Martin Rhodes
Main Page: Martin Rhodes (Labour - Glasgow North)Department Debates - View all Martin Rhodes's debates with the Scotland Office
(2 days, 20 hours ago)
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It is a pleasure to serve under your chairship, Ms Vaz.
The Budget of autumn 2024 marked a significant change—a break from the recent past. For too many years, Scotland and the rest of the UK have suffered from an era of austerity, bouts of ideologically charged fiscal and economic illiteracy, and a failure to invest in the present to deliver for the future. The UK Budget heralded a new era of growth and investment for Scotland. It keeps the promises to Scotland made at the general election: ending the era of austerity, providing billions for public services and prioritising economic growth. As has been highlighted, the Budget delivered the largest funding settlement for Scotland in the history of devolution. In this Budget, we get an end to the flawed, ideologically driven years of austerity—replaced with investment, sound public finance and redistribution. The Budget delivered a pay rise for 200,000 of the lowest paid in Scotland through increases in the national living wage.
A key test of any Budget is how it balances the cost of expenditure with the raising of revenue to cover that expenditure. The significant test is who gains benefits and who covers costs, and how they are balanced. Inevitably, in most Budgets, costs and benefits are spread, but what is key is how the distribution is stacked up. This Budget shows a very clear pattern of redistribution: those with the most bear the greatest costs, and those with the least gain the greatest benefits.
The Budget, together with the Government’s commitment in the new deal for working people and the Employment Rights Bill, indicates a significant and welcome change in direction at the UK level, with direct benefits for Scotland running through it, including investment for economic growth, resources for our public services, an end to austerity and a commitment to redistribution. The Chancellor’s approach—this break from the recent past—needs to be built upon by the Scottish Government; sadly, their recent budget proposals fail to show the leadership required. Despite the record level of funding in the UK Budget for the Scottish Government, the SNP Government have failed to use the opportunity to deliver better outcomes for the people of Scotland in their budget proposals.
I thank my hon. Friend the Member for Livingston (Gregor Poynton) for securing the debate. It is important to have such an opportunity to reflect on the scale and ambition in the UK Budget, turning the page on the recent years of economic ineptitude and missed opportunities and, in their place, securing investment for economic growth, public services and the redistribution of resources. It is a Budget for Scotland and for the rest of the UK.
I call Seamus Logan. Oh, do you not want to speak?