Spending Review 2025: Scotland

Debate between Graeme Downie and Jim Shannon

Wednesday 2nd July 2025 Westminster Hall

[Graeme Downie (Dunfermline and Dollar) (Lab)]

I beg to move,

That this House has considered the impact of the Spending Review 2025 on Scotland.

It is a pleasure to serve under your chairmanship, Sir John. On behalf of the Scottish contingent, I would like to thank the weather for finally breaking slightly, so that we can enjoy these much more suitable conditions—something else delivered by a Labour Government.

It is a privilege to discuss today the implications of the recent UK Government spending review for Scotland—a review that marks a pivotal moment for our country, offering both opportunities and challenges that we must confront with clarity and resolve. Let me begin by acknowledging some of the significant investments that were announced in the spending review and associated announcements. The allocation of £25 million for the Forth green freeport, which includes Rosyth in my constituency, is a welcome development and an investment that has the potential to transform the local economy, create jobs and position Scotland at the forefront of green innovation. I commend the Government for recognising the strategic importance of that initiative. In addition, the provision of £234 million in local funds to bring investment to communities across Scotland is a vital step forward.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Gentleman on all he does in this place; he is making an excellent name for himself when it comes to working for his constituents. Although the new growth fund that will invest in deprived communities across the United Kingdom is welcome, the Scottish funding from it will be the same overall level in cash terms as under the UK shared prosperity fund for 2025-26. There are regions and locations in Scotland and Northern Ireland that have been historically underfunded, and therefore equality of spending will not bring about equality of outcome. Does he agree that the Minister, who is an honourable lady, must look at this and ensure that the Government’s goal is equality of outcome? It must be the same for everybody.

[Graeme Downie]

I think the Government are already moving towards a focus on outcomes for budgeting, and I would like to see more of that.

As my constituency contains a large number of former coalfields, I have been working closely with colleagues on the replacement of the shared prosperity fund and how we can ensure that it delivers skills and investment for young people and opportunities in all parts of the United Kingdom. I can assure the Minister that I will be working with local stakeholders in Dunfermline and Dollar to ensure that our area secures a fair share of the funding that has been allocated for the many great projects that stand to deliver real benefits to my constituents.

Over the next three years, this Labour Government will provide the Scottish Government with an additional £9.1 billion for Scottish public services. That is the largest settlement in real terms since devolution began, and a historic opportunity for the Scottish Government to invest in the NHS, police, housing and schools—services that are the bedrock of our society, yet are the root cause of much of the correspondence I receive from constituents who are being failed by the current Scottish Government in Holyrood.

One year on from a housing emergency being declared, house building is down in Scotland, and 10,000 children remain in temporary accommodation, with no home to call their own. Indeed, as a former Fife councillor, I know that Fife council is still in the unenviable position of knowing that it breaks the law every single day when it comes to housing, because of the salami-slicing of local government budgets by the Scottish Government. That the SNP Scottish Government knowingly preside over such a situation is unfathomable, having taken their eye off multiple balls during their disastrous time in power.

I must also express my concern that, no matter how much funding is made available, the Government in Holyrood continue to fall back on a familiar pattern of whingeing and wasting. We have seen this time and again, from the mismanagement of ferry contracts to the establishment of overseas embassies that serve little practical purpose beyond a vanity project and a residence for the Minister to have a very nice time on holidays funded by the public purse.

This morning I looked over the caseload in my office, and a third of cases received are from people with problems relating to devolved policy areas. So fed up are the people of Dunfermline and Dollar by the myriad failures of the SNP that they know the best place to come for help is Scottish Labour MPs and a UK Labour Government. This morning, we learned that more Scottish public money will be spent on defending the former chief executive of the SNP in a court case about a caravan found in my constituency.

In England, the UK Labour Government have recruited more than 1,500 GPs since 1 October thanks to Government action and the digitisation of the health service in England progressing more quickly. Meanwhile, in this place I have had to raise issues including access for little boys to timely medical help for Duchenne muscular dystrophy, a lack of local dentists, and care and support for those with Parkinson’s. I am also aware of the case of Vicki Tocher, a constituent of mine who has been battling for almost a year to get her eight-year-old son, Issac, in front of doctors after he suffered a traumatic brain injury while at school.

In Scotland we see delays to national treatment centres. One in six Scots is on an NHS waiting list, there are 50,000 fewer operations than before the pandemic, and a record number have been forced to turn to private healthcare. In February, the Royal College of Emergency Medicine said that the number of patients waiting more than 12 hours in A&E in Scotland is 99 times higher than it was 14 years ago.

