(5 years, 4 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I am not sure I was specifically pointing at the hon. Gentleman. Let me be absolutely clear: those who espouse separatism in Scotland know that the consequences would be the loss of those jobs and the technology, know-how and added value that goes with them. They know only too well that Scotland would not have a Royal Navy.
My hon. Friend is making a valid point. It would not just be the hard power of the military’s physical ships and tanks that would be taken away; it would also be MI5, MI6 and the myriad security services that are embedded and supported by the United Kingdom. I wish the SNP could see that valid point, too.
(5 years, 6 months ago)
Commons ChamberI am delighted to have secured this Adjournment debate on the Stirling and Clackmannanshire city region deal. I am proud, too, that this Conservative and Unionist Government have made it possible for every single one of Scotland’s cities to have a city deal, adding up to billions of pounds of public investment unlocking many billions more in private investment. It is a Government record that all Scottish Conservatives can and should be proud of, and one that will bear fruit for Scotland’s economy and Scotland’s people well into the future. City deals drive investment in infrastructure. A city deal sends a strong signal from the Government that they have confidence in the future of the city and the region and that they are prepared to commit public funds to make that future a reality. City deals are designed with the intention of transforming the local economy and creating a landscape in which individuals, communities and businesses are enabled to explore their full potential.
The genesis of the Stirling city deal was the realisation that Stirling’s economy had several structural weaknesses that needed to be addressed. First, while Stirling is the best place in Scotland for people to set up and start a business, and the best place in Scotland for a large established business to continue its journey—
I thank my hon. Friend for giving way. He is of course speaking about the Stirling and Clackmannanshire city region deal, and Clackmannanshire shares the accolade of being one of the best places to start a business in Scotland.
I am grateful to my hon. Friend for his well-intentioned correction.
While Stirling is also a great place for large established businesses to continue their journey, we have a real issue locally when it comes to small businesses scaling up to become successful larger businesses. The lack of scale-up businesses is due in part to a shortage of the right kind of business space and a shortage of the skills most needed by employers to grow their businesses. The situation is not helped by a shortage of housing of all types in Stirling, and the need for microbusinesses to be given the practical business support they need to help them on their commercial journey. Secondly, Stirling’s economy is held back by wealth inequality. We have some of Scotland’s wealthiest and poorest postcodes, and we need a more inclusive approach to economic development.
I have no hesitation in doing so, and I was challenged on this earlier. Do I welcome the positive actions of the Scottish Government? Of course I do, and I welcome the additional investment that the Scottish Government promised for the city deal. It is targeted, and I support the Scottish Government’s utilisation of public funds in that way.
We need the MOD land at Forthside to be released. The site needs to be decontaminated and handed over as soon as possible. How soon can that be done?
The new-build tartan centre will bring additional private sector investment almost immediately. We must start on the national tartan centre soon, and I would love to see one of my right hon. Friends on the Treasury Bench coming up to Stirling with spade in hand to turn the sod and start the construction. Why not?
I look forward to those same Ministers coming across to Clackmannanshire to help start the international environment centre in Alloa west. Does my hon. Friend agree that the £8 million capital fund set aside by the UK Government to assist Clackmannanshire, which had less regional assistance spending to develop its business cases, is unprecedented? It is a first for any city deal in Scotland and has enabled us the time and space to develop new projects that will benefit Clackmannanshire in the short term and for many years to come.
I pay tribute to my hon. Friend for his work in securing that unprecedented amount of money for an untagged project. He and I have had long discussions about the importance of the UK Government being active in the Scottish economic scene. I will come on to say something more about that, with which I hope he will agree.
We need to make sure that all parts of Stirling, whether geographic or social, can benefit from this deal. In rural Stirling, we want to see financial and other practical support for rural business hubs. Some of these are already delivering for their communities, and the businesses that will be located there will grow and diversify the local economy—that is badly needed. We need them in other areas of Stirling, especially in the eastern villages of Cowie, Plean and Fallin.
Digital connectivity was mentioned earlier by my hon. Friend the Member for Angus (Kirstene Hair) and it is important, and our bid should be to ensure there is digital connection that these villages in rural areas can benefit from. No area should be left behind. We need to build a digitally connected district beyond the city centre. Local full fibre networks are a great way to do this, and we have commercial investment happening in Stirling though CityFibre. This fantastic investment will make Stirling truly a digital city, but in rural areas, including the eastern villages, we need this investment. I call on the Government, who have responsibility for connectivity, to make direct investment in these areas and make that a reality.
We need government, especially the Scottish Government, to get serious about rural infrastructure. Whether we are talking about getting a new bridge for Callander, which would transform the economy there, or turning the A811 Stirling to Balloch road into a trunk road, the needs are there to be seen. I would like to see these projects treated as major upgrades to the national infrastructure, because of the positive economic benefit they would bring far beyond the communities where those items of infrastructure would be constructed. These benefits would be real, impactful and immediate. It is imperative that all levels of government pull together in such areas.
Today, I ask the Minister to comment on what additional support could be given. We have the commitment for funding on the projects, but what I feel is lacking is a stronger overall commitment from the UK Government to get more heavily involved in promoting and investing in the Scottish economy; I am concerned about a lasting thought of “devolve and forget” in the UK Government. I want to hear assurances from Ministers that the UK shared prosperity fund will be used for this purpose by the UK Government in Scotland.
There are very few UK Government departmental offices in Scotland, with the only significant presence of any Department being that of the Department for Business, Energy and Industrial Strategy in Aberdeen, where an office is dedicated to promoting the oil and gas industry. The Scottish economy is more varied than that, and the case for a UK Government presence in central Scotland is compelling.
Oh, there is a great deal to learn from the Glasgow city deal. Of course I acknowledge the existence of DFID in East Kilbride and the amazing work it does. As the hon. Gentleman knows, I am great supporter of the work of that Department, and I would hate to see it absorbed into the Foreign Office, for example. Whether the Treasury, BEIS, the Department for International Trade or the Home Office, these Departments serve the purposes of the wider Union, and Scotland needs to see that it is part of the United Kingdom. London must not be the be-all and end-all when it comes to sharing out UK Government functions and personnel, and the city deal in Stirling and Clackmannanshire offers us an opportunity, not only to see the Union flag flying on projects in Stirling, funded by taxpayers from the whole UK, but to see that commitment made real on the ground, with Departments of the Union there supporting, and not remote and distant.
