Oral Answers to Questions Debate

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Department: Cabinet Office

Oral Answers to Questions

Ian Murray Excerpts
Wednesday 24th January 2024

(3 months ago)

Commons Chamber
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Lindsay Hoyle Portrait Mr Speaker
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I call the shadow Secretary of State.

Ian Murray Portrait Ian Murray (Edinburgh South) (Lab)
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I join the Minister in passing on our condolences to the Secretary of State and his family on their bereavement. I also wish everyone a happy Burns day for tomorrow. I thank the wonderful Ayrshire musicians in the Public Gallery, who treated us to some entertainment last night.

Since the Government have been in power, working people have paid on average 10p on the pound more in tax. The supposed party of low tax has created the highest tax burden on working people in 70 years, making this the biggest tax-raising Parliament since records began. In Scotland, the SNP has looked at that tax burden and said, “Hold my beer,” as everyone earning more than £28,000 pays even more tax than they would in England. What impact does the Minister think that historically high tax burden has on the Scottish economy?

John Lamont Portrait John Lamont
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The Government remain focused on reducing the tax burden when it is prudent to do so, but as the hon. Gentleman identifies, we have an additional challenge in Scotland in the high tax agenda put forward by the SNP Scottish Government. I share his concerns about the impact that that is having on the ability of the Scottish economy to perform to its full potential.

Ian Murray Portrait Ian Murray
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The Minister seems to think that having your pocket picked for £10 and getting £2 back is something to be grateful for. The fact is that working people all across the country, including in Scotland, are paying for the Tories’ crashing of the economy. We know that the Barnett formula results in an additional £19 billion of public spending in Scotland’s economy, but last week The National reported that the SNP was being encouraged by its sister party in Wales to join the campaign to ditch the funding formula.

Sixteen years of SNP Government have left Scotland’s public finances with a £1 billion black hole. We are in the middle of the worst cost of living crisis in generations, yet historically high taxes are already being imposed on working people to pay for it. Losing the Barnett formula would devastate Scotland’s public finances and economy like nothing we have seen before. Will the Minister join me in demanding that the SNP rule out the policy to bin the Barnett formula?

John Lamont Portrait John Lamont
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The biggest enemy of the Barnett formula and of devolution in Scotland is the SNP. It wants to rip up the devolution settlement and stop the Barnett formula, which results in millions of pounds of extra investment going into Scotland each year. The Conservative Government remain absolutely committed to devolution, the Barnett formula and more investment into Scotland.