Cost of Living and Brexit

Philippa Whitford Excerpts

Wednesday 14th June 2023 Commons Chamber

[Dr Philippa Whitford (Central Ayrshire) (SNP)]

I beg to move,

That this House agrees that increases in the cost of living are having a detrimental impact on businesses and families across Scotland and the rest of the United Kingdom; notes that the United Kingdom’s exit from the European Union has played a significant role in driving those increases; further notes that the devolved administrations do not possess the full financial powers required to effectively mitigate the increases in the cost of living in the devolved nations; accepts that finding solutions to the cost of living crisis deserves dedicated parliamentary time to investigate all matters relating to increases in prices and of the contribution of exiting the European Union and of Westminster economic policy to those increases; and resolves that the following shall be a Standing Order of the House:

Cost of Living Committee

1. There shall be a select committee, to be called the Cost of Living Committee, to examine the causes of and possible solutions to matters related to the cost of living in the United Kingdom, the consequences of the United Kingdom leaving the European Union and the cost of living, how the effect of changes in the cost of living affects the economy, and other connected matters.

2. The committee shall be chaired by a Member from the second largest Opposition Party and shall additionally consist of 22 Members from the Government party and 22 Members from opposition parties, drawn from the following Committees

[Joanna Cherry (Edinburgh South West) (SNP)]

The Labour party is keen to regain seats in Scotland from the Scottish National party. We obviously hope they do not, but why does my hon. Friend think the Labour party is ignoring the impact of Brexit even in Scotland, when the overwhelming position of the Scots is that they want to remain in the European Union?

[Dr Whitford]

I thank my hon. and learned Friend for her contribution. It is quite clear: we saw the discomfort of the Labour party on Brexit for quite a number of years, because its approach to Brexit had flip-flopped backwards and forwards, so it simply avoids the topic.

Until recently, people would think that there had been an omertà in the mainstream media when discussing the UK’s poor economic performance. Despite previously campaigning against Brexit, the Labour leader, the right hon. and learned Member for Holborn and St Pancras (Keir Starmer), is now clear that he will not consider rejoining the EU, the customs union or the single market, yet he claims that he can somehow reduce the trade friction that has cut exports by 15% and cost 4% of GDP.

Just as Brexiteers claim the problem is just that Brexit is not Brexity enough, we now have Labour claiming that they will “make Brexit work”. It cannot work, but if the Labour leader wants to reduce some of the damage of Brexit, he should support the idea of a Committee to identify proposals that could be put to the EU prior to the review of the trade and co-operation agreement in 2026. Otherwise, what is the plan—close his eyes, click his red heels together and make a wish? Talk about not reading the room.

Just as polls show that a majority across the UK recognise that Brexit is a mess and would support rejoining the EU, the supposed official Opposition have lashed themselves to the mast of the floundering Tory Brexit ship. I am not quite sure why they are called the official Opposition when they do not seem to do much opposing and just go along with the policies of this Tory Government, whether that is on Brexit, immigration, outsourcing the NHS in England to private companies or denying the right of the Scottish people to choose their own future.

Labour may have abandoned almost all its previous pledges, and does not offer much real change after the next election, but the politicians who have caused the current damage to the UK economy are those with their bahookies squarely planted on the Government Benches. Tory austerity may initially have made the Treasury balance sheet look better, but 13 years of benefit cuts and public sector pay freezes have sucked money out of local economies, leading to dead high streets and rising poverty, particularly among children, pensioners and disabled people.

Austerity also meant that health and care services were already struggling when covid hit, and the workforce shortages that hamper all four UK health services have been exacerbated by the loss of freedom of movement, meaning that they are all struggling to catch up on the backlog.

The cost of energy is a major contributor to the cost of living crisis, but while global energy prices have risen due to the Ukraine war, the problem has been exacerbated by the Tories’ policy over decades. It was their poster girl, Mrs Thatcher, who put the profits of oil, gas and electricity into private hands. That has left the UK fully exposed to global price rises, despite the UK and Scotland’s energy potential. We are unlike France, with its nationalised power supplier, which has been able limit price increases to 4%. The UK has been unable to do that.

While the energy support payments were welcome, they had a limited impact on energy bills, which had doubled in a year. The UK Government did not follow other European countries such as Germany, Spain, Ireland or the Netherlands in substantially cutting VAT on energy bills, even though rising prices means that such a VAT cut could have been revenue-neutral.

Brexiteers actually promised cheaper food—it is hard to believe—but that has turned out to be a complete crock, with food inflation in the UK at more than 19%, the highest in Europe. The costs of basic foods and supermarket brands are rising even faster, meaning that those on lower incomes face a dramatic surge in food costs, with more people resorting to food banks or missing meals. Almost 30% of the UK’s food comes from the EU, so there will be another surge in food prices next winter when the UK introduces full customs checks on foodstuffs being imported from the EU.

[Mhairi Black (Paisley and Renfrewshire South) (SNP)]

Does my hon. Friend agree that it is also an absolute scandal that during a cost of living crisis, when we are seeing prices such as those she described, we have produce going to waste in Scotland because we do not have enough people to actually pick the fruit and veg?

[Dr Whitford]

I thank my hon. Friend for that point. While soft fruit is a particular issue in Scotland, this is an issue right across the UK because of the lack of European staff in harvesting. As my hon. Friend says, the sector is seeing food rotting. We are also seeing this issue in other sectors; there is hardly a sector that is not struggling for workforce.

