Oral Answers to Questions

Margaret Curran Excerpts

Wednesday 21st November 2012 Commons Chamber

[Michael Moore]

My hon. Friend underlines the importance of trade for the Scottish and UK economies. Scotland’s exports are worth some £22 billion, but to put things in perspective, that is half the value of what we sell into England, Wales and the rest of the UK. SDI has 21 offices in 13 countries, whereas UKTI has 162 offices in 96 countries, and 270 Foreign and Commonwealth Office consuls operate in 170 countries. That network offers a great opportunity to Scottish business to get the best out of the United Kingdom. It is important that we work together, and it is clear that we are stronger together and would be weaker apart.

[Margaret Curran (Glasgow East) (Lab)]

As we have seen, the work undertaken here has an impact on Scottish businesses both at home and abroad. May I draw the Secretary of State’s attention to the troubles that Scottish businesses are currently experiencing, however? Unemployment is now higher in Scotland than in the rest of the UK. Recent research by the Fraser of Allander Institute reveals another challenge for the Scottish economy and Scottish businesses: it found that welfare changes in Glasgow alone will remove £115 million from the local economy and lead to the loss of almost 2,000 jobs across Scotland. What does the Secretary of State plan to do about that?

[Michael Moore]

I share the hon. Lady’s analysis in this respect: there is a huge mess that has to be cleared up, and there are significant challenges and some deep-seated problems in the Scottish and UK economies, as well as real problems on our doorstep in Europe. Every time she comes to the Dispatch Box, however, she tries to duck Labour’s responsibility for the mess we inherited, and she simply cannot do that. We are determined to ensure that through welfare reform we make work pay, by supporting the most vulnerable and helping people into work. We are also determined to put money back into the pockets of low-income and middle-income Scots; from next April, 162,000 will be taken out of tax entirely, and 2 million will have seen their tax bills reduced.

[Margaret Curran]

Perhaps I can draw the Secretary of State’s attention to some of the comments made by his Liberal Democrat colleagues, who I do not think share his enthusiasm for his welfare changes, and ask him to focus on the loss of jobs that they will cause in Scotland. Perhaps he should focus a little more on that. The truth is that the Government’s policies are hitting Scotland hard, and the Secretary of State must start addressing the work his Government are doing in Scotland. Earlier this month in a letter to me, the Secretary of State revealed he is not on a single one of the Cabinet Committees dealing with either the economy or welfare. The last time I questioned the Secretary of State we had no action on food banks, and now there is no action on Scotland’s economy. It would seem that he does not understand the impact of the welfare changes in Scotland. When are you going to start doing your job in relation to the Scottish economy?

Referendum (Scotland)

Margaret Curran Excerpts

Monday 15th October 2012 Commons Chamber

[Margaret Curran (Glasgow East) (Lab)]

I thank the Minister for providing me in advance with a copy of the statement.

This is, without doubt, an historic day for Scotland and the Scottish people. Now is the time for the debate on Scotland’s future to move out of the corridors of power and on to the streets of Scotland. I join the Minister in welcoming the fact that an agreement has been reached. It brings all Scots, me included, one step closer to deciding the future of our country.

The Opposition welcome the fact that the deal has been reached, but will seek guarantees that both parties will adhere to the agreement in spirit and in practice. We also have a number of questions to raise. Our position has always been that the referendum must be fair, legal and decisive. We welcome the fact that there will be a legal referendum with a single question and a regulatory role for the Electoral Commission.

Labour has always been, and will continue to be, the party of devolution. Labour brought devolution to Scotland, Wales and Northern Ireland, and we will continue to make the case for our devolution settlement to develop and evolve. We are, and have always been, a party of constitutional renewal, and we know that the best interests of our people are served by binding together, not breaking apart. In the debate about our future over the next two years, we will therefore promote devolution within the Union against those who seek to bring it to an end.

