(1 week, 2 days ago)
Commons ChamberThe hon. Gentleman is a veritable champion of his constituency and of rural issues. There are very important changes to the minimum wage and the living wage, which will have an impact, and there is a lot that can be welcomed for rural areas, but I recognise that his constituency and mine sometimes have very different challenges, and I welcome the fact that he champions that here. Obviously, I have not had a chance to look through the Red Book and the Blue Book, but we on the Treasury Committee will bear that in mind.
Seventy per cent of children in poverty are in working families, so the chutzpah of the Leader of the Opposition talking about people making a lifestyle choice really makes my blood boil. In 60% of households hit by the two-child limit, the parents are in work, and 15% of affected families include mothers whose babies are too young for them to work.
My right hon. Friend the Chancellor said it better than any of us could: the Victorian rape clause means that women face humiliation. Notionally, it affects 3,600 women, but we on the Treasury Committee heard evidence that women will not put themselves or their children through the humiliation of using that policy. Any policy that required a workaround like that is outdated and long needed to be gone, and I commend my right hon. Friend for tackling the issue.
Dr Scott Arthur (Edinburgh South West) (Lab)
I thank my hon. Friend for her forensic analysis of our Budget. Will she take an intervention from the Leader of the Opposition, so that she can apologise for that awful policy and its impact?
It is interesting that the Opposition are doubling down on the policy, which is humiliating people.
Let us be clear: the birth rate in this country has fallen year on year for the last three years. It is well below where it needs to be. I think that only Luton is at 2.1, which is about where the rate needs to be. Actually, that is a bit lower than where it needs to be. This is a real crisis for the country in the long term, so it is absolutely right that my right hon. Friend the Chancellor is investing in the future of Britain. Young people in my constituency may be poor, but there is no poverty of ambition. Children I met when I was elected 20 years ago are now doctors, barristers and enterprising businesspeople, in spite of the challenges they faced. Just think about the ones who did not get there because they could not overcome the challenges of deep-seated poverty. We should invest in our young people, and that is what this Government are doing, including through apprenticeships, the youth guarantee and the nine youth hubs in London, one of which is in my constituency.
I really welcome the fact that my right hon. Friend listened to the Treasury Committee on the gambling taxation regime. We are a cross-party Committee, but our report was unanimous that there was a real issue with the lower tax on online gambling because of the relative harm that it caused, compared with going to the races or popping along to a local betting shop. I very much welcome my right hon. Friend’s decision to change the gambling taxation regime; that will contribute to taking children out of poverty.
On the ISA changes, I caution my right hon. Friend. I hope that the Treasury is watching very closely the impact on mortgages and lending by building societies, because that was a concern in the evidence we heard. If we want to get people into their own homes through the building that will be going on, we need to make sure that mortgages are available to them, so I hope that the Treasury is in ongoing dialogue on that issue, despite the change having been made.
We need to recognise some of the challenges with green taxes. I have not had a chance to go through the Red Book in the time since the Chancellor sat down, but I very much welcome her bold and necessary decision to take on the challenge of the reduction in fuel duty as people move to electric vehicles. This has been a point of debate for at least the last decade or so. In my time on the Public Accounts Committee, we kept challenging the Treasury on how it would fill the gap, and my right hon. Friend has been bold and right to address the challenge. It is a difficult one to grapple with, but it is great that she has done so. We look forward to hearing more about that. On supporting people with the cost of living, the freeze on rail fares, keeping the bus fare cap and the ongoing freeze on fuel duty will help people get to work.
The increase in the minimum wage and the living wage are vital. In my constituency, some people work four jobs over seven days, just to make ends meet. Even if they are lucky enough to have a council tenancy, it is hard to make ends meet on those salaries. Going into private sector housing is completely unaffordable for those on that kind of income. Contrast that with people who work four days a week because they can afford to do so. I am not criticising them for that life choice, but that is the challenge that we face.
There has been a lot of discussion about a high-value property tax. In my constituency, around 1% of properties are worth over £2 million, and that is in central London. The Opposition might scream foul on this, but in London’s zones 1 and 2—my constituency is right on the edge of the City and 10 minutes from Liverpool Street—around 1% of people will face the surcharge. That is a small price to pay when families next door are living in the deepest poverty, as I have described. It is also great to see some movement on energy bills, which is having a really big impact.
There is a lot more detail in the Budget, which the Treasury Committee will look at over the next couple of weeks. We look forward to welcoming the Chancellor to the Committee on 10 December, when we will ask her to explain, but also challenge her on, the detail of her Budget, as is our proper constitutional responsibility.
