Budget: Scotland

Debate between Scott Arthur and Dave Doogan
Tuesday 7th January 2025

(1 month, 2 weeks ago)

Westminster Hall
Read Full debate Read Hansard Text Read Debate Ministerial Extracts

Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.

Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.

This information is provided by Parallel Parliament and does not comprise part of the offical record

Dave Doogan Portrait Dave Doogan
- Hansard - - - Excerpts

Yes, the highest—so it is not as if there was some kind of low-taxation holiday spree and the Labour Government came in and put taxes up to compensate for it. Taxes were already the highest that anybody can remember and now they have gone up again by the highest amount in 32 years. It is absolutely eye-watering. The Chancellor’s refusal to step back from cutting the winter fuel payment from around 900,000 pensioners is absolutely—[Interruption.] They are chuntering that the winter fuel payment is devolved.

Scott Arthur Portrait Dr Scott Arthur (Edinburgh South West) (Lab)
- Hansard - -

Will the hon. Gentleman give way?

Dave Doogan Portrait Dave Doogan
- Hansard - - - Excerpts

No.

Let us get it on the record that the fuel payment did not use to be devolved and that, at the same time as it was devolved, they went and cut the budget. That is the Labour Government at a UK level for you. So yes, I know it is devolved.

Scott Arthur Portrait Dr Arthur
- Hansard - -

Will the hon. Gentleman give way?

Dave Doogan Portrait Dave Doogan
- Hansard - - - Excerpts

No. If the hon. Gentleman can get one of his colleagues to intervene, I will give way to them.

The Government’s decision to raise national insurance was like them showing that they do not know how the real economy works without showing that they do not know how the real economy works. It is a punitive lowering of the floor and increasing of the rate to try to wring out of employers the money required to recover the economy. It is a drag on employment, investment and wage rises. It is absolutely unforgiveable and totally counter to what the Labour party stated, ahead of the election, was its aim: to create a Budget for growth. There will be absolutely no growth as a consequence of that autumn statement. The Government think they will raise over £20 billion but, by the Treasury’s own measure, that figure is down to around £10 billion after they have made all the compensations. It is a massive swage of pain for very little gain in investment.

In moving the motion, the hon. Member for Livingston said that we in the SNP are keen to spend the extra money we will get but not to say how we would raise it. Actually, I will tell him how we would raise it, and our way would be much more cogent than what the Labour Government in Westminster have said they will do. Over and above that, in a Scotland-specific context the hike in duty on Scotch whisky was, in the words of the industry itself, “an indefensible tax grab”. Yet somehow we are expected to believe that everything will be okay because Anas Sarwar is going to speak to the Chancellor about it. The Chancellor will presumably then do what the UK Government always do when Labour in Scotland ask them to do something: absolutely nothing, if not the exact opposite.

The hon. Member for Livingston also talked about energy. He should go up to the north-east of Scotland to talk about energy: we are six months into this Government and there is no evidence whatever of GB Energy making any impact in Scotland. The last time I checked, it had one employee and was based in Manchester. The hon. Member also talked about the investment that would be realised. Somehow, the Acorn project in Scotland —the most deliverable carbon capture, usage and storage project across GB—is still not being funded by the Labour Government, despite their funding a further two CCUS projects in England, in addition to the two already there. Sadly, it is England 4, Scotland 0—it is like a football match.

Finance Bill

Debate between Scott Arthur and Dave Doogan
2nd reading
Wednesday 27th November 2024

(2 months, 3 weeks ago)

Commons Chamber
Read Full debate Finance Bill 2024-26 View all Finance Bill 2024-26 Debates Read Hansard Text Read Debate Ministerial Extracts
Dave Doogan Portrait Dave Doogan
- Hansard - - - Excerpts

To my great regret, I am not entirely sure what the hon. Member is talking about. If she would like, I am very happy to catch up with her afterwards. We can find out exactly what is concerning her, and I will make sure she has all the facts she needs.

Just when mortgage payers thought things were going to stabilise and that the worst of the last UK Government’s fiscal incompetence was over, the major banks have been talking since the Budget about an increase in the rates they are able to offer.

