are having a debate in this place—because growth is the responsibility of the United Kingdom. The problem is the claims of the SNP Administration that they champion economic growth in Scotland. Scottish Enterprise is devolved. Much of the tourism is devolved. The scream for powers has meant that so many levers have been denied to this place and put into Edinburgh. Although I agree that accountability —[Interruption.] If you want to make an intervention, stand up and make one, madam.
Drew Hendry
I will not give way just now. We are short of time.
Scotland has strong economic fundamentals. We heard nothing about its vast natural resources, the innovation there, or the talent of our people. Scotland has the most inward investment of anywhere in the UK outside London.
Drew Hendry
I am going to make some progress.
That inward investment is happening in the face of Tory austerity, during which time the Scottish Government have focused on building an economy of the future—taking measures to unlock innovation and drive productivity. As we have heard today, productivity is the key, but what we have not heard today is how UK productivity has flatlined for the past decade. As economists will agree, productivity is not everything, but it is almost everything, to an economy.
The hon. Member for Ochil and South Perthshire (Luke Graham) talked about the city deals, but not about how, for example, when one of those deals was put together in Inverness, the Scottish Government put in £135 million and the UK Government—in a so-called partnership—put in only £52 million.
Universal Credit
Debate between Luke Graham and Drew Hendry(6 years, 8 months ago)
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Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)
I will limit my remarks to the universal credit portion of this debate. In accepting the failures so far, the Government have made some changes, but as my hon. Friend the Member for Airdrie and Shotts (Neil Gray) pointed out, the changes due to come into force in April do not go far enough. Ministers should pause the roll-out of universal credit and review all the processes.
I want to go through a couple of the issues, but I could speak for a lot longer on many of the issues affecting my constituents. My constituency was a pilot area from 2013, and went from live service to full service in June 2016. Local agencies, Highland Council and I have been voicing such concerns since the pilot, and the proposed measures do not scratch the surface of what is required. The Secretary of State said earlier that this benefit will be “at the cutting edge”. I say to those yet to experience full service that, yes, they will see more cutting, particularly when it comes to the housing arrears that are being built up.
Like other local authorities, Highland Council is paying the price, and this will have an impact on all our communities, not just on people who are on universal credit. The additional administration costs alone are running at hundreds of thousands of pounds, but rent arrears continue to soar and will have an impact on the delivery of much needed housing, for example.
Luke Graham (Ochil and South Perthshire) (Con)
The hon. Gentleman is making a very serious point about housing benefit. Does he welcome the change that allows the benefit to be paid directly to the landlord, as opposed to going to the claimant?
Drew Hendry
I welcome any change that allows such things to happen. I would point out that we made that request of the Government for many years, and the concession was finally made, as I have pointed out, but much more needs to be done.
Rent arrears continue to soar, as I have said. Rent arrears due to universal credit were already at £1.6 million in Highland in 2016, but they were at £2.2 million in March 2017, and just six months later they were at £2.7 million. The average rent arrears for someone not on universal credit is £250, but for those on universal credit it is £840. We know that 30% of private landlords have already evicted a tenant because of universal credit arrears. According to the DWP’s own figures, this means that over 70,000 tenants in private accommodation face the threat of eviction due to the shambles of universal credit.
The UK Government continue to ignore the plight of people with a terminal illness who are forced to meet work coaches. I give credit to my local jobcentre, which has tried to put in place local workarounds to overcome the faults in the process. The UK Government must listen to MND Scotland, MND UK and Macmillan CAB, and remove these conditions to allow the terminally ill and their families some dignity as they face the end of their life. I ask Ministers to meet me to discuss how that can be brought forward. MND UK has said it does not believe that people who have claimed using DS 1500 should have to meet and have a conversation with a work coach, as this is highly inappropriate. The Government have already been found to have acted unlawfully in relation to 1.6 million people, at an estimated cost to the taxpayer of £3.7 billion, and they should not risk the same kind of slap-down over their treatment of the terminally ill.
As the roll-out continues, many more right hon. and hon. Members will feel the sharp effects on people and their communities. Ministers should go further in acknowledging the systemic failures before it adds more costs to people’s lives and drains local government of vital resources.
