Bedroom Tax (Scotland)

Debate between Pete Wishart and Graeme Morrice

Thursday 8th May 2014 Westminster Hall

[Graeme Morrice (Livingston) (Lab)]

It is, as always, a pleasure to serve under your chairmanship, Mr Bone. I congratulate my hon. Friend the Member for Glasgow South West (Mr Davidson), the Chair of the Select Committee on Scottish Affairs, of which I, too, am a member, on securing this debate on one of the most important but depressing subjects that I have had to consider since my election to the House.

The bedroom tax—I will refer to it as a tax, because our evidence has shown that the vast majority of those who are affected have absolutely no option but to pay it, and are totally unable to change their circumstances to avoid it—is one of the worst pieces of legislation that I have ever encountered. I therefore fully endorse the conclusions of the Committee’s report. As a member of the Committee, I have heard overwhelming evidence from every corner of Scotland that the policy is completely failing our constituents, our housing providers and even each of the Government’s stated outcomes. It does not make the social housing system fairer or more efficient, and it will not save the Government money in the long run. The bedroom tax succeeds only in punishing those with the smallest stake in society at a time when they are being assaulted from multiple directions by the Government, who refuse to prioritise their day-to-day struggle.

Ironically, the policy came into effect in the same month that the Prime Minister announced tax cuts for the privileged few who earn in excess of £150,000 a year. Nothing that I heard in evidence to the Committee came close to justifying why, although ripping off some of the poorest and most vulnerable citizens is an absolute necessity, somehow it is economically and morally proper to pay for tax breaks for the super-rich.

When we took evidence in West Lothian, where my constituency is located, we were told by the local authority that more than 50% of tenants are now in arrears, and that 500 households have tried to downsize to avoid the bedroom tax, but that because of pressures on the housing stock, only a small number have been successfully rehoused. To put the problem into perspective, West Lothian council estimates that at the present rate of transfer, it could take between 10 and 15 years to allow all the tenants who want to downsize to do so. That does not take into account new applicants who join the waiting list over that period. Alison Kerr, chair of the West Lothian council tenants’ panel, told the Committee of the urgency of acting now, saying that the longer the bedroom tax was allowed to exist unmitigated, the greater the number of West Lothian tenants who would have to make the impossible choice between eating and heating.

Of course, it is not only the UK Government who are to blame for the debacle. The Scottish Government could have acted much sooner to mitigate fully the effects of the bedroom tax in Scotland. I find it strange that the Scottish Government have not once approached the Committee to challenge statements made in evidence that they have had the powers necessary to mitigate those effects from the start.

[Pete Wishart]

We have just committed to mitigating fully the impact of the bedroom tax. While the hon. Gentleman is going on his tour of Governments throughout the UK, what does he make of his Welsh Labour colleagues in the Welsh Government, who have done absolutely nothing to mitigate the impact of the bedroom tax in their jurisdiction?

[Graeme Morrice]

I am not qualified to respond on the situation in Wales. Today’s debate is about Scotland, so if the hon. Gentleman does not mind, I will continue to focus on that.

The point that I was making before the hon. Gentleman intervened was confirmed by the Under-Secretary of State for Scotland in oral evidence to the Committee on Tuesday, and by the Chief Secretary to the Treasury in the past. After months of posturing, the Scottish Government this week ended their ridiculous game of brinkmanship with the UK Government when an agreement was finally reached to lift the spending cap, allowing the bedroom tax to be effectively ended in Scotland. I think I speak for many when I say that that should have happened much earlier. It is thanks to the Labour Members of the Scottish Parliament that a solution has finally been arrived at, after a year of attempts by Scottish Labour to drag the SNP into accepting that action could be taken in Scotland to bin this iniquitous tax. Late action is better than no action, and it will come as a relief to many Scots that the bedroom tax can and, I hope, will be fully mitigated.

I find it incredible that the Scottish Government did not even contact the UK Government until recently to try to find a way to end the bedroom tax in Scotland, just over a year before it was introduced and more than two years since the law was first enacted. People can draw their own conclusions about the reason why, but political posturing and blaming others hardly demonstrates responsibility or maturity; moreover, it lets down those who need our help the most.

