Spending Review 2025: Scotland

Debate between Graeme Downie and Stephen Gethins

Wednesday 2nd July 2025 Westminster Hall

[Stephen Gethins]

I absolutely acknowledge the impact that inflation and interest rates have had, and the Liz Truss Budget had a huge impact on small businesses as well as mortgage holders—again, a direct consequence of policies that were made here. I would have thought, and the hon. Lady would surely concede, that one would therefore abandon Conservative spending rules, but we have yet to see that.

Another huge consequence of Conservative rule that Labour has taken over, and that is having a huge impact on small businesses, is leaving the European Union. I want to tackle this head on. I was surprised to hear the hon. Member for Dunfermline and Dollar talk about foreign embassies, when he knows fine well that the Welsh, the Northern Irish and the Scots have overseas representative offices. I was astonished to hear him seek to embrace the insularity that I associate with the Conservative party and Reform. Scotland has one of the highest rates of foreign direct investment anywhere in the UK, and we can all encourage and be happy about that.

I agree with the hon. Member about ferry connections, and he was right to highlight the work done on that by his predecessor, Douglas Chapman. Surely, we should encourage connectivity with the rest of the European Union, but Labour continues to follow the Conservatives’ mantra of a hard Brexit.

[Graeme Downie]

rose—

[Stephen Gethins]

Labour Mayor Sadiq Khan says that Brexit is costing the Exchequer £40 billion, so before I bring the hon. Member in—I will do so, because he was very fair—I want to ask the Minister this: if it is costing the Exchequer £40 billion, what impact is it having on the devolution settlement?

[Graeme Downie]

Just to clarify, there was a ferry from Rosyth to Europe when the SNP was in power. The SNP failed to support it previously, and has taken no action to investigate the legal issues around border control, which are believed by many to be a problem that the Scottish Government could solve. Once again, they have been content to blame the UK Government, without even investigating the problem themselves, when in fact they could have worked constructively either with the previous Conservative Government or with this Government to overcome it.

--- Later in debate ---

[Stephen Gethins]

The hon. Member talks about border control. Obviously, I am not in the Scottish Government.

[Graeme Downie]

Not yet!

[Stephen Gethins]

The hon. Member is very kind in apparently conceding next year’s election already. I am quite surprised by that; he may have given up on it, but I think we should all be competing.

The hon. Member talks about the Scottish border. The border is obviously devolved to Westminster, so because we are holding Westminster to account, I ask the Minister to tackle the border issue as well. We are right to have greater connectivity and to be bringing down barriers with our European partners, so why on earth are we not going back into the single market and the customs union? After all, that was the compromise that Scottish Labour itself backed in the Scottish Parliament in the aftermath of the Brexit referendum. What on earth has gone so right that Labour has abandoned that policy and embraced the Conservative policy? I would be astonished to find out, and I wonder whether the Minister can tell us. Some thought and analysis would be helpful.

The real-terms increase in the budget looks like 0.8%—lower than the UK departmental average of 1.5%. That does not sound like much but would mean £1.1 billion less to spend by 2028-29. As I have mentioned to the hon. Member for Caithness, Sutherland and Easter Ross, the Fraser of Allendar Institute has called out Labour MPs’ claims as “neither transparent nor helpful”.

This place matters. As I said, we know that the Scottish Government have a national insurance shortfall as a consequence of the policies being brought in by Westminster, and we have not even got round to last night’s welfare changes, which left the Scottish Labour party high and dry. With the honourable exception of the hon. Member for Glenrothes and Mid Fife (Richard Baker), who, as I understand it, signed the original motion but did not follow through in the debate, Scottish Labour was marched up to the top of the hill by the Prime Minister to be left high and dry.

We were told that the welfare reforms proposed before all the changes yesterday would push 150,000 more people into poverty. A Labour Government pushing more people into poverty—astonishing. Although there have been changes, because of the profound impact on the job of the Scottish Government, whose Scottish child payment is helping to reduce poverty, they are still hampered by what goes on here. If the Minister prioritises nothing else that I have said, I ask her to prioritise this: where are we with the welfare changes and how many people does she now expect to be pushed into poverty?

Coastal Infrastructure: Scotland

Debate between Graeme Downie and Stephen Gethins

Tuesday 26th November 2024 Commons Chamber

[Graeme Downie]

Once again, I could not agree more. My hon. Friend has the pleasure of representing one of the most beautiful parts of the world, and I have been able to spend a bit of time there. He is absolutely correct about the challenges that our coastal communities face, and programmes such as Great British Energy have huge potential for green jobs. We must always make sure that the transition is carried out with sensitivity and in partnership with communities wherever we can.

The Prime Minister is someone with whom I would always choose to agree, and I could not agree more with his views on coastal communities and the maritime economy. The national wealth fund announced by the Chancellor of the Exchequer is a potentially transformative opportunity for our coastal communities, with at least £5.8 billion of the NWF’s capital focused on sectors such as ports, green hydrogen, carbon capture, gigafactories and green steel.

[Stephen Gethins (Arbroath and Broughty Ferry) (SNP)]

I also congratulate the hon. Member on securing this debate. On offshore renewables, which I know he will be mentioning, Scottish communities will obviously have a huge amount to contribute. Does he agree that we need to look for inclusion in the European energy markets for those greatly expanded offshore renewables? Does he also agree that we need to look into the issue of transmission charging? I know he will be aware of that as well.

[Graeme Downie]

I thank the hon. Gentleman for that intervention. Given the additional co-operation we are seeing between the UK and Scottish Governments, with the UK Labour Government in power and resetting that relationship, there will absolutely be opportunities to work together for the benefit of all parts of the United Kingdom on energy.