With regard to the checks on incoming foodstuffs from the EU, the former ill-named Brexit Opportunities Minister, the right hon. Member for North East Somerset (Sir Jacob Rees-Mogg), delayed the checks for the fourth time last year. At the time, he suggested that they would cost £1 billion, and described them as an “act of self-harm”—duh! I could have told him that in 2016. On top of that, the now-infamous mini-Budget that tanked the pound and the stock market while the then Chancellor, the right hon. Member for Spelthorne (Kwasi Kwarteng), was still on his feet, sent mortgage costs spiralling. The relentless rise in interest rates in response to inflation is making home ownership unattainable for young families, as well as pushing up rents.

[Peter Grant (Glenrothes) (SNP)]

My hon. Friend has rightly pointed to the disastrous mini-Budget that was imposed on us by our previous Prime Minister, the right hon. Member for South West Norfolk (Elizabeth Truss). Does the leader of the Scottish Conservative party group in the Scottish Parliament, the hon. Member for Moray (Douglas Ross), who initially demanded that the Scottish Government implement those disastrous policies, and now demands that they spend billions of pounds to mitigate their effects, have any credibility?

[Dr Whitford]

It would be a more appropriate response by the Scottish Conservatives to get down on their knees in the Holyrood Chamber and apologise for the abuse they gave the Scottish Government for not following such crazy policies.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

I had the honour to be a Member of the Scottish Parliament for some 12 years, and the Minister served in the Scottish Parliament. I know a good deal about the committee system; indeed, I chaired one. Members of the Scottish Parliament who were not members of a committee could come and speak at it—it was almost never not allowed.

I am not a member of any Committee in this place. Given the size of my party, only three of our Members are on Committees. Due to the structure of the proposed Committee, the door would be locked against me applying for a place on it. I feel disenfranchised, and I do not see why my constituents should not be given the chance for their representative to have a voice. I cannot vote for the structure of the Committee as it stands—it is very sloppy work.

[Dr Whitford]

That is incorrect: there will be Members from the three devolved nations. It will be—as described—a large Committee, which might provide a place for the hon. Member or one of his colleagues from a devolved nation. It is nonsense—there is no exclusion.

[David Linden (Glasgow East) (SNP)]

Will my hon. Friend might lend me her Order Paper? The one I have might be out of date, but it does not show an amendment from the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone), or his party, to change the composition of that Committee. Am I reading the Order Paper wrong, or is the hon. Gentleman perhaps a little bit out of touch?

[Dr Whitford]

I do not think my hon. Friend is reading the Order Paper wrong.

The combination of rising energy, food and housing costs, on top of years of benefit cuts and stagnant wages, means that, for many families, the sums simply do not add up. The Scottish Government are trying to use their now very limited powers of devolution to mitigate the crisis, particularly for those on the lowest incomes. However, the Scottish budget for the day-to-day running of services is less in real terms than it was in 2010, with no uplift for inflation and—as we all know—no significant borrowing powers. Despite that, the Scottish Government have provided additional funding for the fuel insecurity fund and the Scottish welfare fund. Low-income families are now supported through five childhood grants, including the Scottish child payment, which together provide £10,000 of support during the early years and will provide over £20,000 by the age of 16.

[Christine Jardine (Edinburgh West) (LD)]

Does the hon. Member agree that the way to improve the situation for everyone, not just in the devolved nations but throughout the United Kingdom, is for those who are elected to the Scottish Parliament to work hand in glove with those of us who are elected to this Chamber, and particularly with the other Government for Scotland in the United Kingdom? Rather than set up another cumbersome Committee, which is a process, would it not be better to work together for the benefit of everyone in the United Kingdom?

[Dr Whitford]

The hon. Lady knows well that on issues such as trade deals and Brexit, we see very little genuine consultation between the Government here and the devolved Government. She is also well aware of how devolution is being rolled back and hollowed out, with legislation that has been passed blocked and undermined.

[Christine Jardine]

Will the hon. Member give way?

[Dr Whitford]

No, I am sorry. I have just given way to the hon. Lady.

The Institute for Fiscal Studies’ analysis of the Scottish tax and benefit system showed that it was more progressive, with almost 30% of low-income families £2,000 a year better off in Scotland, but Scotland aspires to something more radical than just mitigating Westminster austerity such as the two-child limit or the six-year benefit freeze. Our vision is to be a fairer, greener nation. The Scottish Government founded the Wellbeing Economy Governments Group in 2018 with Iceland and New Zealand, and Finland and Wales joined later. A wellbeing economy does not just focus on GDP, which includes the profits of damaging sectors such as the tobacco industry, but invests in the physical and mental health and social, economic and environmental wellbeing of every citizen. It is a holistic approach that recognises that our society and economy depend on the success of every individual, every family and every community.

Therefore, in addition to the targeted anti-poverty measures, the Scottish Government invest in the wellbeing of all those living in Scotland, from the baby box that welcomes the birth of a child and university tuition that allows our young people to reach their full potential to the free personal care that allows older people to stay in their own home for as long as possible. However, with the tightening limitations of devolution, the Scottish Government do not have the power over their own economy or the control of taxation and social security that are required to deliver the wellbeing economy we aspire to. We all know that we need a different type of economy by the end of this decade, or we will leave our grandchildren to face climate collapse. The pandemic brought everything to a standstill, which gave us a unique opportunity to decide what kind of economy and society we wanted to rebuild.