I mentioned the work of Stirling Council earlier. I will close soon, so that the Minister can reply, but I should mention the excellent work done by the officers of Stirling Council, who have shown themselves to be skilled and able to punch well above the weight one would expect of a council of that size.
My hon. Friend is making an excellent point about how different levels of our government work together. Having been part of two city deals, it has been clear to me that we need to use these deals as a learning point. Both the central Government in Westminster and the devolved Administration need to look at how they work with each other and to find methods that are more transparent and effective at delivering for our constituents.
I agree with my hon. Friend. He and I have the scars from our learning experience with the city deal we are discussing tonight, and the learning from Glasgow and Edinburgh needs to be taken on board. There are better ways to do the things that we do. There is always room for continual improvement.
(5 years, 7 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Anyone would think that my hon. Friend and I were working in some form of symbiosis, because the very next thing I wanted to say was that the need for investment is never more pertinent than in the technology sector, in which large American corporations invest speculatively and then buy companies when they reach a sufficient level of development. One reason that so many British businesses go that way is that they reach a stage where their access to affordable long-term capital dries up. This is not just about start-ups but about how a business accesses capital to be able to invest in new assets or capabilities.
My hon. Friend makes a valid point about access to capital for companies going into their mid-stage development. He makes the point about size, but is it not also about geography? Many companies that are further away from the capital bases in London and Edinburgh, especially across Scotland and in northern England, do not get that same access to capital. It is incumbent on us to make sure that our companies can be connected with capital, so that they can grow in the way we should all want them to.
I am grateful to my hon. Friend and constituency neighbour for that very valuable intervention. I will return to that idea shortly.
As I said, this is not just about start-ups; it is about how businesses access capital to be able to invest in new assets or capabilities. There is an abundance of evidence to suggest that our capital investment system is addicted to short-termism and is risk-averse. Risk is built into the capitalist system. Investment, by definition, includes a calculation of exposure to risk. The more risk-averse we become, the less inclined we are to invest in new ideas or ventures, because they might fail; the returns might not materialise. It is implicit in—I would argue essential to—the free enterprise economic system that there is acceptance of the inherent risk of failure. However, anecdotally, we have become less willing to accept that risk.
The banks obviously were badly burnt because of their recklessness in respect of risk. They then set about recapitalising their businesses, at the expense of small and medium-sized businesses. That led to some of the gross abuses and alleged criminality that is still the subject of ongoing inquiry. That is an outstanding injustice; it has still to be remedied. I do not want to spend too long on the past misdemeanours of the banks—we have had many debates on that subject in Westminster Hall and the main Chamber, and I am sure that we will have plenty more—but restoring confidence to the small and medium-sized businesses of this country necessitates that something be done about the scandals of the past decade. Banks will not take a long-term view, and if we entrust our productivity to them we will have no long-term economic future.
That said, I certainly do not want to be guilty of using this debate as a platform to spread doom and gloom—that is not in my nature—because there are very many good examples of private sector long-term investment. CityFibre is a good example. It is investing £10 million in Stirling. That will make fibre-to-the-premises ultrafast broadband available to every household and business in the city. Stirling will soon become one of the top digital cities in the United Kingdom—something that I am proud of. When we look at the bigger picture, we see that CityFibre is investing £2.5 billion across the UK. The investment will take many years to recoup, but the investors have faith in the product and are willing to be patient while the company makes the money back. Their planning horizon is measured in decades. Now, that is something akin to my definition of long-term investment.
Around the world, many countries, although they do not have this particular set of problems and although they have not cracked things entirely, have a different system of capital deployment. I would like to pause on the German example—I have used this before in Westminster Hall. I have already explained the successful indicators of productivity and capital investment in the German economy. KfW is the German national development bank. It came about as a result of the Marshall plan; it was set up for the purposes of post-war reconstruction. It supports infrastructure investment, lending some €47 billion, it acts as a lender to local authorities and, most importantly, it supports small and medium-sized enterprises. In 2017 it lent some €8.2 billion to small and medium-sized enterprises for start-ups and scale-ups. It lends money, provides equity funding and provides mezzanine financing to cover all aspects of capital investment. Some 90% of the bank’s funding is from the private sector, in the form of debt that is backed by bonds. It is owned in partnership between the federal Government and the individual states. It does not appear on the national balance sheet of the Federal Republic of Germany.
As the United Kingdom leaves the European Union, we will no longer have access to the European Investment Bank. That bank invested more than £2.5 billion in the UK in 2018. That was our money that was invested—it was gleaned from borrowing on the back of the British taxpayer—but we will need to find a way to replace that level of financing, because there will be a hole in the capital provision landscape. We need to look at the investment bank model in detail. It would fulfil the need for a patient capital investment vehicle, as outlined in the industry panel review. The case for a major intervention in this way is, in my opinion, justified. The lagging productivity in our economy is a major risk to our economic prosperity, and we need action now. This cannot wait any longer. It especially cannot wait until after we have resolved the issue of Brexit. Our thinking in this area is a vital part of our preparations for our economic wellbeing after we have left the European Union.
We have the British Business Bank, which has some of the functionality of a national investment bank, so there is tacit acceptance by Government of the problem that I have been attempting to describe. The big issue with the British Business Bank, as I understand it, is that it does not seem to have equal coverage across all parts of the United Kingdom.
As my hon. Friend is talking about the British Business Bank, will he join me in welcoming the expansion of the bank announced in the Budget, which places people on the ground in Scotland? He and I have been asking for that since we came to this place.