The agreement sets out a framework for how we will move forward to the referendum, but I would welcome clarity on a number of a points, which I hope the Minister will address. First, the Electoral Commission should clearly play a significant role in the process, particularly with regard to the referendum question and the funding of campaigns. Can he assure the House that the memorandum of agreement ensures that the Scottish Government must comply with, not turn their back on, the Electoral Commission’s advice? If they do turn their back on that advice, or seek to do so, what action will be taken? Given that no other Government have ever done that, it would be exceptionally damaging to the conduct and process of the referendum.

Secondly, the terms of the agreement leave significant ambiguity regarding the funding of each campaign and the opportunity for financing or related activity by interested third parties. Does the agreement ensure that the limits set by the Electoral Commission will be binding? Will organisations such as trade unions and businesses be able to participate in the referendum in a way comparable to that in which they participated in the Welsh and alternative vote referendums? Does the Minister agree that it is troubling that even before the agreement was signed stating that the Electoral Commission would have a regulatory role, the First Minister’s aides were briefing the press that they would be willing to ignore the Electoral Commission?

Finally, we must ensure that there is adequate scrutiny of the agreement and the subsequent process in this House. Will the Minister therefore explain what opportunity there will be to debate the detail of the section 30 order on the Floor of the House? Will he assure me that either he or the Secretary of State will provide regular updates to the House as the process continues over the next two years?

[David Mundell]

I welcome the hon. Lady’s welcome for the agreement and her contribution to the debate that has led to it. It is important that the agreement sets out a clear role for the Electoral Commission in relation to both the question and the funding of the campaigns. It is difficult to envisage circumstances in which the Scottish Government would want to ignore the Electoral Commission’s recommendations. As she said, no Government have ever done so, and there would be not just a procedural problem but a significant political price to pay for any party that sought to do so.

We should never underestimate the Scottish people. It is wrong to suggest that they could somehow be duped into supporting independence by any form of chicanery or trickery that might come from either side of the debate. They are much too sensible for that, and I have every confidence that when the referendum comes, whatever the form of the question and however the campaign has been funded, they will make the right decision.

Oral Answers to Questions

Margaret Curran Excerpts

Wednesday 12th September 2012 Commons Chamber

[David Mundell]

The Government have shown by their actions that they are committed to involving not just the Scottish Government, but all the devolved Administrations in developing the UK position on the CAP reform negotiations, and that will continue to be our position.

[Margaret Curran (Glasgow East) (Lab)]

I am sure that everyone in the House will agree that the current negotiations in Europe may have a significant impact on food prices, especially at a time when Scottish families are under such pressure from rising food prices. Precisely what correspondence or meetings have the Minister and Secretary of State had with other ministerial colleagues to discuss this issue facing Scottish families?

[David Mundell]

The Secretary of State and I have had a range of meetings with colleagues across Government and in the Scottish Government to address not just the CAP reforms, but issues such as the cost of living and the economic policies being pursued in Scotland. As the hon. Lady well knows, our view is that the Scottish and UK Governments should be working together on economic matters in Scotland. We would much rather that that was also the view of the Scottish Government, rather than their incessant focus on constitutional matters.

[Margaret Curran]

I thank the Minister for that interesting answer. Yesterday, in response to a question of mine, the Secretary of State seemed to have no grasp of the impact of rising food prices in Scotland. Last week, Save the Children launched its first appeal to fund its work in Scotland, revealing that a quarter of parents have less than £30 a week to spend on food, and Citizens Advice Scotland tells us that applications for support for food and other basics has doubled. We all know, just as the Minister has indicated, that that is a result of the choices that he and his Cabinet colleagues have made. Are he and the Secretary of State proud that food banks are fast becoming the hallmark of his Government in Scotland?

[David Mundell]

The hon. Lady was not present at this week’s reception at Dover house, where many of the leading stakeholders on child poverty, including Save the Children, were in attendance and there was a significant discussion about the issue. She can be assured that both the Secretary of State and I take these issues very seriously.

Oral Answers to Questions

Margaret Curran Excerpts

Wednesday 20th June 2012 Commons Chamber

[Michael Moore]

None, but it is a matter for the Scottish National party and Scottish Government to set out their proposals. They have singularly failed to do so.