[Stewart Hosie (Dundee East) (SNP)]

Before my hon. Friend goes on to talk about the kind of economy we want to see, will she make the observation that in an important debate on the cost of living and its evil twin Brexit, on the day after an urgent question on the Tories’ mortgage crisis, we have one Tory Back Bencher and two Labour Back Benchers in the Chamber? Does that not tell the Scottish people everything they need to know about how little Unionism really cares for ordinary people?

[Dr Whitford]

The proposal for this economy, as I said at the beginning of my speech, is not just for the people of Scotland: it is for the people of the four nations of the UK. The review of the TCA will come up in 2026, and while it is not possible to make Brexit work, it is possible to mitigate some of its worst effects. For that, though, we need to understand what Brexit is doing to the UK’s society and economy and have proposals that we can bring to the EU to ask for change.

Unfortunately, the opportunity to change to a different economy and society has not been taken. We already see poverty and inequality rising, and the climate emergency being pushed off the action list—including by Labour, which has just U-turned on its pledge to invest £28 billion in the transition to a green economy. Unfortunately, the climate crisis cannot wait. Scotland is blessed with extensive green energy potential, from wind and tidal power to green hydrogen and pump storage hydro. The current Government have failed to support Scotland’s green energy potential, and sadly there is now little reason to expect much change under Labour, either.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

My hon. Friend talks about Scotland’s energy opportunities, and green hydrogen is indeed one of the key ones. Does she agree that it is perhaps illuminating that the Foreign Secretary himself does not even know about those opportunities, nor has he taken the opportunity to engage with the US on its Inflation Reduction Act regarding the supply pipeline for green hydrogen? Does she think that is absolutely indicative of the relationship of the Government of this place with the needs of the Scottish people?

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[Dr Whitford]

I sit on the Scottish Affairs Committee: we have done an inquiry into hydrogen, and we have also covered some of the other issues around green energy. It has been clear from the UK Minister that the UK Government do not support the Scottish vision of being able to export green hydrogen. We know that Germany is desperate for green hydrogen, particularly in the Ruhr area in Nordrhein-Westfalen, because it is crucial for heavy industry, but the UK Government are not interested, so Scotland’s potential for such a lucrative export will be held back.

[David Duguid (Banff and Buchan) (Con)]

The hon. Member has raised an issue that we have discussed at some length in the Scottish Affairs Committee: the future of hydrogen, carbon capture and storage, and suchlike. However, given that energy policy and international trade are both reserved functions, does she believe that it is appropriate for Scottish Government Ministers and officials to be having direct discussions with federal German Government Ministers and officials on that matter?

[Dr Whitford]

Obviously we are just continuing the Scottish Affairs Committee diatribe from Monday, but the job of the Scottish Government, Scottish Ministers, MSPs and Scottish Members here is to promote Scotland in the world and to attract as much business and investment into Scotland as possible. Because of that, and because of the efforts of Scottish Ministers and MSPs, Scotland is second only to London in foreign direct investment, and that is how we intend to keep it.

To summarise, the key reason to have independence is for the powers that enable us to tackle problems. Independence does not sprinkle fairy dust, but it would give us the levers to tackle poverty, for instance. It would also enable us to invest in our incredible natural resources for the benefit of all our citizens. Most importantly, independence would enable us to be in control of our own future. Being independent would mean that we would never again have a disaster like Brexit forced on us against our will. Those living in Scotland would get to choose their own Governments and therefore drive decisions about our future. With more than 70% of Scots supporting membership of the EU, I have no doubt that our most prosperous future is as a modern, independent European country, just like many of our successful neighbours.

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[Ian Murray]

I am not sure I understand that point, given that this is about a UK parliamentary cost of living crisis Committee. It would not be a Committee dedicated just to Scotland; it would be dedicated to the cost of living, I would have thought, and we cannot determine not to have other Committee members serving on it, on the basis that something is an England-only Department. Education is critical across the whole United Kingdom and in terms of the cost of living crisis. Perhaps we can have an explanation for why the Education Committee is not listed—it was not my question; it was a question from the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone).

[Dr Whitford]

The hon. Gentleman made a point about the failure of Scottish education, but the attainment gap in Scotland has closed by two thirds at higher level, and by two thirds at positive destinations. That is in contrast with what has happened south of the border, where figures in November showed that the gap had widened.

[Ian Murray]

It always surprises me when SNP Members think that just slightly beating England is an achievement. The attainment gap in Scotland is an unmitigated shame for us all, and the way they have treated education in Scotland should also be a shame.

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[Ian Murray]

I do not agree with the hon. Member—he is justifying his abstention on the basis that other people abstained as well. I did not agree with them at the time, and I still do not. No deal would have been an unmitigated disaster for the country.

Again, I go back to the point—SNP Members might want to reflect on this—that if, as is the case, Brexit with the deal that we have got is a contributor to the cost of living crisis, surely having no deal with the European Union would have magnified the cost of living crisis even more. They cannot say one without the other, and, as the hon. Member for Glasgow East (David Linden) just confirmed, they backed no deal when the deal came to the House.

[Dr Whitford]

rose—

[Ian Murray]

I am happy to give way, given that the hon. Member opened the debate.

[Dr Whitford]

The shadow Secretary of State is going back to 2019 with the customs union and single market votes. Why is that not Labour policy now?

