Budget: Scotland Debate

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Department: Scotland Office

Budget: Scotland

Torcuil Crichton Excerpts
Tuesday 7th January 2025

(2 days, 20 hours ago)

Westminster Hall
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Dave Doogan Portrait Dave Doogan (Angus and Perthshire Glens) (SNP)
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It is a pleasure to serve under your chairmanship, Ms Vaz—we always have to say that, but in this instance, I genuinely mean it. I am grateful to speak on this issue. When I saw this coming up on the agenda for Westminster Hall, I thought, “Goodness me, who has brought this?” It turns out that it is the Government. I thought, “That is all right. Well, let’s see what the facts are because this Budget had precious little in it to be welcomed in Scotland.”

I will start with that which could be welcomed for Scotland. Thankfully, the Chancellor heeded the SNP’s manifesto call to change the fiscal rules to allow more investment in capital infrastructure. That was good and welcome, and it will be helpful. They also heeded the SNP’s pre-Budget call for greater investment in the NHS, which will be very welcome as we try to recover from covid and staffing challenges. But aside from those two things, on which the SNP gave the Government a menu, the Budget has been an unmitigated disaster for Scotland and Scotland’s economy. It has imposed billions of pounds of service cuts and tax rises that will hit working Scots in the pocket and do very little, if anything, to deliver on the promise that the people of the United Kingdom were offered as a prospectus in the run-up to the election.

Torcuil Crichton Portrait Torcuil Crichton (Na h-Eileanan an Iar) (Lab)
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Would the hon. Gentleman describe £50 million for Argyll and the Isles and £20 million for the Western Isles as a “disaster”?

Dave Doogan Portrait Dave Doogan
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I hope that that money will be spent and make a great difference, but it will not compensate the Western Isles and the Northern Isles one bit for the money that they have lost as a consequence of Brexit. The hon. Member for Livingston (Gregor Poynton) and many of his colleagues herald this as the largest Budget settlement for the Scottish Government, as though Budget settlements go up and down. But they continually go up: every latest Budget settlement is the biggest Budget settlement since the last one.

As various Bills have passed through the Chamber, I have not run out of opportunities to point out to the Government how the basics of fiscal policy and economics work, and here we are again. All power to the communities of the hon. Member for Na h-Eileanan an Iar (Torcuil Crichton). I hope they get great benefit from that money but it does not fully compensate them for what they have lost, and no mistake.

The tax rise of £40 billion represents the biggest since Norman Lamont in 1993. Do not forget that when this Government came in, they inherited the highest tax burden in living memory, or certainly since the end of the second world war at least—

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Dave Doogan Portrait Dave Doogan
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Like the hon. Lady, I am very hopeful that we will see Berwick Bank approved and into the construction phase as quickly as possible, to cement Scotland’s enviable position as the renewable powerhouse of Europe. She shares that ambition with me, but what we are talking about is due process. It ill behoves elected Members of any stripe or any Parliament to meddle in the statutory process of a consenting major development; that will unwind in the way it unwinds, but I very much hope it is positive and expedient.

I turn to the Women Against State Pension Inequality—the WASPI women. They will absolutely have been left wondering what they have done to deserve such a catastrophic betrayal by the Labour party of their very modest and reasonable ambitions. During the debate on the autumn statement, I said that it was fantastic news that the Government, to be fair, had made sure that the money was there for the infected blood scandal and that the postmasters were properly compensated. Neither of those two scandals was of the UK Government’s making—well, not deliberately of their making; certainly not the infected blood scandal—but the WASPI women’s situation was. We now know the Government have turned their back on those people in the most reprehensible way possible.

The Chancellor promised a growth Budget and the hon. Member for Livingston says it is a growth Budget, but sadly it will

“leave GDP largely unchanged in five years”.

The inflation forecast will compound that. Inflation is set to rise to 2.6% and interest rates by 0.25% just; mortgage rates, after a brief period of respite, are on course to rise again. For years, people up and down these islands, especially in Scotland, have been hammered by the cost of living crisis. They, alongside small businesses, will be looking at this hatchet job by the Labour party and wondering what on earth will be coming next. The Institute for Fiscal Studies, no less, has pointed out that somebody will pay for these higher taxes; that somebody will be the ordinary working person. The Office for Budget Responsibility estimates that there is only a 54% chance that the Labour Government will meet their own fiscal rules through this Budget, raising the question of why the Chancellor thinks this amount of economic pain is worth such a low level of fiscal gain.

What about investors in the agricultural sector? Scotland’s agriculture is a very much larger part of its economy than overall UK agriculture is of the UK economy, but I am sure the Chancellor never bothered to speak to anybody in Scotland about her raid on farms through her farmers’ death tax. Labour could have done something progressive to stop outside investment and farmers disrupting that market, but they did not and they threatened the very existence of Scottish agriculture.