To return to the report, witness after witness from London to the Western Isles told the Committee that they wanted the tax to be scrapped. Many felt abandoned by both Governments, who have had the power but not, until the eleventh hour, the political will or inclination to do something about it. However, although I welcome yesterday’s announcement on Scotland, more must be done throughout the rest of the UK. We have heard in several testimonies that the fail-safes to protect the most vulnerable are inadequate and largely do not reach those most in need, to the despair of housing providers. We heard from those on the front line that, despite repeated contact, a sizeable number of affected tenants do not engage, or are unable to engage sufficiently, with housing suppliers in order even to apply for a discretionary housing payment.

When the Select Committee visited my Livingston constituency, Donald Forrest, head of finance and estates at West Lothian council, told us that, despite considerable efforts since April last year to contact and engage with 2,195 tenants who are affected by the bedroom tax, between 500 and 600 tenants had still not applied. Craig Martin, leader of Falkirk council, told the Select Committee that 50% of tenants applying for DHPs in his locality had some form of recognised mental health problem. Such responses were not untypical of the evidence we heard from a range of witnesses from across Scotland and beyond. If DHPs are not reaching those most in need, then simply expanding the scheme’s eligibility to catch everyone is no guarantee of protecting anyone. The simplest way to protect all tenants is to either alter the scheme drastically or scrap it altogether, which is the Select Committee’s preferred option.

Simply put, at the heart of the bedroom tax debate is the worst kind of politics, with Scottish social tenants finding themselves stuck between two Governments: one distracted by a referendum on separation, who acted only when forced to do so by the Scottish Labour party and grass-roots campaigners; and another who want to look tough on welfare and spending, despite every indicator telling them that they are failing. The Scottish local authority body, the Convention of Scottish Local Authorities, has released figures showing that this year alone the bedroom tax will actually cost an additional £60 million to implement in Scotland.

Even after yesterday’s announcement, my message to the decision makers in both the Scottish and UK Governments is simple: they must stop the bickering, stop the finger-pointing, stop using some of the most vulnerable people in society as political pawns and stand behind the Select Committee to sort out the problem using the power that the Scottish people have granted them. The Labour party in Scotland has forced the SNP Scottish Government to this point, and has offered bipartisan support to help to find the money in the Scottish budget to sort things out. I sincerely hope that, now that we have a clear course of action and offers of help from almost every side, we will be able to get on with our day job of helping our constituents.

Of course, whatever happens, in May next year, Labour will repeal the bedroom tax as one of its first acts of national Government.

UK Constituent Parts (EU)

Debate between Pete Wishart and Graeme Morrice

Wednesday 21st November 2012 Westminster Hall

[Pete Wishart]

I said that I was not giving way.

These people need to get their act together on the scaremongering, so that we can understand what they are saying.

The subject of this debate is the constituent parts of the UK and EU membership. Scotland is a constituent part of the United Kingdom. We are currently a member of the European Union. After independence, we will continue to be a member of the European Union. We are in the European—

[Graeme Morrice (Livingston) (Lab)]

Will the hon. Gentleman give way?

[Pete Wishart]

I am not giving way to the hon. Gentleman.

We are a member of the European Union because the UK took us into the European Union, the old EEC, back in 1973, but the European Union is not the only union. The UK is a union. It is based on the Act of Union, which brought together the Scottish and English Parliaments three centuries ago, so when Scotland secures its independence, the Act of Union falls and there will be two successor states. That is what will happen. Whatever happens to an independent Scotland will happen to the rest of the United Kingdom. It will be just like what happened with Czechoslovakia: the Czech Republic and Slovakia were treated as two new nations. These people sometimes like to use the example of Russia—

Scotland Bill

Debate between Pete Wishart and Graeme Morrice

Tuesday 15th March 2011 Commons Chamber

[Pete Wishart]

We really are having arithmetic and mathematics lectures today.

I think that the momentum is with the hon. Member for Central Ayrshire. Opinion is moving in the same direction as him and I think it is starting to go with him. I looked around and saw some of the enthusiasm from some of his hon. Friends this afternoon and I think the Labour party has a genuine problem. I have a solution, however, Mr Hoyle, in which you might be interested. I understand that the Labour party is holding an important conference this weekend, so the hon. Gentleman should get a day return—not the Caledonian sleeper—up to Oban and have this debate with the Labour party. The Scottish people need to know what the Labour party is doing.

I believe that the Labour party is split from top to bottom on this issue and that has to be resolved. I know that up at Oban it will be the usual whinge-fest.

[Graeme Morrice]

The SNP has a preoccupation with the Labour party; why does not the hon. Gentleman simply address the issue?

