Cost of Living Increases

Peter Grant Excerpts

Monday 24th January 2022 Commons Chamber

[The Chief Secretary to the Treasury (Mr Simon Clarke)]

I am glad to have this opportunity to respond on behalf of the Government. The UK economy is roaring back to life following the unprecedented challenges that we faced during the height of the coronavirus pandemic. It may have escaped the attention of Scottish National party Members, but job vacancies have hit record highs while the unemployment rate has fallen sharply. Our GDP has rebounded. We are set to enjoy faster growth this year than anywhere in the G7, and our economy is now bigger than it was before the pandemic.

Job numbers are rising, unemployment is falling and the economy is back to its pre-covid level, but that has not happened by accident. The economy has been able to bounce back so strongly and quickly only because of the decisions made by this United Kingdom Government. Let me remind the House of those decisions. The £400 billion of direct economic support has protected millions of people’s livelihoods in every part of the United Kingdom, with the furlough and self-employment income support schemes safeguarding, in Scotland alone, more than 1 million jobs. The success of our vaccine roll-out has meant that we have retained the most open economy and society anywhere across Europe. And our plan for jobs is creating work opportunities and ensuring that people have the right skills to get into work.

Those achievements are underpinned by the fiscal strength and stability of our economic union. That is why, at the autumn Budget, we confirmed that the devolved Administrations are receiving an extra £12.6 billion of Barnett-based funding this year, taking total block grant funding to £77.6 billion.

[Peter Grant (Glenrothes) (SNP)]

In that glowing list of statistics that the Minister had prepared for him, does he have a figure for the current level of child poverty on these islands, and if not, why not?

[Mr Clarke]

What the hon. Gentleman misses is that a jobs-based recovery lies at the heart of this Government’s plan. If he cares to look at this Government’s record, as opposed to that of the Government in Holyrood, he will see that the United Kingdom Government outperforms Holyrood every day of the week on job creation, growth and stability, which, in the end, goes to the heart of all our constituents’ life chances.

Over the next three years, the Government are providing, on average, an additional £8.7 billion a year to the DAs on top of their annual £66 billion baseline. That funding equates to an average of £4.6 billion a year more for the Scottish Government, £2.5 billion more for the Welsh Government and £1.6 billion a year more for the Northern Ireland Executive. It will support the devolved Administrations as they shape the economic recovery and decide how best to invest in the vital public services on which people rely.

We are acutely aware of the cost of living challenges that people face. Inflation is expected to average around 4% this year, 2.6% next year and then to return to target by the end of 2023. It is true that almost every other developed economy is facing similar issues due to increasing global demand after the pandemic and a global spike in wholesale gas prices.

--- Later in debate ---

[Douglas Ross]

The Scottish pound—there we go. That has answered all the problems. There are no concerns about what the Scottish pound would be or when it would be introduced. I think that the muted response of the hon. Member’s colleagues tells him that that was not the best intervention to make. Yet again, none of them can answer that question. I have asked them many times before, but none of them can credibly say what currency an independent Scotland would have. I think that is telling.

[Peter Grant]

rose—

[Hannah Bardell (Livingston) (SNP)]

rose—