What would the SNP have done? We would certainly not have put this colossal fiscal drag on the economy of Scotland. We would have made sure that what we did was progressive and proportionate and that it would increase economic growth. I am sure Labour Members are not very supportive of an income tax in Scotland—

Torcuil Crichton Portrait Torcuil Crichton
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Can I ask the hon. Member which taxes the SNP would raise?

Valerie Vaz Portrait Valerie Vaz (in the Chair)
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Order. I remind the hon. Member for Angus and Perthshire Glens that he has spoken for 10 minutes already. If every other hon. Member takes that amount of time, we will not be able to hear from everybody.

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Torcuil Crichton Portrait Torcuil Crichton (Na h-Eileanan an Iar) (Lab)
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It is a pleasure to serve under your chairmanship, Ms Vaz. I pay tribute to my hon. Friend the Member for Livingston (Gregor Poynton) for securing this important debate. I join him in welcoming this record settlement of more than £4 billion for the Scottish Government, but I would not want Members to go away with the impression that the SNP Government are somehow benignly mismanaging the economy, carelessly not controlling the NHS or accidentally running down educational standards in Scotland. They are involved in nothing less than the wilful destruction of the pillars of public life and public services in Scotland, because they are neglecting to make difficult decisions. They are putting off the reckoning that there must be in education; we must leave educationalists to educate and teachers to teach. They are also wilfully neglecting transport in the Western Isles and the west coast, and the health needs of constituents like mine.

My hon. Friend the Member for Livingston said that one in six Scots are on waiting lists. My constituents in the Western Isles are not on waiting lists; they are waiting for the sound of a helicopter to take them to hospital, because the NHS does not properly function in the Western Isles thanks to the Scottish Government’s neglect and the lack of resources given to it. In the Western Isles, people do not take an ambulance or a taxi to hospital; they take a bus to an airport, to take a small flight to another airport, to take a flight to a mainland airport, to take a taxi to hospital to get chemotherapy. That is the state of the NHS in Scotland under the SNP.

Dave Doogan Portrait Dave Doogan
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Will the hon. Gentleman give way?

Torcuil Crichton Portrait Torcuil Crichton
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I will give way. I would love to hear the hon. Gentleman’s excuses.

Dave Doogan Portrait Dave Doogan
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The hon. Gentleman mentions the litany of failures, as he sees them, in Scotland’s NHS. How then does he explain that spending per head is greater than it is the rest of the UK, that the number of doctors per 100,000 people is higher than it is the rest of the UK, that the number of nurses per 100,000—

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Valerie Vaz Portrait Valerie Vaz (in the Chair)
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Order. You have had 10 minutes, Mr Doogan. I am really sorry, but this is unfair to other Members.

Torcuil Crichton Portrait Torcuil Crichton
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I understand the hon. Gentleman’s passionate defence of his own position, but the truth is that, despite higher spending per head in Scotland, that money is inefficiently used on a massive management structure—boards upon boards and quangos upon quangos—that does not put patients first, as evidenced in the Western Isles.

There is no better evidence of these issues than the transport decisions made over my constituents. We have three companies—a Bermuda triangle—running ferry services: CalMac, Caledonian Maritime Assets Ltd and Transport Scotland, with hardly an island representative.

Seamus Logan Portrait Seamus Logan
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On that point, will the hon. Gentleman give way?

Torcuil Crichton Portrait Torcuil Crichton
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Time is short, my friend, so I must press on.

Valerie Vaz Portrait Valerie Vaz (in the Chair)
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Order. I must ask you to address the Chair, Mr Crichton.

Torcuil Crichton Portrait Torcuil Crichton
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I am sorry, Ms Vaz.

On ferries, we welcome the very late arrival of the Glen Sannox and soon the Glen Rosa. A minor earthquake welcomed the Glen Sannox through the Sound of Mull as she made her test run. We are glad they are there, but that is only one ferry crisis; there is also the inter-island ferry crisis. The two ferries that connect and hold our Western Isles chain together are limping on, but under the SNP’s replacement scheme they will not be replaced for another decade. Those ferries are meant to have four engines but are running on three. Our road between the isles has also been neglected and run down by the SNP.

I know that time is short, so I will not detain the House much longer. I have mentioned the neglect of rural areas. We see that in rural housing, where we are facing a depopulation crisis and where, from a budget of £25 million for rural housing, only 17 homes have been built in rural Scotland. All this happens because the Scottish Government have a bigger budget. We have no transparency on where that budget is going or how the money is spent. The SNP Government have one year to turn that around. They had better shape up or ship out.

Jamie Stone Portrait Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
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It is a pleasure to serve under your chairmanship, Ms Vaz—and I mean that most genuinely. One of the things Members should never do in this place is bore the House, but I am afraid that I am about to do so, because I am going to sound like a cracked record.

