(9 years, 9 months ago)
Commons ChamberI am pleased to follow the hon. Member for Northampton South (Mr Binley) who is the authentic voice of Conservatism in this place, and blue in tooth and claw. He will be sorely missed, and I wish him well in whatever he chooses to do in the future—somehow I cannot see him retiring quietly to a rocking chair.
When I listened to the Business Secretary introducing this debate, at times I wondered which Budget he was talking about since he seemed to flip between the Budget presented by the Chancellor yesterday, and the fantasy Budget presented by the Chief Secretary to the Treasury this morning, and it was a bit difficult to follow his line of thinking. In response to a question from the hon. Member for Stone (Sir William Cash), he spoke about possible changes in banking and protection for the “last bank in the village”, as he put it, but I am afraid that in many communities that ship has long since sailed.
Banks have been pulling out of rural communities for many years, and substantial communities in my constituency no longer have a bank. Indeed, the Royal Bank of Scotland recently closed a branch and when questioned about it said, “Well you can use the post office”. Unfortunately, the Post Office is also undergoing a procedure at the moment. There may no longer be closure programmes, but many post offices are “changing”—or rather closing—and business is being transferred to other local businesses. In many ways I see the logic of that from its point of view, but it means that many businesses are now running the “post office local model”, which is a much reduced service. In many communities in my constituency, including substantial communities, that is the only post office service left—a counter in another business, which is a small shop or, as in one case, a card and paper shop. That does not give confidence in the service—notwithstanding the service that such shops can provide and the extent they go to—especially for business banking, and that needs to be looked at.
If we contact any of our major banks, they will try to get us to go online and work through the computer. That is fine, but many of our elderly people cannot do that, and many people with small businesses do not want to invest in the extra equipment. To pick up the point made by the hon. Member for Ealing Central and Acton (Angie Bray), there is also a serious problem with broadband provision in many parts of our country.
In my constituency many of the towns now have a good broadband service that has been upgraded, but one does not have to go far outside the town for it to disappear altogether. Part of the reason for that is that many small exchanges that serve the country in village areas desperately need upgrading and can no longer take any more broadband lines. I have had situations where people have moved house, cancelled their broadband contract, and when they went to get a contract for their new house they were told they could not get one any more because the line they used had been allocated to someone else.
The Budget has missed a huge opportunity to invest in that infrastructure for the future. If we are to be a successful nation and increase business, we need the infrastructure to do that. I have talked often in the House about a rural area such as mine where many businesses are taking advantage of the internet where they can. It is not always a bad thing. A business in a rural area can get a niche market, survive on the internet and have quite a good business, but it needs an internet connection, good broadband, and a good postal service to deliver the goods to the rest of the country.
Since the privatisation of Royal Mail we have seen an erosion of that service in some parts of the country. In some parts of Scotland, as I am sure is the case in other parts of the country, it has announced that it will not be picking up so often from post boxes—there might be one pick-up first thing in the morning, but nothing else for the rest of the day. That is hopeless for a business. Furthermore, many of the new post office locals do not have sufficient room for proper business mail to be left for Royal Mail to pick up. Again, that was a missed opportunity in the Budget.
Unfortunately, the real message of the Budget is that massive cuts are coming our way, which will have a terrible impact on many of our local communities and businesses. The OBR has described the coming years as a rollercoaster for public expenditure and said it will return the level of Government expenditure to that of 1964. This morning, the Chief Secretary to the Treasury, who presumably had a hand in writing the Budget, as well as his alternative Budget, said it would take us back to the era of “Cathy Come Home”. That film brought home to many people the extent of the housing crisis in the 1960s, but that housing crisis is coming back to haunt many of our communities.
Many Members have talked about the need to build more houses, and I entirely agree, but I was concerned that the only specific announcement about this in the Budget was the new ISA to help get younger people on the housing ladder. That is good news for those who can afford to put money into an ISA, and I am sure that well-off parents around the country will be preparing to open such accounts for their children, but it is just another variation on the bank of mum and dad and does nothing to help the many young people who can only dream of renting their own home, let alone owning one.
The only boost to local businesses is likely to be for estate agents, as this measure fuels a housing bubble in our cities and communities—houses are expensive all over the country. If we are to tackle the housing crisis, we need a boost to build new affordable homes and homes for rent. Not only would that give young people a real chance to get a home of their own without needing well-off parents to finance it, but it would give a boost to local economies by providing work for those who build the homes and the businesses supplying the needs of new home owners.
