Cost of Living

Nigel Evans Excerpts

Tuesday 16th May 2023 Commons Chamber

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

rose—

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. The wind-ups will begin immediately after Mr Hendry sits down.

--- Later in debate ---

[Drew Hendry]

No, I am going to finish in just a second.

Those are the things that we try to do in Scotland to help to mitigate the harms from this place, but we could do so much more. We could do things very differently, but we need the powers of independence in order to do that.

[Mr Deputy Speaker (Mr Nigel Evans)]

We are moving on to the wind-ups. I anticipate Divisions in 20 minutes.

--- Later in debate ---

[David Linden]

Probably not.

There is a common theme this afternoon, especially from colleagues on the SNP Benches, which is borne out by what we are all hearing on the doorsteps. In short, that theme, which comes up time and again, is that Scotland can no longer afford to be tied to an intransigent British Government who are ploughing on with Brexit at any cost. It is clearer than ever that we need independence, so that people in Scotland can stop paying the price for disastrous decisions made here in London by a Government Scotland did not vote for. Indeed, we have not voted for the Tories since 1955.

We should be clear that the cost of living crisis is not necessarily a new thing. Yes, it has got worse, but for many of those I represent in Glasgow’s east end, it has been a permanent fixture in their lives due to Westminster’s inability to truly tackle structural inequality. In short, the cost of living crisis is the culmination of 13 long, brutal, cold years of austerity policies, compounded by Brexit and last year’s kamikaze Budget, which crashed our economy and trashed the Tories’ record on economic credibility.

Let us look at the backdrop against which today’s debate takes place. In this, the sixth richest economy in the world, baby formula is now security tagged. It is now put behind tills to avert mothers stealing milk to feed their children. Now, if that is the image Ministers wish to project when it comes to global Britain, then it is certainly a look—I will give them that—but it would be remiss of me, when we focus on supermarkets and retailers and discuss the cost of living crisis, not to look at the issue mentioned in the motion before the House today. I ask Members to think very carefully about what is in the motion. It deals with price gouging, which was not referred to by either Front Bencher, and the need for tougher action on what has been dubbed “greedflation”.

We believe Ministers should follow the lead of other European countries to bring down the price of food and other necessities, a view supported by many of my constituents who are absolutely baffled as Westminster stands idly by while food prices continue to skyrocket. For example, France introduced a price block on staple products, with supermarkets pledging to keep the prices of certain food and hygiene products as low as possible. It is precisely for that reason that the British Government must intervene and put pressure on major retailers to pass on falling wholesale prices to consumers. More than that, it is vital that the Competition and Markets Authority utilises its full powers and imposes maximum fines where evidence of price gouging is found. Profiteering from selling basic necessities is unjust at any time, but at a time when numbers—record numbers—of people are turning to food banks and skipping meals, it is simply abhorrent.

The Bank of England recently found that falling costs at some companies were

“not automatically being passed through to consumer prices in an attempt to rebuild profit margins”.

Indeed, it was revealed just on Friday that the chief executive of Tesco received a £4.4 million pay packet last year. Ken Murphy was given a base salary of £1.37 million and received £2.73 million in an annual bonus, making around 197 times the amount of the average Tesco worker. That is the level of inequality we have baked into a system that is broken, and broken beyond repair. When I go to Tesco in Shettleston, the very many people I bump into there are shocked at the idea of a boss coining in £4.4 million, when many of them are trying to work out what they can remove from their basket so they have enough to get by.

Of course, stubbornly high inflation extends to so much more than food. Each week on the doorsteps, constituents tell me how they have resorted to rationing baths and showers simply to save on energy costs. That my constituents live in an energy-rich nation but experience eye-watering levels of fuel poverty is a damning indictment of just how ridiculous the situation has become and why change is desperately needed. But we know all that is exacerbated by Brexit, a Brexit Scotland rejected yet has had foisted upon us against our will. Indeed, it is the only nation of these islands to have been so royally screwed over as a result of the 2016 referendum.

We all know from bitter experience that the slogans on the sides of buses were nothing more than empty rhetoric. In 2016, the right hon. Member for North East Somerset (Mr Rees-Mogg) slammed the Resolution Foundation’s findings that food prices would increase as a result of Brexit as “ridiculous”, and claimed that the price of food would go down. What is more, last year he suggested that the rules that the British Government followed while part of the EU made life harder for small businesses and increased the costs of operating. That is an entirely false claim. The hard Brexit that Ministers pursued has made life harder for food exporting and importing businesses. Do not take my word for it. Nick Allen, chief executive of the British Meat Processors Association, told The Independent that the extra burden of new paperwork and fees will see some small specialist importers struggle to survive. We know the price of Brexit, and it is one that Scotland cannot afford to pay.

The OBR predicted in March that the UK’s GDP would fall 4% as a result of Brexit, with trade and exports reducing by 15%. Figures recently released by the ONS show that the UK economy contracted 0.3% in March, making it the worst performing economy of the G7, and the only G7 economy to experience negative economic growth. Last Thursday, the Bank of England raised interest rates to 4.5%, in the 12th consecutive rise. Many of our constituents coming off a fixed rate are watching hundreds of pounds being added to their mortgage bill as a Tory premium, simply for the pleasure of having an incompetent Westminster Government that Scotland did not vote for.

The Conservative party inflicting economic pain is hardly a surprise to my constituents—it is probably why we have not had a Conservative MP in the east end for over 110 years. But what of the Labour party, off to my right? I mean that in more respects than one. In the Labour party, we have nothing more than a pound-shop Tony Blair tribute act, devoid of ideas and lurching ever further to the right in a desperate scramble for the votes of Tory English market towns.

On the biggest issues of the day that have caused economic harm to these islands, the Labour party has nothing to say: on immigration policy, more of the same; on Brexit, more of the same; on social security, more of the same. I therefore say to the hon. Member for Edinburgh South (Ian Murray) that simply hoping that the Tories run out of steam and that the keys to No. 10 Downing Street land in the laps of Starmer and Streeting is no vision to enthuse electors.

In my constituency, voters are clear that they want Brexit binned. They want their MP showing solidarity with public sector workers striking for fair pay. They want a social security system that provides a safety net. And yes, unashamedly, they want an immigration system not driven by focus groups and dog-whistle politics but responsive to our small island nation and its economic needs. Those are the challenges that Scotland faces today.

By failing to support today’s motion on the biggest issue of the day, Labour and the Tories are simply showing Scotland that it stands at a fork in the road. The choice could not be clearer: Scotland can veer off to right with the full-fat Tories or the diet Tories and pursue yet more economic self-harm with Brexit and austerity, or it can veer left by voting yes to independence, to rejoining the European Union and to unhooking itself from the economic bin fire that is the United Kingdom. On that basis, I commend the motion to the House.

[Mr Deputy Speaker (Mr Nigel Evans)]

We had agreed on 10-minute winding-up speeches, but there seems to have been 40% inflation on that. I was not going to stop the hon. Gentleman because it is his debate, but I have to give equal time to the Minister.