Spending Review 2025: Scotland

Alison Taylor Excerpts

Wednesday 2nd July 2025 Westminster Hall

[Stephen Gethins]

I will gladly reflect on that, but I make the point to the hon. Lady—let us take universities as an example—that at the University of Dundee, the difference between Scottish and English fee income would not even have covered the national insurance increase, and that increase was further dwarfed by the reduction in international student income. Under the Conservative Government, universities had been encouraged to go out and recruit internationally, and they were joined in that venture by Ministers before the Conservatives changed their mind.

I am sure that we will all agree that the internationalisation of our universities has been a positive thing. I refer to my entry in the Register of Members’ Financial Interests: it has been a privilege to work at the University of St Andrews, where internationalisation enhances both the learning process and the research, making us all better off in the process. However, the changes to migration policy had so great an impact—I am sure that the hon. Member for Gordon and Buchan (Harriet Cross) will agree with me about this—that I asked the Home Secretary to come to Dundee and visit the institution, just to see and learn. She refused. Perhaps the Minister could encourage another Home Office Minister to visit.

I touched earlier on national insurance increases, which are hobbling businesses and therefore growth. Those have a particular impact on small businesses, which cannot expand or recruit. That has been raised not just by me and my SNP colleagues, but by other colleagues in the House. Even though Labour MPs want to do anything but talk about a Labour Government —that is quite telling in its own right—the increases have an impact, and the Labour Government deserve to be held to account.

[Alison Taylor (Paisley and Renfrewshire North) (Lab)]

I used to run a small business. Does the hon. Member acknowledge that interest rates and inflation also have a huge impact on small businesses?

[Stephen Gethins]

I absolutely acknowledge the impact that inflation and interest rates have had, and the Liz Truss Budget had a huge impact on small businesses as well as mortgage holders—again, a direct consequence of policies that were made here. I would have thought, and the hon. Lady would surely concede, that one would therefore abandon Conservative spending rules, but we have yet to see that.

Another huge consequence of Conservative rule that Labour has taken over, and that is having a huge impact on small businesses, is leaving the European Union. I want to tackle this head on. I was surprised to hear the hon. Member for Dunfermline and Dollar talk about foreign embassies, when he knows fine well that the Welsh, the Northern Irish and the Scots have overseas representative offices. I was astonished to hear him seek to embrace the insularity that I associate with the Conservative party and Reform. Scotland has one of the highest rates of foreign direct investment anywhere in the UK, and we can all encourage and be happy about that.

I agree with the hon. Member about ferry connections, and he was right to highlight the work done on that by his predecessor, Douglas Chapman. Surely, we should encourage connectivity with the rest of the European Union, but Labour continues to follow the Conservatives’ mantra of a hard Brexit.

--- Later in debate ---

[Alison Taylor (Paisley and Renfrewshire North) (Lab)]

It is a pleasure to serve under your chairmanship, Sir John. I thank my hon. Friend the Member for Dunfermline and Dollar (Graeme Downie) for bringing us such a worthwhile debate.

The spending review confirmed what we in Scottish Labour have known for a long time—the UK Government can be a positive force for good in Scotland. Soon after the general election, the Labour Government provided the largest real-terms block grant in the history of devolution to the Government in Scotland. The spring statement built on that by increasing direct funding to the Scottish Government and providing a substantial direct investment amounting to more than £9 billion extra for public services over the next three years. In my constituency, the Glasgow city region will see substantial investment in Renfrewshire, and in particular in the innovation district around Glasgow airport. I regularly meet innovative companies in my constituency, and they are ready to make use of that investment to create jobs and opportunities across the city region.

Hard on the heels of the spring statement came the publication of the Government’s industrial strategy, which identifies a key growth opportunity for UK aerospace in securing a British engine position on the next generation of single-aisle aircraft. The Rolls-Royce factory in my constituency is set to play an important role in manufacturing the components for the engines, and that will secure high-value skills and jobs. The spending review delivered on the Government’s commitment to economic growth by tackling the long-term effects of low pay and low growth that have stymied Scotland’s ambitions for far too long. Is it too much to hope that the national Government in Edinburgh will take the opportunity of their final year in power to wake up to the opportunity that lies ahead?

[Stephen Gethins]

The hon. Member mentioned low growth. We know that growth has been hampered by our being outside the single market and the customs union—that is not just my analysis but that of most economists—so can she tell me why Scottish Labour has abandoned the policy it adopted after the Brexit referendum of rejoining the single market and the customs union?

[Alison Taylor]

I completely disagree with the hon. Gentleman. In my view, low growth in Scotland has been related to the threat of a second independence referendum, and I would put the blame for the low growth firmly in the hon. Gentleman’s hands.

I sincerely hope that the Scottish National party will wake up to that opportunity in its last year in government, but the last 18 years have offered little evidence that it will. A former Member of this House and a former First Minister, the right hon. Alex Salmond, was very fond of repeating these lines of Burns, although Members will excuse me if I do not deliver them as well as he did:

“But facts are chiels that winna ding,

An’ downa be disputed”

These are the facts: 10,000 children live in temporary accommodation in Scotland; one in six Scots is on NHS waiting lists; Scottish GDP is trailing behind the rest of the UK by nearly £3,000 per person; and the SNP Scottish Government have overseen an unacceptable fall in educational attainment. In fact, their report card is a fail.

The spending review puts an end to the excuses. With my apologies to John F Kennedy, the nationalists need to stop asking, “What can my country do for me?” and start asking, “What can I do for my country?” They need to stop asking, “How can we blame someone else?” and start asking, “How can we build a better life for the people of Scotland?” They need to stop calculating what they think will be best for the cause of separation, and start calculating how to use the opportunity of the spending review to get people the jobs they need and the future they deserve.