In 2022, passenger and freight water transport was worth £250 million to the Scottish economy and supported 1,600 jobs. The port of Rosyth in my constituency currently handles 600,000 tonnes of bulk cargo, ranging across a variety of incomes, including road salt, which has been much needed in the past week. It was definitely required in Fife, as I found out on my trip to the airport earlier this week. In addition, the port of Rosyth works with oil and gas companies for the import and export of vital industrial components, and when I was near the port recently, I could also see turbine blades and other components for renewable energy sitting on the dockside—a sign of the future, hopefully, for my constituency.

The Rosyth waterfront, currently being cleaned up by the Scarborough Muir Group, was once home to a 250,000-tonne capacity concrete tank and 5,000-tonne steel tanks, all used to fuel the fleet during world war two. The development of the site offers a further exciting glimpse into the possible future of the Fife coast, given the required sustained investment. The green freeport offers exciting opportunities up and down the Forth estuary on both sides, with plans for Rosyth including additional freight and passenger transport and improved rail link options, all of which take freight off the roads while at the same time providing new jobs and helping us on the pathway to achieving net zero.

Over the longer-term trend, the Scottish marine economy contracted by 14% between 2013 and 2022, a shocking decline for which both the SNP and Tory Governments must carry the can. We must do more to support our coastal economy, and there is one specific measure on which I would like to focus in the remainder of my time. Between 2002 and 2018, there was a direct ferry line from Rosyth to Zeebrugge operating as a passenger and freight service, and latterly as a freight-only service. I believe, as many of my constituents do, that now is the time to bring this project back. To that end, I have held several discussions with those co-ordinating these efforts, as well as with DFDS Ferries, which has said that it would like to bring the service back as soon as spring 2025, but between Rosyth and Dunkirk instead.

Additional investment in the port of Dunkirk, including on facilities and additional upgrading of freight and rail, makes this an optimal moment to bring back this service from Scotland to Europe. The facilities at Dunkirk are ready and the national wealth fund would appear to be the ideal opportunity for this Government to take the lead on developing the facilities at Rosyth that are needed to make that happen. Never mind £5.8 billion, it could take as little as a £3 million investment in Rosyth to bring back a regular passenger and freight service between Scotland and mainland Europe, but time is of the essence if it is to be fully realised. With £3 million of funding, we could get a jump-start on all of this as soon as spring 2025.

This Government have said that they want to move quickly with investments that deliver. To my mind, there is no better example of that than getting a passenger and freight ferry back up and running between Scotland and mainland Europe, with Rosyth perfectly positioned for the service. The infrastructure needed is not extensive. All that is needed is improvement of some of the access roads, space for new security checks and the installation of power and associated works. It is estimated that a direct ferry link would carry 51,000 passengers per year, rising to 79,000, and bring an additional £11.5 million spend to the Scottish economy each year. On freight, it is estimated that the route would begin by carrying 22,000 freight units per year, taking 8.2 million km of freight traffic off UK roads, with a corresponding reduction in carbon emissions.

The kind of increased passenger and freight links that I want to see in Rosyth would revitalise the economy not only in my constituency but across Fife more broadly and would support the Government’s net zero ambitions while underpinning the Scotland Office’s plans for Brand Scotland, selling Scotland to the world. I have spoken to major employers in the constituency, including Amazon and Mowi, which have both said that they would welcome this ferry link as it would help their contribution to the local economy. Mowi plays a key part in the Scotland Office’s Brand Scotland efforts by promoting and selling Scottish salmon to the world.

There are other hurdles that would need to be overcome in order to finalise bringing the service back to Rosyth, including addressing the failure of the SNP Scottish Government to amend the necessary legislation that would allow border control at Grangemouth to be used for Rosyth for certain freight. There is also the matter of the delay by the Scottish Government in confirming Transport Scotland funding for the waterborne freight grant. While the SNP continues to delay and make excuses at its end, this Labour Government have the opportunity to jump-start this process.

[Stephen Gethins]

The hon. Gentleman makes a good point about the important Rosyth connection, and I pay tribute to him and his predecessor for their good work. He is always good natured about these things, but he will notice that neighbouring Ireland has opened up more than a dozen such routes. Why does he think that is? Does he think that membership of the single market would be enormously helpful in opening up some of these routes and further benefiting our coastal communities?

[Graeme Downie]

The hon. Gentleman is right that I should pay tribute to my predecessor, Douglas Chapman, who did much to champion this cause. My point is that we can do this in the current situation, and that is what we should be doing as quickly as possible.

This debate is about how to get investment back into our coastal communities, and what better opportunity than a passenger and freight link between Rosyth and central Europe? As I discussed with my hon. Friend on the Front Bench prior to this evening’s debate, I wrote to the Chancellor of the Exchequer at the start of October, but I received a reply only very recently, and I suspect only because this debate was on the Order Paper. This is disappointing, particularly given the small amount of money and the deadline to make this project a reality in 2025.

Of course, I do not expect my hon. Friend to be able to make any commitments this evening, and I certainly do not expect him to speak on behalf of the Treasury. However, it is critical that the Government deliver for Scotland in a visible and meaningful way as quickly as possible, by progressing projects that further Brand Scotland, which is a fantastic policy programme that sells Scotland to the world, benefiting people across my constituency and across Scotland. What actions are the Scotland Office taking to bring the correct partners around the table to make the Rosyth to Dunkirk ferry a possibility as quickly as possible, so that the option of bringing it back in 2025 can at least be seriously explored?

Whether it is restoring the Rosyth ferry, addressing infrastructure challenges or unlocking the potential of initiatives such as the green freeports, now is the time to act. By working together, we can ensure that our coastal communities thrive for generations to come.