Yes. I am grateful for that very important point of information. It is important that the British Business Bank has representation in all parts of the United Kingdom, but currently it is still limited in its mission because of its limited scope of operation and it does not really behave like a bank, even though that word is in the title. Its model of supplying finance via existing investment funds means that its base of operations is quite limited and seems to favour, if you will forgive me, Mr Walker, the south-east. I am happy to be corrected, but the British Business Bank does not seem to have the kind of extensive operation on the ground that it needs in Scotland, even with the announcement in the Budget.
I would like to see the British Business Bank operating across the breadth of the United Kingdom, interacting with the economy on the basis of a clearly defined mission, including small and medium-sized businesses, operating at arm’s length from the UK Government, and raising its own capital rather than simply being a channel through which public funds are disbursed.
I am not being critical of the British Business Bank as it stands, because I am a fan, but I am advocating that it evolve into something more. That something more is what the industry panel patient capital review advocated—namely, an investment vehicle to support the scaling up of British businesses and capital-intensive start-ups. By investing in equity directly through such a vehicle, we can harness the wealth of our nation to deliver on the promise of the industrial strategy and to make our economy fit for the future.
The UK economy is dominated by the service sector, and there is nothing amiss about services, but we need to rebalance our economy and we need the availability of long-term capital in order to become the best country in the world in which to build a business. In the post-war era, too few British businesses have grown to become multibillion-pound global corporations.
There is more that we can do. We should look at other ways of releasing under-productive cash for equity funding. We need to take a healthier approach to our risk appetite as a country. Changing the culture is essential. We need to harness our savings and pensions. With some innovative mechanisms, we can unlock that money and put it to use in our economy. Using the tax system and the savings guarantee system in innovative ways, we could revolutionise the way companies get finance and the ultimate source of that finance. Helping people to acquire equity stakes through shareholder co-operatives, saving schemes and direct micro investment could all work towards a new culture of investment.
To that end, we need the Treasury to be as innovative as the entrepreneurs who fuel our economy. We need to see ideas being tried and tested and the apparatus of Government swinging behind the idea of long-term investment and rewarding those who make such investments. A starting point would be to increase the thresholds for the tax on dividends and seek to band it to allow smaller-scale investors to pay no tax whatsoever on dividends, especially if they can be incentivised to maintain their investment over a longer period.
The industry panel review on patient capital made a number of recommendations that need to be addressed. It identified the need to provide patient capital to help entrepreneurs to be successful; I have already mentioned its idea for a patient capital investment vehicle. It also proposes a licensed scheme to allow patient capital investment companies to be founded that would be venture capital funds licensed to raise money from the markets, guaranteed by Government. Although I agree with that recommendation, it needs to be a truly national venture, with specific guidance about the development of capital funds outside London and the south-east.
The review also proposes a change in the way taxation hits investors when they seek to invest in developing a company past its start-up phase. Ensuring that tax incentives for equity and venture capital funding are there when companies are seeking capital to expand, rather than simply during the start-up phase, will allow investment to flow more freely into medium-size companies.
I have a few straightforward asks of the Government. First, I would like to see a formal response to the industry panel review, alongside an action plan for the implementation of its recommendations. If I have missed it, I am happy to be corrected. Secondly, we need a full analysis of the possibility of a national investment bank or development bank, as I outlined earlier. Thirdly, we need a statement about the replacement vehicle for the investments made by the European Investment Bank, which we will no longer have access to.
Finally, I would like some reassurance from the Minister that the Treasury is ready to innovate to improve the availability and quality of long-term capital. We need to encourage a positive investment culture and we need a creative response from the Treasury to unlock and harness the wealth of this nation in the delivery of a modern industrial economy that is fit for the future.
My hope, in bringing this debate to Westminster Hall, was to focus the House on the substance of how we can improve the environment for entrepreneurial success and wealth creation. It is perfectly understandable that we have become distracted by the politics of Brexit. One day soon, I hope and pray, we will turn the page on Brexit, and this House will fully turn its attention to the vitally important agenda of ensuring the long-term productivity of our economy. It is timely, because it is about our future.
(5 years, 8 months ago)
Commons ChamberAs I have shown in every debate, I am never afraid to face the hon. Gentleman. What is clear is that the SNP will not necessarily accept the result of that referendum. They did not accept the result in 2014, they are not accepting the result in 2016, so they certainly will not accept the 2018 result.
I am concerned that the SNP is inadvertently misleading the people of Scotland by telling them that they will be worse off leaving the EU versus leaving the United Kingdom, when we have four times the trade and far more social and cultural connectivity than we do with our European partners.
I will be honest: I campaigned for remain, and I came to this House because I wanted to talk about more Unions, not fewer; I wanted to talk about more international co-operation, not less. The strain that has been seen among my hon. Friends, and that has tested many Labour Members too, relates to the question of how we can progress as a country. We passed the power to the people, and a democratic decision has been made, which needs to be honoured, lest we undermine the democratic mandate we gave the people. I am not in the habit of defying the results of referendums, even though the SNP, as I said, did not respect the 2014 result and do not respect the 2016 result. We must respect the result. The two referendums we have had in the last few years have not brought our country closer together or sealed any rifts; they have actually kept the wounds open and kept them fresh. We have to use this House to bring people together, to come up with ideas and to chart a way forward.
The Prime Minister’s speech—[Interruption.] If Members want to intervene, they should intervene; if not, they should pipe down. When it comes to the Prime Minister’s deal and the economic analysis that goes with it, one of the key reasons why I am minded to support that deal is that the economic impact on the growth for Scotland would be zero—that is on page 63 of the economic analysis that has been issued for everyone to read and observe.
The reality is that the businesses and farmers in my constituency, as in my hon. Friend’s constituency, are saying to us, “Stop playing politics. Get behind the Prime Minister and pass this agreement.”