The hon. Member for Luton North (Kelvin Hopkins) commented on why we had reached this situation. In Scotland, we are now building new homes and have removed the right to buy introduced by the last Tory Government. Whatever people thought of the policy at the time, it is no longer appropriate for the current market because it acts as a disincentive to councils to build new houses—because they might have to sell them off fairly quickly at reduced rates. In Scotland, new houses for rent are being built for the first time in many years. When I read the leaks of the proposed Budget, I was concerned at the suggestion that the Chancellor would introduce a new right to buy for housing associations. I think we should all be grateful that he did not do that, although it would not have applied in Scotland anyway, since we have taken a different route.
Many of the cuts, however, will make things much worse for our young people. Many people, particularly under-25s, will no longer be able to get housing benefit and will be forced to continue to live with their parents, but in many cases, either that will not be practical or for some other reason they will not be able to do it, and they will end up sofa surfing with friends and relatives. It is all very easy, as Government all too often seem to do, to announce crackdowns on welfare and go for cheap headlines in the more rabid tabloids. As we all know, however, in reality many of those in receipt of benefits are working, and the benefits are not their income but top up the income they receive from their employment. In my constituency, on the latest figures, the unemployment rate is 2.5%. On the face of it, that is excellent news, but it is also a low-wage economy, and that is the difficulty. Many people rely on benefits to top up their income and enable them to live.
Many of us will be spending more hours than is healthy over the next few weeks knocking on constituents’ doors, and I am sure that many have had the same experience as me of finding it difficult to find people in, mainly because so many work long hours, split shifts or more than one job to make ends meet. That is the reality of modern Britain, with so many people still relying on food banks to feed their families.
The assault on the welfare state has a dramatic effect on our local businesses. Those who are less well off will tend to spend their money—and to spend it in local businesses. Cuts not only attack those on benefits, but remove a substantial amount of money from local economies, hitting businesses. Is it any wonder that so many businesses on our high streets are closing?
In Scotland, the Government have made determined efforts to halt the decline in small businesses with policies such as the business bonus scheme, which has abolished or reduced business rates for many small businesses. The Chancellor announced a scheme for business rates retention, but the Scottish Government introduced such a scheme in Scotland back in 2011. These schemes help, but more needs to be done to boost local businesses.
We already know that some of the poorest in society will bear the brunt of the misery of the austerity programme. The proportion of tax cuts to tax rises has moved from 4:1 to 9:1, and this will have a dramatic effect on many households. As others have said, we do not yet know the details of the coming cuts and benefits, but this is all money being sucked out of our local economies and will impact directly on our local businesses.
Before I finish, let me say that it is not all bad news. I welcome the Government’s changes to North sea oil taxation. I called for it, the Scottish Government called for it, and there is widespread support for it across all parties. This industry is going through a downturn at the moment—not for the first time, and I dare say it will not be for the last. It is worth noting that the reduction in the supplementary charge will take us back to the position in 2011, when the decision to increase it, taken without consultation with the industry, was hugely damaging.
On a more positive note, the Bank of Scotland did an oil survey last week, showing that 90% of firms are optimistic about the future. Many of them were looking to diversify into such things as renewables. Here, again, however, the Government have missed the chance—
(10 years, 5 months ago)
Commons ChamberThe hon. Gentleman is correct, and it is interesting that he has taken the trouble to inform the House of that fact this afternoon. I thank him for that, but I point out that the hon. Member for Angus (Mr Weir) has the Floor and will continue his speech.
Thank you, Madam Deputy Speaker. What else could Ofcom do? It could look at section 46 of the 2011 Act, “Contributions for meeting burden”, which we have already discussed, and recommend that all competitors contribute to the cost of running the universal service. As Ofcom has pointed out, however, it is debarred from doing that for a period of five years unless the Minister specifically directs it. Even if the Minister were to direct it, how long would it take to set up such a system, set out the level of contribution, and get it up and running? If the universal service is now in such a condition that Royal Mail is worried about its continuation, do we have time to implement such proposals?
Under the Act, the Government might try to find a company other than Royal Mail that is willing to take on the universal service, but how many of us think that is likely given what we already know about the operation of other companies in the postal market? They are cherry-picking the profitable services, not building a system to compete with Royal Mail throughout the country.
Royal Mail suggests that the way forward is to introduce general universal service conditions that would impose conditions on its competitors to prevent them from cherry-picking urban routes, but also mean that they have to deliver to a much wider geographical area. Again, I leave it to Members to decide whether that is likely, but, even if it is, how long will it take to do that when we are told that we are facing an imminent crisis?
Order. The hon. Gentleman is not taking interventions. Hon. Members can ask once, perhaps twice, but three times is too many.
