Public Sector Pay

Peter Grant Excerpts

Thursday 13th July 2023 Commons Chamber

[John Glen]

My hon. Friend makes some sensible points, and he is absolutely right on the pension changes that we announced in the Budget, which the British Medical Association had been for a long time asking for, and it welcomed them. For clarity, I should make it clear that health and care workers remain exempt from the immigration health surcharge. He speaks a lot of wisdom about potential refinements to the timetable, and we will look at those carefully.

[Peter Grant (Glenrothes) (SNP)]

I thank the Chief Secretary for an advance copy of his statement. It was noticeable that in his initial statement he did not mention the fact that the British economy has been at a standstill since before the pandemic. It was noticeable that neither he nor the shadow Chief Secretary, the right hon. Member for Wolverhampton South East (Mr McFadden), want to admit the part that Brexit has played in that. Everybody has been affected by covid and the war in Ukraine, but only one state in Europe is suffering from the self-inflicted damage of Brexit, and that is why economic growth in the European Union is and will continue to be higher than here.

While we certainly welcome the news that the Government have finally decided to honour the pledge on public sector pay, will the Chief Secretary acknowledge that in almost every single case the pay increases being offered to public sector workers will be less than increases in the cost of living, so in real terms they are a cut? Will he acknowledge that in almost every case the Scottish Government have already settled with our essential public sector workers in Scotland, in almost every case with a substantially higher pay deal and in most cases—certainly throughout our NHS—without a single day being lost through strike action? What are the Scottish Government getting right that this Government find so difficult?

One of the biggest challenges facing the economy is a shortage of workers, so what a brilliant move to address that by charging essential workers more to come here and contribute to our economy. Can we have full details of the increases to immigration fees, including a full statement of the expected economic impact, including an indication of the likely impact on immigration numbers? Will we be driving away essential workers and causing more damage to the economy simply to feed the right-wing fantasies of the Daily Mail and the Express? Given that there is almost unanimous agreement in Scotland that we need more immigration, not less, is it not time for the Scottish Parliament, answerable to the Scottish people, to be given the powers to decide on the immigration policies we need, rather than constantly being dragged down by the failed policies of this United Kingdom Government? Does he accept that rampant inflation and stagnant economic growth are not essential, but are deliberate political choices of this failed Government?

[John Glen]

I thank the hon. Gentleman for his questions. I think we can agree to disagree on some of that. What we have to understand is that if we look at the growth levels over the past two years in the G7, this economy and this country have performed well. He makes a number of points. People are getting weary of this constant refrain around Brexit. There are people who voted for Brexit and people who did not; it has happened, and we will now take every step we can to maximise the benefits and opportunities and the greater discretion that we have consequential of that decision.

With respect to the specific questions about visa fees, I am sure that my colleagues in the Home Office will publish those in due course. This is a carefully calibrated decision; it is not motivated by political dogma. It is a clear decision to take necessary steps to avoid additional borrowing, and to meet the outcomes and the numbers that derive from the PRBs, which give evidence-based advice to the Government. This is a careful set of judgments. Clearly they will not please everyone, but we have to make decisions in the interests of the whole economy at this time.