How many times have I mentioned the ongoing scandal of pregnant mothers having to travel a 200-mile round trip from Caithness to Inverness to give birth? In weather like the stuff we are having right now in the north of Scotland, you have to be joking. The A9 was blocked at Helmsdale a view days ago, and thank God no pregnant mum tried to make the journey down to Inverness. I have gone on again and again to the Scottish Government about having a safety audit done on this perilous policy. We had a consultant-led maternity service based in Wick in Caithness.

Torcuil Crichton Portrait Torcuil Crichton
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I take what the hon. Member says about pregnant mothers having to travel long distances. In my own constituency, pregnant mothers have to travel two weeks before their baby is due to another island where they are given an overnight allowance of some £50 or £60 in a tourism economy where beds cost £120—so they are having to pay out of their own pocket for their pregnancy.

Jamie Stone Portrait Jamie Stone
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It is a nonsense. Constituents like the hon. Gentleman’s and mine are losing out and have lost out for years. We had a consultant-led maternity service in Caithness until, hey presto, this SNP Government took over; very shortly after, it was downgraded and got rid of—as simple as that. I and others have written to John Swinney inviting him to come north to Wick to get in the back of an ambulance in winter and make the journey for himself to see what it is like. I do not believe we have had an answer, and I expect a dusty one when it comes. It is a scandal and a disgrace, and it is on the watch of the SNP Government.

Right now, we have one psychiatrist in the north of Scotland—just one—and we have a huge problem with the mental health of young people. This morning I rang a mother from Caithness, Kirsteen Campbell, who thinks it will be two or three years before her child can be seen by a professional to sort out their problem. During the election, I spoke to a mother in Evanton in Easter Ross, who told me how her child—who I will not name for obvious reasons—had not been to school for a number of years because the school could not deal with the issues that this poor, wretched child had. It is a scandal.

In the short time available, I have given just two examples of failures. Turning to the subject of debate, I sincerely hope and pray that the Scottish Government will use this extra money to address these issues finally, before it is too late and something terrible happens on the youth mental health front or a mother or child loses their life. We had an issue where a mother was pregnant with twins, but one twin was born in Golspie and the other had to be born in Inverness. Imagine how awful that is for a family—it is a shocker.

I close with this: the two issues I have outlined are issues that really, really matter to ordinary people. We can talk about this or that in politics, but these are the big, chunky issues on the doorsteps. People are not stupid out there. I hear my good friends in the SNP sitting to my left, and they are good personal friends, but something happened in July, when the hon. Member for Na h-Eileanan an Iar (Torcuil Crichton) was returned with the bump that he was and when my majority went up from 204 to just 11 votes shy of 10,500. That, I think, is the Scottish people telling us something, and anyone who does not listen to that is simply whistling in the hurricane.

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Seamus Logan Portrait Seamus Logan (Aberdeenshire North and Moray East) (SNP)
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I was not going to speak, but seeing as you have asked me to, Ms Vaz, I will speak briefly. I am grateful to serve under your chairmanship.

I thank the hon. Member for Livingston (Gregor Poynton) for securing this important debate. I have only one point to make, because we are short of time. Labour Members continually mention to us the ferries—I have heard the ferries mentioned more times than I heard Slade played over Christmas, and that was quite a lot—but they never mention High Speed 2. The people of Scotland are paying for that. They are also paying for Trident and for Hinkley Point.

Torcuil Crichton Portrait Torcuil Crichton
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Will the hon. Member give way?

Seamus Logan Portrait Seamus Logan
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No, I am not giving away—in retaliation.

Hinkley Point reactor 1 has now been delayed until 2029 or maybe 2031, we have no date for reactor 2, and as for reactor 3—

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Torcuil Crichton Portrait Torcuil Crichton
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Will the hon. Member give way on that point?

Seamus Logan Portrait Seamus Logan
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I will finally give way.

Torcuil Crichton Portrait Torcuil Crichton
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I hope the hon. Member will forgive me for not giving way to him when I was mid-flow during my own speech. We are waiting until 2031 or 2032 for our ferries. We need ferries this winter, not next decade.

Seamus Logan Portrait Seamus Logan
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The point I am trying to make is that Labour Members continually refer to fiscal mismanagement, when in fact I have described examples of fiscal mismanagement that the people of Scotland are paying for. I will leave it there, Ms Vaz; thank you very much for inviting me to speak.

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Andrew Bowie Portrait Andrew Bowie
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I read that a couple of seconds before I stood up to speak, and of course it is extremely worrying. The trajectory of the UK economy under this Labour Government should give us all cause for concern, which is why it is right that we are having this debate today. I am just surprised that it was secured by a Labour MP.

Torcuil Crichton Portrait Torcuil Crichton
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If the hon. Gentleman does not wish to blame the SNP Government for the economic mismanagement of Scotland, why does he provoke SNP Members with his choice of Union Jack socks?