Economy Update

Virginia Crosbie Excerpts

Wednesday 16th June 2021 Commons Chamber

[Steve Barclay]

The Scottish Government are still not using all the powers available to them on tax and welfare, and I always feel that before they seek further powers it would be useful for them to use fully the ones they already have. I found it slightly odd that the hon. Lady said that not a penny of support had been announced, because the whole point of the package that was announced was the extensive support going on until the end of September. She seems to be ignoring that and suggesting that everything should start afresh from today.

The hon. Lady mentioned business rates, which I picked up on earlier. This financial year, over 90% of businesses in the retail, hospitality and leisure sector that benefited from the 100% business rates holiday last year will receive a 75% cut in their business rates for the full year to March 2022. Let me just put that in context. In that last year, that tax cut cost £10 billion. This year, it is an additional £6 billion. The hon. Lady says that not a penny has been announced, but there is a further £6 billion of tax cuts on business relief this year in addition to last year. I think it is worth remembering the wider picture of the £352 billion of support.

The hon. Lady mentioned universal credit. We have been very clear from the start that it was a temporary uplift; my right hon. Friend the Chancellor set that out at the time. She also mentioned delaying furlough. As my right hon. Friend the Member for Preseli Pembrokeshire (Stephen Crabb) mentioned earlier, there are good reasons why it is not in people’s interests to be on furlough for extended periods of time if their job has disappeared and is not going to come back and if there are other businesses that want to employ that labour. The furlough has achieved its main purpose in retaining the link between labour and business and allowed businesses to bounce back better as a result. So before asking for new powers, the Scottish Government should be focusing on the delivery of their response to covid and recognising the fact that we have been able to respond in this way because we have the strength of one United Kingdom. It is through this wider resilience that we have been able to put together a package of the size that the Chancellor has done.

[Virginia Crosbie (Ynys Môn) (Con)]

Thanks to decisions made by this Government, recent ONS data shows that UK unemployment is among the lowest in Europe at 4.7%, with almost 200,000 more people in work since April. My families on Ynys Môn desperately need more jobs, and a freeport on Anglesey would create thousands of high-skilled job opportunities. Can the Minister please update the House on what discussions he has had with the Welsh Government about the creation of at least one new freeport in Wales?

[Steve Barclay]

We want to ensure that the whole of the UK can benefit from freeports, and that is why we remain committed to establishing at least one freeport in Scotland, Wales and Northern Ireland as soon as possible. As in England, a Welsh freeport will be chosen according to a fair, open and transparent allocation process.