[Ian Murray]

Unlike the SNP, the Labour Party is trying to be honest with the public on what is in front of us. SNP Members’ proposition to the public at the moment is to have their cake and eat it. They want a separate currency while using someone else’s currency, they have a deficit well in excess of what the legal treaties of the European Union would allow them, and their own First Minister is saying that there will not be an independence referendum anytime soon because the Scottish people do not want it, yet they are promising the public, against the very treaty rules in place—they are there in black and white—that they can have everything they want and still get easy access to the European Union. That is fundamentally dishonest. Labour will not be dishonest with the British people.

On day one of my right hon. and learned Friend the Member for Holborn and St Pancras (Keir Starmer) being Prime Minister, he will have to deal with the principles in front of him, and we will ensure that the Brexit proposition is done on the basis that we can have better trade and better agreements. In the 2025-26 trade and co-operation agreement renegotiation, we can build on that agreement and ensure that we repair our damaged and tattered relationship with the European Union. As I said, we see that agreement as the floor and not, as the current Government suggest, as the ceiling.

The SNP is clear that its solution to Brexit—in its words, as well as mine and those of many others, it was a bad idea—is to have Scexit, which would be many magnitudes worse than Brexit. It wants to repeat the same mistakes and do the same thing while being dishonest with the British people. Labour will not be dishonest with the British people about the position we are in as a country. Regretfully, we have to deal with what is in front of us, not how we would wish to dream it up. The SNP does not have to deal with that, so it can take any position it likes.

The key point is that while SNP Members keep blaming Brexit—they are right that Brexit has contributed to the cost of living crisis—by saying it is all Brexit’s fault, they are letting the Government off the hook. It is not all Brexit’s fault; it is the Government’s fault, given the decisions they have made on Brexit, on energy, on the economy, on wages, on growth and on tax, and the impact of every single thing they have done in the last 13 years. Let us not let the Government off of the hook by blaming their botched Brexit. Let us keep them on the hook for Brexit and for everything else that they have subsequently done.

The motion talks about setting up a cost of living Committee. That may seem like a sensible idea, but when we look at the small print, the flaws of the proposal become clear. I am left wondering whether the real reason for proposing it is to try to get one of the SNP group’s many disgruntled Members an additional salary payment for being the Committee Chair, as stated in the motion. Perhaps the SNP is trying to campaign to get the hon. Member for Glasgow South West (Chris Stephens) a Committee Chair position after campaigning so heavily against him for the Energy Security and Net Zero Committee position in the House a few weeks ago.

I am also left wondering why, if the SNP thinks this is such a great idea, it does not use its coalition majority in Holyrood to create a similar Committee in the Scottish Parliament. Perhaps it does not wish to do that, but it does want to spend upwards of half a million pounds here on a Committee with 45 members that would not include members of the Education Committee. The Committee would include three members of the Energy Security and Net Zero Committee, even though the cost of living crisis is no doubt driven mostly by the energy crisis. Is the SNP aware that the biggest spark of the cost of living crisis is spiralling energy bills for families and businesses?

The Committee would have five members from the Scottish Affairs Committee, five from the Welsh Affairs Committee, yet none from the Education Committee. The justification is that the English Education Committee does not have anything to do with Scotland, but neither does the Welsh Affairs Committee, yet it will provide five Members while the Education Committee will provide none. I do not think that the SNP has thought this through. There will also be no representation from the Defence Committee, which is a UK-wide Committee. Perhaps SNP Members are not aware of the many stories of soldiers having to rely on food banks because of the cost of living crisis.

The SNP’s motion fails to mention that the SNP has already been in charge of the Scottish economy for 16 years. The Scottish economy is now indisputably the creation of the SNP Government. A Scot who was finishing school when the SNP came to power 16 years ago will now be in their mid-30s—they will probably have one of those fixed-term mortgages, and perhaps even a family of their own—and they will have seen that, much like for the UK Government, economic growth has been an afterthought for the Scottish Government.

The Scottish Government are responsible for a huge number of issues and policy areas in Scotland, including the creation of jobs in the renewable sector. I have said this many times in the House and will continue to do so: we should congratulate the SNP Government, because they have created tens of thousands of jobs in the renewable sector—but unfortunately they are in Denmark, Indonesia and elsewhere. When they had the opportunity to sell what they called ScotWind licences for offshore wind in Scotland, they told us that they could not demand that bidders had their supply chains in Scotland due to EU state aid rules, even though we had left the European Union. They are right to talk about the damage of the Tory Brexit, but they cannot say that and, at the same time, hide behind state aid rules when we know that was not the case. They could have conditioned all those licences for Scottish jobs, but they decided that it would be better for those Scottish jobs to be overseas.

Labour has a fully costed alternative to the Conservative crisis. We would first introduce a proper windfall tax on the oil and gas giants—the SNP and its new leader opposed that until they realised it was popular—by backdating that to January 2022, as we have always called for, closing the loopholes and taxing it at the same rate as Norway. That would raise an extra £10 billion that would go towards people’s energy bills and put an end to the injustice of the oil and gas companies raking in billions on the back of people’s energy bills. The money raised would help families directly and pay for a plan to help the energy-intensive industries such as food manufacturers and processors with the cost of energy and, therefore, potentially reduce prices in shops for ordinary people.

Labour would reverse the Government’s decision to hand the top 1% of savers a tax break in their pensions while introducing specific measures to help doctors and the NHS. We would close the non-dom tax loophole, much to the frustration of the Prime Minister himself. We would cut business rates for small businesses, paid for by taxing the online giants such as Amazon, which are not held to the same rules as our high street businesses.

