Cost of Living
Douglas Ross Excerpts(11 months, 1 week ago)
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Mhairi Black
I do not see what I said that was not true, Madam Deputy Speaker, but I take it.
As I said, there is an element of truth in that covid has had a big impact, and the war in Ukraine has also had a global impact on energy supplies. However, unexpected events and conflicts will always occur, which is precisely why it is so important that we have Governments that plan in advance and think long-term to make decisions that will build our resilience in the face of the unforeseen.
The events in Ukraine only exacerbate the fact that the UK has not had a sensible energy policy for more than 30 years. Scotland has heard this song many times before; we have endured this kind of mismanagement for years. We are one of the only countries to discover oil and somehow get poorer, whereas comparable countries such as Norway sought to treat oil as a national asset to be used in the national interest, and invested it in a sovereign wealth fund that is worth over £1 trillion today. Similarly, in the 1980s, Denmark and the UK both had similar scale renewable wind programmes. Denmark chose to heavily invest in that sector, whereas the UK focused primarily on the cheapest and quickest option. If we fast-forward to 2016, we find that Denmark’s wind exports were worth over €7 billion, but the UK had wind exports of less than half a billion. It is like “Bullseye”: here is what you could have won.
Douglas Ross
The hon. Lady is speaking about energy policy. Does she agree with the SNP-Green Government’s policy on a presumption against new oil and gas fields in Scotland? [Interruption.]
Mhairi Black
As someone has said behind me, for a start, I would say that I am totally against nuclear. [Interruption.] I am about to answer the hon. Member’s question, but that is exactly what he wants. On what the Scottish Government are doing, I am very proud of the coalition Government and the fact that they are investing their money in places that make sense—they are investing towards a just transition. The hon. Member will like this point: the only sector in the UK that has made profits comparable with Denmark’s wind sector is the arms industry, at €7.2 billion. There is a political decision for you: our Government would rather fund weapons that bring death and destruction than fund industries that might just help secure life on this planet in the future.
Political choices matter, not just in facing the problems of the day, but to plan for a future worth living for. Again, this dangerous Government are making bad decisions.
Douglas Ross (Moray) (Con)
I will start with some reflections on the remarks made by the deputy Westminster leader of the SNP, the hon. Member for Paisley and Renfrewshire South (Mhairi Black), in opening the debate. She was critical that there was only one Back-Bench Conservative MP speaking in the debate. I was then reminded how, in a recent Holyrood debate led by the Conservatives in the Scottish Parliament on highly protected marine areas, the nationalist Benches behind the Minister were empty, despite it being a crucial issue for coastal communities up and down Scotland. When we debated the deposit return scheme, which is an absolutely dangerous scheme for businesses in Scotland, where were the nationalist MSPs that day? They did not turn up.
I have counted the number of SNP MPs in their places, and less than a quarter of the parliamentary party is here for its own debate on an issue that it says is crucial. I also noticed how the SNP’s Westminster leader, the hon. Member for Aberdeen South (Stephen Flynn), and his predecessor, the right hon. Member for Ross, Skye and Lochaber (Ian Blackford), were here for the opening speech and then left. I am not sure whether they are out on the Terrace getting another picture to show us all how well they get on, but they did not stay in the Chamber for the debate.
Hywel Williams (Arfon) (PC)
This is the UK Parliament. Will the hon. Member explain why no Tory MPs from Wales are here to speak this afternoon?
Douglas Ross
There are a lot of Conservative MPs from Wales, and I am sure that they are busy in other parts of the House. [Interruption.] Well, there are certainly more Tory MPs from Wales than Plaid MPs. When the SNP—[Interruption.] Yes, you are the only Plaid MP in the Chamber.
Madam Deputy Speaker (Dame Rosie Winterton)
Order. Will the hon. Member direct his comments through the Chair, please?
Douglas Ross
Thank you, Madam Deputy Speaker. I will not do it again so that you do not have to interrupt with a sweetie in your mouth.
There are opportunities for SNP MPs to speak throughout the debate, and they have not turned up. Three quarters of them are not here for the debate; they have refused to be here. This is an important debate, and there are lots of issues that we need to discuss, but many other topics could have been chosen by the SNP. When I was waiting for the motions to come in last night, I thought that we might have a debate about what our two Governments can do together to improve the lives of young people in Scotland, because that is a crucial issue. Just this week, we heard that the former Children and Young People’s Commissioner for Scotland, Bruce Adamson, said that the previous SNP leader at Holyrood had “absolutely” failed young people.
I thought that was the most extraordinary thing that we had heard on the subject—and it was until, in response to the intervention by my hon. Friend the Member for Bosworth (Dr Evans), who quoted those comments, the hon. Member for Kilmarnock and Loudoun (Alan Brown) said, “Woo hoo—the big dog.” Is that the official SNP position on the previous Children and Young People’s Commissioner for Scotland rightly being critical of the abject failure of the hon. Member’s party in government for young people in Scotland?
Alan Brown
I know that a lot of people down here pretend that they cannot understand what I say because of my accent. It is quite embarrassing if the hon. Member does not understand what I said. I did not say words remotely close to that, so he can withdraw the remarks.
Douglas Ross
I am happy to give way again to the hon. Member if he will tell us what he was saying about the former Children and Young People’s Commissioner for Scotland. If I have got it wrong, please tell the House what you said.
Madam Deputy Speaker
Order. Please, do not refer directly to others. I think that the hon. Member for Moray (Douglas Ross) was asking whether the hon. Member for Kilmarnock and Loudoun (Alan Brown) would like to clarify what he was saying.
Douglas Ross
I will clarify that the hon. Member for Kilmarnock and Loudoun said, “Woo hoo—big dog.” That was his impression of the former Children and Young People’s Commissioner for Scotland. If that is not what he said, there is an opportunity for him in the Chamber to tell us what he thinks about the former commissioner. No? I think that maybe I wrote it down correctly at the time. I also noted how the hon. Member for Glasgow East (David Linden) whispered to the hon. Member for Kilmarnock and Loudoun not to intervene again, and I can see why. I do not think that anyone wants to hear any more from him on this.
We could have been discussing that issue, or we could have been discussing ferries. Of course, the UK Government have promised the people of Shetland and Fair Isle a ferry, which has not been made available by the Scottish Government. Of course, when the Scottish Government and the SNP get involved in ferry building, they go massively over budget and behind schedule. The ferries that the people in the Western Isles urgently need are five years overdue.
We could be speaking about drug deaths in Scotland. Again, our two Governments could work together to deal with that crucial issue, yet under the SNP, drug deaths in Scotland are not just the highest in the United Kingdom but the highest anywhere in Europe.
The last issue that I thought we could have been speaking about today was Scotland’s tourism. Many SNP MPs represent rural areas. I wonder if they do not want to speak about camper vans—is that why we cannot look at tourism? Perhaps we could have used the debate to hear whether any SNP Members have ever been in the now infamous camper van. It was apparently bought for the purpose of electioneering for their seats here. Did any of them get in that camper van? Did any of them know about the camper van? We could have discussed that.
Of course, we are looking at the crucial issue of the cost of living crisis in Scotland and across the United Kingdom. We did not hear a word from the SNP about the UK Government’s intervention, with £94 billion provided to help people in every part of the country to meet the challenges of the difficult period they have been experiencing. The autumn and spring statements delivered an additional £1.8 billion to the Scottish Government to help individuals, families, businesses and communities through this difficult time; it was the highest budget that the Scottish Parliament has ever had to deal with these issues. What response do we get from the SNP? It makes up falsehoods about its own interventions.
Less than a year ago, the SNP was claiming that it had put forward and spent £3 billion in response to the cost of living crisis in Scotland. That is the huge figure that the nationalist Government in Holyrood said they had spent to help people through that difficult and challenging time. The only problem for the SNP is that the figure is not true. The Scottish Parliament Information Centre has said that the actual figure is £490 million. The biggest chunk of the £1 billion that the SNP said it used to deal directly with the cost of living crisis was to implement a policy that was part of a platform that the SNP stood on back in 2014. It was Government policy since 2014, but last year it was included in the sums so that the SNP Government could suddenly claim that they were doing far more than they were. We need a bit of realism from the SNP and its Members.
Stephen Kinnock (Aberavon) (Lab)
On realism, Labour Members feel strongly that the best way to address the cost of living crisis is to have a Labour Government, which would involve Scottish voters voting Labour. Does the hon. Gentleman agree that voters in Scotland should vote Labour?
Douglas Ross
Let me be clear. The sole Labour MP from Scotland is in the Chamber. There are six Scottish Conservative MPs and, in huge parts of Scotland, the Scottish Conservatives are the greatest challengers to the SNP. We proved it in 2017, we proved it in 2019 and we will prove it again in 2024.
I was also making the point about the biggest issue—[Interruption.] Well, Labour Members are speaking a lot. I am very interested in how they will vote today. I am not sure whether they will support the Government amendment or the SNP motion. Or will they do what they normally do: sit on the fence and not take a position? We will find out quite soon. [Interruption.] I am happy to give way to the shadow Secretary of State for Scotland Secretary. No? We will see how it goes at decision time.
Marion Fellows (Motherwell and Wishaw) (SNP)
Could I gently say to the hon. Gentleman that decision time happens in the Scottish Parliament? Maybe you are there more often than you are here.
Madam Deputy Speaker
Order. We have got to stop addressing people directly. The hon. Lady is very experienced and knows how she should address people. We cannot have these conversations going on down the far end of the Chamber.
Douglas Ross
The point I was moving on to is that there is not a single mention in the SNP motion about the oil and gas industry, heating homes, and making sure people have affordable energy in their homes and businesses. [Interruption.] The hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) says we should wait for his speech, but why not put it in the motion? Of course, the SNP cannot speak about oil and gas because it is in government in Scotland with the extremist Greens, who are against the oil and gas industry. The only reference to it in the opening speech by the hon. Member for Paisley and Renfrewshire South was in response to my intervention. I asked specifically about oil and gas, but I got an answer about nuclear. The SNP has given up on the north-east of Scotland and the 100,000 people employed across the UK in the oil and gas sector, because it would rather have the Greens in government and be anti-oil and gas. It would rather import oil and gas from other countries with a higher carbon footprint and a higher cost than support our oil and gas industry and those who work in it in Scotland.
Another issue that leads to problems with the cost of living in Scotland is taxation. Scotland is the highest taxed part of the United Kingdom. Indeed, the Scottish Fiscal Commission estimated that the divergence of Scottish taxation from the rest of the United Kingdom between 2017-18 and 2023-24 means that people in Scotland will have paid £1 billion more in taxation than their counterparts in the rest of the United Kingdom—£1 billion more in tax because the SNP has made Scotland the highest taxed part of the United Kingdom.
