Scotland’s Economy

Debate between Martin McCluskey and Chris Murray

Tuesday 15th October 2024 Westminster Hall

[Martin McCluskey]

We saw last week the Government’s commitment to carbon capture and storage. I am happy to take those points away and ensure that they are communicated to the Secretary of State for Scotland and the Chancellor.

The Government’s focus on growth is in the service of our mission to tackle poverty, remove barriers to opportunity and put the country back in the service of working people. It is appalling that under the previous Government, child poverty in the UK went up by 700,000 since 2010. Today, more than one in five Scots and one in four children are trapped in poverty, trying to get by on less than they need.

The child poverty taskforce, which this Government have established, is developing a strategy to reduce child poverty that will be published in the spring of next year. The previous UK Labour Government oversaw huge falls in poverty levels across the UK. It is what Labour Governments do—it is in our DNA—and we will do it again.

The vital work of the taskforce comes alongside the Government’s commitment to make work pay. Last week, we published the Employment Rights Bill, the biggest upgrade of workers’ rights in a generation. I welcome the comments from a number of hon. Members, including my hon. Friends the Members for Coatbridge and Bellshill (Frank McNally) and for Edinburgh North and Leith (Tracy Gilbert), supporting this agenda and how it will impact on their constituents.

This Government are calling time on unfair employment practices by ending exploitative zero hours contracts, introducing day-one employment rights and establishing a new fair work agency to enforce workers’ rights. That is all part of our plan to deliver economic growth for workers, businesses and local communities, right across the UK. As we have heard from others this morning, this Labour Government are pro-worker and pro-business, so these reforms will not just help Scottish workers but boost Scottish businesses of all sizes. We are going to tackle head-on the low pay, poor working conditions and job insecurity that have been holding our country back. Our plan will grow our economy, tackle in-work poverty and raise living standards for all.

We recognise that rebuilding our public services and economy will require investment, and the Chancellor has been clear that there will be no return to austerity. I want to emphasise that point: she has said numerous times that there will be no return to austerity. Although funding decisions and details will be presented at the upcoming Budget, the UK Government are committed to retaining the Barnett formula and funding arrangements agreed with the Scottish Government in the fiscal framework.

The framework provides the Scottish Government with greater certainty and flexibility to manage devolved public services, as well as higher per person spending. That does not remove the need for both Governments to take tough decisions to look after the public finances and stabilise the Scottish economy.

[Chris Murray (Edinburgh East and Musselburgh) (Lab)]

One of the challenges we have had in the Scottish economy in recent years is a gap between rhetoric and reality. For example, in the creative sector, which is based heavily in my constituency, the Scottish Government produced 10 strategies in nine months. That means that the creative industries just serve as a backdrop for photo opportunities for Scottish Government Ministers, who do not engage with the deep challenges and opportunities that the sector faces. Does my hon. Friend agree that the Government are finally making the correct response, which is to be honest with the public about the financial challenges that we face, and then to deal with the foundational difficulties in order to grow from there?

[Martin McCluskey]

I thank my hon. Friend for that intervention. Since he arrived here in July, he has been a significant champion of the creative industries and the arts. The example he gave of 10 strategies in nine months illustrates the kind of short-term uncertainty that has reduced investment in our economy. People did not get the certainty they required during the previous Conservative and SNP Holyrood Governments.

It is clear that Scotland’s economy faces challenges, but it is also brimming with potential. We are up to tackling those challenges and unleashing that potential. In our first 100 days, we have made significant progress in resetting the relationship with the Scottish Government. We have listened to the views of businesses and communities across the country, and we have set out a clear path to create the change that we were elected to deliver.