Spending Review 2025: Scotland

Debate between Richard Baker and Stephen Gethins

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?

UK-EU Summit

Debate between Richard Baker and Stephen Gethins

Tuesday 13th May 2025 Commons Chamber

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

This has been an interesting debate, but, to reflect on the unhappy nostalgia of my hon. Friend the Member for Walthamstow (Ms Creasy), it is quite clear that some people are having trouble moving on, as we need to. The summit is happening because of the process agreed by the Conservative party when it was in government. This is not a surrender summit; it is a summit for success for business and business people, and we can only achieve that if we move on in this debate. At one point, I thought Bill Cash was going to stand up and contribute. We are not moving forward as a Parliament, and thinking about the real priorities of the British people and our future relationship with Europe, but other people are prepared to move on and want to do so.

Today, I was pleased to have the chance to meet representatives of the Scottish Advisory Forum on Europe, known as SAFE, at an event that I had the pleasure of co-hosting with the hon. Member for Arbroath and Broughty Ferry (Stephen Gethins). It was an excellent event that reflected all their great work in collaborating with their colleagues and counterparts in Europe. They have been collaborating not just with Governments but with civil society, academia and a whole range of organisations, because that is in their interests. This is about growing the Scottish economy and furthering the interests of the Scottish people.

I pay tribute to my good friend Dr Irene Oldfather, who, as chair of SAFE, has done so much to promote ongoing collaboration with colleagues in Europe. She is a happy constituent of my hon. Friend the Member for Central Ayrshire (Alan Gemmell) and is doing vital work. We should go into these negotiations in a spirit of collaboration, seeking mutual benefit, in order to build a better relationship between the UK and our European Union colleagues.

[Stephen Gethins]

I put on record my thanks to Irene Oldfather. On a very hard issue—and we have seen today that it is very difficult—she is doing something extraordinarily constructive, and I think we can all learn from her work.

[Richard Baker]

I could not agree more. On the issue of learning, it is so important, good and welcome to hear that, ahead of this vital summit, the Minister for the constitution and European Union relations, my right hon. Friend the Member for Torfaen (Nick Thomas-Symonds), attended a meeting with SAFE in Edinburgh yesterday. I understand that it was held at the Scotch Whisky Association, so I hope he enjoyed an excellent afternoon.

This is a good point at which to mention that our trade deal with India is securing £1 billion for the Scottish whisky industry over the next five years, and 1,200 extra jobs. This fantastic deal is in no way frustrated by our pursuing a better deal with the European Union. At that event yesterday, the Minister met young people who look to our future in Europe, rather than seeking to debate the battles of the past. They asked the Minister to find ways to ensure that they have the opportunity to work and study in Europe. I hope he can think inventively about how that can be achieved within the policy framework that the Government have set out, because the previous Erasmus+ scheme was important not only for the young people who participated, but for Scotland’s economy. It was worth £340 million annually, delivering £7 in value for every £1 invested.

Economic growth is rightly the priority for this Government. If they changed course in these negotiations in the way proposed by the Opposition, that would not be putting the national interests first. The Minister and his colleagues should proceed with the vital work that they have taken forward with their European counterparts ahead of the summit. That is the right thing to do for economic growth and in our national interests.

The Government’s approach, which is absolutely essential, recognises the EU’s status as our biggest trading partner. It accounts for 41% of our exports and 51% of our imports. I am encouraged to hear from the Minister that issues that are vital to growth in my constituency of Glenrothes and Mid Fife—including closer co-operation on energy policy, which I hope may include increasing co-operation with the North Seas Energy Co-operation—are the issues on the agenda next week.

I hope that there will be measures that benefit small businesses in my constituency, particularly in the creative sector. Rightly, at the election, our party committed to making it easier for musicians to tour in Europe. That is vital for the future of our brilliant creative sector in Scotland, and in the UK, and I hope that we can make progress in this area.

Of course, we have to respect the decision of the Brexit referendum. However, while we should not simply repeat the debate on Brexit in this House, as we seem to, neither should we repeat the mistakes of the previous Government, who failed to ensure that our new relationship with the European Union created the right environment for trade and co-operation in key areas of policy. This Government have already made significant progress on resetting the UK’s relationship with the European Union in our national interests, and particularly in line with this Government’s policy on economic growth.