The SNP often likes to claim that the majority of working Scots pay less income tax than those south of the border. That has now been proven to be completely false. [Interruption.] I am sorry if I am keeping up the hon. Member for Glasgow East, but his constituents are paying more tax in Scotland because of decisions his Government have taken. If he thinks that is something to yawn about, I am pretty sure his constituents do not.
By not increasing tax thresholds with rising salaries, the Scottish Government have confirmed that anyone earning more than £27,850 in Scotland will pay more tax than those in the rest of the United Kingdom. We have calculated that the average Scot will earn £29,095 in 2023. Because of SNP policies and the taxation plans of the SNP Government at Holyrood, we are all paying more in taxation—more than £1 billion over that period. The majority of Scots and the majority of constituents represented by SNP MPs will be paying more in taxation because of the decisions taken by the SNP Government at Holyrood.
Ian Murray
The hon. Gentleman is rightly pointing to the high tax burden. I think he said—I apologise if I am paraphrasing—that we have the highest tax burden in Scotland because of decisions made by the Scottish Government. Does he therefore agree that we have the highest tax burden on working people in the last 80 years across the UK as a result of his own Government’s decisions?
Douglas Ross
I know we cannot have that conversation. The hon. Gentleman mentions 80 years. I am not sure what timeframe he is speaking about, but I was looking at the Scottish Fiscal Commission, which looked at the differential from 2017-18 to 2022-23. It said that people in Scotland paid £1 billion more in taxation than they would have done if they lived elsewhere in the United Kingdom. That is a damning indictment of the Scottish Government, who are not interested in growth and not interested in supporting people through the tax system. They are now making sure that a majority of Scots pay more in tax than people elsewhere in the country.
The final point I want to focus on is growth. The Government amendment rightly prioritises growing the economy. Of course, that also could not be included in the SNP motion because it does not support economic growth. It has brought Ministers into the Scottish Government from the Green party to serve alongside its own Ministers, and the Greens—they are quite open about this—are anti-economic growth. They do not believe in it. But we need our economy to grow. We need a growing economy to pay for the services that people across Scotland and across the United Kingdom rightly want and expect.
We also know that GDP grew more slowly in Scotland than in the rest of the United Kingdom during the period when Nicola Sturgeon was in office. From 2014 to 2021, GDP grew at a slower rate in Scotland than in other parts of the United Kingdom. The SNP has always been anti-economic growth. It has shown that with its previous policies and its previous performance. Now, by bringing the extremist Greens into the Government, it is continuing on that trend.
When we speak about the cost of living crisis and the issues affecting all our constituents, I hope that the SNP reflects more on what it could and should be doing with the powers and the finance it has in the Scottish Parliament. It should be looking to the future to grow Scotland’s economy and ensure we can fulfil our potential for all of Scotland, our constituents and our businesses. If we had a Government who were more focused on economic growth and on delivering for the people of Scotland, rather than on division and independence, Scotland would be a lot better off. I hope we will soon see the SNP Government in Scotland suffer for their repeated failures over 16 years, letting down young people, letting down taxpayers, letting down the health service, letting down education and letting down the justice system. This is a Government in Scotland who are tired and out of ideas. The sooner they are replaced, the better.
Dave Doogan (Angus) (SNP)
Poverty fuelled by the Tory cost of living crisis is a scourge on all communities. I am certain that right hon. and hon. Members across the Chamber have done their best to mitigate the effects of that Tory cost of living crisis and the poverty that it inflicts on constituents—that is, after all, what we are paid to do. That must be pretty awkward for those on the Government Benches, but I am sure that they do it. I see those effects as a constituency MP and I saw them before as a local councillor working to try to help people in the most difficult circumstances.
Most of us in this place will understand that education is the route out of poverty, but that is made all the harder when the macroeconomic position in which people find themselves is set up against them.
Douglas Ross
The hon. Gentleman mentioned education. How does he view the defining mission that Nicola Sturgeon set to completely eradicate the attainment gap in Scotland? Was it a success or not?
Dave Doogan
As much as it pains me, I credit the hon. Member with a little more wit than that. If he thinks that 300 years of this Union and its effect on the people of Scotland—particularly the poorest—can be eradicated in a decade, he is more naive than I thought. He likes rhetoric, but he is not so keen on facts. My colleagues in the Scottish Government are sighted on the challenges of closing the attainment gap and are doing the right thing by our young people, but real life is much harder than that.
What Governments can do—particularly constrained Governments such as that of my colleagues, who exist under the profoundly suboptimal circumstances of devolution—is pull on the levers of investment in education. The hon. Member for Moray (Douglas Ross) might like to know that the Scottish Government invests £1,758 per child in Scotland, compared with England’s £1,439. In Scotland, his constituents in Moray will enjoy a far higher teacher-pupil ratio than elsewhere in the United Kingdom. In Scotland, there are 7,573 teachers per 100,000, versus England’s 5,734 per 100,000. That is a substantial difference. He might be keen to know that, when a teacher qualifies in Scotland, they will attract a remuneration of £33,729, whereas their colleagues in England will be on £28,000.
Douglas Ross
The hon. Gentleman is speaking about access. What do his Angus fishermen think about the SNP-Green plans for highly protected marine areas taking 10% of Scottish waters away? Does he support them or does he agree with his Government’s policy?
Dave Doogan
The nub of the hon. Gentleman’s question was whether I support the fishermen of Angus; I would have thought it was patently obviously that I do. In direct answer to his question about highly protected marine areas, the Scottish Government have been very clear—maybe he was down here, juggling jobs, when he should have been up in Scotland listening in his other job—that any community that does not wish to have a highly protected marine area will not have to be subject to it.
Drew Hendry
My hon. Friend is exactly right that it starves communities, and, worse than that, it starves families—it starves children. It starves people of the opportunity we could give them, because we do not have the advantages that we should and would have if we had the powers to make the decisions we need to make.
Drew Hendry
No, I am about to conclude.
The supports that I have laid out are the kinds of policies that we put in place in Scotland to try to help and to mitigate measures such as the bedroom tax.
David Linden
I would caution my hon. Friend not to take absolutely seriously any commitments made by the Liberal Democrats in the run-up to a general election. The Labour party has been taking a leaf out of Nick Clegg’s book when it comes to tuition fees in the run-up to a general election. Perhaps the hon. Member for Edinburgh West will have that on her next leaflet.
My hon. Friend the Member for Arfon (Hywel Williams) spoke about energy, and my hon. Friend the Member for Paisley and Renfrewshire North (Gavin Newlands) spoke passionately about businesses in his constituency and the impact that Brexit is having on them.
My little heart was cheered when the hon. Member for Leicester East (Claudia Webbe) got to her feet to take part in the debate. It was only about five minutes into her speech that I realised that she is not a member of the Labour party any more, so we could not tick off her speech as a Labour contribution. The debate was finished off by my hon. Friend the Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry), who spoke about a number of issues including fuel poverty in the highlands, which has been a massive issue.
David Linden
Probably not.
There is a common theme this afternoon, especially from colleagues on the SNP Benches, which is borne out by what we are all hearing on the doorsteps. In short, that theme, which comes up time and again, is that Scotland can no longer afford to be tied to an intransigent British Government who are ploughing on with Brexit at any cost. It is clearer than ever that we need independence, so that people in Scotland can stop paying the price for disastrous decisions made here in London by a Government Scotland did not vote for. Indeed, we have not voted for the Tories since 1955.
We should be clear that the cost of living crisis is not necessarily a new thing. Yes, it has got worse, but for many of those I represent in Glasgow’s east end, it has been a permanent fixture in their lives due to Westminster’s inability to truly tackle structural inequality. In short, the cost of living crisis is the culmination of 13 long, brutal, cold years of austerity policies, compounded by Brexit and last year’s kamikaze Budget, which crashed our economy and trashed the Tories’ record on economic credibility.
Let us look at the backdrop against which today’s debate takes place. In this, the sixth richest economy in the world, baby formula is now security tagged. It is now put behind tills to avert mothers stealing milk to feed their children. Now, if that is the image Ministers wish to project when it comes to global Britain, then it is certainly a look—I will give them that—but it would be remiss of me, when we focus on supermarkets and retailers and discuss the cost of living crisis, not to look at the issue mentioned in the motion before the House today. I ask Members to think very carefully about what is in the motion. It deals with price gouging, which was not referred to by either Front Bencher, and the need for tougher action on what has been dubbed “greedflation”.
We believe Ministers should follow the lead of other European countries to bring down the price of food and other necessities, a view supported by many of my constituents who are absolutely baffled as Westminster stands idly by while food prices continue to skyrocket. For example, France introduced a price block on staple products, with supermarkets pledging to keep the prices of certain food and hygiene products as low as possible. It is precisely for that reason that the British Government must intervene and put pressure on major retailers to pass on falling wholesale prices to consumers. More than that, it is vital that the Competition and Markets Authority utilises its full powers and imposes maximum fines where evidence of price gouging is found. Profiteering from selling basic necessities is unjust at any time, but at a time when numbers—record numbers—of people are turning to food banks and skipping meals, it is simply abhorrent.
The Bank of England recently found that falling costs at some companies were
“not automatically being passed through to consumer prices in an attempt to rebuild profit margins”.
Indeed, it was revealed just on Friday that the chief executive of Tesco received a £4.4 million pay packet last year. Ken Murphy was given a base salary of £1.37 million and received £2.73 million in an annual bonus, making around 197 times the amount of the average Tesco worker. That is the level of inequality we have baked into a system that is broken, and broken beyond repair. When I go to Tesco in Shettleston, the very many people I bump into there are shocked at the idea of a boss coining in £4.4 million, when many of them are trying to work out what they can remove from their basket so they have enough to get by.
Of course, stubbornly high inflation extends to so much more than food. Each week on the doorsteps, constituents tell me how they have resorted to rationing baths and showers simply to save on energy costs. That my constituents live in an energy-rich nation but experience eye-watering levels of fuel poverty is a damning indictment of just how ridiculous the situation has become and why change is desperately needed. But we know all that is exacerbated by Brexit, a Brexit Scotland rejected yet has had foisted upon us against our will. Indeed, it is the only nation of these islands to have been so royally screwed over as a result of the 2016 referendum.
