(2 days, 3 hours ago)
Commons Chamber
Melanie Ward
The hon. Lady is absolutely right about the opportunities for new nuclear energy in Scotland, and the SNP Scottish Government have to tell the Scottish people why they are standing in the way of them. The National Economic Council is meeting in Scotland this Friday, at which the Prime Minister and the First Minister will have a chance to discuss such matters. I hope the First Minister will take those opportunities.
There is real fear in Scotland this morning that the Labour party is about to embark on another big betrayal of Scotland’s energy. After abandoning Grangemouth and costing thousands of energy jobs in Scotland, the UK Government now seem set on withdrawing funding for Scotland’s carbon capture industry. Will the Minister take this opportunity to quash that rumour?
Melanie Ward
The hon. Gentleman is doing what he does best, which is to fire up the grievance machine rather than look at all the enormous opportunities that could be coming to Scotland. Perhaps he could tell us what his own party’s policy is on Jackdaw and on energy. When will we see an energy strategy for Scotland? It has been more than five years, and we are still waiting.
I note that the Minister has failed to quash the rumours about Acorn, so let me try another imminent Labour party betrayal of Scotland’s energy. At a time when bills are set to be £1,000 higher than the Labour party promised, the Chancellor is inexplicably going to increase the unit price of gas. We know that families in Scotland will be disproportionately hit by the Labour party gas price increase. The Minister says that she and her colleague the Secretary of State are Scotland’s people in the Cabinet. What is she going to do to protect people from the Chancellor’s gas price rise?
Melanie Ward
Once again, a typical display from the hon. Gentleman—firing up the accusations of betrayal before he has even heard the Budget. I understand that he called for standing charges to be removed from gas bills some time ago, so I look forward to hearing him welcome some of the measures in the forthcoming Budget.
(7 months, 1 week ago)
Commons ChamberI raised this entirely inevitable circumstance with the Chancellor at the spring statement, and she did something that she is given to do, which was to glaze over briefly and then talk about the strength and broad shoulders of the Treasury because of the difficult decisions that she had taken, as though they affected her and not the working people up and down these islands who have had their bank accounts raided by an insatiable appetite for more and more tax from this Government.
How could I not give way to the Scottish Labour MP who has managed to come in here for the tail end of the debate?
Melanie Ward
That was a little bit unnecessary. The hon. Gentleman is talking about raising taxes, and I just wonder whether he would acknowledge that the SNP Scottish Government actually have higher taxes in place than the Government in England.
I am very happy to explain that to the hon. Lady when I get to that element of my speech, which I will in due course.
The other thing that really irritates me about this Government is the way that they talk about the just transition. They say, “We will be using fossil fuels for another 50 years, and we will be producing them in the United Kingdom”, as though they hold all the levers. Let me explain something to Members on the Government Front Bench: if they continue to apply Labour’s atrophying interventions in the North sea oil and gas sector, the industry, which is global—I do not know whether that is news to Ministers—will go somewhere where it can make a living and a profit and does not have some sort of nefarious Government taxing it out of existence.
The specific 5p fuel duty referred to in the motion, is regressive—that much is pretty clear—and iniquitous. It is particularly iniquitous to people who live in parts of these islands that are more remote, such as my constituency. I see that the hon. Member for Gordon and Buchan (Harriet Cross) is back in the Chamber. She detailed that her constituency is 2,076 sq km. This is not a competition, but Angus and Perthshire Glens is 5,525 sq km and 166% larger than her constituency, actually.
This is where I practise respectful disagreement.
For rural areas such as my constituency, the constituency of the hon. Member for Gordon and Buchan, and many other places across all four nations, this issue is really challenging. There is not limited access to public transport in many places such as ours; there is no access to public transport in any meaningful sense. Remote areas get a lot more winter, and the people there tend to work in more agricultural professions. They tend to drive larger, heavier vehicles that are more fuel-hungry, so they will end up paying more. Deliveries have to come from further away, and that all gets added to the cost. Of course, all that adds to the cost to councils of delivering public services. The public services delivered in constituencies such as mine are very much more expensive to deliver than those in Holborn and St Pancras.
It is on that point that we need to see how much harder this issue will impact on people in rural areas. I have looked at the “Fuel Finder” app. At the BP petrol station at the bottom of Montrose before crossing the river, the price of a litre of petrol is 149.9p. If I go to the BP petrol station over at Vauxhall Bridge Road, the price of a litre of petrol is 5p cheaper. People in Scotland are already paying a premium that people in London and the south-east do not pay on their fuel, and the 5p that the Labour party wants to apply will come on top of that.
The UK rate of oil consumption for heating is 4.9%. In Angus and Perthshire Glens, the rate is 13%. Some 6,101 households heat their homes with oil. Oil has gone up sometimes by 150%, so a £300 to £400 delivery is getting on for £1,000. There are also punitive requirements for the volume that people get delivered. A further 2,000 people in my constituency are on tankered gas. That must not be forgotten in this cost spike crisis, which, as I said, I predicted at the Chancellor’s spring statement.
Before the hon. Lady gets back to her feet, she asked me about tax and she should be aware—although apparently she is not—that most income tax payers in Scotland pay less tax. Over and above that, her constituents do not have to pay for their tuition fees when they go to university. All her constituents, like my constituents, pay 30% less for their council tax than people in England. The Scottish living wage that her constituents benefit from is 74p per hour higher than the UK’s minimum wage. Of course, her constituents get the £40 Scottish child payment on top of all the other benefits that the SNP has delivered. On that note, I will take her intervention.
Melanie Ward
I could come back to the hon. Gentleman on all the ways in which my constituents are getting really poor value for money in Scotland, such as the cuts to police numbers in Fife and excessively long waiting lists in the NHS that are not falling, as they are under a Labour Government in England.
The hon. Gentleman talks about heating oil. He will be aware—in fact, I think he referenced it—of the additional £4.6 million for the Scottish Government that the Prime Minister announced on Monday to support people in rural areas and vulnerable households dealing with the increases in the price of heating oil caused by the war in the middle east. Can the hon. Gentleman tell us when the Scottish Government will make that funding available to his constituents and my constituents?
I do not have the detail of the Scottish Government’s plans, but I am pretty sure that nobody in England or anywhere else in the United Kingdom has received actual monetary support from that funding.
Let us be really clear. The Chancellor talks about the broad shoulders of the Treasury and says that thanks to her fiscal wit—if you can believe that—she has come up with £52.4 million. If we divide that money across the number of people who will need support, it comes out at about £35. That is £35 of support from a Labour Government for people seeing a £700-odd price shock in heating oil. Somebody somewhere in the Treasury needs to get themselves a calculator.
The fuel duty increase is inflationary: it will feed through to the prices of goods and services, all of which will subsequently have VAT added on to them. The 5p added to the price of fuel is actually 6p, because it is added before the VAT is added to the fuel, so it is not 5p at all.
I am pretty certain that we can read in the Government’s amendment to the motion the vacuous nature of their application to this subject. Like other right hon. and hon. Members, I am pretty confident that a wee bit closer to the time of the elections in Scotland and Wales in May, the Government will suddenly find the wit to scrap this hike in fuel duty. I am quite happy for them to do that, but as other people have pointed out, households are in crisis now. Now is the time for the Government to lead, but that will never happen with a Labour Government.