The hon. Member for Central Ayrshire said that there is no difference between the Conservatives and the Labour party. However, we have already announced that we would fund the Scottish Acorn project, and we would set up a publicly owned GB Energy, which the SNP used to believe in until it dropped that. So it does matter what colour of party is sitting on the Government side of the Chamber.

The new First Minister claims that absolutely none of it matters. Incidentally, he is the first SNP First Minister not to be arrested—but, when he is, I am sure we will send him flowers and thank him for his service. He would threaten to bring down a Labour Government over his obsession with the constitution. The consequences of what he said at the weekend are clear: vote for an SNP MP and they will block the transformative change that a Labour Government would seek to deliver. Vote SNP and see SNP MPs walking side by side through the No Lobby, with the very hard Brexiteers they have been slagging off this afternoon, to block a Labour Budget. That is what he said.

The conclusion that we can all come to is that SNP candidates at the election will be a barrier to change in this country. Why is the new SNP leader taking such a destructive stance? It is because Labour opposes rerunning the 2014 referendum. He could not have been clearer. He said:

“at the moment, for example, it’s pretty obvious that independence is not the consistent settled will of the Scottish people”.

Previous SNP leaders have always avoided speaking that truth for a reason. It begets the question: if the SNP’s preferred change is not what the people want, what is the alternative? After the SNP leader’s interview, we know that he will block the change that Scots want by undermining a Labour Government, in his words,

“at every corner and every turn”,

to demand something that he has admitted Scots do not actually want. I think that the people of Scotland can see through that position, and I am sure they will do so at the election.

Scotland wants a Labour Government, and a Labour Government will deliver for Scotland. When the mood shifts in politics, it shifts fast, but as ordinary working people sit around their dinner tables discussing how they will meet the weekly shopping bill, praying for mild weather, worrying about their families, neighbours, colleagues and friends or dreading the next email from ScottishPower or a bill dropping on their door mats from British Gas, the Tory Government and the SNP are devouring themselves with their own psychodramas. The cost of living crisis is a misery for millions in Scotland, but both of their Governments are responsible for making it worse and sit back to do little to help. Voters agree: 60% say that the Government are not taking the right measures on the cost of living crisis. The public deserve so much better and, at the election, they will get it.

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[David Duguid (Banff and Buchan) (Con)]

I would like to start with a comment on what I believe to be the real motivation behind the motion. I invite the responding Minister to say whether he agrees. It was made evident in the opening speeches, despite its not being mentioned in the motion itself. It is a blatant and cynical attempt by the SNP, in its usual grievance-driven holier than thou manner, to push its own political agenda on a subject that is very real and immensely worrying for many people right across the whole United Kingdom.

On the actual motion, as is often the case, it starts off reasonably non-controversially:

“That this House agrees that increases in the cost of living are having a detrimental impact on businesses and families across Scotland and the rest of the United Kingdom”.

Nobody can argue with that. However, it then goes on to state:

“the United Kingdom’s exit from the European Union has played a significant role in driving those increases”.

There is no mention at all of the covid pandemic or Russia’s illegal invasion of Ukraine, which has had an infinitely more significant impact on the current cost of living issues we are facing. This is straight from the SNP’s playbook: every problem is Brexit; every solution is independence. [Hon. Members: “Hear, hear.”] As if to prove the point; thanks very much. In her opening speech, the hon. Member for Central Ayrshire (Dr Whitford) mentioned independence and those other issues, as other Members have, but again it was entirely predictable that—

[Dr Whitford]

Will the hon. Gentleman give way?

[David Duguid]

I will give way in a second.

It was entirely predictable—as was the case in the previous SNP Opposition day debate, which again was on the very important and serious topic of the cost of living—that it soon became about how Brexit is bad and independence is good. I will quite happily give way to the hon. Member.

[Dr Whitford]

For the hon. Gentleman to suggest I merely mentioned covid and Ukraine is inappropriate—I did discuss them. But covid is easing and other countries have recovered after covid. Unfortunately, Brexit remains with us. That is what we are discussing today.

[David Duguid]

I am not going to deny that the act of leaving the EU does not have an impact. It was always going to have an impact. It was a major event. The people of the UK showed their settled will on what they wanted the UK to do. However, I would severely disagree with their saying that it is ongoing and in some ways maybe even getting worse, trying to present it as a reason for breaking apart the United Kingdom. I will come on to talk about the impact of Brexit, but for the moment I want to dispel the repeated myth from the SNP that all the issues faced by people, businesses and communities, particularly in Scotland somehow, are all a direct result of the United Kingdom leaving the EU. They may grumble about that, but in every conversation I have with anybody from the SNP, in any panel, session or public meeting in my constituency where SNP Members at any level of Government are present, it is always about Brexit. Brexit is always the problem and independence the solution.

I welcomed the intervention from the hon. Member for Central Ayrshire who led the debate, but I was expecting an intervention on the old chestnut of how 62% of Scots voted for the United Kingdom to remain in the EU. I was not among the more than 1 million people in Scotland who voted for the United Kingdom as whole—not Scotland, one way or the other—to leave the EU. I voted remain, as I am sure many other Members did. However, as a democrat, I accepted the result of that referendum, realising of course that the concept of accepting the results of referendums is lost on SNP Members. Subsequently, particularly having been elected as the MP for Banff and Buchan a year later, I have done everything I can to make sure that we make the most of the opportunities leaving the European Union presents to all of us, right across the whole United Kingdom.

