Scottish Independence and the Scottish Economy

Neale Hanvey Excerpts

Wednesday 2nd November 2022 Commons Chamber

[Mr Jack]

Apart from the record settlement of £41 billion over three years, there is additional money—the £37 billion —from the support schemes the Chancellor introduced. That has Barnett money, which goes to the Scottish Government. The wonderful thing about devolution is that the Scottish Government can then decide how they spend that money.

[Neale Hanvey (Kirkcaldy and Cowdenbeath) (Alba)]

Is the Minister able to tell us what percentage of the £8 billion of oil and gas revenue that has gone to the Treasury in the last nine months is being directed to the Scottish Government to prioritise for their own spending? What percentage of that revenue goes to Scotland? The answer is none, isn’t it?

[Mr Jack]

The answer is that Scotland gets her share of Government spending. Everything goes into one big pot, but we know that spending in Scotland is 26% higher per head than it is per head in England. That is the Union dividend, which I will come on to, of £2,000 per man, woman and child. We have one Treasury and one pot, and Scotland takes a very fair share out of that.

--- Later in debate ---

[Joanna Cherry (Edinburgh South West) (SNP)]

rose—

[Neale Hanvey]

rose—

[Ian Murray]

Let me make some progress. The time that I am taking is making you agitated, Mr Deputy Speaker.

--- Later in debate ---

[Ian Murray]

By the hon. Gentleman’s proposition, I could go into Barclays bank on Monday morning when my mortgage is due and say, “I’m not going to pay it” while waving the saltire. I wonder if the bank manager would accept that as payment.

This debate is not about the Scottish people; it is about the bust proposition that is being put to the Scottish people on independence. There is no doubt that the Scottish Government are now GERS deniers. These are their own figures; this is the crux of the issue. The Scottish Government’s own accounts show a deficit in Scotland of £23.7 billion, which is equivalent to 12% of Scottish GDP or 1.5 times the entire budget of the Scottish NHS. How do they plan to resolve that deficit? Where will the spending cuts land? If they are going to borrow tens of billions to support a new currency, what happens to the day-to-day spending deficit? Do they borrow that as well? At what cost, and in what currency? I am afraid that this paper makes the Conservatives’ mini-Budget look like an economic masterstroke.

Let me finish by talking about borders. For the first time, the Scottish Government and the nationalists have admitted that there would be a hard border between Scotland and England. Families and businesses who for three centuries have bonded and traded freely would be split up by a hard border, a different currency and a different country—[Interruption.] Members keep braying from a sedentary position, but they have no answers to these questions. In fact, the answers they are giving us make their position worse, not better. Let us be clear: Scotland trades more with the rest of the United Kingdom than it does with the rest of the world combined. The SNP’s response to the Conservatives’ damaging Brexit is to commit an act of economic folly that would be several orders of magnitude worse.

The SNP has no credible answers on pensions either. The right hon. Member for Ross, Skye and Lochaber claimed that the UK Government would continue to pay Scottish pensions after independence, having seemingly not read his party’s own policy from 2014. So who will pay? Will somebody clarify whose position on pensions is right? Is it the right hon. Gentleman, the First Minister or the papers that they have put into the public domain?

Let me finish with words from themselves—

[Neale Hanvey]

Will the hon. Gentleman give way?

[Ian Murray]

I said I would give way to my neighbouring colleague, the hon. and learned Member for Edinburgh South West (Joanna Cherry), but she is no longer here—

[Ian Murray]

She has given up; she has no answers to these questions either.

It is little wonder that the Institute for Fiscal Studies—much quoted by the First Minister in the last few weeks, and rightly, because of the mess this Government have made of the UK economy—has also slammed the SNP’s position. The IFS said:

“It is highly likely an independent Scotland would need to make bigger cuts to public spending or bigger increases to tax in the first decade following independence ”.

The IFS was right about the mini-Budget—indeed, everyone quotes it, including the First Minister—and it is right about this proposition as well. If SNP Members will not listen to the Institute for Fiscal Studies, why will they not listen to their own people on their own side? Robin McAlpine of the Common Weal foundation has been quoted already today, and he is somebody the SNP used to quote vociferously in here. He campaigned for independence alongside the First Minister—and alongside many Members who are now sitting here—in 2014.

[Neale Hanvey]

Will the hon. Gentleman give way?

[Ian Murray]

I will happily give way if the hon. Gentleman wants to talk about Robin McAlpine.

[Neale Hanvey]

I think it is important to point out to the shadow Minister that there is no single blueprint or proposal for Scotland. Those are decisions that the people of Scotland will take after independence, and there are other propositions on the table. That is what a democracy is. I want to pick him up on one point from some time ago, when he made the suggestion that democracy is allowed to prevail in Ireland and he supports it because it keeps the peace. Is he therefore suggesting— I hope he is not—that there needs to be violence—[Interruption.] No, this is important. I fled Northern Ireland when I was a seven-year-old boy because of sectarianism. Is that really the point that he is making about how democracy will prevail?

[Ian Murray]

I am going to treat that intervention with the contempt it deserves and utterly ignore it, if that is the kind of argument we are getting from the Alba party. The hon. Gentleman was elected as an SNP Member of Parliament, and the people of his constituency of Kirkaldy and Cowdenbeath should reflect seriously on what they do at the next general election.

[Neale Hanvey]

On a point of order, Mr Deputy Speaker. I just want to give the shadow Minister the opportunity to correct the record. I was not elected as an SNP MP. I was elected as an independent MP.

[Ian Murray]

Ah, yes, the hon. Gentleman did correct the record. I forgot that he was suspended for antisemitism. I am surprised he wants to put on the public record why he was thrown out of the Scottish National party, but I think that his second contribution probably sums up my disdain and the reason why I would not accept his first one about violence in Northern Ireland.

But I was talking about Robin McAlpine, who said of the economic position for independence that we have to get off the “mad bus” of the First Minister’s independence prospectus. He said:

“It could be because you think the government should have a lender of last resort. It could be because you realise they have no economic plan for Scotland. It could be because they failed to come up with answers on trade or borders. It could be because the whole thing is utter pish. Pick your reason, but for God’s sake get off this mad, mad bus”.

The Tories have lost all economic credibility by crashing the UK economy, and on the same day that they reversed their catastrophic mini-Budget, the SNP produced a paper that should have been entitled “Hold my beer”. It is a mad, mad bus indeed, and ordinary working people across the country will pay the price. It is time for a UK Labour Government.

[Neale Hanvey]

On a point of order, Mr Deputy Speaker. I know it may feel politically expedient for the shadow Minister to slur me in the way that he did, but he should be aware that I was reinstated into the SNP because the accusations of antisemitism did not stand. I have worked tirelessly with Danny Stone from the Antisemitism Policy Trust and other Members in this House to ensure that that scourge is not furthered. I am not an antisemite.

[Mr Deputy Speaker (Mr Nigel Evans)]

That is now on the record. I think we should move on. As “Erskine May” states, there should be good behaviour, but to be honest I am not seeing a lot of it in this debate. Let us try and change the tone.