Cost of Living and Brexit

Nigel Evans Excerpts

Wednesday 14th June 2023 Commons Chamber

[Brendan O’Hara]

The hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) intervened earlier to complain bitterly that his party was not to be represented on this Committee and that that would be the Lib Dems’ excuse for not supporting this motion. However, as my hon. Friend the Member for Glasgow East (David Linden) said, this is an amendable motion and if the hon. Gentleman felt that passionately about it, he could table an amendment. I wish he was here so that I could remind the Lib Dems that when they proposed the creation of the EU withdrawal Committee, their proposal awarded the SNP precisely zero seats, despite our having the vast majority of Scottish seats. Perhaps the Lib Dems do not want to address this issue and are throwing smoke bombs right, left and centre because they do not want to be reminded that they are where they are because of the dirty deal they cut with the Tories in 2010. I just wish the Lib Dems were here to stand up and face the consequences of it.

No one can deny the detrimental impact that increases in the cost of living are having on businesses and families across Scotland and the United Kingdom, and only the most blinkered Brexiteer would deny the role that leaving the EU has had in driving those increases. Unfortunately, the powers available to the devolved Administrations in Edinburgh, Cardiff and Belfast mean that it is this place that must find a long-term solution to this crisis. As much as I commend the work done in Edinburgh, Belfast and Cardiff, it is this place that has to find those solutions.

That is why we must, with some urgency, establish this Committee. We must put in motion a process whereby the people of these islands can see and understand why food price inflation is through the roof and why mortgages are becoming increasingly unaffordable for so many. The evidence that will come to this Committee and the reports that will come from it will, we hope, furnish this hapless Government with the facts and evidence they need to see where they are going wrong and perhaps allow them to do something about it.

Let us be clear: the economic disaster of Brexit has not just fallen out of the sky. It has not just miraculously appeared. I am reminded of an exchange I had with the right hon. Member for North East Somerset (Sir Jacob Rees-Mogg) almost exactly a year ago, when he was Minister for Brexit Opportunities—I try to get through that title without laughing. I took the opportunity to remind him of his 2019 promise that the “broad, sunlit uplands” of Brexit were just around the corner for the British people and British business. Last year, I described the case of a small Scottish cosmetic company, Gracefruit, whose owners had told me that, because of red tape, soaring costs and loss of markets, they no longer had the mental or emotional strength to make a success of what had been a thriving business. Gracefruit was emblematic of so many small and medium-sized enterprises across the islands whose business had been destroyed by Brexit. In his reply to me, the right hon. Member for North East Somerset said:

“We are freeing people in this country from red tape because we look at the United Kingdom playing a global role—trading with the globe, being as economically productive as anywhere in the world…That is why the EU is a failing economic option and why we sing hallelujahs for having left it.—[Official Report, 9 June 2022; Vol. 715, c. 933.]

That was the Minister for Brexit Opportunities. I thought at the time that his reply was vacuous and glib. Twelve months on, I see it as deluded, arrogant, negligent and dangerous. If there is one reason why the creation of this cost of living Select Committee is essential, it can be found in that single reply. It was he and his well-heeled City chums who sold the people of England a pup in 2016. They sold it as a dawn of a new era of freedom and prosperity and of taking back control, but, instead, we live in a time of uncertainty and grave economic hardship, suffered, ironically, by those who bought into the fantasy that Brexit would be good for them and who have been left with the grim reality that Brexit has been a major driver of spiralling food costs, soaring mortgages and lower wages.

The pain of Brexit has been felt most acutely in our rural communities—communities such as my Argyll and Bute constituency, which had benefited from decades of EU membership and the support that it gave to our agricultural sector and the market that it provided for our outstanding seafood and shellfish sector. All of us who represent rural constituencies such as Argyll and Bute know that incomes are lower and costs are higher. Nearly 70% of households in my constituency are at risk of fuel poverty or extreme fuel poverty. As the hon. Member for Kilmarnock and Loudoun (Alan Brown) said, 56% of my constituency are off gas grid. To avoid fuel poverty, an average all-electric household would need an income of £72,200. To avoid extreme fuel poverty, they would require an income of £39,600. This is in the context of a median household income of just £33,000. Anyone can see the crisis of fuel poverty that is coming down the line, as indeed there will be with so many of my constituents.