We all know from bitter experience that the slogans on the sides of buses were nothing more than empty rhetoric. In 2016, the right hon. Member for North East Somerset (Mr Rees-Mogg) slammed the Resolution Foundation’s findings that food prices would increase as a result of Brexit as “ridiculous”, and claimed that the price of food would go down. What is more, last year he suggested that the rules that the British Government followed while part of the EU made life harder for small businesses and increased the costs of operating. That is an entirely false claim. The hard Brexit that Ministers pursued has made life harder for food exporting and importing businesses. Do not take my word for it. Nick Allen, chief executive of the British Meat Processors Association, told The Independent that the extra burden of new paperwork and fees will see some small specialist importers struggle to survive. We know the price of Brexit, and it is one that Scotland cannot afford to pay.
The OBR predicted in March that the UK’s GDP would fall 4% as a result of Brexit, with trade and exports reducing by 15%. Figures recently released by the ONS show that the UK economy contracted 0.3% in March, making it the worst performing economy of the G7, and the only G7 economy to experience negative economic growth. Last Thursday, the Bank of England raised interest rates to 4.5%, in the 12th consecutive rise. Many of our constituents coming off a fixed rate are watching hundreds of pounds being added to their mortgage bill as a Tory premium, simply for the pleasure of having an incompetent Westminster Government that Scotland did not vote for.
The Conservative party inflicting economic pain is hardly a surprise to my constituents—it is probably why we have not had a Conservative MP in the east end for over 110 years. But what of the Labour party, off to my right? I mean that in more respects than one. In the Labour party, we have nothing more than a pound-shop Tony Blair tribute act, devoid of ideas and lurching ever further to the right in a desperate scramble for the votes of Tory English market towns.
On the biggest issues of the day that have caused economic harm to these islands, the Labour party has nothing to say: on immigration policy, more of the same; on Brexit, more of the same; on social security, more of the same. I therefore say to the hon. Member for Edinburgh South (Ian Murray) that simply hoping that the Tories run out of steam and that the keys to No. 10 Downing Street land in the laps of Starmer and Streeting is no vision to enthuse electors.
In my constituency, voters are clear that they want Brexit binned. They want their MP showing solidarity with public sector workers striking for fair pay. They want a social security system that provides a safety net. And yes, unashamedly, they want an immigration system not driven by focus groups and dog-whistle politics but responsive to our small island nation and its economic needs. Those are the challenges that Scotland faces today.
By failing to support today’s motion on the biggest issue of the day, Labour and the Tories are simply showing Scotland that it stands at a fork in the road. The choice could not be clearer: Scotland can veer off to right with the full-fat Tories or the diet Tories and pursue yet more economic self-harm with Brexit and austerity, or it can veer left by voting yes to independence, to rejoining the European Union and to unhooking itself from the economic bin fire that is the United Kingdom. On that basis, I commend the motion to the House.
Alcohol Duty
Douglas Ross Excerpts(1 year, 4 months ago)
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James Cartlidge
The hon. Lady makes an important point. We are aware of the importance of energy costs. I was absolutely clear just now that we will report in the new year. It has taken slightly longer than expected. These are complex matters. It is complex enough to put in place household support. Non-domestic support is particularly complicated because of the huge range of businesses involved. However, let us be clear what is happening: six months of support since October, worth £18.1 billion for businesses, including pubs, distillers and breweries, with their energy bills. That is huge. Of course, I know that people want to know what happens next and in the new year we will come forward with the results of our review.
Douglas Ross (Moray) (Con)
It is encouraging to hear support from across the House for these duty reforms, which were originally announced as a manifesto commitment at Roseisle distillery in my constituency. Of course, Moray is home to more Scotch whisky distilleries than any other constituency in the House. [Interruption.] As my hon. Friend the Member for Milton Keynes South (Iain Stewart) says, many are very good ones. I have been pressing both the Chancellor and the Prime Minister to maintain the freeze on duty for Scotch whisky for as long as possible, which is important for the entire industry and the jobs that rely on it. Will the Exchequer Secretary take on board what the Father of the House said? When it comes to the Budget in March, will the Government listen to the industry, which has time after time proven wrong Treasury officials who predicted that an increase in duty would increase revenue to the Treasury? In fact, a freeze in duty increases revenue to the Treasury and it would be welcome to see that continuing.
James Cartlidge
I am extremely grateful to my hon. Friend, who speaks with great knowledge on these matters. He has been a consistent champion for the Scotch whisky industry, standing up for it in this place, whether on tariffs or duties. I know that he was lobbying the Chancellor and the Prime Minster to continue the freeze, so I hope that he is pleased with the result. On what happens going forward, I will engage with the Scotch whisky industry and indeed all the other alcohol sectors. The clear point is that the extension of the freeze is good news for every single sector and I hope that colleagues welcome that.
Cost of Living Increases
Douglas Ross Excerpts(2 years, 2 months ago)
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David Linden (Glasgow East) (SNP)
I beg to move,
That this House notes there is a cost of living crisis hitting homes across the UK; regrets the UK Government’s current plan of reductions in certain benefits and tax rises coupled with rising costs of the UK leaving the EU; is concerned that the UK has the worst levels of poverty and inequality in north west Europe and the highest levels of in-work poverty this century; and calls on the Government to take immediate action with a package of measures to boost incomes and reverse rising poverty, including reinstating the £20 universal credit uplift, introducing a Real Living Wage of at least £10 an hour, introducing an energy payment for low income households, and matching the Scottish Government’s Scottish Child Payment for families across the UK.
Normally, during an Opposition day debate the Tories will berate Opposition parties for not dealing with the issue of the day, crying distraction and somehow suggesting that the discourse in this place of those on the Opposition Benches is focused solely on the interests of the SW1 chatterati, not what matters most to our constituents back home. However, today of all days, not least in the light of what Lord Agnew has just done along the corridor, that seems somewhat ironic, given that the Tories themselves are engaged in a civil war and are besieged by paralysis, with a Prime Minister who might be in office, but is certainly not in power. Let us be clear that we have a British Government and Prime Minister who are so focused on saving their own skins that they are neglecting to get on with the day job; indeed, they are overlooking the biggest issue of the day: the cost-of-living crisis.
The impact of the cost-of-living crisis is far-reaching, but as constituency MPs, we know that it is certainly impacting the poorest and most vulnerable members of society, and yet this British Government indulge in navel-gazing, while our constituents are stuck in the middle of an economic tornado. Simply, the Tories are more focused on saving “Big Dog” than on saving our constituents’ money from spiralling energy bills, and more focused on Operation Red Meat when our constituents can hardly afford red meat, as inflation causes the average supermarket shop to skyrocket.
Like most Scots, I think that the Prime Minister is utterly unfit for office and should have resigned long ago.
Douglas Ross (Moray) (Con)
The hon. Gentleman just spoke about the Government navel-gazing and having the wrong priority. Does he therefore agree that Nicola Sturgeon has absolutely the wrong priority? She was on TV again yesterday, saying that she is going to kick-start yet another campaign for independence, at a time when we should be focused on the economic crisis, the energy crisis, affecting all our constituents?
David Linden
I am grateful to the hon. Gentleman for his intervention. I have great respect for him, and I only wish that that was extended to him by the Leader of the House, who I think said he was a “lightweight”. The reality is that the people in Scotland have voted in successive elections to put Scotland’s future in Scotland’s hands, to ensure that the likes of the Prime Minister and the Chancellor, who are posted missing, do not have the economic levers that are causing such distress just now.
Douglas Ross (Moray) (Con)
I will begin by picking up a few remarks made by the hon. Member for Glasgow East (David Linden) in opening the debate. First, he criticised the Chancellor for not being here. I apologise for any harm that this does to his career, but I must say that I am delighted that my right hon. Friend the Chief Secretary to the Treasury spoke for the Government in these opening speeches. It did irk me slightly that the hon. Gentleman felt he should highlight that the Chancellor was not here, because I remember being in Holyrood in the Scottish Parliament just a few weeks ago when—[Interruption.] SNP Members can laugh at this if they want, but we were discussing kids dying at the Queen Elizabeth University Hospital, and I led for the Scottish Conservatives, Anas Sarwar led for Labour and Alex Cole-Hamilton led for the Scottish Liberal Democrats. Every party leader turned up to that debate with the exception of Nicola Sturgeon, who is the local MP in Glasgow and was the Health Secretary when that hospital was created. She has many questions to answer, but she could not even turn up to a debate about that. Not only that—she could not even be bothered to vote. When SNP Members pick fights and say who should or should not respond to these debates, they should remember what their own leader does in Holyrood.
Secondly, the hon. Member spoke about groundhog day. We are in groundhog day in Scotland because, in the run-up to another party conference and elections, we have got Nicola Sturgeon and the SNP yet again speaking about Scottish independence. She was on the TV yesterday saying that she is putting civil servants to work to get ready to fight the case for another independence referendum. Businesses in Scotland are still struggling as a result of restrictions put in place by the SNP. Even the hon. Member for Perth and North Perthshire (Pete Wishart), who is no longer in his place, said it was a fair point that they went too far before Christmas, yet Nicola Sturgeon thinks that now is the right time to recharge her efforts to separate Scotland from the rest of the United Kingdom. That is the wrong focus, and it is groundhog day all over again.
Finally, the hon. Member for Glasgow East spoke about the economy and currency. The SNP Benches are very full, so I want to ask SNP Members this once more. They all support independence and want to separate Scotland from the rest of the United Kingdom, so who on the full SNP Benches can tell me what currency an independent Scotland will have? I will give way to the hon. Member for Coatbridge, Chryston and Bellshill (Steven Bonnar), who put up his hand—we stand up in this place.
Steven Bonnar (Coatbridge, Chryston and Bellshill) (SNP)
We will use our currency—the Scottish currency—the Scottish pound.
Douglas Ross
The Scottish pound—there we go. That has answered all the problems. There are no concerns about what the Scottish pound would be or when it would be introduced. I think that the muted response of the hon. Member’s colleagues tells him that that was not the best intervention to make. Yet again, none of them can answer that question. I have asked them many times before, but none of them can credibly say what currency an independent Scotland would have. I think that is telling.
Douglas Ross
They are all excited now. I will give way to the hon. Member for Livingston (Hannah Bardell) in a moment, but we are speaking about the cost of living crisis and the SNP leader in Scotland wants to start the campaign to separate Scotland all over again. If Scotland were to separate from the rest of the United Kingdom—which I hope never, ever happens—surely the SNP can tell us what an independent Scotland’s currency would be.
Hannah Bardell
I am sure the hon. Gentleman will be pleased to know that in the run-up to the independence referendum in 2014, we offered the public in Scotland more information about the currency alone than his party offered voters across the UK on the whole Brexit debate.