I have already taken many interventions from the Liberal Democrat Benches.
Before any of those options can be taken, Ofcom has to make recommendations to the Secretary of State, who then decides whether action is necessary and what action should be taken. Only at that point will any part be played in the whole process by Parliament, perhaps many months if not years after the process has begun. Nothing is likely to happen before the general election, and all that time TNT and others will continue to expand, making it ever more difficult to construct a solution. As Ofcom points out in its briefing for this debate, the competitors have also made complaints about Royal Mail and some of its practices that they claim are unfair, so if this is opened up we run the risk that of all sorts of other things creeping in.
There seems to me to be a contradiction at the heart of the Postal Services Act. We have a private company that has to undertake the delivery of a vital public service, and the only way of enforcing that is through a regulator, about which I have an uneasy feeling given the way the railway industry operates. I believe we need to look further than that and consider wholesale changes to the Act to allow much faster action to protect the USO. I opposed the privatisation of Royal Mail; I still think it was a drastic error, but as the right hon. Member for Gordon (Sir Malcolm Bruce) has pointed out, in September the people of Scotland have a chance to do something about that and ensure that Royal Mail becomes a public service.
(10 years, 8 months ago)
Commons ChamberThe hon. Gentleman clearly is not listening. I said it would make the situation worse. I fully appreciate that we need this investment. It is not happening sufficiently now, but it will get worse under this. The hon. Gentleman should perhaps listen a little more closely. Effectively there will be a slow down in investment whatever happens now, and that could be disastrous since it is only by investment in new renewable energy that we can break away from the dependence on carbon-emitting generation and bring down bills permanently in the long run.
But if we are to have an investigation, it should look at the whole of the energy industry and in particular the very costly subsidies that are being provided for new nuclear. The deal announced for Hinkley C is almost double the current wholesale energy price, and incidentally, I understand, very much higher than prices agreed by EDF for similar stations overseas. It will cost the taxpayer an eye-watering sum of money and be guaranteed for at least 35 years. Indeed, the cost of that station alone will be more than four times the total amount paid out in renewable obligations for the first 10 years of its existence. If more stations are built, we can assume that developers will be seeking the same sort of deal, and Hinkley will become the benchmark of how nuclear developers can soak the taxpayer. Perhaps this is an area that could be improved by more ‘transparency’ and ‘accountability’ as sought in the motion. All this, despite the fact that the similar stations being built in Finland and France are many years behind target and vastly over budget. Surely in any investigation into the market this should have been a major factor, yet there is simply no mention of it in the documents issued with the announcement of the review.
We believe that if we are to reduce and retain lower energy bills, we need to move to a renewable future and make that investment now. We believe that we need to remove the cost of the energy company obligation and warm home discount from energy bills and put it into general taxation, but maintain the level of spend. It is interesting to note that although the UK Government have removed those to some extent, that is a temporary measure for a couple of years, not a long-term measure. Doing this would be much fairer and allow a much more targeted approach to dealing with these issues. It is undeniably true that there is now so much distrust of the energy companies that even a good deal from them is now looked at with suspicion and rejected out of hand by many consumers.
The investigation by the CMA may well finally get some agreement on what is happening in the energy market and allow us a way forward. I could agree with most of the Opposition motion, but I do have difficulty with the last part which seems to have come to a conclusion about the investigation before it has taken place. Given that previous investigations by the OFT have decided that the market was working, I am not entirely sure that we can rely on this current one coming to the conclusion that the market is broken, as the motion puts it, although most of us would agree that there are indeed serious problems with it. It will be interesting to see the conclusions that it comes to. Clearly there must be changes in our energy industry, and the sooner the better.
Order. With all due respect to the hon. Member who has just delivered his speech, I should point out to the House that three hon. Members in a row have spoken past the point at which they should have stopped. There are clocks in the Chamber, and when they show zero, it means it is time to stop speaking.
With the leave of the House, we shall take amendments 2 to 86 together.
We will take amendments 2 to 53.
Lords amendments 2 to 53 agreed to.
(11 years, 9 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
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I find that incredible, from the Minister who is presiding over the slashing of the UK defence budget. He has just, under the basing review, betrayed the previous promises made to Scotland.
We have said that the defence budget of an independent Scotland will be £2.5 billion. We have made that commitment; that is what we will do. That is an appropriate defence budget for a country the size of Scotland and for the facilities that we will need in an independent Scotland.