[Pete Wishart]

I am offering a solution so that the issue can be resolved and fixed up once and for all. The Scottish people want to know what the Labour party thinks. Labour designed this mechanism; let us see what it thinks about it now.

--- Later in debate ---

[Pete Wishart]

I am grateful, Mr Hoyle.

I do not think that the signatories to the new clauses singularly loathe the additional member system—they also loathe the single transferable vote for local government in Scotland and everything to do with proportional representation.

[Graeme Morrice]

indicated assent.

[Pete Wishart]

That is their view. They want the death of PR in Scotland.

A few interesting things came out of the hon. Member for Central Ayrshire’s contribution, the most interesting of which was about list Members. I think he has to take this up with the Labour list Members in the highlands, in north-east Scotland and in mid-Scotland and Fife. I know that SNP list Members are particularly active within the larger constituencies and do a fantastic job.

--- Later in debate ---

[Pete Wishart]

The hon. Gentleman will have had his own experiences with these issues.

An hon. Member has pointed out that there have been problems with list Members on a couple of occasions, but I am surprised that it is only a couple of occasions. List Members seem to co-exist with first-past-the-post Members on reasonably good terms. I recognise a number of issues and problems that have been identified by a number of Members.

[Graeme Morrice]

Further to my intervention earlier in the debate, is the hon. Gentleman aware of the situation of one Scottish National party MSP, Alex Neil, who was admonished by the Presiding Officer of the Scottish Parliament for giving the impression, despite the fact that he is the regional list MSP for Central Scotland, that somehow he was a local constituency MSP for Airdrie and Shotts, which has its own directly elected constituency MSP?

Scotland Bill

Debate between Pete Wishart and Graeme Morrice

Thursday 27th January 2011 Commons Chamber

[Pete Wishart]

This is a reasoned amendment. We are inviting the House to look at the many difficulties in the Bill and to consider how it might be improved.

[Graeme Morrice (Livingston) (Lab)]

rose—

[Gordon Banks]

rose—

--- Later in debate ---

[Graeme Morrice]

I am obviously aware of the objection to the Bill from the SNP—it is an objection that we often hear—which is that it would mean less money for the Scottish Parliament. Indeed, the First Minister claims that the Scottish budget would have been considerably worse under Calman, compared with the current regime, yet Alex Salmond refuses to publish the numbers setting out what his plans for fiscal autonomy would have meant for the Scottish budget in the last 10 years.

[Pete Wishart]

It is not just the First Minister who has said that there is a fiscal drag with the current plans— £7 billion is what we argue—but the Secretary of State, who said that the figure would be £700 million, so we are in pretty good company. If that was the loss to the Scottish budget, would the hon. Gentleman object to these tax proposals?

[Graeme Morrice]

The reality is that Government expenditure in Scotland is considerably greater than the sums raised in taxes. In fact, in 2008-09, the last year for which figures are available, total public sector revenue in Scotland was £43.5 billion, whereas total public sector expenditure was £56.5 billion. Under the separation that Mr Salmond wants, that would lead to a fiscal deficit of £13 billion. Let us turn to the fallacy peddled by the SNP that only under a system of full fiscal autonomy would Scotland’s economy be able to generate growth. There is little evidence to suggest that this is the case. Professor Lars Feld, one of the world’s leading authorities on decentralisation, has concluded:

“We do not find any robust significant effect of decentralisation on economic growth”.

Professor Anton Muscatelli of Glasgow university has said that

“there is absolutely no statistical relationship between fiscal autonomy and growth, nor can there be.”

The Scottish Parliament’s competencies are already substantial, but we need to do more to increase accountability. Unlike the funding of most devolved regions by national Governments around the world, Scotland’s block grant is unconditional and can be spent in whichever way chosen. Voters in Scotland and Members of the Scottish Parliament are therefore not exposed to the choice between public expenditure and additional taxation. The Bill ensures that those choices are made. More shared taxes; new devolved taxes; greater borrowing; greater transparency; a fair balance of shared risk across the United Kingdom—that is a fair balance of new powers to create the accountability that the Scottish Parliament needs. The Scottish Parliament will be answerable to the Scottish people for the money that it raises and spends. That is what the vast majority of Scottish people want. They do not want separation, but they do want a Scottish Parliament that is responsible for the decisions that it takes, and that is why I am supporting this Bill.