Energy Efficiency and the Clean Growth Strategy
Debate between Luke Graham and Drew Hendry(6 years, 8 months ago)
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Drew Hendry
That is something to be aware of. I thank the hon. Gentleman for raising that point and look forward to the Minister’s response.
The hon. Gentleman mentioned home insulation, which must be taken forward much more rapidly—I know I am using that word a lot today, but it is important because this is somewhere where we can make a real difference very quickly. In Scotland, as he pointed out, there is four times the progress on insulation. I make that point because it is important to thank the people, in particular in organisations such as Warmer Homes Scotland, who have been on the ground, working with consumers and making the breakthroughs by talking to people and persuading them to take on the new measures. If any hon. Member in the Chamber or anyone else wants to look at that, they will see the fantastic work being done.
Luke Graham
The Warmer Homes scheme was a fantastic initiative. I know that some of the terms changed in 2017 because a number of constituency cases were brought to me, with people sometimes being disadvantaged. Will the hon. Gentleman join me in working on addressing some of those issues to ensure we are still reaching as many people as we can?
Drew Hendry
I will come in a moment or two to what the Scottish Government are doing.
The hon. Member for Birmingham, Selly Oak (Steve McCabe) talked about energy efficiency schemes, and in Scotland some of those are changing the housing landscape. I want to point out one of the commercial companies, a private developer from the north of Scotland: Springfield Properties. It is not only looking at more energy efficiency measures in its buildings, but in Perthshire, where it has a new development of thousands of homes, it is putting in electric vehicle charging points for every single house. That is a very innovative thing for a private developer to be doing, adding to the fact that Scotland is leading the way in electric charging for vehicles.
Universal Credit Project Assessment Reviews
Debate between Luke Graham and Drew Hendry(6 years, 11 months ago)
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Drew Hendry
I am very glad to answer that question. To repeat the statements that I have made and that my hon. Friend the Member for Airdrie and Shotts has made today, SNP Members have never opposed the principle of universal credit. We have always supported the principle of simplifying the benefits system so that people can get social security in a simpler and more effective way, but—this is where Conservative Members really need to open their ears and listen—the experience of people applying for universal credit is not that the process is simple. It is, for many people, hard and devastating. For a lot of people, it can really have an impact on not only their family lives, but their health.
Drew Hendry
I am going to make some progress, but I will come back to the hon. Gentleman because I do want an answer to this.
We hear about rhetoric and scaremongering, but do Conservative Members also challenge organisations such as the Joseph Rowntree Foundation, Welfare Scotland, Citizens Advice, Macmillan, Marie Curie, Gingerbread, the Child Poverty Action Group, the Resolution Foundation, the Trussell Trust and Shelter, or all the cross-party local authority bodies, churches, faith groups and more? Are all those people giving empty rhetoric and scaremongering? No, they are not—they absolutely are not.
Since 2013, I have been raising the fact—yes, I will repeat it—that this has brought misery on people in my constituency from the pilot, through to live service, through to full roll-out. For Conservative Members who have had that delayed—lucky you. It is coming your way, and you will soon understand what happens with it. This has been a real problem. As I have said many times, since my election to the House in 2015, and prior to then, as the leader of the Highland Council, we have seen problems arising in Inverness and the rest of my constituency. We have reported them. We have requested changes. We have demanded changes. We have cajoled. We have even begged for changes to be made, yet there has been little or no movement. We have had platitudes and dogma, but there was never an understanding or a willingness to change, until very recently in the Budget, as my hon. Friend the Member for Airdrie and Shotts pointed out, there was a final admission that the system is broken.
Luke Graham
The hon. Gentleman and I have been involved in politics and campaigning for a few years. Does he accept that there have been issues with a lot of welfare reforms? Benefit sanctions were a big issue at the 2015 general election, as the SNP has rightly mentioned. He said that he made demands for changes. Can he list the demands that have not already been answered by Ministers?
Drew Hendry
I would be absolutely delighted to answer that question, and I am genuinely grateful for that intervention. Since 2013, universal credit has driven up poverty and misery in my constituency, as is evidenced by a dramatic increase in food bank use. [Interruption.] The hon. Member for Ochil and South Perthshire says that that is not the case, but he is not letting me get to the full explanation.