I thank the right hon. Member for Birmingham Hodge Hill and Solihull North (Liam Byrne) for a fascinating lecture on amnesia—it was dripping with irony given his last role in government.
I wish to congratulate the Chancellor on delivering what is almost certainly her final Budget. There is no conceivable way—not politically and certainly not economically—she can remain in post for a further year. Businesses, workers, bill payers, farmers, hospices, industry and the public sector cannot endure another cycle of this Chancellor. It has been just over a year since she stood at the Dispatch Box, delivered her first Budget and boasted that she had made the “right choices”—if anyone outside the real economy believed that, we would not be in this situation right now. She promised to
“restore stability to our public finances”
and to
“drive growth right across our country.”—[Official Report, 30 October 2024; Vol. 755, c. 828.]
She told us that growth would be her central Budget mission.
However, last month the IMF forecast that the UK will have the lowest per-capita growth in the G7 next year at just 0.5%, compared with the 1.4% average for advanced economies. Labour promised to turn the page on high food prices, but households see food inflation running out of control—it hit 4.9% last month. The Chancellor promised more jobs to tackle poverty, but unemployment hit 5% this month—its highest level since the pandemic—while poverty is at record levels. Government borrowing stands at a five-year high—£17.4 billion for October alone—and Labour is spending double the defence budget every year just to service the UK’s chronic national debt. The OECD has downgraded the UK’s economic prospects, singling out the Chancellor’s policies as exposing the economy to “significant downside risk”.
That gloomy prognosis is not borne out only in the SNP’s analysis; just listen to the Chancellor. She has spent the past 18 months insisting that the economy is in a terrible state, while blaming everyone and everything except herself, and misunderstanding what negativity her musings signal to investor confidence. It is as if she forgets that she is the Chancellor, as yet another stream of consciousness resonates—invariably negatively—around the economy. She has blamed the black hole—yes, the one that the SNP told Labour about before the election, and which she pretended only to discover after getting into No. 11. She has blamed the markets for their focus on her fiscal rules—you could not make it up—and she has blamed Brexit, despite having herself voted to trigger article 50.
However, this is not just about the fundamental economic incompetence of the Chancellor, nor just about Labour’s inheritance, which, while bad, was not the cause of this malaise. This crisis remains a product the Chancellor’s catastrophic decisions, and she will own them, just as she will own Labour’s compound fiscal bonfire. She is the in the frame for one of the most chaotic preludes to any Budget in living memory. Andy Haldane, former chief economist of the Bank of England, called it a “circus” of speculation around the Budget. The endless leaks, U-turns and media trails created panic in the economy, which, according to Mr Haldane,
“without any shadow of a doubt”
contributed to weaker than expected economic growth in the UK.
There is nothing meaningful in the Budget on energy. The measures on energy bills are a start, but they do not fulfil Labour’s election promise to reduce bills by £300. Bills are set to rise in January and again in April; £150 off energy bills will still leave the Labour party in a debit of £87 a year on its commitment at the election.
I will give way in a second. The SNP did Labour’s job for it, with a Budget proposal that involved a surcharge on banks that would have created the £300 discount for bill payers, just like Labour promised. I am very happy to give way to the hon. Member, if he can tell me when Labour will come good on that promise.
Dr Arthur
Of course, if the hon. Gentleman takes the time to read our manifesto, which we were elected on in Scotland, he will see that that promise was to be met at the end of this Parliament, so we are actually ahead of schedule. I am sure he welcomes that, just like he welcomes the extra £500 million in cash and £300 million in capital going to Scotland, and the commitment to above-inflation budget rises up to 2029. It is fantastic, Madam Deputy Speaker, is it not?
I am sure the public will be delighted to hear Labour’s never-never promise on energy bills. Unlike the hon. Member, I do not exist on my knees, waiting to get patted on the head by Labour Ministers on the Front Bench. I am off my knees. The consequentials we get in Scotland are a consequence not of largesse by the Labour party but of the taxes that Scottish enterprise creates within this so-called United Kingdom.
There is nothing in the Budget on the energy profits levy, which is putting North sea oil and gas into an early grave. As things stand, 42% of the forecast revenue of firms in the North sea oil and gas sector for 2026 is expected to come from outside the UK continental shelf. Analysis earlier this month from the Fraser of Allander Institute showed that the industry is undergoing an accelerated decline. In my view, that is a direct result of this Labour Government, who do not understand energy or the economy. This is Scotland’s reality within the so-called Union: our future and our natural endowments decided on by Westminster Ministers rather than the people of Scotland.