This is the point we are getting to: it is just becoming petty party politics. Opposition MPs say, “We want access to the single market.” The deal on the table gives us access to the single market. They say, “We want a customs arrangement.” The deal on the table gives us a customs arrangement. There are some compromises on goods and freedom. I know colleagues in all parts of the House who want a different kind of Brexit disagree with that, but there elements of compromise on all sides. That is why we need to work together. SNP Members make great play of saying that they want to reach across the aisle. I may be just a humble Back Bencher, but as someone who actively campaigned for remain, not one SNP Member has ever approached me to try to work together to come up with a better plan or find some clever new initiative. If they want real cross-party working, then they should not use words but take action. That is what our constituents want to see and it is seriously lacking from those on the SNP Benches.
No deal is perfect. The forces facing people in this House are a choice between hard socialism, hard nationalism and a decent compromise from the Government Benches. That is what I am advocating from these Benches. That is what I will be supporting. I hope hon. Members will support me in that, too.
(6 years, 1 month ago)
Commons ChamberExactly—and it has missed its mental health targets.
Let the hon. and learned Member for Edinburgh South West (Joanna Cherry) say that to the consultants. Let her say that to the constituents who have come to me because they cannot have certain kinds of surgery in Scotland that they can have in England. This is not just about saying, “England is worse than us, so we must be amazing.” There are challenges throughout the United Kingdom, and that is the point of this place. We pull together when there are common challenges, but we also deliver locally when we need to.
A lot is being said about respect tonight—about respect for the Scottish people. What I cannot understand is the fact that SNP Members do not respect this Parliament. They certainly do not respect my constituents, and I have to say that I do not think they respect themselves. That is clear from their conduct in the last weeks. They have walked out during Prime Minister’s Question Time, and have deliberately agitated in the Chamber. Some of that conduct may well have taken place on both sides of the House, and it should be condemned on both sides if it has. Such incidents do no credit to any hon. Member, but they are being led by the Scottish National party.
(6 years, 2 months ago)
Commons ChamberThis debate is about devolved funding for our constituents. If the hon. Gentleman wants to talk about that, he should go somewhere else.
We have just ascertained in the Chamber that Scotland has received more money from the UK Government. It is now important to look at how it is actually spent. As my hon. Friend the Member for Angus (Kirstene Hair) said, about one third of the 2018-19 budget went on health and sport, but one of the next biggest areas of funding is finance and the constitution, where 11.8% of the budget is being spent. Now, finance and the constitution are all perfectly fine and important things, if they want to make those choices, but it is more relevant when we consider the percentage of spending that goes on education and skills, which is 8.4%. The No. 1 priority for the SNP Administration only gets 8.4% of the funding, versus the—wait for it—12.4% from the Westminster Government that goes on education and skills.
It is the SNP Government’s No. 1 priority and yet our schools are plunging in the international rankings. I give way to my hon. Friend.
My hon. Friend has pre-empted my point. Will he remind the House what has happened to Scottish education in the last 11 years under this SNP Scottish Government?
The performance has been lamentable. Scotland’s schools have fallen in the rankings in reading, mathematics and science. We have gone from No. 1 in the UK to No. 3. Scottish education, which was once a byword for excellence in the world, is now merely ranked as average in most international tables. That is not doing Scotland down; it is recognising a problem because we want to solve it.
I am conscious of time so I will come to my last point. We have all heard of “tax and spend” Governments, but we rarely hear of “tax and underspend” Governments, yet that is what we have in Edinburgh. In 2017-18, the Government underspent by £453 million. The Finance Secretary in Edinburgh says, “This is all part of a plan. It is normal to underspend on your budget.” I think the Chief Secretary to the Treasury would probably say it is not normal for Departments to lobby to underspend on their budgets; in fact, they want to meet or exceed those budgets.
This underspend covers £66 million for volatility; £100 million for a new social security system—instead of actually working with the UK Government to build a better devolved social security system; and £50 million from better tax receipts that they are not refunding or reinvesting in Scottish local authorities. This would be bad in one year, but it is in addition to the £191 million underspend from the previous year. The SNP continues to scream for more powers and spending, and yet when its receives the powers, it does not use them, and when it sees the money, it does not spend it.
My constituents are fed up with the mismanagement of the SNP. That is why we Scottish Conservatives have stood here tonight. Why is it that, despite more money going from Westminster to Edinburgh, we still face cuts to our local council services, in Clackmannanshire and in Perth and Kinross, cuts to music education, cuts to support services for disabled people, cuts in infrastructure, cuts to our roads and paths—[Interruption.] If the hon. Member for Perth and North Perthshire (Pete Wishart) wants to make an intervention, he is more than welcome to do so. [Interruption.] Oh yes, I am conscious of time so I will not give way. It is time for the SNP to take account of the money its receives and to take responsibility for the budgets it receives from Westminster; it is not time for my constituents to carry on paying for the mismanagement of the SNP.
(6 years, 2 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
(6 years, 2 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
The hon. Lady repeats the point, and it is as weak as it was the first time.
The Scottish economy is not forecast to grow by more than 1% at any stage over the next five years. As a result, the Scottish economy will be more than £18 billion smaller by 2022. It is not helped one iota by any devolved power, whereas in this place we have been trying to help the Scottish economy.
Does my hon. Friend agree with the conclusion of the Economy, Jobs and Fair Work Committee of the Scottish Parliament, which includes, I think, four or five SNP Members? It states:
“If we are to reverse this trend then the Scottish Government must use all of the levers at its disposal to bring a sharper focus on growing the economy, and ensuring that growth is inclusive.”
That is something they are failing to do currently.
I thank my hon. Friend for his intervention; I could not agree more. One point on which I do agree with the hon. Member for Rutherglen and Hamilton West is that Scotland has two levels of government—one in Edinburgh and one in Westminster—and they should work together productively to try to improve Scotland’s economic performance, which lags behind that of the UK. As a Member who has just negotiated a city deal for his region, I can say honestly, hand on heart, that the two levels of government are not working well together. The relationship is dysfunctional; it does not work. Powers are being hoarded in Edinburgh and not given down to the local authorities, as they should be.
Productivity is lower than it was in 2010 and the gap between Scottish and UK productivity is wider than it was in 2009. Scotland has the lowest rate of business growth in the UK and is forced to pay the highest business rates in Europe. In addition, the SNP broke a major manifesto promise and raised tax on more than 1 million Scots earning over £26,000, ensuring that Scotland’s wealth creators have less of their wealth to create more through further investment.
