Cost of Living Debate

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Department: HM Treasury

Cost of Living

Owen Thompson Excerpts
Tuesday 16th May 2023

(1 year, 7 months ago)

Commons Chamber
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Owen Thompson Portrait Owen Thompson (Midlothian) (SNP)
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It is always interesting to follow the hon. Member for Moray (Douglas Ross). Some of his contribution nearly touched on the subject of today’s debate. I will try to stick to the topic at hand.

The cracks in this disunited kingdom are clear and there for all to see. The catastrophe of Brexit, Tory cuts, the UK Government’s pandering to the rich few and, unfortunately, Labour’s persistent lurch to the right has shown what we all know to be true—Scotland is held back by this place, this Government and any Government in this place. Both Scotland and my constituency of Midlothian are being strangled by the vice grip of Westminster control. The UK is the sick man of Europe, lagging behind other countries on economic growth. The UK economy grew by only 0.1% in the first quarter of 2023 and contracted by 0.3% in March, according to the Office for National Statistics figures. That is yet another clear indication that we need to find a new way to end this morass. The SNP wants to get Scotland back into the EU, with all the benefits that brings. While Labour backs Brexit and continues to dig a deeper hole for millions of families left struggling by the cost of living crisis, the Government here do nothing that will address any of these issues.

I can see the impact of rising food and energy prices every day in Midlothian. We are in an appalling situation, where soaring inflation and food prices have made it difficult for struggling families to put food on the table. It is heartbreaking to see so many families struggling to afford the absolutely basic necessities. There are some stark examples of the reality of the situation in my own constituency. One restaurant fears that nearly a third of outlets could be forced to shut down due to soaring energy and food prices. Its own energy costs have increased to £80,000 a year. On top of that, there are the unsustainable price increases. That local business has seen a 25% increase in the cost of rice alone. The cost of other basic ingredients such as onions, garlic and cream have doubled. That is having a real daily impact, with jobs and opportunities threatened across Midlothian and throughout Scotland.

SNP-led Midlothian Council has, thankfully, formed a cost of living taskforce to fight back against the onslaught, the first—as I understand it—such taskforce to be established in the UK. The taskforce has provided a £1.6 million cash injection to boost the local economy, but the UK Government desperately need to step up and accept their responsibility to do so much more. SNP-led Midlothian Council is taking action and the SNP Scottish Government are taking action with their limited powers, but what about the UK Government? The Westminster Government could restore the lower rate of VAT, which ended last March, for tourism and hospitality businesses. The UK Government must take urgent action to address the root cause of the shortages and ensure that Midlothian residents have access to affordable and nutritious food. They could uplift universal credit. They could end the benefit cap. They could take action to address soaring food prices and the increasing mortgage rates inflicted on so many by the disastrous failed experiment they attempted last year. Those are choices and the lack of action by this Government is a choice—it is their choice.

The impacts of Brexit and Tory economics are being felt across the country, and Midlothian is no exception. Given that the damage is so obvious, I find it astonishing that Labour is hellbent on inflicting yet more hardship by supporting so many of the Government’s policies.

Real change could be implemented now. We do not have to wait. We can find sustainable solutions to the challenges to ensure that our communities are supported through very difficult times. This Government could act now to stop the rot by investing in local agriculture and food production, as well as by boosting support for food banks and other community initiatives that help families in dire need. Instead, I have been struck by this Government’s apathy towards issues north of the border.

This Tory Government, augmented by tacit Labour support, have shown nothing but contempt for Scotland and my constituency. I recently contacted the Secretary of State for Environment, Food and Rural Affairs on all those issues. She could act immediately to ease the suffering happening right now, but so far the response is that it is not for the Government to intervene in such matters.

The Government could do so much more. I wish the Labour party offered a genuine alternative, but as far as I can see there is only one way for Scotland: for us to decide our own future.