Oral Answers to Questions

Mel Stride Excerpts

Wednesday 6th December 2017 Commons Chamber

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

2. What discussions he has had with the Chancellor of the Exchequer on the effect of the autumn Budget 2017 on the level of Scotland’s revenue budget.

[The Financial Secretary to the Treasury (Mel Stride)]

The recent Budget shows that we are delivering for Scotland, including £347 million in additional resource budget as part of £2 billion extra as a result of Barnett consequentials.

[Alan Brown]

Under the Secretary of State for Scotland’s watch, Scotland’s revenue budget has been cut by £2.6 billion, including a £200 million cut next year alone. Under this Secretary of State for Scotland, more than £200 million of common agricultural policy convergence funding has been stolen. He also voted against the VAT exemption for police and fire services. Why has the Secretary of State done nothing to prevent those Tory measures?

[Mel Stride]

The hon. Gentleman suggests that we have done nothing, but the day before the Budget, that £347 million of additional resource budget was not there. That was announced in the Budget statement, along with another £1.7 billion of additional capital to support the businesses and people of Scotland.

[Ross Thomson (Aberdeen South) (Con)]

I am sure that Members on both sides of the House appreciate the role that oil and gas play not just in the north-east economy, but in the UK economy. Does my right hon. Friend agree that the transferable tax history that was set out in the Budget is a desperately needed shot in the arm for the industry, and a step in the right direction to making Aberdeen a global hub for decommissioning? That shows that 13 Scottish Tory MPs get things done.

[Mel Stride]

My hon. Friend is entirely right. I know that the oil and gas sector has warmly welcomed the changes that we are making to provide additional tax relief through transferable tax history. Many in the sector believe that that measure will lead to tens of billions of additional investment during the lifetime of the North sea reserves.

[Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)]

I associate myself with the Secretary of State’s kind remarks about the late Jimmy Hood, who was a fine champion of Labour values and of his community. The whole House offers condolences to his family and all those who knew him.

The Government claim that Scotland has received an additional £2 billion in the Budget, yet the Fraser of Allander Institute says that the revenue budget will be about £500 million less in real terms within the next two years. Who are the people of Scotland to believe: this redundant Secretary of State, or a world-renowned economic think-tank? Will the Financial Secretary address that question directly?

[Mel Stride]

The figures speak for themselves. As the hon. Gentleman should know—I am sure that he does—by 2020 the block grant to Scotland will be £31.1 billion before devolutionary adjustments, and that is a simple real-terms increase.

[Kevin Foster (Torbay) (Con)]

4. What progress the Joint Ministerial Committee (EU Negotiations) is making.

--- Later in debate ---

[Christine Jardine (Edinburgh West) (LD)]

8. What discussions he has had with the Scottish Government since the autumn Budget 2017 on plans for capital project funding in Scotland.

[The Financial Secretary to the Treasury (Mel Stride)]

Further to our discussions with the Scottish Government and the announcements made in the Budget, an additional £1.7 billion will be available to Scotland in capital resources. That is a 33% increase in real terms.

[Christine Jardine]

Does the Secretary of State agree that while the sum is much less than might have been hoped for, the Barnett consequentials for housing should be ring-fenced by the Scottish Government for that purpose alone, and not for another high-profile, faulty bridge?

[Mel Stride]

The hon. Lady is, I know, most vexed about the Queensferry crossing, and she is right to be so. It was widely trumpeted by the Scottish Government and the SNP as a great infrastructure success, yet I understand that it is currently partly closed, and is likely to be suffering from closures for many months to come, at great inconvenience to the hon. Lady’s constituents. [Interruption.] She should address her comments to the SNP and the Scottish Government. [Interruption.]

[Mr Speaker]

We are grateful to the Financial Secretary—or at least those of us who could hear him were. We now come to the question of the hon. Member for Fylde (Mark Menzies) who wants to ask about Scotch whisky, so I ask for a bit of order.