Coastal Infrastructure: Scotland

Debate between Graeme Downie and Jim Shannon

Tuesday 26th November 2024 Commons Chamber

[Graeme Downie (Dunfermline and Dollar) (Lab)]

Scotland’s history is intertwined with our coastal communities. From shipbuilding on the Clyde to fishing off Peterhead and Fraserburgh, these areas helped fuel the UK’s growth as a global power. Closer to my home, the Forth estuary has a proud industrial legacy. Longannet power station, near Kincardine, once powered UK industry and, to this day, the Babcock dockyard in Rosyth plays a pivotal role in naval shipbuilding. The Forth remains an active and busy waterway, with tankers and barges constantly on the move. None the less, in common with other areas, the decline in industry in the Forth is obvious. In some places, industry has been partially replaced by tourism, with 9 million visitors coming to Fife last year and contributing £570 million to the local economy.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Member for bringing forward this issue. I congratulate him on securing his second Adjournment debate in two weeks, which is fantastic. As he will know, he and I—if we go back far enough—are Gaelic cousins: I am descended from the Stewarts of the lowlands of Scotland, who came across to Northern Ireland. It is very important for us in Northern Ireland and those across the Irish sea to have a relationship through tourism. Does the hon. Member agree that greater support and funding for the ferry service between our two great countries, and therefore for tourism, would only yield greater connectivity and prosperity for both our nations? I know that many people in my constituency go to Scotland every year for a holiday, and I am sure that the same applies in the other direction.

[Graeme Downie]

I could not agree more. I had the pleasure of being in Belfast just a couple of weeks ago for a family occasion. I was not able to take the ferry on that short trip—sadly, I had to fly—but I could not agree more with the hon. Gentleman’s point.

For coastal communities in my constituency, such as Kincardine, Culross and Torryburn, tourism is indeed a welcome industry, with the Fife coastal path and the Pilgrim Way welcoming thousands of people a year to enjoy the beautiful Fife coastline. Across Scotland in 2022, marine and coastal tourism was worth £633 million, providing a total of 31,000 jobs. However, although tourism is welcomed by such communities, it can bring difficulties as well. Villages that were never designed to deal with hundreds or thousands of visitors sometimes feel swamped, with locals understandably resentful. The situation has not been aided over the years by SNP cuts to local council budgets, which have delayed upgrades to critical infrastructure, including roads, paths, play parks and other local facilities.

However, our coastal communities are not just scenic backdrops but economic powerhouses, cultural treasures and key players in our green future. They need our continued support and investment. In August this year, the Prime Minister said that our coastal communities are the lifeblood of Britain’s maritime economy. From supporting international trade to driving innovation in renewable energy, these areas must be at the heart of our plans to build a stronger, greener, and more prosperous future for the UK.

Road Fuel Market

Debate between Graeme Downie and Jim Shannon

Wednesday 6th November 2024 Commons Chamber

[Graeme Downie (Dunfermline and Dollar) (Lab)]

The topic for this, my first Adjournment debate, is fair fuel pricing, an issue that has been raised repeatedly with me by residents of Dunfermline and Dollar since I was elected in July, and that has been examined by previous Governments of all colours and by the Competition and Markets Authority.

In July this year, the CMA said that weakened competition in the fuel sector is negatively impacting drivers’ wallets. Its examination found that, in 2023 alone, high prices cost motorists a staggering amount of money. In the midst of a cost of living crisis, that seems especially egregious. The CMA’s warning was not, however, the first or even the second significant warning on fuel pricing. After launching a market study in July 2022, which reported a year later and made a series of recommendations to protect consumers, the CMA has issued three interim reports. In those reports, the CMA found that drivers were overcharged at the petrol pump by £900 million in 2022 and a further £1.6 billion in 2023. That means that, in just two years, drivers were overcharged by some £2.5 billion on their fuel in the midst of a cost of living crisis. That is shameful profiteering, which we know hits lower-paid workers and families the hardest. The cost of living crisis has meant that changes in the prices of utilities and fuel have been sorely felt.

We have long understood the argument that rural drivers might pay more for fuel due to the increased logistical costs and additional staffing costs. I do not always find such arguments convincing, but they at least have a perceived logic to them. However, fuel is not a luxury; it is a lifeline. It enables people to commute to work, take their children to school, and provide care and support to loved ones.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Gentleman on bringing the debate forward. I spoke to him beforehand; he and I share the same concerns in relation to fuel. Drivers in rural constituencies, such as ours of Strangford and Dunfermline and Dollar, are very much at the mercy of those who seek to charge more for fuel. Some have to travel far to get cheaper fuel, and it is debatable whether that is competitive or even logical. Does he agree that when it comes to competitiveness, we must have fairness and equality for every postcode, and recognise that prices in Kircubbin, the Ards peninsula and Dunfermline are similar, yet in Manchester fuel is almost 8p a litre cheaper?