We talk about powers a lot in this place; the issue dominates a lot of our debate, but let us be clear. The only power given back was that to vary income tax by 1p, and it was given back to Westminster by the SNP, having originally been devolved under the Scotland Act 1998. The Conservatives do not give away powers; the SNP does. [Interruption.] Between 2010 and 2016, Scotland’s economic growth rate was 1.7%, compared with—[Interruption.]
(6 years, 2 months ago)
Commons ChamberI would not dare to claim to know more than my hon. Friend about his constituency, but I would say that a key part of the industrial strategy is to have more regional facilities and smaller-scale projects, and I am hoping to advocate doing so tonight.
As I was saying, for comparison, the carbon footprint estimate for an oil boiler is 310 to 550g CO2eq/kWh or—for those who do not know—grams of carbon dioxide equivalent per kilowatt-hour of electricity generated. For gas boilers, the figure is 210 to 380, for biomass boilers it is somewhere between 5 and 200, although typically they are below 100, while the carbon footprint range for a solar thermal system is 10 to 35 grams of carbon dioxide equivalent per kilowatt-hour of electricity generated. By comparison, the figure for geothermal is only 10. As a result, geothermal energy systems are becoming an increasingly popular low-carbon energy system of choice.
Yet geothermal energy is barely utilised in the United Kingdom. In a Westminster Hall debate on clean growth energy back in March, there was a great deal of enthusiastic support among the small number of Members present. Those who spoke in support of geothermal energy in that debate came from areas where it already exists, or at least where it is being planned. I do not consider it a coincidence that where geothermal energy has already been explored and exploited, there was support and enthusiasm for it. It evidently works, and indeed, we should take note of the enthusiasm expressed in that debate. It is a clean energy source, with the potential to bring jobs and investment to our constituencies, and given the UK’s long history of mining, I refuse to believe that only Clackmannanshire has the potential for geothermal energy to be developed. There was of course one person in that Westminster Hall debate who enthusiastically supported the development of geothermal energy in the United Kingdom—the Minister responding this evening.
The UK has a target that, by 2020, 15% of its energy will be met by renewables. In 2008, renewables constituted just 2.25% of energy sources in the UK. By 2014, this had risen to 7.1%, and 8.3% by 2015. I could not find any more recent figures, so I would be grateful to the Minister if she told us how the UK is performing in 2018, and how it expects to meet its target in 2020.
Although geothermal is still relatively new to the UK, this type of energy is not a particularly new technology. For example, geothermal heating is used in over 70 countries already, while 24 already use geothermal electrical production systems. Furthermore, five countries—Iceland, El Salvador, Costa Rica, Kenya and the Philippines—generate more than 15% of their electricity from geothermal sources. However, across the whole United Kingdom, I could find only nine geothermal energy projects that are in operation or are being planned. Four are in Cornwall, two are in north-east England, and one—the original—is in Southampton. There are two small mine-water geothermal schemes in operation in Scotland: Shettleston in Glasgow and Lumphinnans in Fife, as well as a forthcoming project in Kilmarnock. To put that in context, the fifth largest economy in the world is being outdone by the 106th, 101st, 76th, 68th, and 39th largest economies respectively in geothermal development and energy production.
We still have a way to go. Evidently, we can and should be doing more to invest and develop that clean energy source. In 2013, only 900 jobs in the UK were supported by geothermal energy—500 were directly supported, and 400 indirectly. Given the potential for the expansion of that technology in the UK, there is a great deal of potential for the jobs market, both directly and indirectly. High-quality, skilled jobs would be supported by the development of the sector.
Here is the crux of the debate—why Clackmannanshire? Development of geothermal in the UK, as I have said, has been relatively limited so far, largely due to the availability of cheap North sea oil and gas. Geothermal energy is plentiful beneath the United Kingdom but, admittedly, it is not readily accessible, except in specific locations. One such location is Clackmannanshire. Abandoned coal mines in Clackmannanshire could become a source of energy, as the water that has poured into the mines since they closed has been warmed up by the rock surrounding it. It is hot enough to be used for a low-temperature heating system through a heat exchanger, with more potential for it to be used for energy production.
My hon. Friend is speaking extremely well about this subject, and I bow to his knowledge in this area. On the notion of creating electricity from heat, would that extend to, for example, sewage? Would it be possible to create district heating systems in that way? Is it the same technology? Perhaps he can enlighten me.
On district heating systems, yes. On sewage systems, I am not sure. That is something that we should explore, but when we look at the broader uses of the technology, certainly in energy and electricity production, as we have seen in other countries around the world, absolutely that can be done. There are exciting, direct uses of geothermal energy in countries such as Kenya, ranging from hydroponic farming to powering small communities. There are a number of exciting projects in operation, which is why it is important to run a pilot and secure investment so that we can realise the true potential of the technology.
While it is not often that Clackmannanshire has a competitive advantage over other local communities, we have a relatively unique geographical opportunity. However, there are more reasons to invest in Clackmannanshire. It suffers from high levels of deprivation, and a significantly high level of fuel poverty. Local authority surveys have identified the fact that one in three households in Clackmannanshire suffers from fuel poverty, rising to 49% among pensioners. Heat accounts for nearly half of energy consumption in Clacks and a third of its carbon emissions. Roughly 80% of that is consumed in homes and other buildings.
The local economy is vulnerable. It has a higher than average unemployment rate, the third lowest job density in Scotland, below average earnings, and of all the local authorities in Scotland, Clackmannanshire has the lowest rating for skilled qualifications. That is not to talk Clackmannanshire down. It may be the known as the wee county, but as I said in my maiden speech,
“it is not size but what you do with it that counts.”—[Official Report, 27 June 2017; Vol. 626, c. 524.]