The Royal Society of Edinburgh released a paper, “The cost of living: impact on rural communities in Scotland”, which recommended that any piece of legislation related to the cost of living should be “rural-proofed” and I heartily agree. It also recommended that the UK Government recognise the contribution of rural communities—whether it be through their whisky, tourism, timber or fish farming. In areas such as Argyll and Bute, the contribution made by my constituents to the UK Exchequer through whisky production alone is gargantuan compared with what they receive.

Rural Scotland has been hit hard by the cost of living crisis, which is why the people of these islands need the Committee to be set up. They need to have confidence that the decisions that we make here are done with all the available evidence that we can possibly muster. That is what the Committee would do. I say to Members, whether they be from the Labour party, the Liberal Democrats or the Conservatives, to vote this motion down on the minutiae—[Interruption.] The Minister may laugh, but this was an amendable motion, which his party, if it had any real commitment to the cost of living crisis, could have amended. To vote down this motion on the minutiae would be disingenuous in the extreme, because this is a genuine attempt on behalf of our constituents to address the biggest crisis in their lives at the moment. The Government and, sadly, the other opposition parties are playing political games with what should be a motion that unites all in the House.

[Mr Deputy Speaker (Mr Nigel Evans)]

I am calling the wind-ups at 4 o’clock and there are three others wanting to speak, so I ask Members to do the maths and be generous to their colleagues.

--- Later in debate ---

[David Linden]

I would never disagree with my hon. Friend—life is too short for that. The point is that Brexit was about Parliament taking back control. What Parliament has sought to do, via this Opposition day motion, is say, “Right, we have identified an issue with Brexit and the cost of living crisis. We want to empower Parliament to look at this issue further.” Yet the Minister—the deputy assistant junior viceroy—seems opposed to that.

Before I finish, I will touch briefly on rising mortgage rates, which are another aspect of the cost of living crisis that persists—one that will get worse and dominate our inboxes far more. Government inaction on that will mean that millions of households could, by next year, be thousands of pounds a year worse off owing to frankly unsustainable rises on their mortgage payments. On new-build estates in my constituency, such as Broomhouse, Gartloch, Belvidere and Eastfields, many young families are living in fear of fixed rates expiring in the coming months.

Capital Economics reports that 3.2 million households are paying interest rates of 3% or more. By the end of next year, that will have risen to 5.8 million—a rise of 2.6 million. As we look at support for homeowners, households need particularly innovative action and solutions to avoid catastrophe. An example that I would like to see on the table is the concept of employer salary sacrifice schemes, which may provide mortgage-holders with a bit more mortgage relief. Thus far, however, as with food prices, the Treasury believes that it is up to the markets to self-regulate, and I know from speaking to constituents that that simply will not cut it. The very reason butter is security tagged at Tesco in Shettleston is because we are allowing the markets to self-regulate.

The Government are very much asleep at the wheel. The Tories have overseen record food inflation caused by their cost of living crisis and their reckless Brexit. Working people are being forced out of buying basic items while their energy bills and mortgage payments rise, too. All the while, our European neighbours are taking action to tackle food prices and price gouging. So yes, I will by all means support the motion when the Division bell rings tonight, but in truth, I would rather my Glasgow East constituents have decisions about their lives made in Edinburgh by a Government we elect, not by an intransigent Tory Government here in London whom we have not voted for—indeed, one we have not voted for since 1955.

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. If someone could inform the Chair of who the Tellers for the Ayes will be when that Division comes, that would be really useful. I call Marion Fellows.

--- Later in debate ---

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

The biggest single issue that has come up on the doorsteps as I have been doing the rounds back in my constituency over the past number of weeks has been the cost of living. People are absolutely terrified, especially as mortgages are increasing and people on fixed-rate mortgages are having to renegotiate those very soon. There is a palpable sense of fear, and I am absolutely astounded that once again in a cost of living debate, we have not only empty Tory Benches—I can kind of understand that, because the Tories want to hide from the consequences of what they have done—but empty Benches on the Labour side of the Chamber. Of course, Labour Members want to hide from the consequences of their support for Brexit.

You would have thought that any sane, normal institution that is interested in pushing things forward for people would want to learn from mistakes. Brexit has cost 5.5% of GDP—or 4%, if we take the estimate given by the hon. Member for Banff and Buchan (David Duguid). That is a massive amount. We are talking about some £40 billion a year in tax revenues, yet the excuse for not having a Committee to investigate that is that it will cost a wee bit of money, or that Parliament does not have a big enough room to put it in. That is just insane. It does not make any sense at all. Lessons should and must be learned; if they are impacting on people, those people have a right to know.

