Scotland
What steps he has taken with Cabinet colleagues to help support economic growth in Scotland.
The Secretary of State was asked—
The Scotland Office is supporting the White Ribbon Scotland campaign, which asks people to sign a pledge never to commit, condone or remain silent about violence against women. I have signed it, as has the Under Secretary of State, my hon. Friend the Member for Midlothian (Kirsty McNeill), and I encourage Scottish Members from across the House to come to Dover House foyer and sign the pledge themselves. This Government have a mission to halve violence against women and girls over the next decade. I am sure that the whole House supports that.
Economic growth is our No. 1 mission in this Government. We announced a historic Budget for Scotland that chose investment over decline and an end to austerity. On top of a record settlement, the UK Government are investing nearly £1.4 billion into local growth projects in Scotland, creating the national wealth fund to support our new industrial strategy and driving the transition to clean energy via Great British Energy, which is headquartered in Aberdeen.
The first Labour Budget in 14 years delivered £4.9 billion for Scotland in Barnett consequentials—the biggest settlement since devolution, putting an end to austerity. On top of that, it confirmed £20 million for Kilmarnock in my constituency—I thank the Secretary of State for ensuring that that funding was delivered, despite the £22 billion black hole in the public finances left by the Tories. Does my right hon. Friend agree that the last Tory Government made promises to Scotland that they had no intention of keeping?
I thank my hon. Friend not only for that question but for the tenacity with which she has backed Kilmarnock to get more funding for her local area in the Budget. It is an absolute disgrace that the previous Government made promises to communities such as Kilmarnock about funding that they never had an intention of keeping. This Government stepped in and funded those projects, chose investment over decline and will deliver growth and higher living standards. The irony is that the Scottish National party voted against the largest funding settlement in the history of devolution yesterday, but will spend it today.
I recently visited Vector Photonics in my constituency, an optical and photonic centre of excellence and a successful spin out from Glasgow University. What role does the Secretary of State believe there is for start up and spin out tech companies in Scotland’s economic growth?
I wish Vector Photonics well. Supporting start ups and spin out tech companies and the world leading Scottish universities that often incubate them is an important part of this Government’s steadfast commitment to economic growth. It was privilege to see at first hand the importance of these spin outs during my recent visit to Malaysia and Singapore, when I discussed this with the Scottish universities present in those countries and representatives from the Government and business. Scottish universities punch well above their weight internationally—something we should nurture and be very proud of.
With your indulgence, Mr Speaker, I wish Peter MacMahon well as he steps down as Scottish political editor of ITV Border. Peter has provided outstanding coverage of not just Scottish questions in this Parliament but Scottish politics more generally to my constituents and those across the south of Scotland.
I am sure the Secretary of State will welcome, as I do, the fact that the life of Torness nuclear power station has been extended. That is good for energy security and for the Scottish economy. But given that energy is a reserved matter, what more can he do to bring new nuclear development to Scotland?
I join the right hon. Gentleman in his tribute to Peter MacMahon as he steps down as the political editor of ITV in the Borders region. He and I share something closely: we both have good faces for radio, but it is always nice to appear with Peter MacMahon on television. This Government are committed to clean power by 2030, and of course, nuclear is part of that mix.
The Secretary of State will recognise that the rise in national insurance contributions will have a clear impact on economic growth, whether in Scotland or anywhere else in this great United Kingdom of Great Britain and Northern Ireland. Representatives from the food sector tell me that food prices will increase by between 15% and 20%. That will impact the ordinary man and woman in the street. What impact does the Minister think the rise in national insurance contributions will have on economic growth?
Economic growth is the No. 1 mission of this Government, as the hon. Gentleman knows. When the Chancellor came to the Dispatch Box to deliver her Budget, she started on minus £22 billion—that black hole left for us by the previous Government. We chose investment over decline and we chose to end austerity, so tough decisions had to be made.
I call the shadow Secretary of State.
The Secretary of State has said before and he has said again today that one of his top priorities for the Scotland Office is growth. To grow, the Government need confidence from business. Let us see how that is going: the verdict from Scottish business to his Government’s Budget is in. Offshore Energies UK said that “this is a difficult day for the sector.”