We have made our position on that absolutely clear. I am sorry that the hon. Lady does not appreciate it. I can say no further than what I have said. We will join NATO if we do not have nuclear weapons on our shores. If NATO insists on nuclear weapons, we will not join NATO. It is as simple and pure as that. We have made that point absolutely certain.
(12 years ago)
Commons ChamberI am listening to what the hon. Lady is saying and she seems to have fossilised history. Yes, of course we have fought together in the past. We have fought the Germans in the past, but we co-operate with them on other things now. History does not stand still, and Scottish independence is an evolution of history.
No one is suggesting that history stands still. I am referring to history as history. What happened 100 years ago we will commemorate as having happened 100 years ago, but we will not forget it. Those who forget history suffer for having done so. The point made by my right hon. Friend the Member for North Somerset is that right now, at this very minute, brave servicemen and women from Scotland, England and other parts of the United Kingdom are fighting together to guarantee the freedom of our country, our whole country. That is not history. That is current. It is right now.
Last week or the week before last, as the hon. Member for Perth and North Perthshire (Pete Wishart) will remember, we had a debate in Committee Room 14 organised by the Law Society of Scotland, a fine bunch of people. Before I took all those interventions, I was speaking about Scots outside Scotland. The Law Society of Scotland has an enormous number of members, of which I happen to be one, in London. Committee Room 14 was packed. We had a really good and lively debate but, despite his excellent speech, not one person in that Room voted to support the hon. Gentleman— not one, and I promise I had not invited them all personally.
Continuing on the same theme, last night I attended another packed meeting held here in London, in Chelsea, by Friends of the Union. It was a great surprise to me to bump into the chairman of the Essex Conservatives, a very nice gentleman whom I see frequently in my constituency. I said something along the lines, “I didn’t know you cared, Adrian.” He explained to me in no uncertain terms that he and many of the other people who were there at that event for Friends of the Union had come of their own accord because they are fed up hearing that people in England and the rest of the United Kingdom do not care about Scotland. That is simply not true and it will be proved not to be true as this debate takes hold throughout the whole country. He said to me, and other people came and joined in the conversation, “We are here because we care about the United Kingdom and we care about Scotland as part of the United Kingdom.” They value the United Kingdom. They know that we are better together.
As we consider the motion and the amendment, and as we seriously begin the debate in the country, let us at least try to get the language right. This debate is not about nationalism. Scotland is a nation. We are proud of our nation. I discovered earlier that it happens that tomorrow is the 140th anniversary of the first football international between Scotland and England.
It was held in Glasgow and I am pleased to say it was a no-score draw. But the point about it is that one can have an international only if one has a nation. We all go to Murrayfield, Twickenham and the Millennium stadium and cheer on our national football, rugby and other teams, because each of the component parts of the United Kingdom is a nation. So let us stop arguing about whether Scotland is a nation. That is not a question. Scotland is a nation, as is England, Wales, Northern Ireland and so on.
The debate is not about independence. That is another misnomer. Scotland is independent and is in charge of her own destiny. Scotland has and always has had her own institutions—the law, the education system, the Church. I speak as living proof as a graduate of Edinburgh university, a member of the Law Society of Scotland and a member of the Church of Scotland, but more important than that to me, I am a member of the Epping Forest Scottish Association. As the Member of Parliament for Epping Forest in the proud county of Essex, I have no conflict between my nationality as Scottish and British, and my constituents have no problem about having somebody represent their constituency who happens to have been born in another part of the United Kingdom. This is a time when people around the world are breaking down barriers and coming together. It is wrong to construct barriers that we do not need.
The hon. Lady is making an impassioned speech but her point about people who were born in other parts of the United Kingdom is irrelevant. There are people representing all parties in the Scottish Parliament who were born in other parts of the United Kingdom and other places. The debate is about the right of the people living in Scotland to determine their future. It is not about whether people from other parts of the United Kingdom can or cannot be Scots if they are currently living in Scotland. There is no argument about that.
The hon. Gentleman is totally wrong. This is not about an argument or a debate about the right of people living in Scotland to determine their future. We all agree that people in Scotland have the right to determine their future. I have just said that and I have said it many times in the House and in other places. Everyone accepts that. Scotland is a nation. Scotland is independent. Scotland holds Scotland’s future in its own hands.
This debate is not about nationalism or independence; it is about separation. That is the word that should be used in debates in this Parliament, in the Scottish Parliament and in every forum across the country and further afield in the debate that will rage between now and the referendum in two years’ time. This is about separation, not pride in our country or whether Scotland can survive on her own. Of course Scotland can survive on her own; she is a strong and capable country full of brilliant and talented people. This debate is about drawing artificial lines that we do not need. As the motion states—