Douglas Ross
I note, having asked the hon. Lady to tell me what currency an independent Scotland would have, that she failed to do so. She did, however, mention the White Paper, which was very detailed. It said that oil would be worth $114 a barrel. I am not sure that oil ever achieved that figure; it is certainly not worth that much at the moment. I really do not think that the White Paper is a strong argument for the SNP to focus on, but—
Mr Deputy Speaker (Mr Nigel Evans)
Order. I know that the hon. Member is having fun, but this is about the cost of living increase and not some possible referendum in Scotland, so could we get back to the subject matter, please? [Hon. Members: “Hear, hear!”]
Douglas Ross
SNP Members are cheering because they are hoping that I move on very quickly. Like any good official, I will follow the rule from the referee and agree to do so. However, I think that many people in Scotland will be watching and will have heard that not a single SNP Member was able to answer such a crucial question for Scotland’s future.
I welcome the opportunity to discuss an important issue for my constituents in Moray and for constituents across Scotland and the United Kingdom. Households are struggling with the rise in global energy prices; with inflation as a result of spending decisions taken by Governments across the world, including this Government, who have invested £315 billion to get us through the global pandemic; and, of course, with rising prices of essential items such as food because of continued supply chain issues, again as a result of the pandemic.
Douglas Ross
I have given way quite a few times—[Interruption.] Okay, I am happy to give way, but my answer to the hon. and learned Lady will be that, as the Chief Secretary to the Treasury has said, this is a global problem. We are seeing problems with shortages—[Interruption.] She says that she has not asked the question. I am about to give way, but I am pretty sure that her question is going to be about the British Retail Consortium and the points it has made, because she has asked it three times already.
Joanna Cherry
Clearly the hon. Gentleman, having been described as a lightweight by his colleagues, is planning a future career as Madam Zelda looking into a crystal ball, because he seemed to think that he knew what I am going to ask.
The hon. Gentleman’s constituents in Moray, like mine in Edinburgh South West, will have noticed a very significant increase in food prices in supermarkets. The British Retail Consortium—I know how much he loves British things—says that labour shortages, including shortages of HGV drivers and warehouse workers in the supply chain, are contributing to those increased prices. Many commentators have said that the red tape on food imports from the EU is contributing to those increases, too. In the interests of the hon. Gentleman’s constituents and mine, and given his lofty standing—in the Scottish Conservative party, at least—will he tell us what request he has made of the Treasury to assess the impact that leaving the European Union in the middle of a global pandemic will have on the cost of living crisis?
Douglas Ross
It turns out that that was exactly the same question and the same point that the hon. and learned Lady has already made three times. She mentions the British Retail Consortium, but she also has to accept that there have been labour shortages and driver shortages in other parts of the European Union, the United States and many other parts of the world. I understand that it fits her narrative to paint her question in that way, but we also have to remember that these are global issues that Governments across the world are having to address.
Governments in this country have to think carefully about the effect that their policies have on family budgets. That is why I was amazed, but sadly not surprised, that there was not a single mention in the SNP motion calling on the nationalist coalition of the SNP and the Greens in Holyrood to take some decisions itself that could make an immediate and direct impact on the cost of living in Scotland. The SNP motion that we are debating makes reference to tax rises, which is very interesting given that for the past decade and a half SNP colleagues have been running the country that is the highest-taxed part of the United Kingdom. [Interruption.] The hon. Member for Na h-Eileanan an Iar (Angus Brendan MacNeil) says it is about the rich, but it is not; it is about the 1.1 million Scottish taxpayers who earn more than £27,393. That is not rich; that is 1.1 million people across Scotland. Those who earn just over £27,000 are not the rich; people across Scotland are being punished by SNP decisions.
David Linden
It is reassuring that at least today the mantra from the Tories is that Scotland is the highest-taxed part of the United Kingdom, because sometimes we are told we are not doing anything with our tax powers.
To go back to the point of what we are doing for people on low incomes, the hon. Member will know that the regressive tax hike in national insurance will take away 20% of the pay increase for a band 5 nurse in Scotland. Does he support the Government’s plans for a tax hike in national insurance?
Douglas Ross
I have listened carefully to the hon. Gentleman, and I make this point: the tax rises that his Government are introducing in Scotland have made Scotland the highest-taxed part of the United Kingdom, and that is affecting nurses, teachers and police officers. That is who it is affecting right now in Scotland.
Ian Murray
Does the hon. Gentleman think that his Government’s national insurance tax rise in April helps or hinders that?
Douglas Ross
We have been clear, as my right hon. Friend the Chief Secretary to the Treasury said, that the Government have taken a difficult decision to focus that vital funding on health and social care—an issue that has not been grappled with for decades by parties on either side of the Chamber. It certainly has not been grappled with by the Scottish Government. Sometimes difficult decisions must be taken to ensure that we have a health service and support for older people in this country that has not always been available.
The hon. Member for Glasgow East mentioned local government, and I suddenly got excited, because I thought we were finally going to hear an SNP politician standing up against the disastrous cuts that Nicola Sturgeon and the SNP are imposing on local government, but he said “local government”—Hansard will show this when the report is published—and then did not say another word. The SNP has the highest ever block grant since devolution. Since 1999, more money than ever before has been going from the UK Government to the Scottish Government, and what do they do to local councils? They cut the local government budget by £371 million. That is a cut from the SNP Government to local government, when the UK Government are giving them more money than ever before to spend.
Douglas Ross
I will give way in a second, if the hon. Gentleman will show that he stands up for his constituents, just like SNP council leaders have stood up to the Scottish Government and said, “That is a cut too far”, and that they should change their view on the £371 million cut to local government.
David Linden
I know the hon. Gentleman is used to running the line on a Saturday, but we are not all going to play his game this afternoon. On the issue of local government, will he pass comment, given that he has the floor, on Councillor Tim Eagle from his council in Moray, who suggested that free school meals, free tuition and free bus travel for under-22s are somehow “little treats”?
Douglas Ross
The hon. Gentleman knows that that was taken completely out of context. If he wants to repeat to the House the entire comment that Councillor Eagle made to the Moray Council committee meeting, he is welcome to do so. I gave way to the hon. Gentleman, so I will do so once more: does he agree with the SNP council group leaders who are saying to the SNP that the cuts are too much?
Owen Thompson (Midlothian) (SNP)
On a point of order, Mr Deputy Speaker, I beg your forgiveness—I am not an expert in “Erskine May”—but I understand that if a Member resumes their seat without an intervention, they are deemed to have concluded their contribution.
Mr Deputy Speaker (Mr Nigel Evans)
As Christmas has just passed, let us be a little generous. Have you finished your contribution, Mr Ross?
Douglas Ross
I am grateful for your generosity, Mr Deputy Speaker, and I will begin to conclude my speech.
It is interesting that the Scottish National party uses such tactics when the hon. Member for Glasgow East (David Linden), who introduced the debate, cannot stand up against the party in Holyrood and say that its cuts have affected the cost of living in Scotland.
Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)
On a point of order, Mr Deputy Speaker. If the hon. Member for Moray (Douglas Ross) sits down, how is that an SNP tactic?
Mr Deputy Speaker (Mr Nigel Evans)
Well—I call Douglas Ross.
Douglas Ross
I would think a bit more about that comment if the hon. Member for Na h-Eileanan an Iar (Angus Brendan MacNeil) had not arrived in the Chamber about five minutes ago for a debate introduced by his party.
Stephen Flynn (Aberdeen South) (SNP)
The hon. Gentleman will be cognisant of the fact that Norway has an oil fund that is worth more than $1 billion, while Scotland’s oil fund is worth absolutely nothing on his party’s watch. Does he regret the fact that the UK Government have mismanaged Scotland’s resources for decades?
Douglas Ross
It is not worth nothing, because time and again we have seen the UK Government supporting Scotland. Indeed, during the pandemic, £15 billion or £16 billion has gone from the UK Government to the Scottish Government.
Douglas Ross
I have given way to the hon. Gentleman. That money was provided to support individuals, families and communities across Scotland. No matter how the SNP tries to paint it, its position on oil and gas is fundamentally different from what it was only a few years ago, and people in the north-east can see that and what it means for their jobs and communities. On the topic that we are discussing today, they can see what it means for the energy bills that they will receive in the weeks ahead.
Douglas Ross
I have given way a lot, and I realise that your patience is being tested, Mr Deputy Speaker.
I am grateful for the opportunity to discuss all these important issues. I only hope that SNP Members reflecting on today’s debate will begin to ask serious questions of their Government in Holyrood, as they have been in power for a decade and a half and have many of the tools, levers and, indeed, the funding to deal with this issue right now in Scotland.
Taxation: Silage Film
Douglas Ross Excerpts(2 years, 3 months ago)
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Nigel Mills
I am grateful to my hon. Friend for making that point, with which I entirely agree. It is not a point that the Government have ever challenged in the past. Only last year, the Environment Agency published a paper on the positions and technical interpretations in respect of responsibility for packaging. On page 31, the document accepts that the primary function of silage wrap is producing the product. I accept that it is a different Government Department, but it has accepted that the primary function of silage wrap is to produce silage, not to package, store or protect it. The Minister may argue that that is a different Department and that it is not Treasury policy, but we are trying, on a cross-Government basis, to reduce the amount of plastic that is used and encourage the use of recycled plastic and of recycling. We have measures coming in to make the producer pay for the collection and recycling of their packaging material through the whole system. It seems bizarre that the Treasury, HMRC and the Department for Environment, Food and Rural Affairs have different definitions of what counts as packaging in that situation. People come under one set of rules but not the other, even though they are charging for similar sorts of things. I hope that we can achieve consistency across Government.
If the Minister is not convinced by that compelling argument for consistency across Government, I refer her to a 2018 HM Treasury consultation on tackling the plastic problem that concluded that silage film came into the category of non-packaging plastics. Even the Treasury has, in the past, accepted that silage film is not a packaging plastic. I therefore hope that there is no doubt that the primary purpose here is not simple packaging. Looking through the list of items that fall inside and outside this tax, one of the general themes is the primary purpose of the plastic. It is hard to see from that list why silage film has been treated inconsistently with other plastics that are excluded.
My second contention is that what has been done here is contrary to the policy intent. The guidance notes set out that the plastic packaging tax was designed to encourage to the use of recycled plastic instead of new plastic material in plastic packaging. In turn, the tax would create demand for recycled plastic and stimulate increased recycling and collection of plastic waste, diverting it from landfill or incineration. That is the Government’s own stated intent. Because of the very specialised nature of the film––which has to be incredibly thin, light-proof and waterproof, and capable of achieving those things when being used for wrapping in a farm setting––the industry and farming lobbying bodies are absolutely clear that there is no way any level of recycled plastic can be used in that film with current technology and achieve the effect needed for the fermentation of grass. No matter what this tax is from 1 April, there will not be any quantity of recycled plastic incorporated in the film, as that is not technologically possible at the moment. Therefore, including silage film in this tax will not generate increased use of recycled plastic; it will simply be a tax on farmers that they can barely afford to pay, given their current situation.
