Scottish Independence and the Scottish Economy

Debate between Ian Blackford and Luke Evans

Wednesday 2nd November 2022 Commons Chamber

[Ian Blackford]

My hon. Friend is correct. I think the taxation receipts for North sea oil over the period that he is talking about have been north of £350 billion. What a missed opportunity to ensure that we could invest for future generations, eradicate the poverty that has been talked about and deliver hope for future generations. I will come on to the opportunities from green energy. My message to him and other hon. Members on both sides of the House is that a green industrial revolution could come to Scotland, so we need to create the jobs that will drive up productivity and investment and give people hope—but we are not going to do that while we are part of Westminster.

There are plenty of intelligent people in this place—I am especially looking at Labour Members—and we can see the damage that Brexit has done. They see it, but they will not say it. The reason they will not say it is that they are frightened that they will lose votes in the north of England, and to hell with the consequences in Scotland and everywhere else. I am sorry to say that that is one of the most shameful examples of politics replacing principles that this place has ever witnessed—that is really saying something in Westminster.

[Dr Luke Evans (Bosworth) (Con)]

One of the reasons that the UK voted for Brexit was that the EU stands for ever-closer union, which means joining the euro. The right hon. Gentleman has talked about independence, so will he be joining the euro? Will he not then accede some of the control over the fiscal situation that he wants to deal with?

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[Ian Blackford]

I am grateful to the hon. Gentleman, but let me return to 2014. At the time of the Scottish referendum, we were told that, if we stayed in the United Kingdom, two things would happen: first, we would stay in Europe and secondly, we would lead the UK in a voluntary Union of equals. None of that has happened, however, because of his example of being taken out of the European Union against our will. The key difference is that Europe is a partnership of equals.

Since the hon. Gentleman asked about currency, I will answer head on. When Scotland becomes independent, as it will, we will retain the pound. [Laughter.] It is funny, is it? We are talking about people’s futures and we are trying to deal with a serious matter. We will keep the pound until such time that a number of economic tests are met that will allow us to have a Scottish pound. That is what will happen.

[Dr Luke Evans]

I am grateful that the right hon. Gentleman has been clear and direct in saying that Scotland will have the pound. If he joins the EU, however, is the plan not to join the euro? He will have to concede, therefore, that Scotland will have to do that. By what mechanism would he therefore keep the pound, or the Scottish pound, or refute having the euro?

[Ian Blackford]

I respectfully say to the hon. Gentleman that he should go away and read the treaties, because they are very clear; we are all aware of what is contained in them. Crucially, to join the euro, countries have to join the exchange rate mechanism for two years, which is voluntary. Countries cannot be forced into the euro. Our position is clear: we will deliver a fiscal programme that will deliver jobs for Scotland, create the circumstances for investment and drive up living standards—that is what we want with independence. We will make sure that we have the answer to the currency situation that delivers for our people.

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[Ian Blackford]

The hon. Gentleman is wrong. I have pointed out that in order to join the euro—[Interruption.] I have already laid out that we will retain the pound sterling immediately on attaining independence, and when the time is right and a number of economic tests are met, we will have the Scottish pound. There are six tests, and I will be—

[Dr Luke Evans]

Will the right hon. Gentleman give way?

[Ian Blackford]

I am now going to make some progress.

[Dr Evans]

Will the right hon. Gentleman give way?

[Ian Blackford]

I have already given way twice to the hon. Member, and I think I have been very gracious with my time.

As I said at the start, all the Westminster-imposed chaos comes with real consequences because the cost of the last six weeks, and the consequences of the last six years of constant crisis mean that the Tories are right back where they originally started—implementing austerity. This week, we have been deliberately bombarded by Treasury briefing about the “difficult decisions” that need to be made in order to fill the economic hole that the Tories dug themselves, but the return of austerity, if it ever truly went away, is not a so-called difficult decision. It is instead what it has always been—a Tory political choice to hit the poorest hardest.

No one should be fooled into thinking that there are not other choices. In the week that BP announced a quarterly profit of £7.1 billion, why not take the easy decision to bring in a proper windfall tax on excess profits? Why not take the easy decision to end non-dom tax avoidance? Why not take the easy decision to reinstate the cap on bankers’ bonuses? With all that new revenue, why not take the easiest decision of all, and protect those most at risk by uprating benefits and pensions in line with inflation? That, after all, was the promise the Prime Minister made when he was Chancellor back in May.

Until each and every one of those easy and essential decisions are taken, the Tories should not dare talk about the difficult decisions they are having to take. I fear, though, that the Tories and their new Prime Minister have already made their choice: they are gearing up to take a wrecking ball to public services and double down on austerity. That is exactly why we are now at such a critical juncture. It is clearer by the day that austerity 2.0 is the future awaiting the Scottish people unless we escape Westminster control for good. That is why independence is not just desirable; it is essential.

There is no better example of that necessity than the energy issue. The motion refers to the detailed and evidenced-based report by David Skilling, who has laid out the facts on the sheer scale of the energy opportunity awaiting an independent Scotland. I encourage hon. Members across the House to read that report. We have the potential to generate around 10% of Europe’s wave power and possess 25% of the potential European offshore wind and tidal resource. Let us not forget that it is Westminster that is holding back our tidal potential with its refusal to fund it to the rate that will be necessary to generate up to 11.5 GW of tidal energy by 2050.