The Scottish Hospitality Group has said: “Today’s announcements are a blow to businesses across the country”.
The Scotch Whisky Association said that the increase in spirits duty is a “hammer blow”. The National Farmers Union Scotland has said that the decisions will cause “huge difficulties” and act as a barrier to those wanting to get into farming.
Given those responses, if not from retail, oil and gas, hospitality, food and drink or financial services, from which sector does he think this mythical growth will come?
I welcome the hon. Gentleman to his place as the new shadow Secretary of State for Scotland and as a shadow Energy Minister—he has something in common with the right hon. Member for Aberdeen South (Stephen Flynn), the leader of the SNP in this House, who also aspires to have two jobs. Unlike the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie), I have actually run my own business, so I know that running a business needs stability, credibility and confidence. The previous Government crashed the economy, leaving it in tatters, and left business confidence at a record low. We are investing for the future, and businesses back that.
I would take the right hon. Gentleman’s responses more seriously if we did not all see, and indeed have just heard, how damaging his Government’s actions are for the Scottish economy—national insurance increases and punitive tax rises on our most successful industries, putting at risk the future of family farms and the rural economy. As Secretary of State, he would rather make performative gestures such as refusing to cross a picket line outside his Department than meet Scotland’s business leaders. As people, local authorities and businesses await the Scottish Government’s budget later today, does he agree that when it comes to economic incompetence, Scotland really does have, in his Government and in the proven ineptitude of the SNP, the very worst of all worlds?
I will be corrected if I am wrong, but I think the hon. Gentleman backed former Prime Minister Liz Truss, who, when she was Prime Minister, crashed the economy and left a £22 billion black hole—[Interruption.] The hon. Gentleman shakes his head and says that he did not, but he walked through the Lobby with her when she did those things in her Budget. He did back former Prime Minister Liz Truss. We will take no lectures from the Opposition on how to run the economy or back business. Of course, his party left the highest tax burden on working people in 70 years—another inheritance that this Government will have to try to resolve.
I call the Liberal Democrat spokesperson.
I am sure that, like the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie) and myself, the Secretary of State for Scotland is watching with bated breath for the latest Scottish Budget. After 17 years of incompetence, people are looking for change in Scotland, and the Labour party is promising it. Will the Secretary of State follow the initiative of his Scottish leader, Anas Sarwar, in saying he will reinstate the winter fuel allowance and make representations to the Prime Minister to reconsider other policies, such as the national insurance changes, which are creating instability and uncertainty for the Scottish economy?
I have a lot of respect for the hon. Lady, but this is another instance where the Opposition parties in this Chamber want all the benefits of the Budget, but they do not want to be able to pay for it. We have announced the largest settlement for Scotland in devolution’s history: £47.7 billion, which is £4.9 billion extra. The Chancellor delivered £4.9 billion extra in Barnett consequentials alone from this Dispatch Box during the Budget—the SNP voted against it, but will spend it today.
This Government are fully committed to delivering for veterans, and I pay tribute to them and their families for the sacrifices they make during their service, as well as their valued contribution to our society after they leave. The Minister for Veterans and People, my hon. Friend the Member for Birmingham Selly Oak (Al Carns), is leading work across Government, and with the Scottish Government, to ensure veterans and their families can access all the support they need.
There is significant variability in the provision of veteran services across the nations. What steps is the Secretary of State taking, alongside his Cabinet colleagues, to ensure parity of services across the nations, and in particular in Scotland?
The Minister for Veterans and People is leading this work. The Prime Minister recently made an announcement on giving veterans a social housing exemption, which, I can confirm, will bring England in line with Scotland, where veterans are already exempt from the local connection requirement to access social housing. We are creating a level playing field across the nations to support veterans, as I mentioned in my first answer.
Since 1921, the Royal British Legion Scotland has supported veterans and their families through education, remembrance and direct support. This weekend, in my constituency in Keighley, the town council and community groups are unveiling a memorial to the fallen of the first world war, with a time capsule placed under the cenotaph to be opened in 100 years. Does the Minister agree that events such as these, which bring together the whole community, are of vital importance for our veterans—not only in Keighley, but in Scotland and across the wider United Kingdom?