Douglas Ross (Moray) (Con)
I am grateful to my hon. Friend for giving way, and for his well-researched and detailed speech. I should also declare an interest; although I am no longer a farmer, before I came to this place I was involved in farming, and silage is an integral part of farming across the United Kingdom.
I am here today to express the views of the National Farmers Union of Scotland, which has made many of the points that my hon. Friend has made today. On recycling, does he accept that agriculture accounts for only 3% of plastic use across the United Kingdom, that silage film is just a small proportion of that, and therefore that we are seemingly taking a sledgehammer to crack a very small nut here?
Nigel Mills
I am grateful to my hon. Friend and I agree with him.
I was trying to establish that levying this tax would not actually increase recycling, because silage film cannot include any recycled components. In fact, the tax may make the recycling situation worse, because there have long been efforts to get a collection scheme in place for this waste. It is obviously expensive to go and collect the film from every single farm; it becomes hugely dirty, and collecting it is not cheap.
In recent years, a voluntary scheme has been put in place to collect this plastic so that it can be recycled. That has a cost to farmers of about £60 a tonne. The impact of charging farmers £200 a tonne to get the plastic in the first place will be that they will not be able to afford the £60 a tonne for collection, so we will end up with lower levels of recycling; the farmers just will not pay for collection, so there will not be a collection and the plastic will not be recycled. Consequently, as a result of the tax, we will end up with less recycling of plastic than we have now.
I am sure that the Government’s sincere aim is to have more recycling of plastic. However, by far the best approach would be not to include this film in the taxation regime but instead to try to support the voluntary scheme, to get as much of this stuff collected as we can. It is actually very recyclable, making it very valuable; it can be recycled and reused in other products, including those made in my constituency.
My third argument was that silage film would not fall within the definitions set out in section 48 of the Finance Act 2021, which defines a “packaging component” as
“a product that is designed to be suitable for use…in the containment, protection, handling, delivery or presentation of goods at any stage in the supply chain of the goods from the producer of the goods to the user or consumer.”
What happens with silage film is that the grass and so on is mown and harvested in the field, and it is then wrapped in the field, stored on the farm and subsequently fed to the farmer’s animals in the winter season.
I am not sure whether it is possible to call grass that has been stored and fermented “goods”. It is not sold to anybody, it does not leave the farm, and there is no “supply chain” for it at all. It is not packaged to be moved, presented or anything else; it is basically just there to be fermented. Once it has fermented, the plastic is taken off and the silage, as it is now, is fed to the animals on that farm. I am not sure how it can be said that there is a “supply chain” for silage when the grass never leaves the farm. It therefore looks to me, on first principles, that the published guidance of Her Majesty’s Revenue and Customs is not consistent with the law that Parliament passed last year.
The irony, of course, is that the Government have had to introduce a statutory instrument—I think that it is S.I. 2021, No. 1417—to modify the law that we have introduced but that has not yet come into force, in order to try to be clear about what we intended to catch in this situation. I do not have any criticism of that. This is a whole new tax; we want to get it right, and it is more important for us to get it right than to be precious about not correcting our own law. I therefore fully support those changes.
However, the guidance note for the changes sets out, in paragraph 7.4:
“This is to ensure that the tax applies to products which are primarily packaging rather than products whose function as packaging is incidental to their main purpose”.
So the Government are introducing changes to section 48 of the Finance Act 2021 to exclude products whose primary purpose is not packaging; indeed, the packaging is
“incidental to their main purpose”.
Therefore, it seems entirely clear to me that what the Government have been trying to do in clarifying the law in that statutory instrument is exactly what I am arguing for silage film; I argue that it meets the definition in the guidance note of the sort of product that should not be caught by this tax.
It would be far better for all concerned if we clarified that now and had HMRC guidance that was, in my view, consistent with the law, rather than having to resort to litigation and tribunals to establish whether this tax should be collected. If that happened, we may end up with some manufacturers thinking that the tax was not due and not charging it, and some manufacturers taking the other view, and it may have to be resolved by the courts in a few years’ time. I would hope that we could get that clarified now, just over two months before the tax comes into force, so that we have certainty.
My final contention is about the impact of the tax on farmers at a difficult time for them. According to estimates, I think from the National Farmers Union or its Northern Irish counterpart, the £200 per tonne would increase the cost of silage film by roughly 10%—a cost that farmers’ rivals around the world, from where we import much meat, do not have to bear. That would be a blow to our farmers’ competitiveness against their international rivals. It would increase their cost base when they are already struggling, as many businesses are in the current economic climate. As I said, that is just a straight-through cost. There is no way of changing the formulation of silage film to avoid the cost by making it 30% recycled components. That cannot be done. It is just a straight cost for farmers, which is not what this tax was intended to achieve.
I therefore hope, on the basis of all of those arguments, that the Minister can give us some encouraging noises. It was never raised that silage film would be in the scope of the tax in any of the consultations, previous lists of products or discussions with the industry. I hope that the Minister can accept that adding it at a late stage was incorrect and was not appropriate. Its inclusion is inconsistent with the law, will not achieve the purpose of the tax and will be an unnecessary burden on farmers. I look forward to hearing her remarks.
Helen Whately
I fully appreciate my hon. Friend’s point, which I will come to in a second. There are two sides to this issue. On the one hand, silage film can be part of the supply chain; on the other, it can be used by farmers, as end users, to make their own silage by wrapping grass and other crops with the film. If the Government exempted silage wrap and similar items, such as pallet wrap and cling film, we would be shying away from dealing with the overall challenge posed by the use of plastic packaging. That would undermine the aim of this tax, which is to reduce the environmental harm caused by plastic. I do not for a moment dispute that the film is part of the process of turning grass into silage. However, that does not exempt it from falling within the definition for the tax.
That definition is targeted so that it does not include plastic packaging products that are essential for goods to be used, in contrast to products that are essential for goods to be manufactured. Therefore, products such as tea bags, coffee pods, inhalers and lighters are not taxable because the product contained by the packaging simply could not be used by the end user without the packaging. However, that is not the case for silage film.
Douglas Ross
The Minister has accepted that farmers cannot get silage without silage film. Grass cannot ferment without it. Should it therefore not fall under the heading of plastic packaging that is an integral part of the good? Simply put, it is needed to produce silage. The Minister briefly said that there had been wide consultation. Did any farming unions across the United Kingdom contribute to the consultation? If not, does that not suggest that they did not think they were affected by the change?
Helen Whately
I am happy to get back to my hon. Friend on the conversations that have taken place with different sectors, including the agriculture sector, that were part of work done over the last couple of years on the introduction of the tax.
The definition is set such that it does not include plastic packaging products that are essential for goods to be used, such as coffee pods or asthma inhalers. However, where single-use plastic is required for something to be made, as is the case with silage, it does fall within the definition.
Working People’s Finances: Government Policy
Douglas Ross Excerpts(2 years, 7 months ago)
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Richard Thomson
I could not agree more with my hon. Friend. I was deficient—I should have said what a magnificent speech she made earlier on, encapsulating as it did what it really means to be without and to be in search of that dignity. She is absolutely correct in what she says: this is absolutely the worst time to be taking away that support. It is almost like the Chancellor has gone out to the pub for a round of drinks. He has carried the drinks away from the bar—it was a very complicated order—and staggered across the floor with a big tray, and when he is about one yard from the table, he drops the whole lot, and leaves it smashed on the floor. It is the same with the economy, having carried it thus far. It is inept to say the least.
Richard Thomson
I will give way with great pleasure. The hon. Gentleman has been waiting some considerable amount of time, so I cannot wait to hear what he has to say.
Douglas Ross
I always wait a long time to hear from the hon. Gentleman. He is speaking about the worst possible decision at the worst possible time. As we face a global energy crisis, does he not agree that it is the worst possible decision to allow the Greens into a coalition Government in Scotland, and does he agree that it will affect my Moray constituents and his Gordon constituents if they get their way and have the oil industry transition or die and shut down in the next 10 years?
Richard Thomson
That is surprising for a gentleman who has served in both Parliaments. I would have expected him to be quite au fait with the constitutional settlement. There is no decision that can ever be taken in Holyrood that would bring about the situation that he describes. [Interruption.] When I am on my feet, the hon. Gentleman needs to be in his seat, as I believe he said last week to somebody more senior than either of us for the moment. Nevertheless, the Scottish Government have managed, through this deal with the Greens, to invest money in the energy transition. There is actually money on the table—money that has not been put on the table by the UK Government despite their big words. They are delivering infrastructure for my constituents, with investment in roads and the examination of possible future investment in rail. I am certain that the benefits will fall through to the hon. Gentleman’s constituents and to Moray as well, even though I have absolutely no doubt that he will find the worst possible angle that he can try to put on it for his election leaflets when he is next up for election.
We have a UK Government who speak the language of levelling up, while simultaneously grinding down on those who work the hardest and those who have the least. I personally would much rather that we judge their efforts on the fairness that they exhibit in their approach to Government and the equality of opportunity that can be offered to all regardless of means or background to deliver the improved outcomes that we all strive for.
If we want to build back better and build back fairer, Scotland quite clearly needs to be well away from the baleful influence of Conservatives in this place and from the continued rule of Westminster Conservative Governments.
Leaving the EU: Impact on the UK
Douglas Ross Excerpts(3 years, 1 month ago)
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Alison Thewliss
Independence will give us many options. It will give us the opportunity to take our future into our own hands and not be reliant on the incompetence of those on the Government Benches.
Young people in my constituency—many from low-income families—and many new Scots are now being denied access to not just an experience but a European identity that previous generations of Scots have benefited from. More than 2,000 students from Scotland—the highest per head of population in the UK—take part in Erasmus+ each year.
My constituent and good friend Declan Blench is a translator working in European languages. He says that he and his colleagues are now cut off from not only our markets, because trade in services is so hamstrung by this deal, but the culture they have cultivated links with and come to love. Declan says that
“most of us learned our languages in adolescence to adulthood, precisely thanks to EU links, we didn’t all grow up in multilingual households. I was brought up by a single mum in an English-only household in a mining town—how on earth could I ever have done what I’ve done, if not for Erasmus? It is not just heartbreaking but galling—sacrificing these things for the sake of unrealistic notions of imperial grandeur, the ultimate symbol of post-imperial stress disorder that Britain suffers from so acutely.”
I could not have put it better.