Hon. Friends on the SNP Benches have described families as being the backbone of our communities, and that is especially true in the highlands. These are people—families—who are toiling to secure a future for their children, and Brexit has made that significantly more challenging for them. Those hard-working families are now at the mercy of consequences made in contradiction to their voting preference. The people of Scotland went to the polls and voted to reject Brexit, yet we have it imposed upon us, and the other nations of the UK are feeling the effects too, so why should this not be looked at in detail in a Committee? It just makes no sense, but then this place day by day makes no sense for people, especially those in Scotland.

When it comes to Brexit, do not forget that the Tories failed to oppose the hard-right voices in their ranks. They capitulated to them, resulting in these hardships, including price hikes for people and their families for essential goods such as bread, milk, rice and cooking oil. Those things have shot up astronomically in price over the past while as a direct consequence of Brexit—that cannot be blamed on the Ukraine war. That is not the cause of these price increases—there are direct correlations between the cost of basic foods that people are paying in the shops and Brexit.

Post-Brexit immigration policies have led to skills shortages, as we have heard from my hon. Friends, especially in the highlands. The health service, local services, the care sector, tourism and hospitality are all facing difficulties due to the workforce drain, yet there is to be no examination of what has gone wrong there, what could be done differently or what could be improved, because this place decides that it wants to brush all that under the carpet. The Government want to take no responsibility for that and they want to learn no lessons, because they are arrogant enough to say every time, “It is our way or the highway”. That is what they keep saying to the people of Scotland, in direct contradiction to their democratic preferences.

In the highlands, we have record unemployment and struggling industries, which are compounding the problem of a lack of the people we need to come here to work for us. Farms lack labour, resulting in less production and higher prices, increasing the suffering of communities. Rising living costs and mortgage rates have turned homes—homes that are normally the symbol of security—into symbols of anxiety, because people are worried about how they will pay their mortgages or their rent and keep a roof over their head.

Brexit was pitched as a dream of taking back control, but it has morphed into a self-inflicted nightmare. To distract people from the impacts of Brexit, we see the ignition of culture wars to try to take people’s minds off what is happening and to throw a dead cat on Brexit. The Government try to make out that Brexit is not causing harm to people, families and children day by day, but yet again, we are not to examine that. We must not look at that, because it just might expose some truths about what has happened due to Brexit and this place’s ideology coupled to that disastrous, self-inflicted harm.

What do we get from those on the Labour Benches on this matter? They are going to make Brexit great again—that is what they are saying. They say they can fix this. If they really want to do that, why not examine it in a Committee in this House so that we can look over the problems and say what went wrong and what could be done better? Instead they say, “No, let’s ignore that. Let’s not do that. It is too difficult, too challenging and it will upset the apple cart. We cannot do that because we have been told not to by our leadership.”

The promise made of an equal partnership for Scotland has clearly and demonstrably been broken by this place—not only by those sitting on the Government Benches, but by their comrades in the Labour party. They stand in the face of the Scottish people having a democratic choice over their future and being able to make their own examination of Brexit and their own investigation into what has gone wrong and what has been inflicted upon them. The Government and the Opposition are saying no to all that. This is just another example of this place standing in the face of doing what is right for people in their homes and communities.

I come back to the start of this: cost of living is the single biggest issue for people. When people are sitting at home just now, worried about everything, they are also worried when looking forward towards this winter, when they know that things will get worse again. They know that the cost of energy has not gone down very much, they know that prices are still continuing to rise and they know that mortgages will continue to rise. They are looking into that abyss just now and seeing the difficulties. It is affecting not just those who have already been thrust into abject poverty by decisions taken here in Westminster, but people who would have considered themselves relatively well off just a short time ago. Now they face this calamity—this coming together. When the Government talk about all the support they are bringing forward for people in their homes across Scotland and the other nations of the UK, what they are describing may sound a big figure, but it is like pouring a watering can on the bin fire they have set in this economy.

The only way for people to escape this madness, get things looked at properly and get things dealt with in the right way is for them to take the real control that they need, which is to have their democratic voice acknowledged, to have their say on the future of Scotland and for Scotland to regain its place in the European Union as an independent country.

[Mr Deputy Speaker (Mr Nigel Evans)]

I am anticipating a Division no later than 4.21 pm. We now come to the wind-ups, and I call the SNP spokesperson.