[Margaret Curran (Glasgow East) (Lab)]

The Secretary of State may be aware that I received answers to parliamentary questions yesterday that indicate that although the Scottish Government argue that a separate Scotland will continue to use sterling, the Bank of England and UK financial regulatory institutions, they have not yet undertaken any work behind the scenes to explore those options—no correspondence has been sent, no questions have been asked and no discussions have taken place. Does he agree that the First Minister should spend less time in Hollywood and more time in Holyrood—[Interruption.] It was a good try. Given that the Scottish Government have made those statements on the economy and a separate Scotland, what steps has the Secretary of State taken to clear up the confusion and ambiguity of such claims?

[Michael Moore]

I agree with the hon. Lady that it is quite striking that the SNP and Scottish Government are curiously short on the detail as they set out their lifelong ambition to create an independent Scotland, and that they are not curious to ask more questions. I start from a simple point: Scotland is stronger within the UK and the UK is stronger for having Scotland as part of it. The economy is a key part of that argument.

[Margaret Curran]

I thank the Secretary of State for that argument. In such debates on Scotland, we have assertion, not argument, and fantasy rather than facts—the Scottish Government’s arguments cannot pass the most basic test of credible evidence. Will the Secretary of State and the whole UK Government therefore work with others to ensure that we have credible evidence and arguments that pass the test of objective and independent scrutiny to ensure that Scottish people get the arguments they deserve?

[Michael Moore]

I absolutely agree with the hon. Lady that it is important that this great debate is well informed by detailed evidence and strong analysis. That is why the Government are getting civil servants to work through the key issues and to engage with academics, think-tanks and other respected experts outside the Government to ensure we have all the evidence to inform the debate. As we do that over the next 18 months, I am confident we will show beyond doubt that Scotland’s place is much stronger as part of the UK.

Scotland Bill

Margaret Curran Excerpts

Thursday 26th April 2012 Commons Chamber

[David Mundell]

rose—

[Margaret Curran (Glasgow East) (Lab)]

rose—

[Pete Wishart]

I have a choice between the two Front Benches. I will give way to the Minister first.

Oral Answers to Questions

Margaret Curran Excerpts

Wednesday 18th April 2012 Commons Chamber

[Michael Moore]

My hon. Friend is entirely right. Our priority in difficult times must be to give help to people on low and middle incomes—the earners who need the most support. Because of that, more than 160,000 Scots will be out of income tax altogether, and millions more will pay less tax. That is the right way to approach this.

[Margaret Curran (Glasgow East) (Lab)]

May I begin with a quote?

“The simple equation is that we think the priority is to help those on the lowest incomes. Clearly that is going to have to be paid for and we think it is fair that those who have the broadest shoulders should be the ones to contribute to that.”

Can the Secretary of State tell us which Cabinet member said that about the recent Budget?

[Michael Moore]

The important point is that in the very difficult economic circumstances that we inherited from the hon. Lady’s Government, we must fix the deficit, get the economy on the right track and in doing so make decisions that help the lowest paid and middle-income earners. That is what we are doing by taking people out of tax altogether and by ensuring that we reduce the tax burden on others.

[Margaret Curran]

I am surprised that the Secretary of State did not even recognise a quote from himself. He should know that the Resolution Foundation has confirmed that cuts to tax credits will dwarf any gains from an increase in personal tax allowances—so he needs to stop using that argument. Will he tell us why he has changed his position since he last spoke to the Evening Standard, when more than 400,000 Scottish pensioners are going to be hit by the granny tax and more than 84,000 families in Scotland will have lost all their tax credits, while at the same time his Budget has given 16,000 of the richest Scots a massive tax cut? Will the Secretary of State finally admit that this Budget has hit Scotland hard and has done more for millionaires than for hard-working families? When will he stop being a Tory front man and stand up for working people in Scotland?

[Michael Moore]

The last Labour Secretary of State, who has now joined the hon. Lady on the Front Bench, said that Labour had to be credible on the economy and on the financial regime, but it is not being credible in the proposals it is making. I stand by my comments. My intention and that of my colleagues with this Budget is to ensure that we provide support to the lowest and middle-income earners and that those on the highest earnings pay their way. Through the abolition of tax reliefs, we will ensure that they do.