I know that many across the House have benefited from studying and working abroad. It is wholly unacceptable for Tory Members to pull the ladder up behind them. The hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie) recently admitted as much on the BBC “Debate Night” show. He said to a young person who asked a question:
“You and everybody else coming through right now will not have the benefits that I had through Erasmus, work, study abroad…But am I going to sit here and say that Brexit is perfect and your generation is going to reap the benefits? No I’m not. Because you’re not frankly at the minute. And I can see that.”
A moment of honesty from the Tories, but what a statement that is—that young people are not going to benefit in the way that people on the Tory Benches did; that they will take that away from the generations yet to come.
The UK Government’s replacement is a pale shadow of Erasmus+. There has been no meaningful consultation with devolved Governments on the Turing scheme, which seems to have been cobbled together at the last minute, with all the due consideration one would expect from this inept UK Tory Government. It will not pay tuition costs for students. Living costs have been cut to a fifth of what they would have previously been. It does not encompass youth work, culture, sport and vocational schemes, which are a huge part of the Erasmus+ scheme and very important to people in Scotland. We also now know that it will not cover apprentices or trainees not affiliated with further education colleges, and it will not cover teachers, youth workers, volunteers and many more who would previously have been eligible. LEAP Sports in my constituency, which works with LGBTI people, found Erasmus+ invaluable and forged international links, which helped to build the confidence and the skills of the people they support. For example, the three-year Outsport project on preventing violence and discrimination in sport based on sexual orientation and gender identity is vital work as we seek to challenge prejudice and make sport more inclusive for everyone.
Scotland’s economy has its own specific needs that are not being met by this Eton mess of a Government. We have an ageing population. Without inward migration, our population would be in decline, with more deaths than births. Scotland’s Economy Secretary Fiona Hyslop announced “A Scotland for the Future” this week, which examines the significant population challenges our country faces.
Douglas Ross (Moray) (Con)
The hon. Lady’s title in the SNP parliamentary party is shadow Chancellor of the Exchequer, so as the SNP’s shadow Chancellor of the Exchequer, and as she is speaking on the economy, can she tell us what currency Scotland would have if it was an independent country?
Alison Thewliss
The hon. Gentleman does not even want us to get to that point, so I am not even going to engage with his arguments. [Interruption.] He is not interested because he is not interested in independence. I would rather talk right now about immigration policy, and the damage that his policies are causing to people in my constituency.
We have the worst possible immigration policy. We have arbitrary targets, a hostile environment and cruelty built into every stage of the system. People who come to live and work in Scotland tend to be highly skilled and are net contributors in both productivity and Government revenue. I have seen how non-EU nationals have been treated, causing misery and hardship, unthinkable poverty and deprivation—all of that serving absolutely no economic purpose. It costs more to treat people so abysmally, and the UK Government do it anyway.
Alison Thewliss
Indeed. There are very many aspects of immigration policy that cause significant damage, including loss of skills and the general hostility, which causes people to feel that they are not welcome in their own homes. It touches me every time that someone at my surgery asks me, “Why would they do this to me? Why would they make me so unwelcome? Can I go back to my country, to the war-torn conflict that I have come from? I would feel better there than I do here, under this Government.” Every time that I can, I say to somebody, “This is your home. Glasgow can be your home and you are welcome here.” I do not hear that nearly enough from the Tory Benches. This Tory Government now seek to extend the hostile environment to EU nationals. They do not do so in our name—ever.
The Expert Advisory Group on Migration and Population has estimated that the impact of post-Brexit immigration policy will be a 50% to 80% reduction in net EU migration to Scotland after 2020, and an overall reduction in overseas net migration of 30% to 50%. It has found that very few jobs in key sectors in Scotland will meet the arbitrary salary threshold this Government have imposed. The Home Secretary is aware of these issues and has done absolutely nothing to address them. There are currently no plans to include a route to jobs below the skills threshold, and the UK Government have rejected the possibility of any regional variation in the salary threshold. There has been no clarity on whether the Scottish shortage occupation list will continue to operate. This is a disaster for our remote communities, who depend on migration to counter depopulation. It is a disaster for businesses, who rely on that pool of talent to gain a competitive advantage in an increasingly global market. It is a disaster for our universities, who face a reduction in international staff and students and the experience and richness they bring. And it is a disaster for Scotland’s cities, whose wonderful cultural offerings are ever-enhanced by our migrant communities.
There are few starker examples than Brexit of how a Westminster Government are willing to sideline Scotland’s interests for their own cheap political gain. A differentiated approach to migration works well in Canada and Australia, and there is no sound economic reasoning not to do it, but the UK Government would rather put Scotland’s future at risk to appease the worst excesses of the Tory party.
Many people are beginning to realise that Brexit was a pig in a poke and the much-vaunted schemes that have followed it are merely a mirage. I spoke recently about the shared prosperity fund, the UK Government’s replacement for EU structural funds. It is almost unbelievable that we are now five years since the Brexit vote and still awaiting detail on how this scheme will operate. What we are certain of, however, is that this scheme will, due to the United Kingdom Internal Market Act 2020 and the power grab, bypass Holyrood entirely. This UK Government have made sure that decisions are taken out of the hands of the people of Scotland and restored to the backrooms and corridors of Whitehall.
When we have the choice in Scotland, we invest in projects that meet the needs of our population. The Scottish Government built the stunning Queensferry crossing—toll-free and clearly adored by the hon. Member for Moray (Douglas Ross) as he delivered his keynote speech to the Tory party conference in front of it.
Alison Thewliss
The hon. Gentleman says that, but actually it is a bridge designed to cope with the extremes of Scottish weather. [Interruption.] It is not always shut, and I want to take this head on. The previous Forth bridge was far more subject to the weather and to diversions, and the UK Government did absolutely heehaw about it. The Scottish Government built a bridge; it is a good bridge—it is a brilliant bridge—and the hon. Gentleman loves it so much that he stands in front of it and lets the cars drive through his ears on the telly.
There is also the Kessock bridge, and the £90 million of projects in the Outer Hebrides over the past 25 years for ferry terminals, bridges and causeways, the bulk of which came from European Union funds, and which nobody on the Conservative Benches would ever have thought to fund. By contrast, the UK Government built that bridge over troubled waters, the Skye bridge, and it cost the then Scottish Executive more to buy out the private finance initiative contract than the actual cost of the bridge. And now they want to chuck money at a £20 billion bridge over the Irish sea. I have with me my second-year high school geography project, which might give the Tories an idea as to why disturbing the second world war munitions dump at Beaufort’s dyke might be problematic.
The shared prosperity fund has been described as “a direct attack” on devolution by the Labour-run Welsh Government. This cannot be dismissed as grievance politics or anything remotely like it; it is a real erosion of the hard-won rights of all those in the devolved nations of the UK. Be under no illusion: it is a power grab by the Tories, who never wanted devolution in the first place. The Prime Minister has gone as far as to call it a disaster and Tony Blair’s worst mistake—I am sure we can think of other mistakes, but I will leave that for the Minister.
I am much more confident now than ever before that the people of Scotland see through the lies and spin of this Tory Government. Brexit has been a wake-up call for so many, and I welcome them all to Scotland’s cause. We need policies which meet Scotland’s needs, not an insular little Britain driven by the whims of the Tories and their crony pals. Alasdair Gray argued that a truly independent Scotland will only ever exist when people in every home, school, croft, farm, workshop, factory, island, glen, town and city feel that they, too, are at the centre of the world. This is what we seek. An increasing number of people are seeing their role in that world, and looking forward to the day when they decide to take their future into their own hands, and to take our place in the world and Scotland’s place as part of the European family of nations. I cannae wait.
Ian Murray (Edinburgh South) (Lab)
May I start by paying tribute to the hon. Member for Glasgow Central (Alison Thewliss), who set out the severe impacts that this Brexit proposition is having on the Scottish economy? It is a shame; the title of the debate is “Leaving the EU: Impact on the UK”, but I think we will need more than one debate to go through all the impacts. She ran very quickly through a lot of the impacts that are affecting Scottish business.
May I take Members back to Christmas eve? I am sure we can all just about remember that. We were all turning our attention to our family Christmas traditions. We were putting on our Christmas jumpers, double-checking we had everything for Christmas day, cutting sellotape with our teeth, examining the TV guide to see when we could watch “It’s a Wonderful Life”, and perhaps even thinking about a small libation or two. I am sure our thoughts would have been turning to family and friends who were unable to celebrate Christmas with us due to the lockdown. Then, out of the mulled wine haze appears not Santa Claus but the Prime Minister, sitting in front of the Downing Street Christmas tree delivering an “all I want for Christmas is as an EU trade deal” address to the nation.
The Prime Minister gleefully proclaimed that the UK and the EU had come to a last-minute trade and co-operation agreement, there would be no tariffs on goods, the Northern Ireland protocol would be maintained so the Government would not break international law, and, rather surprisingly,
“there will be no non-tariff barriers”.
I hope Santa was listening very clearly, as he really should not be delivering gifts to those who do not tell the truth. Going all the way back to the day after the EU referendum, it was always going to be the case that the cold reality of Brexit would one day disinfect all those undeliverable Tory promises given to the British people at the time and since, and that is exactly what has happened.
The bare-bones Brexit deal that was so lauded by the Prime Minister falls way short of what was promised and what was needed. It is not “get Brexit done”, as the Minister said; it is “get done by Brexit”. With our country facing one of the biggest economic recessions of any developed nation and with our businesses under increasing strain from the pandemic, they have to try to navigate new trading rules with the UK’s largest trading partner that have reduced exporting output by 60%. What will happen when the EU economies start to reopen fully? That is when the deal will truly be tested. It is holding back British businesses with reams of new red tape and unnecessary bureaucracy. Businesses were promised no non-tariff barriers, but the Government’s lack of leadership and clarity and their constant dither and delay mean that businesses are facing challenges that they certainly were not prepared for.
It did not have to be this way. The Government, instead of sticking their head in the sand, could have worked with industry to get ready. They could have focused on practical action to support businesses—measures such as recruiting and training the promised 50,000-plus customs agents we knew were needed to get the checks done. They could have used the transition period for what it was designed for—transitioning to the new arrangements. Instead, they wasted that period on negotiating the deal.
The Government think that the deal they got on Christmas eve is the end of the matter, but sectors of the economy know that this is just the beginning of huge difficulties and challenges, and for some it is unfortunately the beginning of the end for their business. It is certainly the beginning of the end for many that export, none more so than the Scottish fishing industry. That the Brexit deal is neither what Scotland’s fishing sector needed nor what it was promised will not surprise anyone. The devastating delays that the sector is facing were entirely predictable. There is anger and frustration from our fishers, who have been very badly let down. Elspeth Macdonald, the Scottish Fishermen’s Federation chief executive—I am glad I was not drinking at lunch time, Mr Deputy Speaker; that was my impression of Sean Connery as well—was scathing:
“This deal falls very far short of the commitments and promises that were made to the fishing industry by those at the highest level of government.”
