Budget Resolutions

David Linden Excerpts

Monday 27th November 2017 Commons Chamber

[Tommy Sheppard (Edinburgh East) (SNP)]

It never ceases to amaze me just how complacent many Government Ministers and those in the political leadership of this country appear to be with regard to addressing the underlying economic catastrophe that the country is facing. To paraphrase Kipling, “If you can keep your head when all around you are losing theirs, you probably don’t appreciate the seriousness of the situation.” There is now an amazing disconnect between their arrogance and glibness—and in the case of the Foreign Secretary, bombast and pomposity as well—and the real economic facts on the ground that are shaping the lives of millions of citizens of this country. This is not so much about driverless cars as a driverless Government.

We look now at the global dimension of this Budget. The first thing we should consider is the image of this country in the world. What does this Budget say about our character? How will others judge us for it? How will they judge a country that now lies 31st of 34 OECD countries in the economic growth table? How will they judge a country where, by their own admission, the Government say that by 2022 real wages will not be back up to the level they were in 2008? There has been a decade and a half of wage stagnation in this country: a decade and a half of austerity, adversity and struggle for many working people in this country trying to make ends meet and seeing their own hopes and those of their kids dashed because they cannot do so.

[David Linden (Glasgow East) (SNP)]

Does my hon. Friend share my disappointment that the Budget did very little on pay for those who are under 25? Indeed, the rate of pay for apprentices rose to a meagre £3.70 an hour.

[Tommy Sheppard]

Indeed I do. That was the third observation that I wanted to make about how people might see us—how we treat our own people.

Let us remember that this Budget does nothing to cancel the attacks on the poor that have been contained in the past few Budgets. We still have the bedroom tax. We still have the cuts to employment and support allowance. We still have, albeit with some mitigation, the roll-out of universal credit and the visiting of penury on the poorest and the most disabled in our country. Any country will rightly look at us and judge us according to how we treat those who are least able to defend themselves. When they look at the record of this Government, I think they will judge them harshly.

Brexit clearly overshadows the whole debate about Britain in the global economy. I remind colleagues that we have not left the European Union. We have not even begun to leave the European Union. Indeed, we do not, as of today, yet have a plan to leave the European Union. All we have is a stated intention—the idea of Brexit, and already the idea of Brexit is having a material effect on the ground. I refer Members to page 14 of the Red Book, where paragraph 1.19 is a harbinger of what is to come. It points out that the drop in the projected growth in GDP is not just because of the per capita drop but because fewer people will be contributing to the economy due to a net drop in migration of 20,000 people. This is only the beginning. If we tell young people from Poland, Spain and Greece that they are not welcome to come and live and work here, not only will our public services be in jeopardy but we will not be able to collect their taxes, and that will have an economic effect on paying for those public services in the first place.

Already the European Medicines Agency and other institutions are leaving just because of the idea of Brexit. Not a mile away, across the City of London many financial organisations are preparing to make an exit and shift their European regional headquarters to another place. The effect of that will be dramatic, and it is irresponsible in the extreme for the Government of the day to come to the House and present a Budget that has no contingency whatsoever for those possibilities. The Government are planning for a series of options on Brexit, one of which is a hard Brexit with all the attendant tariff controls and trade barriers, and yet they have made no contingency for what might happen. That is the height of irresponsibility.

In the final 20 seconds, I want to mention the situation in Scotland. We welcomed the Government’s decision to scrap VAT for police and fire in Scotland, but if it was the right thing to do today, it was the right thing to do a year ago and the year before that. It is intellectual banality for the Government to base their policy on who makes the argument rather than the content of it.

--- Later in debate ---

[Luke Graham (Ochil and South Perthshire) (Con)]

The delivery of the British Budget is one of the most important political events of the year. As an accountant—I refer to my entry in the Register of Members’ Financial Interests––and a new MP, I was extremely humbled to witness its delivery at first hand from these Benches. The Budget is even more important considering Britain’s place in the world, the advent of Brexit, the pace of technological change, and the geopolitical shifts that we have witnessed from America, the middle east and China. There is a disturbing rise in negative politics. With divisive referendums, resurgent nationalism and challenges to the western model of economic management, there is a feeling that we are stepping backwards. We are naive if we think that such discourse has an impact only on politicians, as was illustrated on my recent trip to Lornshill Academy in my constituency, whose students talked about how Donald Trump’s views had started to shape debate in their school—and not for the better.