[Graeme Downie]

I thank the hon. Member for his intervention; I believe that taking an intervention from him is a rite of passage in this House. I could not agree more, particularly in relation to constituencies such as my own, where there is a mix of urban and rural areas and the rural pricing hits particularly hard. Those are often areas that have poorer public transport as well, so the impact is felt even more.

Most small businesses rely on efficient and cost-effective transport for their deliveries, staff and customers, and that often means running and fuelling a car or van. High prices at the pumps have a direct impact on small businesses and squeeze already thin margins in the ongoing crisis in the cost of living and of doing business. Research by the Federation of Small Businesses shows that more than three quarters of small businesses saw their costs go up in the last quarter, and of those more than a quarter said that the increased price of fuel was one of the main reasons for that rise.

My constituency is just 20 miles from Scotland’s oil refinery in Grangemouth, yet residents in Dunfermline consistently pay a full 5p a litre more than those nearby in Glasgow, Stirling, Glenrothes or Kirkcaldy. That is despite the local supermarkets Tesco and Asda, as well as a host of other outlets in the city such as BP, all supposedly competing to be the driver’s choice. What we see in Dunfermline is a cluster of prices around the same level within the city, and price clustering around Dunfermline as well, with all supermarkets and suppliers at roughly the same price. That is not local competition; that is a local cartel. Even worse, my constituents are paying 134.7p per litre at Asda in Dunfermline, whereas in the Asda Bridge of Dee store in Aberdeen, 112 miles further north, they pay just 121.7p at the pump. Never mind 5p—that is a difference of 13p per litre.

In rural and semi-rural areas, as was said earlier, where public transport infrastructure is less entrenched—certainly in my constituency, where the train service is frequently short-formed, delayed or cancelled at short notice—fuel is not a choice; it is a necessity. My Dunfermline and Dollar constituents rely on their vehicles more heavily, yet often face the highest prices. That is an issue of basic fairness. I am all in favour of market forces being used to shape prices, but not where the market is demonstrably broken, and fuel pricing has all the signs of a broken market mechanism.

It is nothing short of outrageous that the most essential aspects of daily life are subject to broken competition, a non-functioning market and what appears to be price clustering by retailers. Across the constituency, small businesses and sole traders such as plumbers, builders, florists and taxi drivers, along with families, are paying the price. As we might say in Scotland, small businesses are being pumped at the pumps. Like many fellow Members of this House, I welcome the Chancellor’s announcement in the Budget, which we passed this evening, on freezing fuel duty, which will help people who are still feeling the impact of out-of-control inflation on their take-home pay. However, while this pricing behaviour by retailers continues, I am concerned that the full benefit of the Government’s efforts to keep down fuel costs will not be passed on to my constituents.

To help the House understand fully the consequences of this kind of price clustering and the effects of a broken market, I will share the experience of one of my constituents, Aimee, a 20-year-old apprentice who wrote to me last month. Aimee was proud to secure her apprenticeship, which she started this autumn, earning the apprentice minimum wage of £6.40 an hour. With just over £1,000 a month to live on, Aimee uses £200 a month of her hard-earned wages on fuel. She gets her petrol at Asda in Dunfermline where, as I mentioned, unleaded was 134.7p per litre yesterday. Her £200 is buying her 148.48 litres of fuel. However, if Aimee was buying her petrol at Asda Bridge of Dee in Aberdeen, where unleaded was 121.7p a litre yesterday, she would have paid just £180 for the same amount of fuel. That is a full £20 a month difference. Over the course of a year, Aimee would have to work an additional 36 hours just to pay for the difference in price of petrol for her to get to and from work. That is not justifiable. Aimee, who is learning while earning, is experiencing a real-terms pay cut differential due not to anything she has done, but to the effects of this broken market.

We encourage the use of greener transport, but we have seen the failures of the SNP Government and ScotRail to provide Fife with a reliable service, so that is not an option for people such as Aimee, with short trains and unreliable service, particularly in West Fife. One step that the SNP-Green coalition at Holyrood did take was to remove peak fares, which saw a 6.8% increase in train usage. However, that encouragement of behavioural change was swiftly removed—just like the Scottish Greens from the coalition—when the financial incentive of fairer train fares was also removed.

Behavioural change of a positive nature does not happen overnight, but the switch back to the car from the train does, and has. That short-sighted decision—like the short-formed trains that often serve the region—has put people off using green transport. Having been let down by the Scottish Government, commuters in Dunfermline are being taken advantage of by fuel retailers and market competition in my constituency.