It is a pattern, isn’t it?
What about Scottish agriculture? There has been nothing positive for farmers in leaving the EU with this deal. They are happy that no deal was avoided, but where are the sunny uplands they were promised? They, too, see something familiar. The Prime Minister is getting a reputation not just for overpromising and underdelivering, but for overpromising and then delivering nothing.
Douglas Ross
I am grateful to the shadow Secretary of State for Scotland for giving way. He has spoken a lot about the deal—the deal that he voted for in this House in December—but his new Scottish party leader in Holyrood voted against it. Who is right—the leader of Scottish Labour or the Labour shadow Secretary of State?
Douglas Ross (Moray) (Con)
I would like to make an offer to the hon. Member for Glasgow Central (Alison Thewliss), because in my intervention on her she said that I was not interested in the SNP’s currency plans. Well, I am interested, and the people of Scotland are interested, so I am willing to give up all of my time for the hon. Lady, the SNP’s self-declared shadow Chancellor of the Exchequer, to stand up and explain to me, and explain to the people of Scotland, in simple terms, what the SNP’s currency would be in an independent Scotland. I give up the remainder of my time to the hon. Lady. [Interruption.] I cannot believe that the shadow Chancellor of the Exchequer for the SNP will not take an opportunity to tell this House this—to tell the people of Scotland what independence would mean for them, just in terms of their currency. That is all I am asking for, but in two debates today, with multiple opportunities, the SNP has refused to tell us. It wants people in Scotland to vote for independence but will not tell them what that will mean. That is unacceptable.
My disappointment was only reinforced when I did as you asked me to, Mr Deputy Speaker, and looked at the voting records from the earlier Divisions that we had. It has now been confirmed by Parliament—by the Vote Office—that every single SNP MP today voted to say that they do not agree that
“the priority of the Scottish people is to recover from the effects of the covid-19 pandemic, and that it would be irresponsible to hold a referendum at this time.”
That is all that SNP MPs were asked to support, but every single one, all 47 of them, and the one independent suspended SNP Member, voted against that. I hope they go back to their constituencies in Scotland and explain to the people they are supposed to represent and to the whole of Scotland, on behalf of their party, why they do not think that our priority during this pandemic should be recovery rather than another irresponsible referendum.
Douglas Ross
I am not sure whether this is on the vote or on a future currency for an independent Scotland, but I will give way to the hon. Lady.
Alison Thewliss
Can the hon. Gentleman explain to me what “at this time” means? Nobody is proposing that we hold an independence referendum at half-past 5 on a Wednesday night.
Douglas Ross
The SNP has allocated £600,000 to hold a referendum and campaign for one this year. The hon. Lady’s leader in this place, the right hon. Member for Ross, Skye and Lochaber (Ian Blackford), has said that the referendum should be in 2021. In the earlier debate, the hon. Member for Edinburgh East (Tommy Sheppard) said it will happen in the next 12 months—whether it is in December or January of next year, it will be within a year. While we are still struggling to fight this pandemic, while we are still seeing lives lost and livelihoods on the line, the SNP priority is, as always, separation. That is their mandate and all they are interested in.
We also have had no comment from the SNP today, in a debate about Brexit and the EU, on the EU’s roll-out of the vaccination programme and how we in Scotland have benefited from decisions taken by the UK Government, led by the Prime Minister, to procure and develop vaccines right at the start of the pandemic. These vaccines are protecting people in Scotland, England, Wales and Northern Ireland. How does our vaccine roll-out in this country compare with that in the rest of the EU, which the hon. Lady would like to take us straight back into?
The hon. Lady also spoke about all the great infrastructure that has been built and developed in Scotland during the SNP terms in office. I tried to intervene on that point, because I would be interested to know what she thinks of the actions of one of her party colleagues, an SNP Cabinet Minister in the Scottish Government, Fergus Ewing, writing to his own Government asking their Transport Secretary to give his constituency some good news ahead of purdah—ahead of the period in which the Scottish Government are not allowed to make any further announcements. SNP MPs know that their 14 years are coming back to haunt them: their inability to get ferries into the water and to get hospitals open to take patients. It has been a litany of failure over the past 14 years and it has come to the extent that SNP Ministers have to ask their own Government to try to sneak out some more information because they have let down so many communities.
Penny Mordaunt
I would just like to update the House by saying that the success of the vaccine programme in Scotland has meant that a third of the eligible population have been vaccinated, whereas the figure in France is just under 8%.
Douglas Ross
The Minister outlines the figures excellently. I know that my own parents have benefited—they have been vaccinated in the Fiona Elcock centre in Elgin. People across Moray and across Scotland have benefited because of the vaccine roll-out in the UK and in Scotland. I want to reiterate that the two debates from the SNP today have been all about division and arguments about the past, with no positive vision for the future. The Scottish Conservatives are determined over the next seven weeks that we focus on Scotland’s recovery and on building back better than before this pandemic struck. We will be supporting jobs and livelihoods and communities right across Scotland. The SNP just want more division and I think that people across Scotland are beginning to realise that after 14 years of failure we can do so much better than that.
Madam Deputy Speaker (Dame Rosie Winterton)
Order. I would like to try to get as many people in as possible, so after the next speaker I will take the time limit down to three minutes.
Alcohol Duty
Douglas Ross Excerpts(3 years, 1 month ago)
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Douglas Ross (Moray) (Con) [V]
I am grateful for the opportunity to debate today how we deliver a competitive duty system for alcohol producers. It will not surprise Members to know that my central interest here is in supporting Scotland’s national drink. Moray is home to more than 50 Scotch whisky distilleries. However, many other Members from across the United Kingdom will in the weeks and months ahead be making calls of support to the Treasury team for producers of other drinks. Indeed, my constituency also has several small craft breweries that will be keeping a close eye on any proposed changes in the UK alcohol duty system, and I will come to some of their concerns later.
Since I was first elected in 2017, all my Scottish Conservative colleagues and I have continually worked with partners from the whisky and wider spirts industry in Scotland to secure substantial wins for the sector. In every Budget since my election, the UK Treasury has taken the decision to freeze the duty on spirits. That has been very much welcomed and illustrates the major show of support from successive Conservative Governments for this vital sector.
However, it is still the case that just under £3 in every £4 spent on the average bottle of whisky is taken as tax. That is among the highest tax rates on an alcoholic beverage in the world and higher than the tax paid on wine, beer, and cider. In fact, a unit of alcohol served as Scotch whisky or gin is taxed 16% more than wine, 51% more than beer and 256% more than cider. That is why I was pleased when the Conservative party committed in its 2019 manifesto to
“review alcohol duty to ensure that our tax system is supporting British drink producers.”
Indeed, I well remember the Prime Minister’s visit to Diageo’s Roseisle distillery, less than 1 mile from where I am speaking today, to make that announcement as I joined him on the campaign trail for the 2019 general election.
I welcome the fact that the Government are currently taking that review forward, as promised. This is even more important in the context of the UK’s departure from the European Union. We now have the opportunity to think differently about how we tax alcohol in this country. This is an opportunity, which the Government have to seize, to redress the many historical injustices in the alcohol duty system and use it not simply to raise revenue but as a tool to back our domestic producers with a solid foundation in the home market as they look to expand to new markets around the world.
The Scotch whisky sector employs 11,000 people in Scotland and supports more than 40,000 jobs across the United Kingdom, contributing £5.5 billion to our economy in the process. Much of that employment is in rural areas such as my constituency, Moray, where distilleries are a key local employer. It is a sector of significance and tradition, with a long history. However, it is also a sector that is facing real challenges right now, some of which are unique to the alcohol industry, while others are symptoms of the times we live in.
The covid pandemic and the resulting restrictions imposed on our day-to-day lives have affected all parts of the economy. We all know that these restrictions were necessary to curb the spread of the virus, but we must also acknowledge the economic damage that has been done as a result. The whisky and wider drinks sector has lost tourism income because of the travel restrictions in many parts of Scotland that we have now faced for more than 11 months. It has also lost many of its business customers due to the closure of pubs and restaurants for long periods both here in Scotland, since the whole of mainland Scotland went into lockdown again on Boxing day, and across the rest of the United Kingdom.
At the same time, for much of the last year those in the sector have been unable to access Scottish Government grant funding because they were not directly affected by the restrictions under the strategic framework. That would have meant that distilleries could open as tourism visitor attractions, even though most people in Scotland—not to mention international visitors and those from elsewhere in the United Kingdom—would have been unable to travel to those visitor centres. The impact that this has on the local economy here in Moray and other parts of the country cannot be overestimated. Tens of thousands of visitors come to Moray every year to follow the Speyside whisky trail or go on individual tours of distilleries. All those visitors spend more money elsewhere in the local economy—on accommodation, on food and in our local shops.
The Scotch whisky sector is also struggling with the impact of the 25% tariff introduced by the United States in October 2019. The industry has estimated that this has resulted in a cut in exports worth £500 million. As the Scotch Whisky Association has pointed out, this is a 35% drop in exports to the United States that is being borne by producers both large and small. For a sector with a trading history of more than 150 years, this is damaging an essential part of its business and trade with its biggest market. The Scotch whisky sector is in no way involved in the dispute between Airbus and Boeing, but it is paying the price for it, alongside a range of other iconic products, some of which are sadly based here in Moray as well, so we are really feeling the impact. This is clearly unfair and a source of great distress for the sector.
I am grateful for the efforts of the Secretary of State for International Trade over the last few months and years to get these tariffs removed. It is no easy task, but I believe that with the support of her Cabinet colleagues, she will prevail. In the meantime, I urge the UK Government to do all they can to deliver clear support for the sector, both in the short term, through next week’s Budget, and in the longer term, to build a solid foundation through duty review.
I would also like to take some time to acknowledge the contribution made by spirits other than whisky. Scotland has a long and rich history of gin distilling, and Scottish gin has seen an enormous level of growth over the past decade. Twenty years ago, we would only have found two Scottish gin distilleries, but in 2020, there were more than 60 across the country. With many gin producers making more than one type of gin, the number of Scottish gin brands is believed to have climbed to around 140. Like whisky, 70% of the price of a bottle of gin is currently collected in tax. By comparison, less than €1 is claimed in duty on a bottle of wine in France. This takes us back to the central point of my contribution. We have a huge opportunity to look at how we put duty on alcohol differently in this country and to introduce a fairer system for producers in Scotland and other parts of the United Kingdom.