People right across the world are struggling with rising prices and higher energy bills, mostly due to the aftermath of covid and Putin’s war in Ukraine. The impact of covid not just on this country, Scotland and the United Kingdom but on the whole world as we all started to recover from the awful pandemic and the lockdowns it created, should not be understated. We were still only beginning to recover from that when Russia invaded Ukraine. The overall issue of cost of living is precisely why this Conservative Government paid for half of families’ energy bills last winter and extended the energy price guarantee until March 2024. This Conservative Government are committed to restoring economic stability, while delivering fair and compassionate support for the most vulnerable households as, among other priorities, we halve inflation, grow the economy and reduce debt. It is no accident that the Prime Minister’s top three priorities are to stabilise the economy.

Thanks to the action taken by the UK Government, the Bank of England predicts that inflation is expected to fall sharply to around 5% by the end of this year. The energy price guarantee set the unit cost of energy so that typical households pay around £2,500 for their energy bills until the end of this month. An Ofgem price cap, which comes into action at the end of this month, from July, is just over £2,000. Some 686,000 individuals in Scotland will receive our £900 means-tested cost of living payment this financial year. Some 639,000 disabled people in Scotland will receive a £150 payment to support them in the face of rising prices. Some 973,604 winter fuel payment recipients in Scotland will receive an additional payment of up to £300. Benefits have been increased in line with inflation for 2023-24. More than 10 million households across the UK in receipt of working-age and disability benefits will see an increase in their benefit payments, with an average uplift of around £600 for households in receipt of universal credit. [Interruption.] I hear the grumbling from the SNP Benches saying, “Is that all?” When we take all those numbers into consideration and add them together, it is not insignificant. Despite Opposition Members gleefully predicting that the triple lock on pensions would not be protected, the state pension was increased in line with inflation of over 10%. That means the basic state pension will increase to £141.85 a week and the full rate of new state pension will increase to £185.15.

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[Dr Whitford]

Will the hon. Gentleman give way?

[David Duguid]

I would like to continue with my remarks. I will give way later, if time allows.

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[David Duguid]

The 5% has gone up from the 4% that was reported previously, but what is not taken into account when those calculations are made is what it would cost for the UK to be in the EU. We are not in the EU any more, but we have a comprehensive trade agreement with the EU.

As I was saying, we have left the common fisheries policy and taken our place as an independent coastal state, which is well established as having been of great benefit to the fishing industry. [Interruption.] I would be delighted to take any argument on that. If SNP Members do not want to believe me, they can believe Elspeth Macdonald, the chief executive of the Scottish Fishermen’s Federation, which has confirmed that the UK Government and Scottish Government Ministers have a far stronger negotiating position at bilateral negotiations than we ever would have had as one of 28 member states of the EU.

[Dr Whitford]

Will the hon. Gentleman give way?

[David Duguid]

I give way to my fellow coastal MP.

[Dr Whitford]

A fishing fleet in my constituency on the west coast predominantly catches lobster and langoustine, because virtually all the quota in Scotland has been hoovered up in the north-east. The fleet used to get that into the Paris market in less than 24 hours, with 85% of its produce going there. Boats have already been sold and scrapped, and local fishermen in my area are not convinced that there will be a fleet by the end of this decade. On the idea that there is a sea of opportunity for fishing, the hon. Gentleman must know that that is not true for inshore fishing.

[David Duguid]

The hon. Lady has spoken on behalf of her constituents, so I am sure she will forgive me for speaking on behalf mine. There are a large number of pelagic and white fish vessels in my constituency, and lobster and other static gear fishing industries are also represented. They experience the same problems with access to exports as anyone else on these islands. I was in the Scotland Office at the time we left the EU and there were initial issues with access to markets. There was new paperwork that everyone had to get used to. Many in the seafood export industry got established and were ready for the new conditions, but many were not. If the hon. Lady would like to intervene again, I would love to know what the SNP Scottish Government did with the £180 million Brexit preparation funding. How much of it was spent on actually helping our Scottish fishermen prepare?

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[David Duguid]

I apologise, but the most engagement I have with the fishing industry is with that in my own constituency. I am sure that nobody would want to debate that. Remember that it was during the months after we left the EU that covid hit us, and it is covid, above all else, that has had the biggest impact on exports because the whole hospitality sector across the continent—the biggest market for our langoustines, lobster and other shellfish—had shut down.

I want to move on because I know that you want us to be relatively brief, Madam Deputy Speaker. On the motion’s proposal for the formation of a Committee, the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone), who is no longer in his place, made a very good point that the Education Committee is not included on the list. It might be possible to argue that there is no good reason for it to be included, but as he pointed out, our young people and skills are extremely important for the recovery of this economy. We need the overall economy to recover if we are going to get a hold of our cost of living issues. I was surprised when the hon. Member for Motherwell and Wishaw (Marion Fellows) said that the Education Committee should not be there because education is a devolved issue. I thought that this motion was a motion for this Parliament, which represents the whole United Kingdom, so I found that a strange justification. I agree with the hon. Member for Caithness, Sutherland and Easter Ross, and would like to hear what other justifications there may be.