I want to highlight some of the challenges in Clackmannanshire, but also give an idea of what a significant investment in the area would help to overcome. I want to look at the difference that such an investment could make in Clackmannanshire. It goes without saying that investment would bring valuable, skilled jobs to the area, and that is important, but it is more than that. Investment would help to develop spin-off businesses that would support the industry both directly and along the supply chain. We have already seen that. I was lucky at the weekend to be interviewed by the BBC, and local companies and local champions of geothermal have come forward in the past few days, keen to work with the Government and public and private sector bodies on a project not just in the county but in the wider region.
Developing geothermal energy in Clackmannanshire could see the area become renowned in the UK, not just as a leading low-carbon energy provider but for its energy innovation.
(6 years, 7 months ago)
Commons ChamberAs a lifelong devotee of “Star Trek” and an avowed Trekkie, I cannot communicate how delighted I am to speak in this debate. Growing up, I always imagined that by 2018 the United Kingdom would already have a well-established, even thriving, space industry, with regular trips to the moon, Mars, or even galaxies “far, far away.” Sadly, that is not the case and in the absence of Starfleet I have had to join the next best positive forward-looking organisation: the Conservative party. To have the opportunity to help make it so here tonight is very exciting for me and, I believe, for the entire United Kingdom.
It should therefore come as no surprise to anyone that I rise to speak in support of the Space Industry Bill. The Bill aims to establish a new regulatory framework for UK-based spaceflight activities, including the operation of UK-based spaceports and the launch of new space vehicles.
The UK space industry already impacts on many sectors of the United Kingdom’s economy, services and even everyday life. From weather reporting to, as has been said, satellite navigation, telecommunications and financial services, our space industry has positively impacted on all walks of life. In 2016 an assessment by London Economics to the UK Space Agency estimated that over £250 billion, or 13.8%, of non-financial UK industrial activities were supported by satellite services. More specifically, as recently as 2015, income from the UK space industry was estimated at £13.7 billion, the equivalent of 6.5% of the global space economy. With the ever-decreasing cost of small satellites and launches enabling increased usage of satellites, the already substantial economic impact of the UK space industry is only going to increase further.
Even as we speak, a number of potential spaceports and launch companies are developing plans to offer UK launch services, but they currently have no legal framework within which to plan future operations. With the Government aiming to grow the UK space industry to an annual turnover of £19 billion by 2020, and for it to be 10% of the global space market by 2030, the Space Industry Bill represents an opportunity to strike while the iron is hot.
Moving on to the contents of the Bill, as things currently stand neither international aviation law nor space law are suitable for commercial spaceflight in the UK, thus impeding the UK space industry’s development. Indeed, following its review of UK commercial spaceplane operations in 2014, the Civil Aviation Authority recommended that the regulations for spaceflight activities be updated. Therefore, legislation is required to put in place this enabling regulatory framework.
The Bill seeks to address three areas of policy: the promotion of the UK space industry; ensuring the safety of all space-related activities; and ensuring the UK’s international obligations are reflected in UK law. Towards these three objectives, the Bill proposes seven areas of legislative framework, which the Minister outlined earlier.
My hon. Friend is about to describe frameworks that apply to the whole of the UK, and what lies ahead of us over the next two days is an outstanding example of why we often need UK frameworks.
I could not agree more; frameworks are very important. As outlined in “Star Trek”, the Federation represents a united principle with very little nationalism present, and I hope that is the future we will all strive for this evening.
There is nothing in essence with which I disagree in this Bill, which is why I support its principles. However, that does not mean that there is not more that can be done. Pre-legislative scrutiny by the Science and Technology Committee, which largely welcomed the draft Bill, highlighted some areas in which the Government could provide more policy detail, particularly environmental protections, delegated powers and the licensing and insurance provisions in the Bill. It also recommended an updated impact assessment, as the previous assessment had not been updated since the Government decided to legislate for spaceflight separately in the modern transport Bill.
I shall therefore highlight two areas of concern which I would like to see addressed, and which hon. Members on both sides of the House have referred to; I hope the Minister will respond to the concerns raised in summing up. I note that the Government consider that existing environmental and planning laws provide sufficient protections, but that they were considering adding an amendment which would require licence applicants to submit a noise and emissions assessment during the licence application process. I ask for the amendment to be introduced and to address specifically the environmental concerns raised by the Committee and in this House, so that our national environment can continue to develop, live and prosper for many years to come.
The second area of concern is the lack of a liability cap, and I urge the Government to introduce one. This would bring our space industry into line with those of Australia, France and the USA, which, of course, is the world space industry leader. The purpose of the liability caps in clauses 33(5) and 11(2) is to allow spaceflight operators to obtain affordable insurance. Without it, the prohibitive cost of obtaining insurance for unlimited liability would undermine the growth of the space industry in the UK, which, for me, is the key point of this Bill.
I accept that there is a need for flexibility within the legislation to allow for future technological advancements and changes to the international legal landscape. None the less, I believe there is still scope for some middle ground to be found between the Bill in its current state and increased clarity around the issues I have raised, while still allowing for the flexibility which is required. I therefore ask the Minister to consider the concerns raised by industry and the Committee, and the clauses I have highlighted for further consideration.
I would like to make one final point: with no existing spaceport or launch site in the UK, there is a glaring gap in the UK space industry market. However, this Bill provides an opportunity for Scotland, which is well placed to support, and benefit from, the growth in the UK space industry. Scotland has a strong heritage in the space sector. Companies such as Clyde Space and Spire have helped Scotland to become a hub of space activity, with Glasgow building more satellites in the last two years than any other city in Europe. Furthermore, future space innovations are being created by institutions such as the national Astronomy Technology Centre in Edinburgh and Strathclyde University, while it should be noted that Scotland’s geography is well suited to a number of different launch operations including vertical-launched rockets. The potential to launch satellites from traditional rockets has seen organisations across Scotland develop business cases for spaceports in their regions.
As a proud constituency MP, I highlight the burgeoning aerospace industry in the Kinross-shire area of Ochil and South Perthshire, which I also hope will benefit from investment through the upcoming Tay Cities Deal, making it ripe to maximise the future benefits we hope will come from this Bill.