As I mentioned earlier, while my focus is on whisky, other Members will no doubt be making the case to the Minister for changes to the taxation of other drinks, including cider and beer. Despite the dominance of whisky distilleries here in Moray, there are craft brewing firms that are also making a significant impact, with businesses such as the Lossiemouth-based Windswept Brewing Co. It is one of 60 independent craft brewers in Scotland that are also making a huge contribution to our UK alcohol receipts.
Ahead of this debate I was contacted by Nigel Tiddy from Windswept, and the work those there have done to build up that business has been so encouraging. Seeing them continuing through this pandemic, I want to ensure that we continue to support companies such as Windswept and other craft brewers throughout this country as we come out of this pandemic. I know that they are watching this debate and this review very closely, and I will continue to engage with them after today’s debate.
This is another fast-growing sector of our economy that has faced major challenges over the last 11 months. We all want to see the existing growth in the craft brewing industry continue. I know that such businesses and their trade body, the Society of Independent Brewers, are calling for changes to small brewers relief and supporting the pubs and taprooms that these companies rely on for most of their sales. They are also calling for recognition by Government of the role of smaller producers and the challenges they face growing their businesses.
As I have already said about the argument for changes to the spirit taxes, there is an opportunity to review the entire system of alcohol taxation. The Treasury said at the time of its call for evidence in September 2020 that the current alcohol tax structures are “complex—and arguably outdated”, and I agree. We can reform these structures and develop a system that is fairer and, importantly, encourages the growth we want to see in these vital sectors of our economy.
To close, my message is that it is time to right the historical wrong in our tax system. It is time to see Scotch whisky taxed properly, not to see it continue to be more heavily taxed in its home country than imported wine. It is time that we backed Scotch whisky with a tax system that supports home producers in their own market. I have met the Exchequer Secretary to the Treasury on this matter, and I know her interest in the subject.
I hope that, in responding to the debate, the Minister is able to outline where we have got to with the review, the timescale for it and what more the UK Government need from stakeholders as the overhaul of this system progresses. There is a need to set out a clear timetable to complete the current review of alcohol duty, and this should deliver a pathway to reform that better serves consumers and enables growth that will benefit our whole economy.
I was proud to campaign on this much-needed reform at the last election, just as I have been proud to stand up for Moray’s huge array of Scotch whisky distilleries and other producers at every opportunity since I became the MP for this seat in 2017, but now words and promises must be turned into action. A duty review is long overdue, and I look forward to working with the UK Government to deliver our manifesto commitment on this. I think we can all agree that if we do that, it is something we can raise a glass to.
Mr Deputy Speaker (Mr Nigel Evans)
I did not suspend the House after the Welsh affairs debate because both contributors to this Adjournment debate are coming via video link, but we have sanitised the Dispatch Box in the unlikely event that the video link goes down and we need to use it.
Exiting the European Union (Excise)
Douglas Ross Excerpts(3 years, 2 months ago)
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Douglas Ross (Moray) (Con) [V]
It is a pleasure to follow my hon. Friend the Member for Kensington (Felicity Buchan), who has been a great champion on this issue for her local constituency for some time, and it has been a pleasure to work with her on this. I also agree with the remarks of the hon. Member for Edinburgh West (Christine Jardine). Sadly, this is another situation where the separatists in Parliament make a point that is very important to their local area and local jobs—I agree with the hon. Member for Glasgow East (David Linden) about that—but every single SNP speech also had to include reference to separation. This is far more important than that. It is important to jobs here in Moray, as it is in other parts of Scotland and the United Kingdom, and I think it demeans the argument being put forward by SNP Members that they had to stoop to yet more divisive topics, such as independence, in this important debate.
I come at this issue slightly differently from other hon. Members who have contributed today. I do not have an airport in my constituency. I do not have a port where ferries are coming in, but I have more Scotch whisky distilleries and visitor centres than any other constituency in Scotland. It is also home to producers such as Johnstons woollen mill, which makes outstanding, high-quality produce that is very much sought after by people affected by this statutory instrument. I met Stephen Rankin from Gordon & MacPhail and Simon Cotton from Johnstons woollen mill to hear directly what it would mean for these local businesses.
Just as an example, Gordon & MacPhail is part of the Walpole Group, and earlier today, I got some statistics from Walpole about what this would mean. It estimates that 40,000 jobs across retail, hospitality and manufacturing could be lost as a direct result of this decision. It says that the impact will not just be lost revenue and jobs, but, critically, lost investment. It goes on to say that from 15 brands that it is aware of, over £1 billion will not now be invested in the United Kingdom. That is new stores, expanding factories and distribution centres that will now be developed outside the UK because of this instrument.
Crucially, I want to look at the impact that this has here in Moray on local employers and crucial jobs. Simon Cotton made the point on behalf of Johnstons woollen mill that VAT-free shopping is responsible for over 50% of the company’s revenue in its London and Edinburgh stores. It believes that at least two thirds of that will be lost, which would make those stores no longer viable. He went on to say that, overall, VAT-free shopping accounts for over a third of its retail as well as being critical to the customers that it sells to at a wholesale level. He said—and this point really hits home to me—that, generally speaking, every job lost in retail is matched by two to three jobs lost in manufacturing. That is two to three jobs lost in the local Elgin mill here in Moray for every job lost in the company’s Edinburgh or London stores. That is why I felt I had to speak up for those jobs in this debate.
I agree with my hon. Friend the Member for Kensington: we have to look at the impact of this decision, which took effect from 1 January. The new measures are already in place, so I hope the Treasury will take cognisance of their impact on companies such as Gordon & MacPhail, Johnstons, a number of distilleries and visitor centres here in Moray, and other high-end producers throughout the country, and of the effect on those individual companies and, therefore, on the jobs that they supply.
I represent Moray, and for me this is not a party issue; it is a local issue and I am a local representative. For the jobs at risk as a result of this SI, I shall vote to annul it because that is the right thing to do to represent my constituents and stand up for their concerns and those of employers in my area. If the vote is not successful, I hope the Government will at least look again at the impact of the decision.
Equitable Life
Douglas Ross Excerpts(3 years, 2 months ago)
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Douglas Ross (Moray) (Con) [V]
It is a pleasure to contribute to this debate. I recognise the outstanding work that my hon. Friend the Member for Harrow East (Bob Blackman) has done not only in securing this debate but in his chairmanship of the APPG. Like every Member who has spoken so far, I have constituents who have been affected by this scandal. It is a scandal that people are fighting for what is rightly theirs. The Minister will not be immune to the fact that all contributors from across the parties are reiterating very similar points today, because the situation is affecting every part of the United Kingdom, and constituents are suffering as a result of it.
In advance of today’s debate, I was contacted by constituents who have been very affected. One wrote to me to say:
“My dear father put me into Equitable Life because in 1970 he thought they were the outstanding pensions company and with an honest reputation.”
The constituent went on to say:
“Luckily, he did not put all his eggs in one basket”—
they survived—
“but between himself and his wife they put in a substantial amount of money.”
He concluded by saying that he recalled
“clearly watching it all go wrong and being horrified about what happened. As a result his wife and he both joined EMAG to help fight our corner.”
That is a message I have heard time and time again.
Other hon. Members have suggested that the Government might be hoping that this will quietly go way—as people get older and sadly pass on, this issue will somehow be forgotten. It will not be. I have another constituent who has been working on this issue for his mother for the past 19 years since his father passed away. This issue affects people now and their families are not going to forget about it either.
As we have heard, there are opportunities in the motion today for two of Parliament’s Select Committees to work together to hold an inquiry. I hope they agree to do that and that we resolve some of the issues, but we need more than just another inquiry. The facts are the facts. They are very clear in this case. An inquiry would try to push the Government further, but I do not think that should be necessary. The previous coalition Government made it clear that an injustice had been served and that they were going to compensate people, but it is simply unacceptable that people have received just 22.4% of their claims. How would any of us feel if, at the end of the month, our salary was only 22.4% of what we expected it to be? These people put their faith and trust in a scheme, and, through no fault of their own, it has been devalued to such a level that the payments are simply unrecognisable in comparison with what they expected.
On behalf of my constituents here in Moray, and many people across Scotland and the rest of the United Kingdom, I hope the Minister listens to what has been said in Parliament today. He knows I have corresponded with him on many occasions on behalf of local constituents. This issue is not going to go away. I know he is an excellent Minister who takes his job extremely seriously. I hope he will once again look at the issues put forward by hon. Members from across the House, so we can finally resolve this scandal and give closure to many of the people affected right across the United Kingdom.
The Economy
Douglas Ross Excerpts(3 years, 6 months ago)
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Rishi Sunak
I think the hon. Lady is continuing to ask for an extension of the furlough scheme, but fundamentally I do not believe that that would be the right thing to do. At this stage of the economic recovery it is better that our support is targeted and focused on supporting viable jobs in our economy, and that means a new approach. Extending the furlough and allowing people to be at home full time is not the right approach in this phase of the economic crisis. Our new scheme will ensure that we provide support to those who need it most and protect as many viable jobs as possible in many of the industries she mentioned.
The hon. Lady asked about conditions. I agree with her that there should be conditions on larger companies accessing support from the Government for wage protection. There will be conditions on capital redistributions and on the ability to provide redundancy notices to employees while they are on the scheme, and, in the first place, limiting the eligibility for large companies to those that are most in need.
On dialogue with the Scottish Government, I am pleased to say that the Chief Secretary to the Treasury speaks regularly with his counterparts, as I believe he will be doing very shortly. There is a well worked process for how devolved nations’ budgets are set. There is absolutely no requirement for a UK Budget to be done beforehand. Indeed, that was not the case earlier this spring. We will have Office for Budget Responsibility forecasts later this autumn. On the basis of those forecasts, the normal work will be done with our counterparts in the devolved authorities to ensure that they can set the budgets they need.
Douglas Ross (Moray) (Con)
Over 900,000 Scottish jobs have been protected as a result of the UK Government’s furlough scheme during the worst of this crisis, ensuring that over the past six months hundreds of thousands of Scottish families have continued to maintain a regular income. I welcome the further support announced by the UK Government today. Will the Chancellor of the Exchequer outline how the UK Government measures will benefit communities, businesses, individuals and families across Scotland as we enter this next difficult phase in our fight against coronavirus?
Rishi Sunak
I am grateful to my hon. Friend for his question and for the conversations he has had with both me and the Prime Minister on the importance of supporting every part of our United Kingdom as we go through this economic crisis and drive our recovery forward. That is something this Government will always take very seriously. He has been very helpful and played a valuable role in ensuring that the measures we have put in place today will benefit companies and workers in every single part of our United Kingdom.