It must really stick in the craw, especially for Scottish Labour MPs who have to come down here to toe the party line, to see the difference that Scotland has had under the SNP since 2007. Under the SNP, GDP in Scotland has grown by 10.2% per person compared with 6.8% in the UK. Productivity has grown in Scotland at a rate of 0.9% per year, compared to 0.3% per year in the UK, and Scotland attracted 135 foreign direct investment projects in 2024, maintaining our position as the top performing part of the UK in that regard. Labour MPs are not so keen on the facts. Scottish Labour MPs jump up and down about the new minimum wage, despite the fact that their constituents and mine are already on more than that as a result of the Scottish living wage being £13.45.
There was little today to suggest that Labour grasps the severity of the cost of living crisis, which for many people feels endless. Inflation has almost doubled under Labour, and food prices are up a staggering 37% over the last five years. People are rightly asking, “What is going to sort this?” I can assure them that it is not Labour. I am pleased to see that the two-child cap is gone, and with it the appalling rape clause. It is just a shame that all the Labour MPs who were cheering the Chancellor when she announced that today did not vote with the SNP in September 2024 when we had a motion to try to remove the cap. It is rank hypocrisy.
In the last year, businesses have been trying to survive this Labour Government, rather than trying to thrive and invest. Businesses know that this Chancellor does not understand business. Family-owned businesses feel that most acutely, and farm businesses know that the Labour party is out to get them. Today’s announcements will not repair the damage. The reality is that it is already too late for some.
Whisky duty is going up again. The Scotch Whisky Association said that hiking duty today, for the third time in two years, limits Scotch whisky’s ability to generate growth, and will have a direct consequence for investment and jobs. This Chancellor has run out of road with businesses across these isles. Last year, after £40 billion of tax rises, most of that on jobs, she said:
“I’m not coming back with more borrowing or more taxes.”
She said the Government had “taken the hard decisions”, and as a result:
“We won’t have to do a Budget like this again.”
Twelve months later, here we are again with another round of tax rises. Let me make a prediction: 12 months from now, we will be back here once more, albeit with a different Chancellor.
Today’s Budget supports the view that taxes are up, borrowing is up, the cost of living is up, the cost of energy is up, spending is up, but growth—the central aim of the Chancellor, I remind the House—is down. Scotland deserves better than this Westminster version of groundhog day, and fortunately, the people of Scotland will be in a position to choose that in May’s elections.
(1 month ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
The hon. Gentleman is absolutely right to talk about displaced people—my right hon. Friend the Member for Oxford East (Anneliese Dodds) mentioned Tawila. I can assure him that our humanitarian aid is targeted to have the biggest impact, and we look very closely at the situation of displaced people, particularly those who have also experienced atrocities, and especially women and girls who may have experienced sexual violence. That will remain at the top of our agenda.
Dr Scott Arthur (Edinburgh South West) (Lab)
I thank the Minister for his statement—it is good to have somebody at the Dispatch Box who both understands and cares about this issue. We have spent no shortage of time in this Chamber talking about the conflicts in the middle east and in Ukraine, but I think all of us are guilty of not talking enough about Sudan. The International Criminal Court is investigating some reports of atrocities in Sudan. Does the Minister feel that that investigation should extend to those who knowingly export weapons into the conflict?
My hon. Friend is right to raise the issue of accountability. I have already referred to our support for the work of the International Criminal Court and, indeed, wider investigations into allegations of atrocities—we work to support non-governmental organisations and others. I must also highlight the work of the media in this space, particularly the investigations of the BBC and other media organisations. As I have said, we keep our export licences under close review, and we take allegations very seriously. I can assure him that I am speaking to officials about these matters.
(1 month ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Mr Falconer
There has been some public reporting of Israeli concerns about the Allenby bridge, particularly after the violence there. Rafah is a subject that we have discussed many times in this House, and it remains an absolutely critical artery. It is true to say that in both the Allenby crossing and Rafah there will need to be agreement between both countries. I hope that agreement can be secured quickly, that Israel removes the restrictions in place, and that we see the free flow of aid through those crossings very shortly.
Dr Scott Arthur (Edinburgh South West) (Lab)
I thank the Minister for his statement and his focus on maintaining the ceasefire. I stand in solidarity with the many ordinary Palestinians living under Hamas and with the families in Israel waiting for their loved ones to be returned, but I cannot conclude that what Netanyahu has done in the last 24 hours was proportionate in any way. I continue to hope and pray for peace. With peace will come the opportunity to rebuild Gaza, but I do not see how that can be done when Israel holds so many people without charge, particularly healthcare workers. My constituent Eman is really concerned about Dr Hussam Abu Safiya, who is being held. Does the Minister agree it is really important that people, particularly healthcare workers, should not be held without charge? Is he having negotiations with Israel on their release?
