Spending Review 2025: Scotland

Richard Baker Excerpts

Wednesday 2nd July 2025 Westminster Hall

[Stephen Gethins]

The hon. Member is very kind in apparently conceding next year’s election already. I am quite surprised by that; he may have given up on it, but I think we should all be competing.

The hon. Member talks about the Scottish border. The border is obviously devolved to Westminster, so because we are holding Westminster to account, I ask the Minister to tackle the border issue as well. We are right to have greater connectivity and to be bringing down barriers with our European partners, so why on earth are we not going back into the single market and the customs union? After all, that was the compromise that Scottish Labour itself backed in the Scottish Parliament in the aftermath of the Brexit referendum. What on earth has gone so right that Labour has abandoned that policy and embraced the Conservative policy? I would be astonished to find out, and I wonder whether the Minister can tell us. Some thought and analysis would be helpful.

The real-terms increase in the budget looks like 0.8%—lower than the UK departmental average of 1.5%. That does not sound like much but would mean £1.1 billion less to spend by 2028-29. As I have mentioned to the hon. Member for Caithness, Sutherland and Easter Ross, the Fraser of Allendar Institute has called out Labour MPs’ claims as “neither transparent nor helpful”.

This place matters. As I said, we know that the Scottish Government have a national insurance shortfall as a consequence of the policies being brought in by Westminster, and we have not even got round to last night’s welfare changes, which left the Scottish Labour party high and dry. With the honourable exception of the hon. Member for Glenrothes and Mid Fife (Richard Baker), who, as I understand it, signed the original motion but did not follow through in the debate, Scottish Labour was marched up to the top of the hill by the Prime Minister to be left high and dry.

We were told that the welfare reforms proposed before all the changes yesterday would push 150,000 more people into poverty. A Labour Government pushing more people into poverty—astonishing. Although there have been changes, because of the profound impact on the job of the Scottish Government, whose Scottish child payment is helping to reduce poverty, they are still hampered by what goes on here. If the Minister prioritises nothing else that I have said, I ask her to prioritise this: where are we with the welfare changes and how many people does she now expect to be pushed into poverty?

[Richard Baker (Glenrothes and Mid Fife) (Lab)]

rose—

[Stephen Gethins]

As I mentioned the hon. Member, it is only fair to give way.

[Richard Baker]

I might say that Labour Members have had rather more impact on Government policy than SNP Members. The hon. Gentleman makes important points about welfare and the importance of having the right system to get people back into work. Why, then, did his Government in Holyrood, of which he aspires to be a member, cut investment in employability funding?

--- Later in debate ---

[Richard Baker (Glenrothes and Mid Fife) (Lab)]

It is a great pleasure to serve under your chairmanship, Sir John. I congratulate my hon. Friend the Member for Dunfermline and Dollar (Graeme Downie) on securing this important debate. His constituents could not have a more doughty and effective champion in this place.

As a fellow Fife MP, I was particularly pleased to hear my hon. Friend address how the people of the kingdom will reap the rewards of the Government’s investment in Scotland and in their potential. That is in sharp contrast to the litany of failures they have had to endure under the barely managed decline, for which the Scottish National party is culpable, in Holyrood. I will return to these points later, while maintaining a laser focus on the spending review. But being in good spirits and savouring the cooler weather, for which we Scots are rather better equipped, let me focus first on the sunny uplands of the spending review and its great potential for Scotland.

I know we will hear more from the Minister on its importance for our country and how it will support the excellent work that she is taking forward in Government for Scotland. She does this along with my right hon. Friend the Secretary of State for Scotland, who has shown what a brilliant champion he is for Scotland in Cabinet. I will focus on the opportunities the spending review creates in my constituency.

My hon. Friend the Member for Dunfermline and Dollar outlined the scale of the overall investment that the Chancellor announced in the spending review for Scotland and how vital that is for public services and growing our economy across the country. Specific areas of investment are of particular importance for Glenrothes and Mid Fife. We have a thriving and growing renewables sector in the constituency, and the confirmation of the full £8.3 billion for GB Energy is great news for renewable energy businesses in our area and will create opportunities and employment.

At Earlseat wind farm, apprenticeships are being created in local renewables businesses through community benefit funding provided by its operator Renewable Energy Systems and a pioneering collaboration with Fife college. It was great to meet some of the apprentices at the wind farm, who will have great opportunities in the future as a result of that funding. Investing in renewables is also fantastic news for the Methil shipyard, which was saved by this Government. Its facilities and skilled workforce are ideally placed for contracts in renewables infrastructure and to deliver key programmes set out in the strategic defence review, which presents great opportunities for Scotland, as my hon. Friend said.

I am also particularly delighted that the Chancellor has confirmed development funding for the Acorn project. I agree with the hon. Member for Arbroath and Broughty Ferry (Stephen Gethins) that it is a very important scheme for Scotland, for which many of us across the Chamber campaigned. It will not only be vital for our renewables targets, but create and sustain thousands of jobs throughout Scotland. It is also a brilliant opportunity for two biomass plants in my constituency to maximise their contribution to carbon reduction in the future.

All that comes along with additional funding for investment zones and in our communities. With an extra £9.1 billion for public services in Scotland over the next three years, there can no longer be any excuses for SNP Ministers failing to deliver the public services our constituents need and deserve. Unfortunately, where we need to see delivery and improvements, all we seem to see are excuses. We have record funding for housing provided by this Government, but a housing emergency has been declared in Fife after funding cuts by the Scottish Government.

We have record funding provided for our NHS by this Government, and falling waiting lists in England for the first time in many years, but in Fife, my constituents face some of the longest waiting times for surgery anywhere in Scotland. In the NHS in England, we see investment in 700,000 additional urgent appointments for dental patients, but in Fife, we have a dental desert, where, too often, my constituents cannot find any dentist to register with, let alone an NHS one.

We have record spending set out in the spending review for NHS infrastructure, yet after more than a decade of broken promises to the people of Lochgelly by SNP Ministers, they still do not have the new health centre that their community desperately needs. No wonder so many people in Scotland want a change of direction in Holyrood. This is the prospectus that Anas Sarwar will set out in the Scottish elections next year, and why our country desperately needs his leadership as our next First Minister.

The spending review shows the ambition that Governments can and should have for Scotland. One of our Governments—this Government—is delivering for Scotland; it is time the other one stepped up to the plate and started delivering the effective leadership our country needs as well.

--- Later in debate ---

[Andrew Bowie (West Aberdeenshire and Kincardine) (Con)]

It is an absolute pleasure to serve under your chairmanship today, Sir John, and I thank you for your patience and indulgence in chairing this debate.

It is almost a through-the-looking-glass moment this morning, listening to the Labour party criticising the Scottish Government for their decisions and the Scottish National party representative, the hon. Member for Arbroath and Broughty Ferry (Stephen Gethins), criticising the Labour Government for the SNP’s decisions. For all of us, it has been an interesting morning after the night before.

Scotland is struggling with the consequences of the Labour Government’s economic incompetence: taxes for businesses up, growth down, unemployment up and business confidence down. Scottish Financial Enterprise has warned:

“The current inflationary pressures, coupled with stagnant productivity and increasing levels of tax, pose significant headwinds to business investment.”

And that was before the charade—the farcical scenes—that we saw yesterday, which will inevitably mean more tax rises coming down the tracks in the autumn.

[Richard Baker]

Is it not the reality that economic growth is increasing under this Labour Government, in rather sharp contrast to the experiences of hon. Members under Liz Truss, which I think were somewhat different for the whole country, including Scotland?