Autumn Statement Resolutions

Gavin Newlands Excerpts

Monday 21st November 2022 Commons Chamber

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

Surely the biggest headline from the Chancellor’s statement came from the Government’s own Office for Budget Responsibility’s forecast of a 7.1% drop in household living standards over the coming two years, which will be the biggest fall since the second world war. Real wages will fall as inflation hits hard and, as spending in the economy slumps early next year, the effect on retail and other sectors is likely to be devastating. The coming years could be among the worst economically that any of us have experienced in decades—certainly in my adult life. That is a damning indictment of the policies followed by the Government and the Conservative party for the last 12 years. Their imposition of austerity from day one, happily supported by their Lib Dem sidekicks, has directly led to the appalling situation that we now have on these islands.

The UK is at the bottom of the G7 for economic growth post covid and, as with so many other league tables that the UK sits at the bottom of, the policies and plans outlined last week by the Chancellor will simply make the situation worse. That is obviously except for bankers, given that their bonuses have been uncapped while the Government and Conservative Members ask for wage restraint.

Last Thursday, in this Chamber, I mentioned the incredible work of the Renfrewshire toy bank in my constituency, which is helping families with no means to get their children Christmas presents to ensure that they get at least something on Christmas morning. Last year, it helped 2,000 families; this year, referrals are on track to see that number soar by 50%. The response from the Leader of the House was that

“they do a tremendous job in plugging those gaps.”—[Official Report, 17 November 2022; Vol. 722, c. 906.]

There was no acknowledgement that those gaps should not exist in the first place, and no acceptance that those gaps are directly created by the policies of a Government that she proudly serves. In a wealthy country like this, the fact that there are gaps meaning that children rely on charity and the kindness of strangers to get a present from Santa is utterly shameful. We should all be ashamed by that situation.

Last Thursday was also a missed opportunity to follow the lead of the Scottish Government and introduce a UK version of the groundbreaking Scottish child payment, giving hundreds of thousands of families a huge financial boost at a time when it is needed most. That is £1,300 for each eligible child, which is helping to fight poverty at its root cause.

However, it should not be up to the Scottish Government to mitigate the disaster down here in Westminster. Scotland is a wealthy country, but we have seen our resources—both natural and human—squandered and wasted by successive Governments here at Westminster, almost all of which we had no say in electing whatever. We have seen our oil and gas assets stripped and plundered to subsidise the deindustrialisation of our own country, with that gas linked into our energy supply and market in a reckless manner so that, rather than using the proceeds of decades of fossil fuel extraction and production to invest in new renewables and decouple energy prices from fossil fuel prices, we have households with no gas supply that are entirely reliant on the gas price as it determines the cost of heating their homes. The situation is farcical.

The Chancellor’s statement addressed none of the immense damage that his Government and previous Governments have done to our energy industry. The UK is trapped in a vice of its own making. There have been decades of under-investment in renewable alternatives, while corporations have been allowed free rein to coin it in off the back of households who can barely afford to put the living room light on. Sellafield and Dounreay remain among the most toxic places on planet Earth, yet the Chancellor announced yet another blank cheque for a nuclear industry that has an unbroken track record of gigantic public subsidy, beaten only by bigger strike prices with an impact on all our energy bills.

The Chancellor’s answer to soaring energy bills and to the need to reduce our dependence on fossil fuels was to announce a household energy efficiency programme that will not even start for three years. Let us cross our fingers that it will not be like the last UK Government green deal on domestic energy efficiency, under which hundreds of my constituents were shafted by a rogue trader, HELMS, which mis-sold, lied and manipulated data under the banner of a UK Government scheme. My constituents have been trying for years to be properly recompensed.

“Pay now, wait until later” is not the kind of support that households need. We need real, immediate investment in social housing and housing infrastructure to quickly and permanently reduce energy consumption and, in turn, bring down costs for consumers. As a side note, since the SNP came to power in Scotland in 2007, the Scottish Government have built nine times more social housing than the UK Government.

Last week’s statement left plans for transitioning to a zero-carbon future in real doubt. Making electric and zero-emission vehicles subject to the same level of vehicle excise duty as internal combustion engines, when we are still so far behind countries such as Norway on the transition to electric, is short-sighted and represents a failure to understand the bigger policy goals.

Meanwhile, transport overall will face a 30% reduction in spending from this financial year to 2025. We can probably predict where the axe will fall: on zero-emission buses, on our rail network, on public transport and on active travel. Taking £2.6 billion out of a policy area that is key to the net zero agenda shows just how much of a priority the Government place on it.

The grand plans for England’s national bus strategy will be torn up, with consequences for funding across the devolved Administrations. We knew already that the former Prime Minister’s pledge of 4,000 zero-emission buses was largely in tatters, kept in business only through the intervention of devolved Administrations beyond the Department for Transport’s clutches. Without SULEB and ScotZEB—the Scottish ultra-low emission bus scheme and the Scottish zero-emission bus challenge fund—the Department would not be able to pretend that its plans are on track.

The plans for Great British Rail are now in the sidings. They have already been taken out of any transport Bill that will come before Parliament in the near future, and they will surely be another victim of the Chancellor’s cuts. The DFT may slap a few stickers on some trains and stations in an attempt to give the impression of some co-ordination, but without resources behind it, and behind the rail industry as a whole, GBR will simply be a fig leaf for a rail policy as disconnected and disjointed as the system it seeks to manage.

A cut of 30% to Active Travel England’s budget before it has really even begun would be devastating. In stark contrast, the Scottish Government are holding firm to their commitment to ensure that 10% of all transport spending goes on active travel. We are not far off from Scottish spending on active travel matching the UK Government’s spending on active travel in cash terms. That is how ridiculous the UK Government’s plans are.

We know the benefits that transport investment brings to communities and the expansion in local economies that connectivity provides. The inevitable consequence of the cuts will be a loss of connectivity and, in turn, a loss to local economies in the levelling up that, for decades, communities across England staring at the billions upon billions being spent on transport infrastructure in London have been crying out for.

The Chancellor had an opportunity last week to reset the Government’s plans and at least try something different. Instead, we got cauld kail yet again: the extended remix of a dozen years of austerity, this time in the middle of an unprecedented cost of living and energy crisis. The economic policies of the right do not work. Whether it was the immediate self-combustion of the previous Chancellor or the slow-motion crash promoted by the current incumbent, they have resulted in economic conditions for most people in society that have seen living standards racing backwards and inequalities increasing.

In Scotland, we have a chance of a better future in which the economic folly of Prime Ministers with the shelf life of a lettuce is not paid for by the people least able to afford it. On Wednesday, we will hear what route that choice will take, but make no mistake: whatever happens on Wednesday, Scotland will have that choice. I have never been more confident in the choice that Scots will make when they are given the democratic human right currently denied to them by this Tory Government, shamefully cheered on from the sidelines by the Labour party.