I join the hon. Gentleman in paying tribute to the volunteers who often run these events. I also draw the House’s attention to the work of the War Memorials Trust, which is one of the many unsung organisations that do incredible work across this country to maintain war memorials so that we all may remember. Across this House, we have many veterans and those who have served; I pay tribute to them all, and in particular to the 13 Members on the Government Benches who are veterans or reservists.
Last week, I had the honour of attending the steel cutting ceremony of HMS Sheffield at BAE Govan in my constituency, adding to a long list in the tradition of building high quality defence industry vessels on the Clyde. What assurances can the Minister give me that defence procurement and skills will continue to be developed on the Clyde?
I can give my hon. Friend the firmest of assurances that we will continue to prioritise shipbuilding on the Clyde, and indeed defence jobs across Scotland.
Our economic growth mission will raise living standards in Scotland. Our new deal for working people will disproportionately benefit Scots. New protections such as guaranteed hours will help shift workers with up to £600 a year. We are also delivering an annual pay rise of £1,400 for hundreds of thousands of full time workers in Scotland, and we have committed to the triple lock, which means an extra £470 for pensioners next year. Last week, we paid the first instalment to 7,000 former Scottish miners with their full pension. We will improve living standards through better public services and pay driven by economic growth.
Does the Secretary of State agree that community benefit funds from wind farms contribute to improving living standards for communities? Will he join me in praising the work of the nine community council groups in Ayr, Carrick and Cumnock as a model of the fair distribution of funds to support local apprenticeships and improve living standards across the Cumnock and Doon Valley areas?
I congratulate not only the nine community councils in my hon. Friend’s area on their initiative, but community councils up and down the country that do so much work on our behalf to ensure that the community benefit fund, derived from local wind farms, makes a tangible difference to local people. I congratulate her on standing up consistently for her community. Our mission is to become a clean energy superpower by 2030, and our communities will be at the heart of that. Communities must benefit from hosting national infrastructure for clean power. That is why right hon. Friend the Secretary of State for Energy Security and Net Zero is developing guidance on community benefits, which will be published in due course.
Some 100,000 Scots are on zero hours contracts, with no guarantee of secure hours. Labour’s Employment Rights Bill will address that. Does the Secretary of State agree that 100,000 Scots being in insecure work is a damning indictment of the state the Tories left our economy in and shows that we need a new direction in Holyrood?
Mr Speaker, you will not be surprised to hear that I absolutely agree with my hon. Friend. [Interruption.] Absolutely shocked! The Government inherited not just a fiscal crisis from the previous Government, but an industrial one too. We need more high quality jobs in Scotland. Between our industrial strategy, our plan to get Scotland working and the employment rights legislation, we will help to deliver that. Do not forget that the SNP Government said that zero hours contracts were a “positive destination” for work. Our plans to make work pay will have a bigger positive benefit in Scotland than in the rest of the UK. That is the difference in having Scottish Labour MPs on the Government Benches.
I join the Secretary of State for Scotland in welcoming the shadow Secretary of State for Scotland to his place. I congratulate him on his appointment. It does make it difficult sometimes to tell the two of them apart, that being said, especially on days like today. Today, the Scottish Government will continue to protect the most vulnerable in society from the excesses of Westminster cuts. Instead of Tory cuts, it will be Labour cuts to winter fuel payments. Does the Secretary of State agree with the cut to the winter fuel allowance?
Mr Speaker, I am sorry for such a short response to the hon. Gentleman, but there are 4.9 billion reasons why that question is rubbish.
I have to say I am not surprised. There is huge confusion in the Labour party about the winter fuel allowance. The Scottish Government are doing something about it; the UK Government are not. The Secretary of State did not even know the number of pensioners who would be affected by the winter fuel cut. Labour is now distancing itself from Labour. Vote Labour to stop Labour—is that the message his party is sending out, or should voters just vote for the party that is actually doing something about it?
I think what the hon. Gentleman is tending to forget is that the winter fuel payment in Scotland is devolved. It was the SNP Scottish Government who decided to means test it as well. If it was not for the £4.9 billion extra delivered by our Labour Chancellor at this Dispatch Box to end austerity, which the Scottish Government will spend today, they would not be able to make any decisions whatsoever.