Mr Falconer
Due process is incredibly important. I have raised this specific case with the Israeli authorities. It is important that adequate explanations are provided where people are detained, particularly doctors who are providing vital, lifesaving work. We will continue to take this matter up with the Israelis.
(2 months, 3 weeks ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Mr Falconer
I have set out already in this session our condemnation of the strikes, the sanctions taken against extremist figures in the Israeli Government and the other measures we have taken. In relation to action that follows from the strike on Doha, the Foreign Secretary will shortly be in touch with her E3 colleagues, and we hope that there will be a Security Council session this evening.
Dr Scott Arthur (Edinburgh South West) (Lab)
I thank the Minister for his statement. I do pray that one day he will come to the Dispatch Box with good news for us, to be frank. In my surgery at Oxgangs library on Saturday, a UK-Palestinian woman came to see me. She brought date cookies, which had been freshly made by her mother. I had hoped to save one for you, Mr Speaker, but it proved not to be possible. She spoke passionately, and she was really concerned about the visit of the Israeli President to the UK. I spoke about what the Government have been doing and actions that I have supported that I believe have saved lives. But with what we have seen in Qatar, I think Netanyahu has made a fool of us, and I fear that he will continue to make a fool of us. Is it time to change direction to avoid this happening again—to avoid us taking a stand, demanding a ceasefire and Netanyahu just laughing at us?
Mr Falconer
I am disappointed that my hon. Friend’s constituent did not reserve a cookie for me, but I am grateful for the important question that she asks. For the reasons I set out before, it is important that we continue to engage directly with the Israeli Government, particularly on questions such as the evacuation of vulnerable people from Gaza, on which Israel’s co-operation is essential for any further progress.
(5 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
In the interests of time, I refer the right hon. Member to the detailed evidence that I gave in the House of Lords on this matter the other day, including on the legal circumstances. He knows the risk to the operation of the base in the medium and short term, and he recognises the risk of a binding legal judgment, which we believed to be inevitable. His Government knew that, which is why they started the process. He may not have been able to conclude the deal—I accept that, Mr. Speaker—but the previous Government went through 11 rounds of negotiations because they recognised the importance of doing this deal. They knew that securing the facility was crucial to our national security. We put our national security and securing this base first, and that has met with the approval of the United States and other Five Eyes allies.
Dr Scott Arthur (Edinburgh South West) (Lab)
I have to admit that I am rather confused, because I am sure that the shadow Foreign Secretary was in the Cabinet when the decision was made to start these negotiations. Too often, we focus on the military aspects of this deal, but can the Minister confirm that it will also end a dangerous, irregular migration route into the UK?
My hon. Friend is absolutely right. This Government took early action—even before the conclusion of the deal—to ensure that that route was closed down by the memorandum of understanding that we reached with St Helena, for which I again thank St Helena. Again, Mr. Speaker, I was rightly scrutinised by this House on that. My hon. Friend is absolutely right on that point, and that is why we have done this deal.
(5 months, 1 week ago)
Commons ChamberWhat I see is naivety on the behalf of the hon. Gentleman. First, to be clear, the Deputy Prime Minister has not made her quasi-judicial decision. It is wrong, and he should correct the record of the House because the decision has not been made. Secondly, why would we want a situation in which the United States, under both Governments, can take the hardest approach on China, but trade is up, and in which our G7 partners understand the risks and threats of China, but all their trade is up, when under the last Government, we were in a situation where trade was down only for the UK? That cannot be right.
Dr Scott Arthur (Edinburgh South West) (Lab)
I refer Members to my entry in the Register of Members’ Financial Interests. I thank the Secretary of State for his pragmatic approach. Opposition is easy, but Opposition Members know that if they were in his shoes, they would be doing exactly the same thing. Huawei has been mentioned a couple of times in passing. The reality is the guddle over it delayed the roll-out of 5G by three years and cost the economy £7 billion, which is just incredible and shameful, actually. I welcome the emphasis placed on improving cultural links between the UK and China and, of course, our universities are a key part of that. Will the Foreign Secretary commit to ensuring that our universities have a say in how we establish better relationships between China and the UK?
I reassure my hon. Friend that our universities were able to contribute to our China audit.
(5 months, 1 week ago)
Commons ChamberHis Majesty’s Government will continue to work with our closest ally, as I did last week in Washington DC.
