Cost of Living and Brexit

Owen Thompson Excerpts

Wednesday 14th June 2023 Commons Chamber

[Owen Thompson (Midlothian) (SNP)]

We can all agree that the cost of living crisis is connected to other social and economic disasters, but public services have been undermined by more than a decade of austerity, with devolved Governments, social security benefits and the National Health Service bearing the brunt.

The UK’s dependence on fossil fuels, under-investment in renewables, reduced gas storage and failure to regulate the energy market meant the nations of these islands faced unprecedented price rises from early 2022, despite being much less dependent on Russian gas than our European neighbours. Inflation triggered by reopening the economy in the aftermath of the covid-19 upheaval was augmented by supply chain disruption, with food particularly affected. We have had too many years of Torynomics, looking out for the wealthy at the expense of those who can least afford to live, and that was before the bombshell car crash of a Budget experiment towards the end of last year.

I see the effects of these decisions every day in my Midlothian constituency. New figures have laid bare the full scale of the problems facing my constituents in Midlothian. Last year, there were more than 4,500 children living in poverty in my constituency, according to End Child Poverty. Last month, more than 1,300 people were claiming unemployment related benefits. Around 250 of these claimants were aged 18 to 24. Up to 21,000 adults living in Midlothian cannot afford to turn on the heat in their homes to keep warm or to eat a balanced meal, a report found.

We heard about some of those issues on Monday, at the launch of the all-party parliamentary group on coalfield communities, of which I am a vice-convener. This is not a new phenomenon in our coalfield communities but a legacy of Thatcher that we have never recovered from and that successive Governments have done nothing to tackle.

It is estimated that as many as 34,000 people were worried about energy bills. The same survey found that in one month alone, 8,000 adults went hungry because they did not have enough money to buy food. Those figures, presented to a meeting of Midlothian Council last month, come from an independent study ordered by that council’s cost of living taskforce, set up last summer. With residents facing this cost of living crisis, it is clear that has quickly become the biggest priority for our SNP-led council and why it has invested more than £1.3 million in direct help to residents across Midlothian. It is hard to imagine a much worse scenario, but then there is Brexit.

Even the usually staid publication, The Lancet, says the Brexit fiasco is one of the central elements at the core of this cost of living crisis. It impacts not just our constituents and their households, but the Scottish Government, other devolved Governments and local government across the country. They are all facing the same inflation costs, increased costs of capital projects and increased energy bills that are all a drain on limited and fixed budgets. That is certainly the case with the Scottish Government, who do not have the borrowing power of this place or even of local government.

As well as laying bare the massive public health impacts of the cost of living crisis, a recent article in The Lancet says:

“There are several factors driving this crisis. The most immediate trigger is high inflation, partially a consequence of trade disruption associated with the conflict in Ukraine, superimposed on the impact of Brexit and associated fall in the value of the pound, which is leading to a rise in the costs of energy, food, and other essential resources for life.”

The Lancet also makes the ominous point that this is just the beginning and there is more to come. We have heard others talk about the impact on mortgage rates. Because of the tendency to set fixed rates, many people are still to come up against the worst of the increases.

My hon. Friend the Member for Central Ayrshire (Dr Whitford) talked about the impact of staff shortages on our public services. How can we have a situation where impactful decisions taken in this place can have such a direct consequence for communities across our isles? Those are chilling words from The Lancet, which make it ever more baffling that the Government persist with the failed Brexit project, and even more so that Labour want to continue to do more of the same.

As the SNP’s armed forces and veterans spokesperson, I am acutely aware of the impact that the cost of living crisis has on our men and women in uniform. Serving military personnel and their families have been forced to use food banks and there are serious questions to be answered around the pay offer to our armed forces.

This week, Sky News revealed that an unofficial food bank even exists at a Royal Air Force base in Lincolnshire. The voluntary facility at RAF Coningsby, home to Typhoon fast jet squadrons, was set up by an aviator to collect food donations from servicemen and women to support civilians in their local community, but a defence source claimed it is now being used by RAF personnel too. Despite the much-vaunted armed forces covenant, we now have a situation where service personnel need to choose between food or fuel. The crisis is impacting on so many places where people would never have thought that would be the case. According to the reports, one aviator, a single mum, was forced to go without a hot meal for four days because she had spent her last money on baby milk formula.

This place, the Tories and their Brexit-supporting Labour pals, need to take responsibility for this utter clusterbourach. In Scotland, we are fortunate that we have a path out of the chaos. We can become independent. I know the hon. Member for Banff and Buchan (David Duguid) will be delighted that I have said that, because he was waiting for it. We have the opportunity to elect progressive Governments that can implement all the levers that a normal nation can in taking forward their own destiny as a member of the European Union. As we work towards that goal, we desperately need an inquiry led in this place to reveal the full extent of the devastation wrought by Brexit and the cost of living crisis. Why would we not want to get to the bottom of why these problems are happening? That is the only way for Scotland to weather this perfect storm. I look forward to the day when we can get the answers we need, but much more important, I look forward to the day when we can make our own decisions in Scotland.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I now have to announce the results of today’s deferred Division.

On the draft Animal By-Products, Pet Passport and Animal Health (Fees) (England) (Amendment) Regulations 2023, the Ayes were 284 and the Noes were 14, so the Ayes have it.

[The Division list is published at the end of today’s debates.]