That is why the cautiously optimistic Budget delivered by the Chancellor is so important. As many colleagues will appreciate, a Budget is not just an accounting exercise; it is a statement of political intent. I believe that this Budget speaks volumes. It commits the Government to raising the national minimum wage, especially for younger workers. The increase by 5% for such workers is the largest in 10 years.

[David Linden]

Will the hon. Gentleman give way?

[Luke Graham]

No.

The Budget has introduced a new railcard for 26 to 30-year-olds, helping those already in work and progressing their careers. It also addresses some of the issues raised by me and other hon. Members about the implementation of universal credit. It builds on the Government’s record on jobs and our success in lowering corporation tax, which has encouraged businesses while bringing in a record £55.6 billion to use in tackling the deficit and investing in our public services.

The Government’s action on tax evasion and compliance has been furthered in the Budget. As a member of the Public Accounts Committee who sat through its hearing on VAT fraud, I welcome the Chancellor’s measures to extend HMRC’s powers to make online marketplaces jointly and severally liable for the unpaid VAT of overseas traders on their platforms. That move that will bring about greater equity for British traders and increase our tax take.

The Budget was good in introducing measures to support all the regions and nations of the United Kingdom. I was pleased that the Chancellor was able to deliver approximately £35 million a year extra for police and fire services in Scotland, changing regulations to undo the damage done by the SNP, because of its obsession with centralisation, that has cost police and fire services in Scotland £140 million. It was warned and advised not to take such action, and even Conservative colleagues in Holyrood changed their position when they saw the costs of centralisation and the impact it would have on services. Despite that, it has taken Westminster to fix the problem—but that is the benefit of being four nations, but one country united together.

[Luke Graham]

It is true that there has been a good story for lower unemployment, and it shows that the Government’s financial and industrial strategies compare very favourably with the SNP’s lack of an education strategy, and certainly its lack of a health strategy. Scotland has gone from No. 1 to No. 3 on education in the United Kingdom.

I was pleased to hear the Chancellor confirm the Treasury’s commitment to the Tay Cities and Stirling and Clackmannanshire city deals, which will have a transformative impact on the two council areas in my constituency. They will bring investment to South Perthshire, Kinross-shire and Clackmannanshire. I am supporting proposals from community groups and businesses to boost long-term economic activity in my constituency.

Spirits are also very significant in my constituency. I have 20% of maturing Scotch whisky in my constituency, so hon. Members might want to come and visit. Last week’s freeze in duty not only reassured the industry domestically, but signalled internationally that the UK will support its home brands and is ready for more international trade. [Interruption.] If the hon. Member for Glasgow East (David Linden) wants to intervene, he should stand up. I believe that having Scotch whisky in the vanguard will lead to more productive trade meetings with colleagues from around the world.

Opposition Members have made increasing criticisms of the Government in virtually every area of policy. While there has been criticism, there have been very few constructive alternatives. The Budget tackles honestly some of the tough challenges we face, for example by lowering growth forecasts to face the global and domestic reality while putting in place practical measures, such as £2.3 billion for investment and research to tackle our productivity problem. All these positive measures have been constructively argued for and delivered by Conservative Members.

[David Linden]

Given the amount of influence that the hon. Gentleman says the Scottish Conservatives have at Westminster, what is he doing about asking the Chancellor to abolish the two-child policy and rape clause?

[Luke Graham]

That is not the topic for this debate. We have seen such influence, and we have delivered. We have delivered the VAT back for the police, and we have delivered on transferable tax histories. We have done more in six months than SNP Members have managed to do in two and a half years, and certainly a lot more than the SNP has managed to do in its 10 years in government at Holyrood.

The Budget does not deliver everything, but it takes steps to address domestic challenges and to ensure that we are ready for more international competition. For the students in my constituency, it shows that a difference can be made in politics—and a positive one at that.