I commend the hon. Lady for her work with the Chancellor to help to deliver a record Budget settlement for Scotland, the largest Scottish Government Budget settlement in the history of devolution. It is now up to the Scottish Government to ensure that our towns feel the benefit of it: there can be no more excuses from the Scottish National party. The Budget also confirmed nearly £1.4 billion of funding for local growth projects, and we are delivering growth deals in all parts of Scotland, many of which are improving town centres and other community assets.
Hamilton is a brilliant place in which to live and work, but the boarded up shops in Quarry Street tell a story of their own. What can this Government do to support businesses across Hamilton and Clyde Valley, and across Scotland, which have suffered so badly under the chaos and neglect of two Governments, Conservative and SNP?
My hon. Friend is entirely correct, and I commend her for standing up for her town. In England this Labour Government have already delivered lower business rates for leisure, hospitality and retail businesses, which can help high streets, and I am sure that every Scottish MP wants to see that policy replicated in Scotland.
As we are discussing brilliant towns, it is timely to mention brilliant retail workers too, especially at this time of year. I am supporting the Christmas campaign organised by the Scottish Retail Consortium and the Union of Shop, Distributive and Allied Workers to encourage everyone to respect our shop workers at this particularly busy time of year.
For far too long Ullapool, in my constituency, did not have a post office, which caused great inconvenience to local people. Recently, however, Tesco stepped into the breach, and we now have a highly successful post office in a branch in the middle of Ullapool. May I recommend this approach to regenerating town centres to the Ministers?
We are delighted to receive representations of all kinds on how to improve our town centres. We know that they have suffered neglect for far too long. I hope that all Scottish MPs will have been lobbying for the kind of support for our leisure, hospitality and retail sector that this Government have already given south of the border.
May I first pay tribute to the hon. Gentleman, my predecessor? I know that he will continue to represent his constituents assiduously from the Back Benches. Both the Secretary of State and I will be working closely with the Department for Transport and the Scottish Government to ensure that cross border connectivity remains a top priority for this Government.
Extending the Borders railway line to Hawick and Newcastleton and then on to Carlisle will boost jobs, help the local economy and improve social mobility. The funding for the feasibility study was agreed by the last Conservative Government with the SNP Administration in Edinburgh, but the new Labour Government seem to have pushed this into the railway sidings. Will the Minister ensure that the funding for the feasibility study is released as soon as possible?
The UK Government are fully committed to the Borderlands growth deal. It will deliver economic growth for the south of Scotland and beyond, which is one of our key missions. The Scotland Office continues to work with the Department for Transport, the Scottish Government and Borderlands partners on the next stage of business case development for the Tweedbank Carlisle corridor, and on feasibility options for the extension of the Borders railway line. Unfortunately, it is ultimately up to Transport Scotland and the Scottish Government to follow through on the delivery of this important project.
I call the shadow Secretary of State.
May I echo the Minister’s words about her predecessor—and indeed my own predecessor as shadow Secretary of State—and the work that he has done?
One of the last Government’s decisions of which I am most proud was the halving of air passenger duty, which led to cheaper flights and increased routes across the UK. However, with airlines already cutting back on routes as a result of this Government’s decision to hike APD, people who do not live within a few hours of London on the train, such as those in Aberdeen, face higher fares and fewer options for travel. How can the Government credibly claim to support better transport connectivity across the United Kingdom when those living outside the central belt—I know that Labour Members need to be reminded that it exists—are being punished?
As the hon. Gentleman will know, we face a climate emergency and, indeed, an economic emergency of his Government’s own making. We were faced in our first few months in government with a £22 billion black hole, with Treasury reserves spent three times over. We have taken tough choices to try to deal with the economic inheritance that we received.
We have reset the relationship with the Scottish Government, and I have met the Deputy First Minister numerous times to discuss the autumn Budget and other issues. Between the moment when my right hon. Friend the Chancellor stood up and the moment when she sat down, Scotland was better off to the tune of £4.9 billion in Barnett consequentials alone—again, money that the SNP voted against, but will spend today. I encourage the Scottish Government to use that money to strengthen frontline services, bring down NHS waiting times and lift attainment in our schools. There can be no more excuses. We ended austerity, and it is time that they followed.
