Protection of Jobs and Businesses
Margaret Ferrier Excerpts(4 years, 3 months ago)
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Margaret Ferrier (Rutherglen and Hamilton West) (SNP)
I am grateful for the opportunity to speak in this timely debate, which is of critical importance to my constituents. Out of the four constituencies that represent South Lanarkshire in this House, my constituency has the highest number of people receiving support for their incomes during the pandemic. The most recent figures, from July, show that 15,800 constituents were placed on the furlough scheme, with 3,200 constituents on the self-employed income support scheme. To put that into context, the total number of people on those schemes is just shy of a quarter of the total electorate in my constituency.
There can be no doubt from those figures that the economic effects of covid-19 are going to be felt for some time to come. It is with that understanding that we now face an incredibly stark choice about what to do next. It is my fundamental view that the Chancellor is moving far too quickly to wind down those schemes. There are sectors of the economy that are clearly not yet ready to reopen or expect a longer time to recovery, because coronavirus mitigations will be with us for many months to come.
One example of an industry that faces a deeply uncertain future without furlough is the events industry, which employs many of my constituents and supports our thriving cultural scene. My constituent Anne Porter, who owns a small production company that has been running in Burnside since 1989, told me that she has relied on furlough to keep the company going. However, with many major live events cancelled or postponed until next year and the furlough scheme winding down, many businesses like Anne’s are now facing closure across my constituency.
My constituents whose livelihoods rely on productions and events have told me that continuing support is essential for those sectors to recover. Many performers see the end of furlough as an enormous setback to what will often be the first tentative steps into their career. Ending furlough too early will lead many to conclude that the so-called “broad economic shoulders” of the UK are being put to work creating cliff edges, just at the moment when many people will be feeling economically vulnerable. For some it will be the first time in their lives that they have experienced this kind of insecurity. They have paid their taxes, followed the rules and done all the right things, and the UK Government are now repaying them with worry and uncertainty as the scheme winds down and the threat of redundancy looms large.
In conclusion, I do not want to have to beg another Government to do the right thing and extend the furlough and self-employed income support schemes. I do not want to hear more stories from ExcludedUK of people who are falling through every gap in the support schemes and been left with nothing, not even the hope of one-off support that might help them get back on their feet. I want the Government to start listening and to keep this lifeline support going. If they will not do that, it is time that we have the choice to support people and businesses through the powers of an independent Scotland.
Economic Update
Margaret Ferrier Excerpts(4 years, 5 months ago)
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Rishi Sunak
I wholeheartedly agree with my right hon. Friend. He is absolutely right: these interventions are specific to the moment that we face now. They provide support for young people at this moment of acute crisis. In the long term, only a dynamic market economy can provide sustainable, long-term employment for young people and beyond. In the medium term, once we get through this crisis, we must return our public finances to a sustainable place.
Margaret Ferrier (Rutherglen and Hamilton West) (SNP) [V]
The community access to cash scheme recently announced at Cambuslang in my constituency is going to become one of the pilot areas, bringing back much needed payment facilities to our community, which has lost several bank branches. The Chancellor has promised legislation to improve access to cash, which is needed urgently in the light of the economic downturn caused by the coronavirus. When will he bring forward that vital legislation to protect cash use, support small business and boost the recovery of our high streets?
Rishi Sunak
The hon. Member makes a good and fair point about the importance of cash, particularly in our rural communities. My hon. Friend the Economic Secretary is very much on top of this. He is conducting roundtables with the industry in the coming weeks, and we will bring forward legislation, as we have committed to do.
Oral Answers to Questions
Margaret Ferrier Excerpts(4 years, 5 months ago)
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Dave Doogan (Angus) (SNP)
Margaret Ferrier (Rutherglen and Hamilton West) (SNP)
The Chancellor of the Exchequer (Rishi Sunak)
The Government have taken unprecedented steps to keep as many people as possible in their existing jobs, support viable businesses to stay afloat and protect the incomes of the most vulnerable. We are now carefully and safely reopening our economy.
Rishi Sunak
I have said previously that, although we have not been able to help everyone in exactly the way that they would have liked, I am confident that the breadth and scale of the interventions we have provided ensures that everyone is able to access some support. We have also strengthened our security net, with welfare through universal credit, among other things, and our self-employment scheme remains one of the most comprehensive and generous anywhere in the world.
