(1 week, 1 day ago)
Commons Chamber
Graham Leadbitter
No, I will not give way again because I do not have much time.
There are many reasons why we need to support oil and gas, not least protecting the workforce and not losing the skills. There are also numerous other areas where the Government are not making decisions quickly enough. On the transmission network’s use of system charges, Government policy has taken 18 to 20 months to come through, and it will be several more months before it is in place. That will be after the start of allocation round 8, which is being accelerated, and many companies in the North sea are saying that they will hold on and wait for AR9 before making an investment decision, because they want certainty. That lack of certainty, pace and pragmatism is preventing those jobs from being created and preventing a just transition.
I can apply the same point to Ardersier, which is in my constituency, and the proposal by a Chinese company, Ming Yang, which wants to invest there. I understand that the Government have reasons and things that they need to consider in this matter, but it has been on their desk for 18 months. A decision is needed to either move on to other investors or decide that there is a risk, so that we can mitigate the risk, let them get on with it, create supply chain jobs and have serious, high-skilled, high-paid jobs that will provide a just transition and a serious opportunity for North sea workers. That decision needs to be made sooner rather than later. We experienced an excessive delay in the run-up to decisions on carbon capture, usage and storage; it took forever to get there, and jobs have been lost because of that lost time.
Let me turn very quickly to consumer pricing. The Government have been waxing lyrical about price gouging by energy companies at the moment. The Government and previous Governments have been responsible for state-sponsored price gouging in the energy market, with the highest prices for electricity in Scotland. With that, I urge Members to—
Order.
There was a particularly unedifying exchange between Members in which the use of “you” and “your” was very liberal indeed; I assume that it was addressed directly to me. Can we all try to do a little better? While I am on my feet, I will say that after the next speaker, the time limit will have to be reduced to three minutes in order to get all Members in.
(2 weeks ago)
Commons Chamber
Graham Leadbitter
And the taxation being paid gives people back more services and better services. Things such as the removal of peak rail fares and the freeze on bus fares—the cap on bus fares has been put in place and is being tested in the north of Scotland—all really benefit people. Beyond that, however, more than half of taxpayers in Scotland do not pay more income tax than people do south of the border. That is a fact.
I urge the UK Government to consider many of these proposals. They could consider measures on bus fares and peak rail fares, but they also have the power over key taxation levers, including fuel duty. They need to make decisions quickly to give people more certainty and a little bit less risk about where things are going. Some things are not controllable, and I wish the Government did not have to consider them, because they are difficult, but the Government have levers that can make it a bit easier for people, and they should use those levers.
(3 months, 2 weeks ago)
Commons Chamber
Graham Leadbitter (Moray West, Nairn and Strathspey) (SNP)
While businesses are still reeling from last year’s national insurance increase, with this Bill the Labour Government are set to increase tax again by making salary sacrifice pension contribution schemes worse for workers.
What has the Labour party said previously? In its 2024 manifesto, on page 79, it stated:
“Our system of state, private, and workplace pensions provide the basis for security in retirement…We will also adopt reforms to workplace pensions to deliver better outcomes for UK savers and pensioners.”
It gets even more ridiculous when we see that the same manifesto also stated on page 21:
“Labour will not increase taxes on working people, which is why we will not increase National Insurance”.
That is exactly what the Bill does.
Recent survey data from the Confederation of British Industry showed that three in four employers will have to decrease pension contributions as a result of the measures in the Bill. As the CBI has said, it is
“‘a tax on doing the right thing’”.
It goes on to state:
“Ultimately, this unwise move will only damage growth, investment and pension saving rates.”
It is not just the CBI that has voiced alarm at the Bill. The Association of British Insurers stated:
“Capping salary sacrifice for pension saving is a short-sighted tax grab which will lower pension saving and undermine people’s retirement security.”
The Minister said in his introduction that
“everyone who has thought about this”
will come to the same conclusion. He might not wish to refer to the CBI and ABI coming to different conclusions, but they have clearly thought about it.
It is not even clear that the measure will raise the money that the Chancellor expects. A former pensions Minister from the coalition era has said that he expects it to raise “a fraction” of the intended amount, as firms will restructure payments to evade it. In addition to the likelihood of payments being restructured, even the OBR has made it clear to the Chancellor that it expects employers simply to pass the cost on to employees through lower wages and less generous schemes. It will be working people who ultimately pay for this short-term thinking, with a lower standard of living and less spending power in their retirement.
As we have seen with the maladministration of pension changes for 1950s-born women, politicians cannot and must not change the goalposts on retirement planning without giving significant advance notice. Any approach otherwise, such as in the Bill, is deeply unfair to savers. This move will land businesses with yet more administrative costs, disproportionately hitting small to medium-sized employers who are still absorbing the increased NIC costs from last year’s Budget. Is this muddled policy really from a Government who stood on a pledge of growing the economy? This is yet again another Budget with another rise in national insurance by Labour.
There are numerous unanswered questions, but the following are top of the list. What assessment has the Minister made of likely behavioural changes to pension savings as a result of this policy? What is the estimated increased cost to businesses as a result of this policy? Does the Minister anticipate lower pensions for workers as a result of this policy, and if so, how much would the decrease be? Can the Labour Government seriously make a commitment in this Chamber not to increase national insurance in next year’s Budget, given the rises in both their Budgets since coming into power? This Bill is deeply flawed and the SNP will not support it today.
As there are no further Back-Bench contributions, I call the shadow Minister.
(6 months, 4 weeks ago)
Commons Chamber
Graham Leadbitter (Moray West, Nairn and Strathspey) (SNP)
I agree with the hon. Member on the point about employer national insurance contributions, but in the Press and Journal today—one of the august daily papers in Scotland—there are reports that highland hoteliers are struggling to recruit. The large part of the blame for that is laid at the door of Brexit, and the current immigration policy does nothing to help the highlands and islands in Scotland. There is demand for a rural visa, which is fully backed by the Federation of Small Businesses—
Order. I remind Members that there are 45 of you wishing to speak. Interventions must be a lot shorter. I am sure the shadow Minister has got the hon. Gentleman’s point.