Dr Scott Arthur (Edinburgh South West) (Lab)
I thank the Foreign Secretary for the energy he has invested in de-escalation, because it is the only moral route out of this conflict. I thank him also for reassuring us that UK forces are not involved and that we have not given up on the plight facing ordinary Gazans. There are 90 million people in Iran, just under 10 million of whom are in Tehran. There are reports of many of them trying to leave the country, and that will be made worse by the reports and speculation on regime change. There are also reports that Turkey and Pakistan might be closing their borders to refugees. Is he keeping a watchful eye on that, and has he discussed it with our international partners?
I spoke to our ambassadors and teams across the region this morning, because I recognise that this is a worrying and stressful time in all those areas. That is why my central message and task is to de-escalate. We need more light and less heat.
(5 months, 2 weeks ago)
Written CorrectionsWe have the most robust export licensing regime in the world, and I am proud of that. That was a matter that this House voted on just a few years ago under the last Government, and the right hon. Gentleman will know that we made a decision to restrict arms sales to Israel that could be used in Gaza. I also refer him to the statements that I have made about Iran’s nuclear intent, the work of the IAEA, the huge global concern and the UN resolution that the UK did so much to secure last Thursday.
[Official Report, 16 June 2025; Vol. 769, c. 72.]
Dr Scott Arthur (Edinburgh South West) (Lab)
I thank the Foreign Secretary for his statement, his reassurance that Gaza will not be forgotten, and for having been really quick to come out and ask for de-escalation and a negotiated settlement. Nobody wants to see a nuclear Iran, not least the people of Iran, who are paying for this investment by the Iranian regime, but Netanyahu justified the bombing raids by saying that Iran was close to having a bomb and that it could be years or just months away. Was Netanyahu correct?
(5 months, 2 weeks ago)
Commons ChamberIt is hugely important that we do all we can. I believe the best way forward is diplomatic, because attempting to do this militarily, I am afraid, cannot be achieved, and I think that is widely understood.
Dr Scott Arthur (Edinburgh South West) (Lab)
I thank the Foreign Secretary for his statement, his reassurance that Gaza will not be forgotten, and for having been really quick to come out and ask for de-escalation and a negotiated settlement. Nobody wants to see a nuclear Iran, not least the people of Iran, who are paying for this investment by the Iranian regime, but Netanyahu justified the bombing raids by saying that Iran was close to having a bomb and that it could be years or just months away. Was Netanyahu correct?
I call to mind the work of the IAEA, and refer my hon. Friend to the resolution of the UN Security Council just last week, all of which confirmed Iran’s intent and its deception.
(5 months, 3 weeks ago)
Commons Chamber
Mr Falconer
My hon. Friend has rightly focused on the important questions that are at issue, such as how we can maintain the viability of a two-state solution. That is the only route to peaceful harmony, with two states side by side, and it is on that objective that our efforts are focused.
Dr Scott Arthur (Edinburgh South West) (Lab)
I thank the Minister for his leadership on this issue.
One of the most regular attenders at my surgeries is a Palestinian woman who has lost both friends and family in this conflict. Her cousin died recently. Each time she comes, it is harder for me to tell her that the Government are doing all that they can to protect the lives and rights of Palestinians. On Saturday she brought a gift, because it was the day after Eid, but she was also angry and tearful. I was ashamed, because I could not tell her that our Government were doing all that they could in this situation.
The Minister has said twice in his responses that delivering aid directly by sea and by air is inefficient, but surely efficiency is not the aim here; saving lives is. Surely inefficient aid is better than no aid. Will the Minister look at this again, with our international partners, to see what aid we can deliver to these people?
Mr Falconer
My hon. Friend speaks with the painful authority of one who has clearly taken a great deal of time to get to know someone who is facing truly dreadful circumstances in Gaza. I am grateful to all those, on my Benches and beyond, who take part in such engagement and share it with me. I recognise how heavily the responsibilities weigh on us, both constituency Members and, of course, those of us in the Government.
It is not simply inefficiency that makes me counsel the House repeatedly not to focus on air and sea routes. We do keep them under regular review, and we discuss them with our partners, particularly our friends and allies in Jordan, who have conducted important airlifts of aid into the Gaza strip. The reason I counsel the House in the way that I do is that I see so many of these cases, and I am so conscious of the aggregate demands. If we can get aid safely into Gaza in a way that is consistent with humanitarian principles, of course we will do so. I can reassure my hon. Friend and his constituent that we keep that under regular review, but I must be honest with the House and say that it is road routes that will meet the scale and the manner that are required.