Autumn Statement Resolutions

Debate between Nigel Huddleston and Richard Thomson

Monday 27th November 2023 Commons Chamber

[Nigel Huddleston]

The hon. Gentleman is missing the purpose of the reforms that my right hon. Friend the Secretary of State for Work and Pensions clearly outlined earlier today. Perhaps if he had been in the Chamber, he could have listened to it directly.

When this Government came to power, we inherited not only higher unemployment from Labour, as always, but a lopsided welfare system that discouraged people from even seeking work. In the last 13 years, by reducing workless households, tackling low pay and reforming the welfare system, we have helped hundreds of thousands of families out of poverty. In the wake of covid-19, we have nearly 1 million vacancies in the economy, yet more than 7 million adults of working age, not including students, are still not working. Even Opposition Members seem to recognise that many of them want to work, and therefore we will be spending £1.3 billion over the next five years to help nearly 700,000 people with physical and mental health conditions to find jobs. And we will provide a further £1.3 billion of funding to offer extra help for the 300,000 people who have been unemployed for over a year, to help them find work.

The Government also recognise that, to get more people working, we must back business, as it is business that creates the jobs and pays the wages that lift up our communities, as my hon. Friend the Member for Clacton (Giles Watling) articulated. We will help the households of this country by boosting business through a variety of measures outlined in the autumn statement. Of course, the much-asked-for full expensing will be pivotal. We are also providing £4.5 billion over five years to support strategic manufacturing sectors that already have, or can gain, a competitive edge, namely in aerospace, automotive, clean energy and life sciences, as mentioned by my right hon. Friend the Member for Bournemouth East (Mr Ellwood) and others.

As my right hon. Friend the Member for Aldridge-Brownhills (Wendy Morton) mentioned, we are also supporting small businesses in this autumn statement. For those smaller businesses that are so integral to their communities, we are freezing the small business multiplier and extending the 75% business rate support for retail, hospitality and leisure businesses for another year. I thank my right hon. Friend the Member for Bournemouth East and my hon. Friends the Members for Cities of London and Westminster (Nickie Aiken) and for St Austell and Newquay (Steve Double), and others, for highlighting the importance of the tourism sector, which they know I care passionately about.

We are also establishing new investment zones throughout the country that will generate billions of pounds of investment, as my hon. Friends the Members for Amber Valley (Nigel Mills) and for Clwyd South (Simon Baynes) highlighted.

There are other things we can do to ensure that work rewards workers, such as increasing their rate of pay and making sure they keep more of their earnings, which is exactly what we have done. We are abolishing class 2 national insurance contributions and cutting class 4 contributions. Alongside these cuts, we are raising the national living wage by 9.8% to £11.44 an hour and, of course, we are cutting the main rate of employee national insurance by two percentage points, giving a tax cut to 27 million workers. The Opposition may not appreciate that, but I assure them that their constituents do.

These measures will create work, get people into work and make sure that work is rewarding, as Conservative Members have recognised, particularly my right hon. Friend the Member for North East Hampshire (Mr Jayawardena) and my hon. Friend the Member for Stoke-on-Trent South (Jack Brereton).

Before briefly addressing some of the other points that have been raised, I take this opportunity to congratulate the new hon. Member for Tamworth (Sarah Edwards) on her maiden speech. She started well by praising her constituents, which is always a good move, and I wish her well in this House.

The hon. Member for Gordon (Richard Thomson) mentioned R&D, and the Government will merge the existing R&D expenditure credit scheme and small and medium-sized enterprise scheme from April 2024. This will simplify and improve the system, helping to drive innovation in the UK economy. That message of simplification was also pushed by my hon. Friend the Member for Boston and Skegness (Matt Warman). These reforms represent an overall increase in support to R&D companies of around £200 million a year by 2028-29.

The hon. Member for Gordon also mentioned the Scotch whisky industry. It is somewhat surprising, therefore, that his party’s Members have singularly failed to support any one of the new trade deals that we have signed and are signing, despite the fact that they support every single nation and region of the United Kingdom and are transparently in the interests of their constituents.

[Richard Thomson]

Will the Minister give way?

[Nigel Huddleston]

No, the hon. Gentleman has had plenty of time. I hope he will support the CPTPP deal when it comes before the House.

I always support Scotch whisky, which is a success story that we should all champion. It is a £6 billion export industry, and we can all be proud that 51 bottles of Scotch whisky are exported every second. Let us create more opportunities by supporting these trade deals.

The right hon. Member for Barking (Dame Margaret Hodge) mentioned the UK tax gap, and she is absolutely right to highlight that important matter but, of course, she is well aware that the tax gap is on a long-term downward trend. We have one of the lowest tax gaps in the world. The tax gap was 7.5% under Labour, and it is now at a record low of 4.8%, which is something she forgot to mention.