Many hon. Members have talked about what was said before the election, and what has come to pass after it, but during the election the Prime Minister promised that there would be a £300 reduction in energy prices. We have seen that that is not the case, and that energy prices are £149 higher and will go up by £21 in January. There is a £470 honesty tax on energy bills across the United Kingdom as a result of what people were told was going to happen before the election, and what has come to pass at the hands of this Labour Government.

Scott Arthur Portrait Dr Scott Arthur (Edinburgh South West) (Lab)
- Hansard - -

The hon. Gentleman talks about honesty. It sounds like he has read our manifesto, so did we say that we would reduce energy prices by November 2024? Did we say that we would raise the minimum wage, and did we do it?

--- Later in debate ---
Dave Doogan Portrait Dave Doogan
- Hansard - - - Excerpts

I am pleased with the hon. Gentleman’s intervention. I can only assume he was a used car salesman in a previous life. We need to read the small print from Labour: “We will reduce your energy bill by £300. Terms and conditions apply.” Honestly, you couldn’t make it up—[Interruption.] I think they are probably speaking to the hon. Gentleman, rather than me, Madam Deputy Speaker.

Things do not end with the honesty tax I mentioned. This is a serious point, because 900,000 pensioners in Scotland will be stripped of their winter fuel payment in the coldest part of these islands, without so much as a by your leave to the Scottish Government—

Scott Arthur Portrait Dr Arthur
- Hansard - -

Will the hon. Gentleman give way?

Dave Doogan Portrait Dave Doogan
- Hansard - - - Excerpts

No, I will not—we have touched on a number of issues there. In closing, earnings are set to grow by just 1.6% in real terms over this Parliament as a result of the Bill and the Budget that goes with it, and that will extend the UK’s long pay stagnation. The Resolution Foundation has found that

“By 2028, average weekly earnings are set to be just £13 higher than they were in 2008.”

Furthermore, the Institute for Fiscal Studies states:

“Labour’s spending plans after 2025-26 are unlikely to survive contact with reality”

Those are—[Interruption.] I will take an intervention from the hon. Member for Edinburgh South West (Dr Arthur) because he has goaded me.

Scott Arthur Portrait Dr Arthur
- Hansard - -

The Government have taken the difficult decision to means-test the winter fuel allowance and protect the poorest pensioners, but my understanding is that that is a devolved power in Scotland. The Scottish Government could have made the decision to use the resources they have, perhaps from wind as was discussed, to extend the allowance to more pensioners in Scotland, but they did not. They decided to enforce that cut in Scotland when they could have taken a different path, particularly given the additional uplift of money that has come from this Budget.

Dave Doogan Portrait Dave Doogan
- Hansard - - - Excerpts

I do not know the hon. Gentleman. I have never set eyes on him, but I will make the assumption that he is a Scottish Labour MP. I do not know who he is, because he has only just appeared in the Chamber, despite the fact that we are two and a half hours into the debate—[Interruption.] We have heard a lot from the hon. Member for Barking (Nesil Caliskan) as well. The hon. Gentleman asks me what the Scottish Government will do about the winter fuel payment, so let me tell him for the next time he is an apologist for the United Kingdom. The Labour Government devolved control over the winter fuel payment, and then effectively took the budget away by cutting it for pensioners elsewhere in the United Kingdom. That is the trap of devolution. He does not want to see it, but I can see it fine. I do not know it, so I do not know how he knows what the Scottish Government will do regarding the winter fuel payment, and what targeted support they will provide in the winter ahead. One thing for sure, however, is that whoever in Scotland is standing up for pensioners, it certainly will not be the Labour party.

In closing, it is no surprise that the Bill and the Budget hold nothing but pain for communities, services and business in Scotland. Labour takes Scotland for granted. The Labour Government even ignore representations from their Westminster apologists with Scottish constituencies who sit on their own Benches. This is another tragic Budget for Scotland, and another push factor inexorably moving us closer to independence—at least the Budget is good for one thing.