Oral Answers to Questions

Alan Brown Excerpts

Wednesday 16th November 2022 Commons Chamber

[Anne McLaughlin (Glasgow North East) (SNP)]

3. What assessment his Department has made of the impact of the reduction in the Scottish block grant on devolved finances.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

8. What assessment his Department has made of the impact of the reduction in the Scottish block grant on devolved finances.

[Deidre Brock (Edinburgh North and Leith) (SNP)]

9. What assessment his Department has made of the impact of the reduction in the Scottish block grant on devolved finances.

--- Later in debate ---

[Mr Jack]

Supporting independence will certainly not help the finances of Scotland; many independent economists have made that observation. As I said, it is absolutely a choice that the Scottish Government have to make about how they spend their budget. If they need to do so, they have tax-raising and borrowing powers. That is a decision for them, but equally, they have to choose what their priorities are. I would say that keeping £20 million in the budget for an independence referendum that no one wants is not responsible.

[Alan Brown]

Thanks to Brexit, the UK has the highest inflation in the G7, which has caused an additional £1.7 billion to be knocked off the Scottish budget due to pressures such as energy increases, wage increases and the cost of living. Instead of giving a robotic answer about the biggest budget being awarded—the Secretary of State wrongly stated that Scotland has borrowing powers, which we do not for our revenue budget—will he say what discussions he has had with the Chancellor about additional revenues coming to Scotland to offset the inflationary pressures?

[Mr Jack]

I must set the record straight: borrowing is available for both capital and revenue, and there is an emergency figure, as was available during covid. The hon. Gentleman raises a point about inflation. Rising energy costs and rising food prices, as a result of Putin’s illegal war in Ukraine, have affected continental Europe and the United Kingdom. This is a global issue. The Bank of England is taking steps, and the Chancellor’s statement will take further steps tomorrow, to stabilise the markets. What we are very clear about is that we have put in place support for people through the household support scheme, the energy price cap and the £37 billion that the Chancellor announced earlier this year. As we have always said, we will protect the most vulnerable in society.