This Bill is vital to establish the foundation for the British space industry. We have an opportunity to capitalise on our technological edge, leveraging investment from our financial powerhouses in London and Edinburgh to fund companies and infrastructure to bring the UK truly into the space age.
I thank the hon. Lady for her intervention, and I agree. It is important to establish a framework in which policy is laid out so that, as mentioned in her excellent speech, investors can have some view of the future and there can be certainty for investment decisions. Going back to what I was saying about the other Bills, it is important that legislation keeps up with the rate of change, and technological change in particular.
Several Members have mentioned the vital importance of spaceports and their location and the opportunity for this country to have satellite launch facilities within its borders instead of sending satellites abroad, and that issue has been well discussed throughout the debate. It is frequently pointed that the United Kingdom has some attractive geographic advantages when it comes to launch facilities. If someone is intent on launching satellites into polar orbit, launching them over an ocean at a good angle is what they are looking for, and Scotland has a good number of ideal locations for vertically launching satellites into polar orbit.
A space race is going on, but it is not the same as the space race of the past; this race is about establishing new spaceports. The competition is not just between locations in the United Kingdom—I totally subscribe to the view that there should be as many spaceports as demand requires—but between the United Kingdom and other northern European countries. This Bill allows the possibility of the UK getting into this game early, getting head and staying ahead.
Madam Deputy Speaker, you will not be surprised to hear me say that Scotland is indeed the ideal location for spaceports, and its candidate locations are competing to become Britain’s first spaceport. In a really good speech, my hon. Friend the Member for Ayr, Carrick and Cumnock (Bill Grant) spelled out the advantages of Prestwick, as did the hon. Member for Central Ayrshire (Dr Whitford), and one of the attractive features of the Prestwick proposal, apart from the geographic and meteorological advantages, is the community and cross-party unity on the matter. I cannot think of a more inspirational happening for the young people of the west of Scotland than the announcement of the building of a spaceport in Ayrshire—right on the doorstep of the vast majority of Scotland’s population.
I belong to the generation where the word space immediately conjures up the three-word phrase “the final frontier”, which has been referred to several times, but we are talking about something far more real than the science fiction and television series of my boyhood. As an eight-year-old boy in 1969, I remember watching in wonder at the flickering black and white images on our family television as the astronauts of Apollo 11, Neil Armstrong and Buzz Aldrin—names that will live forever in the history of mankind—stepped out of the lunar module and on to the lunar surface, famously taking that
“one small step for a man, one giant leap for mankind.”
It was an exciting time and the possibilities of space exploration seemed limitless, and every young mind in the country was seized with the excitement of that possibility.
Sadly, before I had even reached my first year at secondary school, manned flight to the moon, which was such an exciting prospect, had lost the attention of the vast majority of people. It is sad to say that the only time in recent memory that the British public really embraced, in a popular way, the concept of space exploration was Christmas day 2003, when Colin Pillinger and his team attempted to land Beagle 2 on the surface of Mars, as I am sure we all remember. Perhaps in the best traditions of noble first endeavours, it did not quite come off. Colin sadly passed away without knowing that he had come very near to achieving the objective of the mission.
I am most excited about this Bill, this subject matter and what it does to fire the imaginations of our young people.
My hon. Friend refers to the moon landings in the 1960s. It was a small step for a man, but does he agree that this Bill is a chance to invigorate everyone in our country and to show how much they can contribute not only to the future economy but to the future development of the entire globe?
Absolutely. This is about firing the imagination of all of us to the possibilities of space exploration.
I am mindful of the time, so I will press on. The fact is that we need this legislation, because without it we would create real risks for people. We have discussed the economic risk, but there is also the physical risk of injury. The risks of unlicensed or unregulated space activity happening in the skies above us are real. It is essential that we ensure the UK has a licensing regime that enables innovation and entrepreneurship but prohibits high-risk ventures that could do real damage.
With this Bill we are protecting not only the life and limb of our citizens but the communications and forecasting equipment that keep our country moving. There is no real difference between a major motorway that moves people around the country and a satellite that connects two different parts of a business with a high-speed link—they both need protection to ensure that we have functioning national infrastructure. The Bill envisages an uncomplicated process for doing that by allowing for schemes and ideas to be given an indicative rating as to whether they can be licensed simply, thereby allowing everyday activities to proceed quickly, or whether there is a need to alter the programme or plan. The way that will change and update with changes in technology means that what is a high-risk madcap stunt today becomes standard operating procedure tomorrow. We need a framework to allow for such change.
As I mentioned earlier, let us not forget the inspirational and uplifting elements of space travel, and we have heard quite a few references to space tourism and the possibilities it might bring. These are inspiring technologies, not only from the point of view of seeing a large rocket blast off into space but from the results and benefits we will get from such launches. Space radar that penetrates the atmosphere to scan the surface of Earth in huge detail, photographic data at different wavelengths that can tell how healthy crops are and satellites that connect communities around the world are all part of a picture that shows what humanity can do when it puts its mind to something.
We need to travel at great speed to escape the legislative atrophy that often grips us as a nation. We cannot rely on 18th-century legislative engineering to support 21st-century endeavour. We must allow our entrepreneurs and business people not only to see the sky as the limit but to look beyond even that. Our job is to give them the frameworks and the ability to do so, unconstrained by the surly bonds of outdated regulation.
I urge the House to support the Bill.
(6 years, 7 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Thank you very much. The hon. Gentleman has become my hon. Friend suddenly.
I have a fondness and affection for the Royal Bank of Scotland. It is a grand old Scottish institution, which has been ruined by the mismanagement of the directors of a decade ago.
I ask the Minister to look at what the banks propose. They are saying, “We are going to close the branch. Go to the post office.” That is not practical.
My constituency faces closures in Alloa, Kinross and Comrie. In Comrie, we face exactly the issues that my hon. Friend has mentioned, with customers being referred from the bank branch, in a place where there is weak broadband, weak infrastructure and a post office in the newsagent. That is not acceptable to my constituents, and it is pathetic customer service from the Royal Bank of Scotland.