Margaret Ferrier [V]
The economic impact of coronavirus has not been distributed evenly across the UK economy, yet the Scottish Government have extremely limited borrowing powers to stimulate demand and aid recovery in key sectors. A one-size-fits-all approach should no longer be the norm. Will the Chancellor bring forward the review of the fiscal framework, lift the caps on borrowing and give the Scottish Government the tools that they need to invest in Scotland’s future?
Rishi Sunak
My right hon. Friend the Chief Secretary to the Treasury is in constant dialogue with his counterpart, the Finance Minister in Scotland, on these issues, but the people of Scotland are able to benefit from the strong measures that we put in place for the entire United Kingdom. Whether it be our loan schemes or, indeed, our furlough scheme, everyone in every part of this country is able to benefit.
Rishi Sunak
My hon. Friend is absolutely right: young people are more likely than not to work in affected sectors and more likely than others to be furloughed, and we know from all the evidence that the impact of scarring on young people is very significant, which is why they remain uppermost in my mind. I give my hon. Friend the reassurance that they will be prioritised as we think about our recovery and our labour-market interventions.
Margaret Ferrier (Rutherglen and Hamilton West) (SNP) [V]
The Financial Secretary to the Treasury (Jesse Norman)
As the hon. Lady will know, the Treasury is in constant communication with the FCA on these and other issues. If she would like to bring the specific details to my attention, I will make sure that they are examined by Ministers.
Future Relationship with the EU
Margaret Ferrier Excerpts(4 years, 6 months ago)
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Penny Mordaunt
I think that behind the political bluster there is good faith, because not only are we starting out from similar positions, as my hon. Friend points out, but a good deal is in our mutual interests. That is why I have always remained optimistic about the outcome of this process. [Interruption.] Because the EU needs to recognise us a sovereign equal, and I hope that it does.
Margaret Ferrier (Rutherglen and Hamilton West) (SNP) [V]
World trade is forecast to decline by up to a third in 2020 due to the coronavirus pandemic, and that could encourage a move to more protectionist trade policies globally. Given that context, why does the Minister think it is a good idea to rush through major changes to the UK’s trading relationship with the EU, when businesses want more time to recover from the economic shock of coronavirus and avoid a no-deal scenario?
Covid-19
Margaret Ferrier Excerpts(4 years, 7 months ago)
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Margaret Ferrier (Rutherglen and Hamilton West) (SNP) [V]
I express my condolences to those who have lost their lives to covid-19. It is easy to forget amid the daily statistical reports that behind each number is a person who was loved by their family and friends and was an irreplaceable part of the local community. I also take the opportunity to pay tribute to the efforts of key workers in my constituency, who are helping to save lives and keep essential services running. From nurses to delivery drivers, they are all heroes in my eyes, and I am continually impressed by the way that they have adapted and continue to adapt in challenging circumstances.
In times of national crisis, our choice of words matters. We need to provide clear and consistent information to the public about what we are asking them to do and why. It is regrettable that the “stay alert” slogan for England was briefed to the media before MPs and that no consultation with the devolved Governments took place beforehand. On a basic level, the “stay alert” message can be interpreted as an end to lockdown and as throwing caution to the wind, which could have disastrous consequences for public health. The threat of a second wave remains very real, and the infection rate could move upwards rapidly again. We only need to look at Germany to observe the consequences of lifting lockdown too soon. Now is not the time for caveat and nuance in tackling coronavirus. We need a clear and unambiguous approach like that taken by the First Ministers of Scotland, Wales and Northern Ireland to reinforce the clear message to stay at home.
Lockdown has not been an easy decision to implement, and it does not come without cost. It has taken its toll on our constituents, and we are all anxious for their wellbeing. We know that businesses are struggling right now, and we want to support them to survive in the months ahead and rebuild over the longer term. From hairdressers to shows and everything in between, they need stability now in order to prepare for the post-coronavirus economy.
Just as with the lockdown measures, we must not rush into winding down the job retention schemes that give businesses security now. Indeed, we must look at options for extending those schemes for sectors that may struggle to reopen with social distancing. No country is going to avoid the economic impact of coronavirus, but the question comes down to whether recovery puts the wellbeing of society first or tries to carry on as if nothing has happened. We risk creating another lost generation if we do not learn from the innovations that have been born out of necessity during this crisis.