Oral Answers to Questions

Margaret Curran Excerpts

Wednesday 22nd February 2012 Commons Chamber

[Michael Moore]

It is vital that Scotland’s two Governments work together on this terrible problem that existed under the previous Government and continues. We need to address that using everything we can to help young people get experience, training or jobs. We will work hard on all those, and if others wish to work with us, we will welcome that.

[Margaret Curran (Glasgow East) (Lab)]

Will the Secretary of State tell the House how many young Scots have lost their jobs since he was appointed to his job in May 2010?

[Michael Moore]

If I may say so, the hon. Lady should remember the economic mess that we inherited from the Labour Government, since when we have been fixing the deficit and seeking to rebalance the economy and ensure that we have sustainable growth. The youth contract, work experience and all the support we are giving are vital to ensuring that we get young people back into the workplace.

[Margaret Curran]

I notice that the Secretary of State struggled somewhat with that answer. There is one statistic that he should be familiar with. Since his Government scrapped the future jobs fund, 23,000 jobs have been lost in Scotland. That is more than 400 jobs every week for young people, while he has become the Tories’ man in Scotland. We are in the midst of a youth unemployment crisis, and the Secretary of State for Scotland has been posted missing. In contrast, Labour took direct action through the future jobs fund, delivering more than 10,000 real jobs for young people in Scotland. So can the Secretary of State share with the House what plans he has—any ideas at all—to take direct, effective action to tackle youth unemployment in Scotland?

[Michael Moore]

As ever, the hon. Lady wishes to leave behind the horrible mess that the Government she supported left for us to fix. She cannot escape that reality or the fact that youth unemployment rose under Labour. We are investing £1 billion in the youth contract, which will enhance the number of work experience places and provide additional support for employers taking on young people, and has provided the Scottish Government with additional resources. I have been working with her colleagues and others to ensure that we do everything we can to tackle this terrible problem.

Oral Answers to Questions

Margaret Curran Excerpts

Wednesday 11th January 2012 Commons Chamber

[Michael Moore]

My right hon. Friend the Prime Minister will be a full participant in the debate, as will all people across the United Kingdom. For us, it is important that we have a referendum that is made in Scotland for the people of Scotland about our future in Scotland. The First Minister and now the hon. Gentleman —who gave a slightly different date—have put forward their preference for when that referendum should be, but before we can get anywhere near it we must ensure that it is legal. I hope that the Scottish Government will work with us to ensure that that is the case.

[Margaret Curran (Glasgow East) (Lab)]

Does the Secretary of State recognise that following this week’s important developments, the referendum campaign on Scotland’s future is now effectively under way and it is time to get on to the substance of the issue? What is more, given that the Scottish Government have said that they have been involved for some time in considering the details of the prospects for Scotland, will the Secretary of State tell the House whether any UK Government officials have been involved in any discussions on the future of the Scottish economy and, in particular, on whether a separate Scotland will keep the pound, join the euro or have a separate currency?

[Michael Moore]

The hon. Lady is right to focus on those key issues about the future of Scotland. I believe that Scotland is best served by continuing to be part of the United Kingdom, where our economy is stronger and our defence more secure, where we have much greater clout internationally and where our welfare system will be more generous and better. I hope that the Scottish Government will publish their plans about what they think should happen in an independent Scotland and in the meantime, as the hon. Lady says, let the debate commence.

[Margaret Curran]

I thank the Secretary of State for that answer. Does he agree that one of Britain’s greatest achievements was the creation of the welfare state? Have any discussions taken place about the implications of separation for welfare spend in Scotland, particularly as recent figures reveal that it was three times greater than oil revenues in 2010?

[Michael Moore]

The hon. Lady makes an important point about the contrast between the level of spending to support some of the most vulnerable in our society in Scotland and, indeed, the rest of the country and the volatility of oil revenues. I believe that we can have a more secure and generous welfare system by sharing the risks and resources across the whole of the United Kingdom, which has helped Scotland through difficult times in the past and at present.

