(8 years, 1 month ago)
Commons ChamberI am delighted to hear the positive story that the hon. Gentleman has given to the devolution that we have created as a Government. In the past week I have met the Mayors of Liverpool and Greater Manchester. We are committed to working with anyone who shares our commitment to the economic growth and prosperity of the north of England.
The Government are committed to driving up investment in Scotland; my right hon. Friend the Chancellor announced an additional £2 billion at the last Budget. We have already boosted city deals by £1 billion and have committed further to looking at city deals in Stirling, Tay Cities and the borderlands.
I am sure that my right hon. Friend will share my concern, and that of my constituents, at recent statistics showing that trend-based productivity in Scotland had declined by 3.2% in the year end to September 2017—well below the levels of the UK and its lowest level in eight years. Does he agree that instead of making Scotland the highest-tax part of the UK and increasing the tax burden on businesses, the Scottish Government should be encouraged to follow this Government’s lead—encouraging enterprise, boosting economic development and growing UK productivity to its highest levels in 10 years?
My hon. Friend is absolutely right to raise the critical issue of productivity, which is, of course, the responsibility of not just this Government but the Scottish Government. I totally agree with him about the tax matter that he raised. It is important that we keep taxes down. To the extent that that has been achieved in Scotland, it has been to a large degree because of the changes we have made to the personal allowance—a decision taken by this Government in this House.
(8 years, 5 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure to serve under your chairmanship, Mr Hollobone. Eighteen years since the opening of the Scottish Parliament, it is right that we in this place—the place that passed the original Scotland Act 1998—consider the use of devolved powers, and I commend my hon. Friend the Member for Stirling (Stephen Kerr) for introducing this debate.
It is a fact that thanks to the actions of this Government, the Scottish Parliament is one of the most powerful devolved legislative Assemblies in the world, with powers over justice, education, health, transport, the environment, and now taxation and elements of social security. That is a good thing. However, for the people of my constituency, and indeed for the people of the wider north-east of Scotland, far from the renewing or revitalising experience promised in 1999, the reality of devolution has been cuts, tax rises and the perception of a central-belt bias in all decision making.
Let us just look at what has happened: sheriff courts closed; the Grampian police gone; motorway improvements in the central belt, but still no new junction at Laurencekirk; 120 teaching posts in Aberdeen still vacant; council tax up; income tax up; business rates up; the land and buildings transaction tax unfairly hitting the north-east; psychiatric wards closing; GP surgeries overstretched; planning decisions that were taken by Aberdeenshire Council overridden by the Scottish Government; and our farmers completely and utterly failed. It is quite clear that devolution and the use of devolved powers, as they are at the minute, have not delivered for the people of the north-east of Scotland, but I am an optimist and I think that they really could.
Now is the perfect time to begin a genuine, rational cross-party debate about the future of devolved powers, where they are held, and how they are used. For me, the biggest question has to be: must devolution stop at Edinburgh? Real, accountable local authorities; directly elected and accountable provosts for our cities; a return to local, accountable policing; and more democracy and devolution within Scotland—that is what we need.
We now come to the first of the speeches from the Front-Bench spokespeople. I call Mr Tommy Sheppard.
(8 years, 8 months ago)
Commons Chamber8. What assessment he has made of recent trends in economic growth.
13. What assessment he has made of recent trends in economic growth.
The Chancellor of the Exchequer (Mr Philip Hammond)
Short-term indicators of growth are volatile. Quarterly growth was 0.2% in the first quarter of this year, but this followed strong growth of 0.7% in the quarter before. The underlying economy is robust, thanks to record employment levels. Although a recent rise in inflation, caused mainly by the depreciation of sterling last year, may temporarily dampen consumer spending—today’s inflation figure for June is a little lower at 2.6%—there are signs from surveys of business that export orders and business investment intentions are up.
Mr Hammond
Let me first congratulate my right hon. Friend; it was remiss of me not to do so in my first answer. I very much welcome her to her role on the Treasury Committee, and I look forward to being grilled or toasted by her, or whatever the correct expression is. She is of course exactly right: the only way to build resilience into the economy is to have strong public finances, and the only way to have a sustainably growing standard of living is to have rising productivity over the medium and long term, and that is what the Government’s policy is focused towards.
These are obviously still worrying times for many in north-east Scotland, with the continued low oil price still causing concern, but does my right hon. Friend agree that the strength of the United Kingdom’s economy, now the second highest growing in the G7, has enabled this Government to provide over £2.6 billion of support to the industry, securing jobs in West Aberdeenshire and Kincardine?
Mr Hammond
Yes. The UK oil and gas sector has made a huge contribution to the UK economy, having paid over £330 billion in total in production taxes to date, and supporting over 300,000 jobs. In the next phase of the life of the North sea basin, as many fields come towards the end of their life, we are working with the industry to ensure that we extract every drop of oil and gas that it is economic to extract, that we enable decommissioning, and enable end-of-life fields to be operated in the most effective way.