Flexibility in policy making will be crucial in adapting to the challenges of our post-coronavirus future. That is as true when approaching the question of easing lockdown measures as it is with many other aspects of Government policy. A unitary, one-size-fits-all approach has not always been the most desirable approach to managing the crisis. To take just one example, France has designed its exit strategy on the basis of levels of infection. The areas of highest infection continue with more restrictions, while areas of low infection see more relaxed measures.
To conclude, the reality is that we will be living with coronavirus for some time to come. We owe it to our constituents to be honest about the challenges that that will bring and how we can help them to navigate the new normal. Judging by the messy and unclear manner in which the UK Government changed their coronavirus advice, I am unconvinced that they will bring forward the kind of innovative thinking we need to build a sustainable, long-term recovery from coronavirus across these islands.
The Economy
Margaret Ferrier Excerpts(4 years, 7 months ago)
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Rishi Sunak
Representing a rural constituency myself, I understand very well the comments that my right hon. Friend has made. I am in constant dialogue with the Secretary of State for Environment, Food and Rural Affairs on these issues. We are making sure that all the economic interventions that we have put in place can benefit not just the agriculture sector but as many sectors as possible.
Margaret Ferrier (Rutherglen and Hamilton West) (SNP) [V]
Fairs and shows are on the back burner for the summer. That means that the livelihoods of show families in my constituency are on the line. They purchased rides and equipment through asset finance companies and they need to cover the repayment costs, which have not stopped amid this pandemic. What assurances can the Chancellor give me that the coronavirus business interruption loan scheme is offering the funding needed to support travelling funfairs?
Rishi Sunak
If I understood the hon. Lady’s question correctly, I can assure her that the coronavirus business interruption loans apply to meeting asset-related costs already, so it is perfectly possible to use that scheme for a finance arrangement like that. But if that was not her specific question, I would be happy to answer in writing.
Oral Answers to Questions
Margaret Ferrier Excerpts(7 years, 8 months ago)
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Mr Hammond
The only way of delivering strong public finances is through a strong economy, with sensible and balanced regulation. We have a very large financial services sector in this country, which is a very important contributor to our fiscal balances, and its success depends on our getting that regulatory equation exactly right: too much regulation and we would drive away industry from London; too little regulation and we may lose our reputation as a safe and secure place to do business. We have to get it right.
Margaret Ferrier (Rutherglen and Hamilton West) (SNP)
The Chancellor recently said that Brussels had set out a very aggressive starting line on the UK’s bill for quitting the EU. What assessment has he made of the worst case scenario, reported to be in the region of €60 billion, and what impact would that have on public finances?
Mr Hammond
I am not sure what the worst case scenario that the hon. Lady is talking about relates to. We have heard various figures bandied around in Brussels in terms of an exit charge. The work that the Government have been doing—which I was asked about earlier—relates to the economic and fiscal impact of different possible exit scenarios. The numbers being bandied around in Brussels are simply a question of a potential demand which would be raised in the negotiating process, but they are simply that: a negotiating strategy.
Draft Crown Estate Transfer Scheme 2017
Draft Scotland Act 2016 (Income Tax Consequential amendments) Regulations 2017
Margaret Ferrier Excerpts(7 years, 9 months ago)
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Margaret Ferrier (Rutherglen and Hamilton West) (SNP)
It is a pleasure to serve under your chairmanship, Sir David. I want to speak about the Crown Estate transfer. Although we welcome the devolution of the Crown Estate in the Scotland Act 2016, that excludes certain current assets, such as Fort Kinnaird in the Lothian region. We feel that is not true to the spirit of the Smith commission, which recommended the full devolution of responsibility for the management of the Crown Estate in Scotland and its revenues.
The Scottish Government are consulting on the Crown Estate and still welcome any responses up to and including 29 March. The aim is to ensure that we achieve our national outcomes. The devolution of the management and revenue of the Crown Estate in Scotland will provide an opportunity to use the capital assets and the net revenue generated in a way that contributes to achieving those outcomes, which are to
“value and enjoy our built and natural environment and protect it and enhance it for future generations”,
to
“realise our full economic potential with more and better employment opportunities for our people”,
and to
“have strong, resilient and supportive communities where people take responsibility for their own actions and how they affect others.”