Scotland’s Constitutional Future

Margaret Curran Excerpts

Tuesday 10th January 2012 Commons Chamber

[The Secretary of State for Scotland (Michael Moore)]

With permission, Mr. Speaker, I would like to make a statement on Scotland’s constitutional future in the United Kingdom.

In May 2011, the Scottish National party won a significant electoral victory—a victory that this Government have openly acknowledged. The SNP has consistently campaigned for Scottish independence, and its 2011 manifesto included a pledge to hold an independence referendum. As a Scot, I think that it is vital that the Scottish people make a clear decision about our future within the United Kingdom: a decision made in Scotland, by the people of Scotland. At present, however, there is a lack of clarity about the referendum, its outcome, and what the implications of that outcome would be, all of which creates economic uncertainty. That is bad for jobs and investment.

Since last year’s election, we have been asking the Scottish Government to set out their plans for a referendum, but so far they have not done so. In particular, they have not said anything more about their legal power to deliver a referendum. This is not an issue that can be ducked. To legislate for a referendum on independence, the Scottish Parliament must have the legal power. It is this Government’s clear view that the Scottish Parliament does not have that legal power.

Scotland’s future within the UK will be the most important decision we, as Scots, take in our lifetime. It is essential that the referendum is legal, fair and decisive. As a Government, we have been clear since May 2011 that we will not stand in the way of a referendum on independence, but neither will we stand on the sidelines and let uncertainty continue. Any referendum must let all of us in Scotland determine our future clearly and decide whether to stay part of the longest, most successful partnership of nations in history. That is why we are publishing a consultation to seek views on how to deliver a legal, fair and decisive referendum. For a referendum to take place, legislation is required. That will ensure that any referendum, on any issue, is subject to detailed consideration and debate, and to clear and consistent regulation.

In 2010, the Scottish Government published plans to legislate for a referendum on independence. We have considered those plans carefully against the devolution settlement in Scotland as set out in the Scotland Act 1998. The 1998 Act is clear: the Scottish Parliament cannot legislate on matters reserved to this Parliament. Among the issues that are reserved is the constitution, including

“the Union of the Kingdoms of Scotland and England”.

Any Act of the Scottish Parliament that “relates to” a reserved matter is quite simply “not law”. Whether or not a Bill “relates to” a reserved matter depends on its purpose and effect. We are clear that the Scottish Government’s purpose in bringing forward a referendum is to secure independence. Their intended effect is to secure a mandate for negotiating this. Both purpose and effect relate directly to the reserved matter of the Union. Any distinction between a binding or advisory referendum is artificial. As the law stands, an independence referendum Bill is outside the competence of the Scottish Parliament. Such a Bill could be challenged in court, and it is our view that the Scottish Government would lose.

The consultation paper that I am publishing today sets out different ways to deliver a legal, fair and decisive referendum. It explains how the powers for a referendum could be devolved under the section 30 order-making provisions in the Scotland Act 1998, which is our preferred approach. It also invites views on devolving the powers using other legislation, including the current Scotland Bill, and seeks opinions on the possibility of running the referendum directly.

Given the clear legal problem that exists, we want to work with the Scottish Government to provide the answer. This is not about the mandates of Scotland’s two Governments, or about who calls the shots. It is about empowering the people of Scotland to participate in a legal referendum. That means that the UK Government are willing to give the Scottish Parliament the powers to hold a referendum, which it cannot otherwise do legally. As well as being legal, however, a referendum must be fair and decisive. For those reasons, the rules of the referendum must be demonstrably above board. The referendum should be overseen by those who have neutrality and the proven expertise to inspire confidence in the fairness of the process, such as the Electoral Commission.

These issues are not for politicians alone to consider. That is why the consultation process that starts today will let people express their views on when a referendum should be held, what question should be asked, who should be entitled to vote and how the campaign should be run. It will be open to all people in Scotland—and, indeed, outwith Scotland—to make their views clear, rather than rely on the opinions of politicians. It is in everyone’s interests that the two Governments take on board the needs of Scotland and the opinions of its people, work together, and deliver the legal, fair and decisive referendum that is in our common interests.

