Scotch Whisky Industry

Debate between Ian Murray and Andrew Jones

Tuesday 31st October 2017 Westminster Hall

[Andrew Jones]

That tempts me towards Budget comments, which I cannot make at this moment. I need to rewind a little bit from that question and make a quick point before coming on to duty rates.

The protected food name scheme remains in place while we are still a member of the EU. The European Union (Withdrawal) Bill, which is currently passing through this place, will ensure that all EU law passes into UK law when we leave the EU. That will include the legal definition of whisky, which is a significant point for the protection of the sector in the long term.

[Ian Murray]

I am grateful to the Minister for giving way; I know he has limited time. I wonder whether the Treasury and the Department for International Trade would talk to the industry in Scotland, which is such a successful exporter. In the post-Brexit world, the Government could learn a lot from the industry and how it has been able to export so successfully. That could happen to other sectors when we leave the EU.

[Andrew Jones]

The hon. Gentleman makes an important point. I have to say, though, that I have been talking to the industry and will continue to do so. One thing I have learned in the preparation of Budgets is that a significant number of representations are made either for Government spending or relating to duty. My door is open. I want to hear from the industry and ensure it understands that it can access the Treasury, which will be entirely supportive of British companies developing, investing and exporting. I particularly include the Scotch whisky industry. I have been trying to get across my support for it, and my door will be open for future meetings.

Let us get to the issue of duty rates. The actions taken by this Government are estimated to have reduced all alcohol duty receipts by around £2 billion since 2013. That is a significant duty cut. The actions taken to freeze or cut spirits duty at Budgets in 2014, 2015 and 2016 mean that the tax on a bottle of Scotch is now 90p lower than it would otherwise have been. I understand the point made by the right hon. Member for Orkney and Shetland about price elasticity within the marketplace. The £4 billion of exports per year are unaffected by duty changes as no duty is paid on exported spirits. No UK duty is paid therefore on around 93% of all Scotch whisky produced.

As we approach the Budget, the Government face some pretty tough choices. As I said, I cannot pre-empt what my right hon. Friend the Chancellor of the Exchequer may announce. However, it is the Government’s policy for our public finances to assume that alcohol duties will rise by retail prices index inflation each year.

High Speed Rail (London - West Midlands) Bill

Debate between Ian Murray and Andrew Jones

Monday 20th February 2017 Commons Chamber

[Andrew Jones]

I am not sure that I can comment on that point. It refers to something that happened way before I took any responsibility for this area, but my right hon. Friend has made it firmly.

The Labour Front-Bench spokesman, the hon. Member for Middlesbrough (Andy McDonald), asked about traffic regulation orders and I can confirm that reasonable costs will be met by HS2 Ltd. I will ask HS2 Ltd to confirm that to local authorities, in case there is any doubt.

On Great Missenden, the relocation of the haul road was considered by both Houses. Moving the haul road north would have created new, significant environmental effects, and a new version of the register of undertakings and assurances, which my right hon. Friend the Member for Chesham and Amersham (Mrs Gillan) has asked about, will be published at Royal Assent.

Several Members talked about the skills footprint and the careers legacy of HS2, with people perhaps spending their entire working career on the project, and I completely agree with them. I had a great visit to the HS2 college in Doncaster this morning. The college is progressing very well. It is due to open in September, and it is already attracting significant interest. In fact, the number of applicants seeking to go there in September is way ahead of projections. This is part of how HS2, among our other railways, will redefine the future. I saw the progress that the college has made—it has actually got as far as having track laid in the training workshop area—and that brings home to us that the project really is a very big and exciting opportunity.

I can confirm, in answer to several requests, that the Government fully accept Lords amendment 4, which colleagues have called the land-grab or non-land-grab amendment. I confirm that we accept all the Lords amendments, including Lords amendments 1 and 2 in relation to the work in the Meriden constituency.

Many colleagues have mentioned the compensation arrangements and how long it is taking to come to financial arrangements with HS2 Ltd. This is a mixture of the financial costs and the fact that we must recognise that there is also a human or emotional cost. We do not just invest cash in creating our homes; our homes are much more than that, and we must respect the human cost. If some people have their homes repossessed or changed, we have to be sensitive and to treat people with respect and generosity. Quite frankly, if colleagues are not seeing that happen, I am sure they will be keen to raise that with me—they have already done so—and I am very happy to continue to raise their points with HS2 Ltd. I want HS2 Ltd to be a good neighbour, and I know that view is wholly shared by HS2 Ltd itself.

I welcome the SNP’s support for this project. I recognise that we are going no further north than Leeds and Manchester—I should perhaps add that we are going no further north than Leeds and Manchester yet, and I see much merit in taking it further—but there will be immediate benefits for the people of Scotland from the development that will, I hope, receive Royal Assent this week. Its capacity will allow more services and the time involved in journeys will be reduced.

[Ian Murray (Edinburgh South) (Lab)]

The Minister mentions the benefit of HS2 to Scotland. Will he confirm whether there is a Barnett consequential to the spending on HS2?

[Andrew Jones]

That is way above my pay grade. I simply do not know the answer to the hon. Gentleman’s question, so I will have to do some checking to find out.

There were a number of other questions. I have clearly heard the points about compensation and mitigation raised by the hon. and learned Member for Holborn and St Pancras (Keir Starmer). I can confirm that we are working on the tunnel portal location, but we are not yet in a position to make any announcements. I recognise that such a change will make a significant difference to many people, but we are working on it, as he will be aware.