Finally and in conclusion, as everyone will be pleased to hear, I will finish with a few more benefits of having left the EU. I must re-emphasise—we are still trading with the EU. We did not leave without a deal, as was predicted. In fact, as I said earlier and as others have said, at the time of the referendum, SNP Members voted to not have a deal when we left the EU at the end of 2019.

[Dr Whitford]

We all voted against Brexit.

[David Duguid]

Well, I voted against Brexit, but as a democratic country, we moved on and left the EU. As the hon. Member for Edinburgh South said, to leave the EU without voting for a deal—[Interruption.]

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[Beth Winter (Cynon Valley) (Lab)]

I welcome the opportunity to speak, again, about the cost of living crisis and the motion tabled by my Scottish National party colleagues.

I strongly agree with the opening words of the motion: increases in the cost of living are having a devastating impact on our constituents throughout the United Kingdom. I also agree that

“the devolved administrations do not possess the full financial powers required to effectively mitigate the increases”.

Certainly, in Wales, I believe that Labour in government, under the leadership of Mark Drakeford, is driving a modern socialist agenda to do all that it can with insufficient resources. However, I also feel that, in focusing on the impact of exiting the European Union on the current crisis, the scope of the motion is too narrow. Yes, Conservative policies on Brexit and the failure to sufficiently replace regional development funds are causes of the crisis, but outwith Brexit, the crisis is also down to Tory economic decisions and austerity policies before and since the Brexit referendum.

[Dr Whitford]

Although the proposal in the motion is for the Committee to understand the extent to which the problem is due to Brexit and to come up with solutions, other issues that are identified regarding policy from this place will also become clear and can therefore be challenged.

[Beth Winter]

I thank the hon. Lady for that explanation.

As others have pointed out, the frontline remains in the everyday lives of our constituents: in the energy bills that come through their doors, at the supermarket check-outs, and in the payslips detailing wages that are much too low. In Cynon Valley, far too many people are struggling. About a year ago, I conducted a cost of living survey to which hundreds of people responded: we were overwhelmed by the response. It showed that 72% of respondents expected to cut down on their heating in the following 12 months, and almost half expected to cut down on essentials. Like other Members present, I hear harrowing stories of families having to use food banks—there has been an exponential growth in their use in my constituency—and kettle packs.

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[David Linden (Glasgow East) (SNP)]

It is a pleasure to follow my hon. Friend the Member for Argyll and Bute (Brendan O’Hara). As the junior deputy assistant viceroy was chuntering from a sedentary position about crackpots and a few hundred thousand pounds, I was reminded of Baroness Michelle Mone in the other place, who I am sure he would probably think is great value for money. However, this is a serious motion for a serious issue. Given that the cost of living remains by far—by a country mile—the single biggest issue that my constituents continue to raise on the doorsteps, I am somewhat intrigued that the Government and, indeed, the Labour party have once again largely boycotted this Opposition debate.

I understand that the Government’s focus is perhaps elsewhere—for example, sorting out a peerage for the positively sycophantic right hon. Member for Mid Bedfordshire (Ms Dorries)—but I am very surprised at the British Labour party’s boycott of today’s debate. I thought it was only picket lines that it boycotted, but I guess variety is the spice of life.

As I have said before, the cost of living crisis has been a persistent issue on these islands for several years, with many people struggling to make ends meet despite working full-time jobs. However, it is important to recognise that the cost of living crisis is not a new thing; it is the culmination of 13 long, cold years of Tory austerity from a Government who Scotland did not vote for. Yes, the issue has certainly been exacerbated by a variety of factors, including stagnant wages and rising housing costs, but the UK’s exit from the European Union has caused significant economic disruption and uncertainty that has further worsened the situation for many of those I represent in the east end of Glasgow.

Prior to Brexit, the free movement of goods, services, people and capital in the single market and the customs union were a benefit to our economy. The arrangement helped to promote economic growth and prosperity on these islands, making it easier for businesses to trade and for consumers to access a wide range of affordable goods and services. However, the UK’s decision to leave the European Union—a decision not consented to by the country I represent—has created significant challenges that have had a profound impact on the cost of living crisis that people across these islands are experiencing.

Since 2016, the value of the pound has fallen significantly against other major currencies, making imports far more expensive and causing inflation to rise. That has had a particularly acute impact on the cost of basic necessities such as food and fuel, which are heavily reliant on imports. According to the Office for National Statistics, consumer prices inflation surged to 3% in September 2017, up from 2.9% in the August and well above the Bank of England target. That was before the war in Ukraine and before covid. That increase was largely attributed to rising food prices, which jumped by 4.1% in September 2017, and to fuel prices, which rose by 2.5%. The weak pound also led to an increase in the cost of travel abroad, making it more expensive for families going on holiday or for those travelling for business.

Another area where Brexit has exacerbated the cost of living crisis is in the labour market more generally. With the loss of free movement of people around the EU, many industries in the UK face labour shortages, which in itself puts additional strains on business. I know from speaking to many businesses in the east end of Glasgow that they are facing additional costs associated with Brexit such as increased bureaucracy and red tape, tariffs, customs duties and the need to comply with new regulatory requirements. Those costs are often passed on to consumers in the form of increased prices, further exacerbating the cost of living crisis for many people.

Scottish businesses are set to be hit with even more Brexit pain, as the Tories have put on the table new inspection charges on food entering the UK from the EU. Plans drawn up by the Government would see a charge of £43 for each shipment of food coming in from the continent. It is not just my party warning against those plans: the former Glasgow Labour MP, now head of trade policy at the British Chambers of Commerce, William Bain—I think he is known in Glasgow as Willie—warned that the changes would hit small businesses particularly hard, as they would be bringing in “smaller, lower-value shipments”.