The Government believe passionately in the United Kingdom. For over 300 years our country has brought people together in the most successful multi-national state the world has known. This Government are clear that independence is not in the interests of Scotland. The United Kingdom brings strength to Scotland; Scotland brings strength to the United Kingdom. We recognise that this is not a view shared by all, but politicians from both sides of the debate owe it to everyone in Scotland to ensure that the referendum is delivered in a legal, fair and decisive way.

The future of Scotland must not be worked out in secret, behind closed doors, nor determined by wrangling in the courts. It is my task to ensure that this referendum is made in Scotland by the people of Scotland for the future of Scotland. I commend this statement to the House.

[Margaret Curran (Glasgow East) (Lab)]

I thank the Secretary of State for sight of the statement before its announcement this afternoon. As a consequence of the result of the Scottish elections in May, we accept that the Scottish National party has a clear mandate to ask the people of Scotland whether they want to remain part of the United Kingdom. There is absolutely no doubt that this referendum will take place; what all the political parties must now do is work together to make sure that the referendum is fair, legal and commands the complete authority of the Scottish people.

In the light of the Secretary of State’s statement, we have some further questions and concerns that I hope he will address in his response. I begin by asking the Secretary of State how he plans to take forward his proposals and his plans for consultation on the section 30 order.

Secondly, I understand that without publishing any of their own legal advice, the Scottish Government are contesting the authority of the legal advice held by the Secretary of State. What assurances can he give the Scottish people that the advice he holds rests on a sound foundation—a foundation that is robust and authoritative on this issue? To ensure maximum transparency, does he plan to publish his legal advice, and would he recommend that the Scottish Government do the same?

Thirdly, Scottish Labour is clear that any question on separation must be a straight yes or no choice. We therefore welcome yesterday’s acknowledgement by the Deputy First Minister of the Scottish Government that this is also the preference of the Scottish National party. Will the Secretary of State confirm that this is the position of the coalition parties, too? If so, it is important to recognise that, in respect of Scotland, all four major political parties are in agreement that there should be a straight choice of a yes-no referendum. That is a highly significant development.

Fourthly, will the Secretary of State confirm with absolutely clarity today whether the UK Government support the involvement of the Electoral Commission in the conduct of the referendum? The Electoral Commission has overseen referendums in Wales and the rest of the United Kingdom this very year, and it has the highest level of confidence and respect in overseeing the referendum as a non-partisan arbiter. We are of the opinion that it is the body best placed to oversee the referendum. Does the Secretary of State share that view?

Which Minister will lead the consultation? Will it be the Secretary of State himself, or will it perhaps be the Chancellor? The United Kingdom Government appear to have sent out the wrong signal by allowing the Chancellor, rather than the Secretary of State for Scotland, to take the lead on a vital Scottish issue in the Cabinet.

As the First Minister asserted last May, the sooner the vote on the future of Scotland is held, the better. Scotland’s economy is flatlining. One in four young Scottish men is out of work. We are told that Scotland now faces record levels of child and family poverty. What we cannot afford to do is spend the next four years obsessing about the process of a referendum. Now is the time for parties to work together, get on with the debate, and get on with deciding where Scotland’s best future lies.

The Scottish people face a momentous decision in the referendum. What Labour will not do is sit back and support a process that turns into a petty fight between the two elements that Scotland rejects—separation and the Tories. Scotland deserves better than politicians bickering about the process. We must move as quickly as possible to a debate of substance that puts Scotland’s people and Scottish interests first.

[Michael Moore]

I entirely agree with what the hon. Lady has just said about the need for us get on with the debate, and to ensure that the Scottish people and Scottish interests, not the interests of politicians in different political parties, are at the heart of it.

I am delighted to confirm that—as the hon. Lady will see if she reads the consultation paper, and as is clear from the fact that I made the statement today—I will lead for the Government, working with all my colleagues.