Perhaps most importantly, there is the context in which we have made this autumn statement, as was mentioned by many hon. Members, particularly my right hon. Friends the Members for Wokingham (John Redwood) and for Preseli Pembrokeshire (Stephen Crabb), and my hon. Friends the Members for Waveney (Peter Aldous) and for St Austell and Newquay (Steve Double). I refer to the fact that we have faced difficult times, with not just one but two global shocks that have had an impact on, and reverberated around, the world. That meant that we were required, expected and proud to intervene in a way that we have not had to do since the second world war. The figures are astounding: more than £350 billion provided during the pandemic to make sure that we supported lives and livelihoods; and, in the light of the invasion of Ukraine, a further £100 billion of support to help those facing cost of living challenges, including our paying nearly half of people’s energy bills last winter.

The Opposition seem to have a collective sense of amnesia about that; it is astounding that they do not understand that all of this money needs to be paid back. Their constituents, who are managing their finances every day, completely understand that you cannot spend money you do not have and if you get into debt, it needs to be paid off. Today, not only are the Opposition criticising us for high taxes, but their solution then seems to be spending even more. That is absolute economic incompetence and shows that they are completely unfit for office. The reality is that Conservatives increase taxes out of necessity and then reduce them out of choice, whereas the Labour party increases taxes out of necessity and out of choice. That is a fundamental difference between our parties, and therefore at the first opportunity we have had to reduce taxes, because the economic circumstances are better—how disappointing is good economic news for those on the Opposition Benches—and we are now in a better economic position, we are now reducing taxes.

Another important theme we have seen from those on the Opposition Benches is this utter pessimism and lack of confidence and faith in the UK economy. We are not pretending, for one minute, that everything is perfect; we know, as constituency MPs, that many people in our constituencies, right across the country, are suffering—we are all aware of that. However, constantly talking the UK down is not only incorrect, but bad for business and for the UK economy. I hope that the Opposition Members understand that when they are talking Britain down, they are talking workers, businesses and their constituencies down. Expectations and confidence matter, as they are what lead to investment in the UK. Because of the confidence in the UK economy, we saw investment announced last week by Nissan, this very day we have the global investment summit taking place and we are seeing billions of pounds more of incremental investment coming into the UK. That is because other countries have confidence in the UK economy, as do Conservative Members. The Opposition are signalling that they do not, and that is a terrible signal to send to the world. Again, if you do not have confidence in the UK economy, you are not fit for office.

The Opposition are talking Britain down. We have seen a huge amount of incremental investment. The Opposition do not like to understand that, for example, we have the second highest level of foreign direct investment in the world, after only the US. Just recently, we have overtaken France and moved from being the ninth largest to the eighth largest manufacturing country in the world. Because of our exporting success, we have gone from being the sixth biggest to the fifth biggest exporter in the world, and we have the second largest export of services of any country in the world. The Opposition may not like those facts, but they are true and provide every reason why we are keen to talk Britain up.

Today, we have seen a positive debate and measures in the autumn statement that back both business and our citizens. From a platform of progress, this is an autumn statement for growth, which will bring jobs, opportunities and prosperity to every corner of the country. I commend the autumn statement to the House.

Question put and agreed to.

Resolved,

That—

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“TABLE

Comprehensive and Progressive Agreement for Trans-Pacific Partnership

Debate between Nigel Huddleston and Richard Thomson

Tuesday 18th July 2023 Commons Chamber

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the shadow SNP spokesperson.

[Richard Thomson (Gordon) (SNP)]

It feels unnecessary to repeat this, but this Government seem willing to sign up to any trade deals. My party is in favour of good ones, and we are against poor ones, and that is why we oppose this deal. [Interruption.] The concerns that we have, despite the heckling from those on the Government Benches, about the lack of mechanisms to safeguard workers’ rights and about the potential impacts on domestic standards, particularly in the agrifoods sectors, do not go away with blustery repetition and flat contradiction, which seems to be the stock-in-trade in all that Government Front Benchers have to say about this deal.

The Secretary of State gets aerated whenever it is pointed out that the Government’s own figures show that GDP is estimated to increase by only 0.08% over the next 10 years as a result of the deal, at the same time as the Office for Budget Responsibility forecasts a 4% hit to GDP through Brexit. Ministers have had an awful long time to find out what the figure actually is, if they do not believe that 0.08% figure. Without reference to vague opportunities, the number of middle-class consumers in the Pacific rim or the GDP of countries in the CPTPP, and without deviation, repetition or hesitation, what exactly will the impact be on UK GDP as a result of this deal?

[Nigel Huddleston]

Again, I am disappointed to see the hon. Gentleman talk negatively about a deal that will benefit Scotland as well as all other parts of the United Kingdom. It will add significant amounts. We estimate that in the long run, at least £2 billion a year will be added to the UK economy, including in his constituency. Perhaps he would like to welcome that, rather than be negative about it. Also, this is a growing area of the world. There are likely to be new members, so we anticipate considerable opportunities going forward. In Scotland, 547 businesses are already owned by CPTPP countries, employing more than 20,000 people in Scotland. Perhaps he would like to welcome that.

Oral Answers to Questions

Debate between Nigel Huddleston and Richard Thomson

Thursday 18th May 2023 Commons Chamber

[Mr Speaker]

I call the SNP spokesperson.