The Scottish Government will manage the Crown Estate from April 2017. There is a clear and widely supported case for the devolution of the Crown Estate in Scotland to promote accountability and transparency. Once the UK Government have completed the process of transferring the Scottish assets, the Scottish Government will set out a timetable for reforming the management of the Crown Estate assets in Scotland, including further devolution opportunities. Communities will be at the forefront of managing the land and marine resources through opportunities arising from devolution of the Crown Estate and the implementation of Land Reform (Scotland) Act 2016. The Scottish Government will work with the UK Government to ensure the best possible deal for Scotland during the devolution process. We will also ensure a smooth transition for tenants of the Crown Estate’s four rural estates, at Glenlivet, Applegirth, Whitehill and Fochabers.
We are focused on making this devolution work. The priority is to secure the devolution of powers in relation to the management of the Crown Estate assets in Scotland, so we will not oppose this legislation.
Scottish Devolution and Article 50
Margaret Ferrier Excerpts(7 years, 9 months ago)
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Patrick Grady
My apologies, Mr Gray; nevertheless, the pleasure remains. As my hon. Friend the Member for Edinburgh North and Leith (Deidre Brock) said, the circumstances in which we are having the debate have changed somewhat, following the First Minister’s announcement on Monday about the Scottish Government’s decision to seek a section 30 order. I pay tribute to the ever-ready House of Commons Library, which nevertheless managed to capture that announcement in its briefing note just before it went to press.
I will look briefly at the principles behind the debate and some of the practical implications for us in the House and beyond. For me, there are two key principles behind the devolution settlement. The first is the claim of right for Scotland, which we have discussed in this Chamber before. It is the concept of popular sovereignty. The 1989 claim of right was the basis of the constitutional convention and the current devolution settlement. It said:
“We, gathered as the Scottish Constitutional Convention, do hereby acknowledge the sovereign right of the Scottish people to determine the form of Government best suited to their needs”.
That claim still stands today, and it was asserted on 23 June 2016, when the people of Scotland said that they wanted to remain in the European Union. That claim was passed by the constitutional convention in 1989 and was again agreed by the Scottish Parliament in 2012, but is the principle of the claim now under threat from the Conservative Government? The Tories have never been clear about whether they endorsed that principle in the first place, and it appears even more under threat now, especially if the Prime Minister tries to block or delay the requested potential independence referendum in Scotland.
The second key principle, enshrined in the Scotland Act 1998, is that whatever is not reserved is devolved. As we all know, schedule 5 to the Act is clear about what is reserved: defence, foreign affairs, social security and aspects of trade and energy. There have been some derogations in those areas over the years, but anything that is not mentioned in schedule 5 to the 1998 Act is therefore devolved to the Scottish Parliament. Climate change is a very good precedent for that. When the UK Parliament decided it wanted to legislate on climate change emissions, responsibility fell to the Scottish Parliament to make legislative provision in Scotland. The Scottish Parliament took it upon itself in 2009 to pass some world-leading climate change legislation, which was some of the most ambitious anywhere in the world. It seems now that the principle of what is not reserved being therefore devolved is also under threat. We have certainly had ambiguous answers from Ministers to date.
Margaret Ferrier (Rutherglen and Hamilton West) (SNP)
Does my hon. Friend agree that it is absolutely crucial that the UK Government provide clarity of their intent regarding the transfer of powers? The Scottish Government can then plan ahead and ensure that they have sufficient capacity and resource to take on any additional responsibilities.
Patrick Grady
Planning is of absolute importance, and I have to say, I probably have more confidence in the Scottish Government’s ability to plan ahead, irrespective of what the UK Government is doing. The First Minister has demonstrated at every turn, before, during and since the EU referendum, that the Scottish Government are actually thinking ahead about the consequences of various decisions might be. We have seen that demonstrated again this week.
My hon. Friend leads me on to the important practicalities of how the implications of triggering article 50 will be felt in Scotland and their implications for devolution. The first—I hope we will have an opportunity to find out a little bit more about this—will be when we finally get to see and hear more about the Government’s thinking on the great repeal Bill, or, as it is increasingly known in some circles, the great power grab. It is a serious concern for Members from all parties, not least the hardcore Brexiteers who wanted to restore sovereignty to the House of Commons, that what will in fact happen is a power transfer—a power grab—by the Executive in the United Kingdom.