As I acknowledged in my statement, the Scottish National party secured an important victory in the elections last year. It had set out its clear intention of holding a referendum, but what was not so clear was how it would do that. As I have said, we believe the legal position to be that the Scottish Parliament does not have the power to conduct any kind of referendum, and it is therefore important for us to work with the Scottish Government to ensure that we can get on with this historic decision.

The hon. Lady asked how we would consult. The consultation document offers people throughout Scotland the opportunity to write and involve themselves in the process. I will of course be going out and about in Scotland myself, and I am sure that many others will also involve themselves in the debate. It is important that everyone in Scotland is able to feel part of the process.

The hon. Lady will be aware of the ministerial code and the convention followed by successive Governments that legal advice is neither acknowledged nor published. However, I ask her to look carefully at the consultation document and to note the authority that we are bringing to bear, namely sections 29 and 30 and, in particular, schedule 5 of the Scotland Act. I believe that careful examination of those documents will lead to only one clear conclusion: that there is no legal authority for any referendum. We must ensure that that issue is resolved.

The hon. Lady asked whether I, like her, support a simple, straightforward yes-no question on Scotland’s place in the United Kingdom. That is indeed what we are recommending. As for the issue of oversight, I think it entirely fair and reasonable for the process of a referendum to be overseen by a body that has widespread experience, is neutral, and is seen to be above and beyond the fray. The Electoral Commission seems to me to fit the bill, but I look forward to hearing the reactions of others during the consultation.

Oral Answers to Questions

Margaret Curran Excerpts

Wednesday 9th November 2011 Commons Chamber

[Michael Moore]

We have said that we want to consider any valid proposals brought forward by the Scottish Government, but they must first establish a credible, detailed position, maintain the consensus across the parties and ensure that there is no detriment to Scotland or the rest of the UK. The Scottish National party and the First Minister have so far failed to deliver the detail.

[Margaret Curran (Glasgow East) (Lab)]

I ask the Secretary of State to pay particular attention to the concerns raised this morning about the construction industry in Scotland, where 10,000 jobs have been lost this year and the number of companies facing bankruptcy has risen by 135% in the past two years. With that in mind, will he support Labour’s call, and that of the Scottish Building Federation, for a one-year cut in VAT on home improvements to 5%, a specific action to help boost the construction industry and get the Scottish economy moving again?

[Michael Moore]

I welcome the hon. Lady to her new post, without, if I may say so, wishing her too much success in it. She brings a great deal of experience to the House and I look forward to our encounters. We have heard Labour’s proposals for reducing VAT, but I have to tell her that when that was last done it did not deliver the hoped-for outcome. As we are seeing across the eurozone, countries cannot spend their way out of a debt crisis. We need a credible plan and we have to deliver on it, which is what we are doing.

[Margaret Curran]

I thank the Secretary of State for his kind opening remarks and look forward to robust debates and work in the coming years. I am sorry to say that his answer is completely inadequate, because previous VAT cuts did deliver growth. The Government’s failed policies mean that they are set to borrow £46 billion more this year, rather than reduce the deficit. In reality, Scots face a double-whammy: a Tory-led Government cutting too far and too fast, and an SNP Government presiding over stagnant growth and cuts in capital spending. Scotland is in the midst of a crisis—a jobs crisis and a growth crisis. If he will not follow Labour’s five-point plan to boost jobs and growth in Scotland, what specific action will the Government take in Scotland and for Scotland to get our economy moving again?

[Michael Moore]

The hon. Lady cannot skip so lightly away from the mess we inherited from the previous Government: the highest deficit in peacetime history and we were borrowing £1 for every £4 we spent, which was simply unsustainable. It is absolutely vital that we keep to our credible deficit reduction plan and deliver on the plan for growth by cutting corporation tax, maintaining low interest rates and reducing regulatory and national insurance burdens. As far as Scotland is concerned, I agree that the tax hike in the Scottish Government’s spending review is bad for business. They must acknowledge that we have helped with pre-payments for the replacement Forth crossing and by making land available from the Ministry of Defence. We are helping the Scottish Government in many ways.