[Richard Thomson (Gordon) (SNP)]

If we take the Minister at his word that tariffs are coming down, that does not seem to be making much difference to the prices that people are paying at the supermarkets. Governments across Europe are taking action to tackle soaring food prices caused by what is termed greedflation. For example, in Ireland, supermarkets have been given a six-week ultimatum to bring down food prices; in France, the Government have agreed with retailers to keep the price of essential foodstuffs to the bare minimum; and Italy has set up a commission to monitor unusual movements in prices. Do Ministers accept that action to protect consumers from corporate greed is necessary and urgent?

[Nigel Huddleston]

As I said in answer to a previous question, food inflation is very similar in the UK and Europe, because we are all facing very similar challenges, including, of course, inflation through energy prices. That is precisely why we provided support to consumers to the tune of about half their energy costs this winter. Of course, we also provided support to businesses, which otherwise would have passed on higher costs to consumers; about a third of business energy prices have been covered by Government support. We are doing a lot, and the Prime Minister highlighted the challenges with a summit on food this very week.

[Richard Thomson]

I accept that we might be facing similar problems to mainland Europe, but we are certainly not getting the same degree of action from the Government to tackle prices in supermarkets. Does the Minister accept that by voting against my party’s motion on Tuesday calling on them to put pressure on supermarkets to pass on falling food prices to consumers, the UK Government sent an extremely clear signal to families in Scotland that they are not on their side?

[Nigel Huddleston]

Again, I and my colleagues continually engage with industry about how it can help support consumers, because both the Government and businesses have a responsibility to help consumers in these challenging times. That is precisely why we had the summit this week, which I am sure the hon. Member is well aware of.

Trade (Australia and New Zealand) Bill

Debate between Nigel Huddleston and Richard Thomson

Consideration of Lords amendments
Wednesday 22nd March 2023 Commons Chamber

[Richard Thomson (Gordon) (SNP)]

Out of all the potential amendments that could have come back along the corridor from the other place, this is not one that would have been top of my list. Let me surprise the Minister by saying that this is a very good trade deal—for those viewing it from Australia or New Zealand. It is not such a good trade deal—it is a pretty lousy one—for those viewing it from Scotland. We are dealing with a single-word amendment, and I can think of many farmers in my constituency who could probably sum up their views of this deal in a single word—none of their words would be parliamentary, I hasten to add.

I hear what the hon. Member for Totnes (Anthony Mangnall) has to say about this not being a static arrangement, but even then it still requires a great deal of catching up in order to make up the ground here. The UK Government’s own analysis shows that the trade deal with New Zealand will bring in an increase of 0.03% of GDP over 15 years, with a figure of 0.08% of GDP from the Australia deal, all while the UK trade and co-operation agreement with the EU leads to a 4.9% fall for the UK over the same period.

The Scottish National party has a simple yardstick on trade deals: we will support those that are good and oppose those that are poor. Nothing that has come back alters our view of this particular deal.

[Nigel Huddleston]

I shall be brief. I thank Members for their contributions today. We have had two glass half empty responses and one glass half full one. That does not surprise me at all, because I am still waiting for the Opposition to support one of our trade deals. It is important to remember that the Australia and New Zealand deals benefit every nation and every region of the UK. I am disappointed to hear what the hon. Member for Gordon (Richard Thomson) said, because the attitude of the Scottish whisky manufacturers might be slightly different, as huge benefits will likely come from these deals.

As I said in my opening speech, this Lords amendment is a minor and technical one. It ensures clarity on the point that the power in the Bill can be used only to implement and deal with cases arising as a result of these free trade agreements. Again, the Government do not—

Oral Answers to Questions

Debate between Nigel Huddleston and Richard Thomson

Thursday 9th February 2023 Commons Chamber

[Mr Speaker]

I call the SNP spokesperson.

[Richard Thomson (Gordon) (SNP)]

Unfortunately for the Minister, and unfortunately for Scotland, the latest data from His Majesty’s Revenue and Customs shows that between July and September last year, exports from Scotland to the European Union slumped by 5%. Will the Minister explain for an expectant nation exactly how that is in any way strengthening the case for the Union?

[Nigel Huddleston]

The hon. Gentleman will be well aware that, as we recover from a global pandemic, certain sectors and certain industries are suffering more than others. That is precisely why we have an export strategy and why the Secretary of State has articulated a five-point strategy for growth. We will continue to work positively with all sectors to grow our export opportunities. UK exports to the EU for the 12-month period to September 2022 were up by 25% in current prices.

[Richard Thomson]

It is not just the SNP who are saying what a disaster Brexit has been. With the director of the Institute for Fiscal Studies saying that Brexit is clearly an “economic own goal”, and even a former Brexit Secretary saying that there have been no economic benefits from Brexit, is it not surely time for voters in Scotland to be given the choice between continued British economic decline or a prosperous, independent European future?

[Nigel Huddleston]

I know the hon. Member and some people are tempted to continue to fight the battles of the past, but this Government will be laser-focused on the future and future opportunities. We have the comprehensive and progressive agreement for trans-Pacific partnership and so many other opportunities around the world, and I think it would be good for all of us in this place to talk the British economy up, rather than talk it down.