We read in The Times the other day that it will perhaps not just be a great repeal Bill, but that up to seven or more pieces of individual legislation will be needed just to deal with the complexities of taking us out of the European Union. The Government have to start answering questions, precisely as my hon. Friend the Member for Rutherglen and Hamilton West (Margaret Ferrier) said, so that we can make plans.
The consequences for devolution are profound. Which will come first, the chicken or the egg? Are we going to see an amendment to the Scotland Act to reserve powers as a result of Brexit, or will individual pieces of legislation come forward that reserve different powers? What exactly is going to happen?
Patrick Grady
The principle that is very clear is that if something is not reserved to the UK Government, it is therefore devolved to the Scottish Parliament. I have not read the words “reservation of agriculture” in schedule 5 to the Scotland Act. Some of my hon. Friends might want to clarify or expand on the practicalities of that.
Let us take fisheries as an example, which was one of the potential Bills listed in The Times the other day. There are potential consequences for that. If the Government bring forward a fisheries Bill and have not clarified whether that is devolved or reserved, it seems to me that, under the English votes for English laws Standing Orders, it will fall to the Speaker of the House of Commons to decide whether or not that hugely profound, massive area of policy needs to be certified under the EVEL procedures. That could therefore deny a say to Members from Scotland on something that the Scottish Parliament equally has no power over, because we have been left in a legislative limbo. The Government have to start making clear exactly what their thoughts are on these issues.
Margaret Ferrier
Does my hon. Friend agree that, in the case of fisheries, the most appropriate people to administer are the Scottish Government? We have witnessed in the past inexperienced members of the UK Cabinet representing the UK at EU talks, with much more knowledgeable and seasoned Scottish Ministers being snubbed.
Patrick Grady
Indeed. That goes right back to the very process of the UK joining the European Community in the first place, when the fishing communities of Scotland were sold down the river as a bargaining chip in those original negotiations. There is a fear that that will happen again.
The final area that needs to be clarified is the Sewel convention, particularly as it relates to secondary legislation. One fear about the power grab that will come in the great repeal Bill is that the Government will take much power for themselves, through Henry VIII powers, to deal with European regulations by secondary legislation. However, secondary or delegated legislation is not subject to the Sewel convention. Concerns about that were raised by the Presiding Officer of the Scottish Parliament in written evidence to the Procedure Committee, which was published this afternoon. He says:
“Looking beyond the Great Repeal Bill, I would also observe that the current deadlines under which subordinate legislation is introduced in the UK Parliament would already constrict the timescale for any consequent scrutiny at the Scottish Parliament. There is a worry that any suggestion of foreshortening those deadlines may not be conducive to allowing proper oversight of any instruments that may include devolved matters.”
The consequences are profound, let alone the fact that the Supreme Court has already said that the Sewel convention is a political decision and therefore not worth the vellum it is inscribed upon.
The implications of triggering article 50 for devolution are profound. The Prime Minister said at Prime Minister’s questions today that she is listening and discussing, but now is the time for agreement and action. Perhaps the Minister could start by answering some of the questions we are raising today.
Class 4 National Insurance Contributions
Margaret Ferrier Excerpts(7 years, 9 months ago)
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Mr Hammond
The self-employed benefit from increased personal allowances, taking 3 million people out of tax altogether, and a tax cut for 29 million people. From April this year, the self-employed, like the employed, will have access to tax-free childcare and the additional childcare offer for three and four-year-olds. That is a new extension of the entitlement to the self-employed. As I mentioned, the extension last year of the state pension to the self-employed on the same basis as employees really was a dramatic step-change in the way the system operates. It is worth noting that with all these enhanced entitlements there has been no change at all to the contribution asked of self-employed people.
Margaret Ferrier (Rutherglen and Hamilton West) (SNP)
The Evening Standard delivered a damning verdict on its front page today, “Hammond U-turn on Budget Fiasco: Chancellor’s job on line as he climbs down over tax rise for entrepreneurs.” It is looking like the last spring Budget may also be the Chancellor’s last Budget. In fact, we just heard him endorse Laura Kuenssberg from the BBC. How does he intend to build trust in his competence following this utterly shambolic episode?
Mr Hammond
I explained how we approached this issue. We have a bigger job to do here. The country is embarking on a great venture that will shape the future of this country for many years to come. National insurance class 4 contributions are important, but I suggest they are not the only challenge facing the country today. It is important that we focus on the other issues that are vital to get right.