I thank my right hon. Friend for his answer. A thriving retail, hospitality and leisure sector is critical to brand Scotland. Following the welcome decision in the Budget to ensure a 40% rates relief for RHL businesses in England, what guarantees, if any, has my right hon. Friend had from the Scottish Government that the extra Barnett consequentials linked to non domestic rates will be passed on in today’s Scottish Budget? Does he agree that any failure to do so would be deeply damaging to the sector?
I thank my hon. Friend for his question; he is absolutely correct. The UK Budget chose investment over decline, including investment directly in my hon. Friend’s constituency as part of the £200 million towns fund, as well as the biggest Budget settlement in the history of devolution. He is also right to say that our hospitality businesses need the rates relief more than ever. The Scottish Government should use their Budget to deliver growth and investment to help our high streets, and passing on the relief should be the bare minimum.
We have delivered the biggest Budget settlement for the Scottish Government in the history of devolution, with, as the House has heard today, more than £4.9 billion of extra funding that can go towards public services. Does the Secretary of State agree that there are no more excuses for the SNP, and that Scots expect and deserve delivery and improvement of our public services?
Of course, I could not agree more. It is not just the £4.9 billion, but all the other investment that the UK Government made outside the Barnett consequentials. The Labour Government have delivered billions of pounds more for schools and hospitals in Scotland. It is more money than ever before, but the SNP MPs voted against it. They voted to deny Holyrood its biggest ever Budget settlement by voting against the Finance Bill last week, but of course they will happily spend it in their Budget today. They also voted against Great British Energy, which will be based in the SNP leader’s own constituency. Given what we have read about the SNP’s selection processes, I guess the SNP MPs are keener to send themselves to Holyrood than billions of pounds of extra funding.
I am sure that pensioners in the Secretary of State’s constituency are as relieved as those in Argyll, Bute and South Lochaber that the Scottish Government’s Budget will introduce a pension age winter heating payment for all Scottish pensioners. The SNP Government are doing the right thing by Scottish pensioners. Will he join me in urging the Labour Government here in Westminster to do the right thing by pensioners in England and Wales and give them back their winter fuel allowance as well?
What the hon. Gentleman has just proved is that the winter fuel payment in Scotland is actually devolved.
One of the consequences of the Budget was to remove £5 million of regeneration funding for Perth city centre. We got practically nothing from the levelling up fund, save for that paltry £5 million, which the Secretary of State is taking away. Just what is it that the UK Government have against the city of Perth?
No projects have been cancelled. The Perth deal is under consideration by the Ministry of Housing, Communities and Local Government and the Treasury. It has not been cancelled; it has merely been paused. The hon. Gentleman should speak to his colleagues in the Scottish Government, who have £4.9 billion extra in Barnett consequentials to spend today. Perhaps he could even have a chat with some of his colleagues sitting next to him, who seem happier in Holyrood than they are here.
I know there is consensus right across this House on the enormous value of the hospice sector and the extraordinary work that it does—work that, sadly, has been undervalued for far too long. Support for additional employer national insurance contributions will be allocated to Departments, with the Barnett formula applying in the usual way for the devolved Governments. The rise does not begin until April, and we will set out further details on the allocation of funding in due course.
There are 45 hospices in Scotland—I cannot be certain of that figure, because so many of them are in dire financial circumstances. I think of Roxburghe House in Aberdeen, which provides services to my constituents and those of other MPs in this Chamber. Another organisation that provides vital hospice care is the Marie Curie charity, which provides services in Edinburgh and Glasgow. It also provides hospice at home care. The charity is facing a bill close to £3 million as a result of decisions made by this Government. What does the Minister have to say about the help that can be provided to Marie Curie and other organisations?
As the hon. Gentleman will know, the pressures on hospice funding long predate the Budget and relate to the decline in real terms funding from the Scottish Government. I note that nearly 5,000 members of the public have written to the Scottish Government recently to support calls from the Scottish hospice leadership for fair funding. Those calls might be answered this afternoon when the SNP Government will have an extra £5 billion to spend. This was secured by Scottish Labour MPs but voted against by SNP MPs. It will be spent this afternoon by SNP Ministers. Make it make sense!