The reality is that there are limitations on the amount of cash that can be taken and given out over the counter, and that must be confronted. The irony of all the closures, as has been mentioned twice in the debate, is that they affect the communities that have the weakest broadband connection. They are going to have to go digital without a broadband service. It is ridiculous and I call on the Minister to call on the Royal Bank of Scotland to conduct a proper review of and consultation on the branch closures.
(6 years, 8 months ago)
Commons ChamberNot just now. I wish to make more progress.
That decision was made in the face of warnings. It was an entirely political decision, fuelled by the SNP’s central belt bias and obsessive power-grabbing in Edinburgh. It therefore fell to the Scottish Conservative group to fight for Scotland and to the Conservative Chancellor to rectify those extremely damaging errors inflicted on Scotland by the SNP.
Having been shown who is truly “stronger for Scotland”, the SNP has made it its mission to undermine the hard-won successes for Scotland and to dismiss the efforts of the Conservative group here in Westminster and the Conservative Government, who have helped to deliver so much for Scotland. We all know why it has done so: it does not fit in with its narrative of grievance for the Conservatives not only to act in the best interests of their constituents and to have them at heart, but to deliver on those interests.
Ahead of Thursday’s Scottish Budget, we can all safely expect the SNP Administration in Edinburgh to carry on with their shameless Westminster finger-pointing, blaming Westminster for giving them the exemption on VAT; chastising Westminster for giving them the “wrong” money; and demanding even more from the Scottish people in the form of tax increases imposed by Holyrood.
Those are all significant broad-brush statements, but I wish to go into some detail about what the measures in the Budget mean for our constituencies in Scotland. For those who are not familiar with the hugely beneficial impact of the Barnett formula in Scotland, let me explain that Scotland benefits to the tune of £1,750 per head by remaining a part of the United Kingdom. It is also worth reminding Members that, in practice, that represents a higher rate of spending per head than England and Wales. Before we get into a dispute about figures, let me tell the House that those statistics are from the SNP’s own Government expenditure and Revenue Scotland figures. In addition, we very much welcome the £600 million more that will be spent on rail, which is an increase on the last spending period.
Does my hon. Friend agree that those are indeed the dividends of the Union?
I could not agree more, and I will go further into those dividends shortly.
The Government have delivered an additional £2 billion to Scotland in the Budget, which should be a reason to rejoice. However, they are being criticised by SNP Members. [Interruption.] The House can hear them trying to talk me down now, which is not a surprise, because no matter how high the price or how good the deal, the SNP is not satisfied. It reminds me of the Roald Dahl story, “Charlie and the Chocolate Factory”. We have the political manifestation of Veruca Salt sat just across from us; SNP Members go from room to room, shouting what they want and demanding more and more, yet they are never satisfied. Conservative Members have heard the interests of our constituents and we have delivered for them.
(6 years, 8 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Our issue will be a devolved one, but to be fair to the Scottish Government, they are introducing incentives such as the recruitment incentive, which provides up to £4,000 to employers to help young people get rewarded for some of the work they are doing. On the specific point about work experience, employers need to work with the young person’s educational establishment to ensure that they are not just getting free labour and that true work experience is being gained; otherwise, as is sometimes said, some get the work and others get the experience.
As I was saying, young people raise the issue of the range of jobs available and other obstacles in the recruitment process. Meanwhile, employers tell me about the lack of suitable qualifications and work ethic as reasons that they do not hire young people locally. Government have a significant role to play here, as do MPs and MSPs. We must build a bridge between the two groups to improve opportunities for our communities and to progress young people’s development.
The key to such progress, as in so many areas, is education. I have already mentioned the successes of apprenticeships and the impact that such schemes have had on youth employment. In Scotland we have consistently created about 26,000 starts per year since 2011-12.
Does my hon. Friend agree that there is no difference in value in a young school leaver going into work, college or university? Perhaps we have spent too long putting too much emphasis on university as a higher route, rather than looking at all those options as having equal value.
I could not agree more with my hon. Friend and I will develop that point shortly.
That figure of 26,000 starts per year is some credit to the Scottish Government—it is a strong result—but I have concerns about higher education. Only 8% of Scottish 18-year-olds from the most deprived areas enter university, compared with 17% in England, 15% in Wales and 14% in Northern Ireland. Eighteen-year-olds from deprived areas in Scotland are therefore significantly less likely to have the opportunity to attend university than those of the same age anywhere else in the United Kingdom.
Education is, of course, devolved in Scotland, but the existing policy of free tuition fees is clearly not delivering for the most deprived in my constituency. Furthermore, in order to pay for the free university tuition fees, since coming to power the Scottish National party Administration in Edinburgh has cut about 150,000 college places in Scotland, further denying people another route to education. That is a great shame, especially when the staff of colleges such as Forth Valley in my constituency are working so hard to provide opportunities and to adjust to the challenges of lifelong learning.
Academic education and vocational training are not the only answers to youth unemployment. We need more initiatives to improve social capital. In areas of deprivation, young people face not only material shortcomings, but a shortfall in social capital. That means that the boy or girl born on the council scheme does not have the connections to get the work experience that they desire. Those from a workless household do not always have the chance or guide to show them not just what they are, but what they could be. For too many, their background and birth deny them the freedom to pursue their true aspiration and calling. That is why I welcome the Government’s groundbreaking TUC-CBI national retraining scheme, which provides opportunities and skills throughout life. The scheme does not apply in Scotland, but I gently remind the Minister that he is a Minister for the whole of the United Kingdom, and I know that my constituents would welcome the expansion of the scheme to Scotland and, specifically, my constituency.
The UK unemployment rate is lower than most, but the higher average youth unemployment rate in Scotland, and in my constituency, shows that current policies are not as effective as they could be. By recognising this, I hope that colleagues across the House and in the devolved Administration can work constructively and creatively to tackle this challenge and to ensure that young people have the opportunities they deserve.
(6 years, 9 months ago)
Commons ChamberThe 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?
(6 years, 11 months ago)
Commons Chamber