While supporters of Brexit argued that leaving the EU would enable the UK to negotiate better trade deals and reduce the cost for consumers, the reality is that the process has been fraught with uncertainty and complexity. So far, the UK has managed to agree two rather measly trade deals—we would say capitulations—with Australia and New Zealand, plus a pile of roll-over deals. That has been the sum total of Britain’s achievements on free trade, and let us not forget that the cost to farmers amounts to some £145 million. Negotiations have been slow and difficult, and there is still so much uncertainty about that future relationship between the UK and the European Union.

Meanwhile, people are struggling to make ends meet, and that is the biggest issue that constituents raise at my surgeries in Cranhill, Easterhouse, Baillieston and Parkhead. According to the Joseph Rowntree Foundation, the number of people in the UK living in poverty has risen for three consecutive years, with 40 million people now living in poverty, including, most shamefully, 4 million children.

Ultimately, the cost of living crisis is a complex issue that requires a multifaceted solution. It requires changes to social security policy, and I would argue it also requires short-term price controls on food, diversification of energy supplies and much more. That is precisely what the Committee in the eight-paragraph motion before the House would look at.

[Dr Whitford]

Does my hon. Friend agree that that Committee could propose what other European countries have done in reducing VAT on energy? If prices have doubled, we could halve VAT and it would still be revenue-neutral.

[David Linden]

I would never disagree with my hon. Friend—life is too short for that. The point is that Brexit was about Parliament taking back control. What Parliament has sought to do, via this Opposition day motion, is say, “Right, we have identified an issue with Brexit and the cost of living crisis. We want to empower Parliament to look at this issue further.” Yet the Minister—the deputy assistant junior viceroy—seems opposed to that.

Before I finish, I will touch briefly on rising mortgage rates, which are another aspect of the cost of living crisis that persists—one that will get worse and dominate our inboxes far more. Government inaction on that will mean that millions of households could, by next year, be thousands of pounds a year worse off owing to frankly unsustainable rises on their mortgage payments. On new-build estates in my constituency, such as Broomhouse, Gartloch, Belvidere and Eastfields, many young families are living in fear of fixed rates expiring in the coming months.

Capital Economics reports that 3.2 million households are paying interest rates of 3% or more. By the end of next year, that will have risen to 5.8 million—a rise of 2.6 million. As we look at support for homeowners, households need particularly innovative action and solutions to avoid catastrophe. An example that I would like to see on the table is the concept of employer salary sacrifice schemes, which may provide mortgage-holders with a bit more mortgage relief. Thus far, however, as with food prices, the Treasury believes that it is up to the markets to self-regulate, and I know from speaking to constituents that that simply will not cut it. The very reason butter is security tagged at Tesco in Shettleston is because we are allowing the markets to self-regulate.

The Government are very much asleep at the wheel. The Tories have overseen record food inflation caused by their cost of living crisis and their reckless Brexit. Working people are being forced out of buying basic items while their energy bills and mortgage payments rise, too. All the while, our European neighbours are taking action to tackle food prices and price gouging. So yes, I will by all means support the motion when the Division bell rings tonight, but in truth, I would rather my Glasgow East constituents have decisions about their lives made in Edinburgh by a Government we elect, not by an intransigent Tory Government here in London whom we have not voted for—indeed, one we have not voted for since 1955.

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[Dr Davies]

My hon. Friend is quite right. He champions the Scottish fishing industry, and rightly so.

The Procurement Bill, which we considered yesterday, will allow SMEs across the UK more easily to access £3 billion-worth of revenue and let us rewrite the rules on support for places and regions—including in Wales and Scotland—to deliver levelling up. The same Brexit has allowed two new freeports each for Wales and Scotland, and allowed the UK to lead the way in the roll-out of the covid vaccine, saving lives and putting the country back on track.

[Dr Whitford]

The hon. Gentleman must be aware that June Raine, the head of the Medicines and Healthcare products Regulatory Agency, pointed out in December 2020 that covid licensing was done under the rules of the European Medicines Agency and was nothing to do with Brexit.

[Dr Davies]

We will have to disagree. This country showed the way on the management of the pandemic and the development of vaccines.

The SNP wants to discuss the cost of living, but it would rather import oil and gas from overseas than support tens of thousands of jobs in Scotland.

I would also like to look at the solutions proposed by the Labour Government in Wales. They seem to think that charging people to use motorways, bringing in a tourism tax and scrapping meal deals is the way to help people. Let us not forget the money squandered by the Welsh Government on a racing circuit never to be built, an airport where barely any planes take off and £150 million on a report into the M4 relief road which was then axed. And let us never forget Labour’s record on the economy. No Labour Government have ever left office with unemployment lower than when they came to power. It would perhaps be remiss of me not to remind the House that when Labour left office in 2010, the then Chief Secretary to the Treasury wrote, “I’m afraid there’s no money left.”

We will take no lectures on tackling the cost of living crisis from the Opposition parties. The UK Government are delivering an unprecedented package of support across the whole of Britain. The Prime Minister has been clear that it is his priority to halve inflation, ease the cost of living and give people the financial security they want and deserve. While the Opposition play politics, we are getting on with the job and delivering for the people of the United Kingdom.

Question put.