Finance (No. 2) Bill

Debate between John Grady and Dave Doogan

2nd reading
Tuesday 16th December 2025 Commons Chamber

[John Grady]

I am going to make some progress if I may. Given the public finance situation that we face, I am afraid it is incumbent on Opposition Members to come up with some credible alternatives. But of course we know what their credible alternatives are; they are the sort of decisions made by the gravediggers Liz Truss and Kwasi Kwarteng—back to Shakespeare.

Control of public finances is one part of the equation. The other is growth, and the Government are promoting growth in the economy through things like the Planning and Infrastructure Bill, which was shamefully delayed in the other place.

I suppose we should talk about Reform’s proposals for growth. Private sector investment—like many Labour Members, I have worked in business—is supported by contract law, the rule of law, confidence in the independence of our courts, and the reliability of the Government. The European convention on human rights also has an important part to play, particularly article 1 of protocol 1: the right to peaceful enjoyment of possessions. Those Members who argue for the complete unilateral withdrawal from the ECHR may wish to consider the catastrophic effect on the economy of such a step. In the summer, Reform threatened investors with the cancellation of contracts for difference. That shows that a Reform Government would be happy to rip up contracts and to shred Britain’s reputation as a place of stability. I fail to see how that would promote economic growth. It would mean higher bills for consumers, and would make the country poorer.

I welcome the Chancellor’s reforms to gambling taxes. There is a clear distinction between going to the bingo and gambling on the horses—I will disclose that in the past I have enjoyed quite a few trips to the races—and online gambling and gaming, which, as we heard in the Treasury Committee, cause serious harm. It is essential that we start to tackle this issue. I realise that it is not a matter for the Treasury, but the marketing of online gambling and gaming needs to be reviewed, and I encourage the Treasury to act robustly against any evasion and black market activity.

I have heard some mention of choices today. This Budget and the Bill put in place steps to remove the two-child limit. My constituency of Glasgow East has some of the highest levels of child poverty in the United Kingdom. This is a disgrace and a scar on our society.

[Dave Doogan]

Will the hon. Gentleman give way?

[John Grady]

I will make some progress—I am mindful of Madam Deputy Speaker’s time limit.

Child poverty blights the lives of children in Glasgow East, and the levels of child poverty are a moral outrage. The Conservatives’ approach is to refer to my constituents as being on “Benefits Street”, which reveals the contempt that they have for my constituents, and Reform UK Members have been speaking about children in my seat with real racist malice. I say that it is a privilege to be a Member of Parliament for those children and I am proud that this Bill will help to lift hundreds of thousands of children out of poverty. I am proud of our Labour Government’s actions on child poverty and I fully support the Bill, which raises the funds to reduce child poverty.

--- Later in debate ---

[Dave Doogan]

I can only guess that Reform UK is polling quite high in Glasgow East. On his substantive point about child poverty, is the hon. Member relieved that his constituents in Glasgow East are benefiting from the fact that under the SNP, Scotland is the only part of the United Kingdom where child poverty rates are falling?

[John Grady]

Perhaps Reform UK is polling high in Perthshire as well. Leaving that to one side, let me tell the hon. Member what my constituents in Glasgow East are not relieved about: record NHS waiting lists, an SNP Government who block nuclear developments that would bring in hundreds of thousands of pounds a year through the creation of good employment, excellent jobs and growth in the economy, and an SNP Government who are anti-business and anti-growth, and who have just spent 18 years running Scotland into the ground. That is what concerns my constituents and that is why next year Anas Sarwar will be the next First Minister and create optimism for Scotland.

--- Later in debate ---

[Dave Doogan (Angus and Perthshire Glens) (SNP)]

The SNP will not support a Second Reading. This Bill derives from a Budget that failed to deliver for Scotland and does nothing to move the dial for the households hammered by the cost of living crisis.

Scotland was relying on a step change from this Labour Government—on investment in public services, jobs and industry, and real action on energy bills—but none of that has come to pass. Instead, we have a dog’s dinner Budget that results in an increase in funding for Scotland that does not even cover half of the Scottish Government’s exposure to the national insurance increase across the public sector, and a resource block grant that increases only 0.5% per annum on average across the spending review period.

Thankfully, the clauses on income tax largely do not concern Scottish taxpayers, who benefit from the SNP’s judicious and progressive income tax rates in Scotland. Those in Scotland earning less than around £30,300 are expected to pay slightly less income tax than they would elsewhere in the UK, with the freezes to higher, advanced and top-rate thresholds estimated to affect only the highest 26% of earners. Someone earning more than £35,000 in Scotland will pay just 90p more in income tax per week than someone in the rest of the United Kingdom, while benefiting from Scotland’s unique social contract, whereby, under the SNP, we collectively fund prescription charges, bridge tolls, the Scottish child payment, tuition fees, under-22 bus travel, the baby box, personal care, publicly owned railways and publicly owned Scottish Water, which is the best-performing water company in the United Kingdom. Not bad value for 90p a week.

[John Grady]

The Scottish public finances have been aided by a record budget settlement from the UK Government, but there is a £5 billion black hole in them. Might it be the case that after 18 years of the SNP, some responsibility for such matters lies closer to home, perhaps in Edinburgh?

[Dave Doogan]

The hon. Gentleman was obviously not listening. The increase to the block grant is spread over the entire spending review period—five years—and it does not cover more than half of the cost faced by the Scottish Government as a result of the increase in employers national insurance imposed by the same Chancellor. I am glad that I got the opportunity to say that twice.

Energy bills have gone up by £340 under this Government, despite the fact that they were supposed to fall by £300. That is what people voted for—that is the prospectus that Labour gave them—and the Government are not taking it seriously. They are coming back with a £150 reduction to energy bills, which is coming out of general taxation. As sleight of hand goes, that is not very slick. The money comes out of people’s standing charge, but goes directly on their general taxation.

In the interests of time, I will not dwell on agricultural property relief; I have said a fair bit during interventions, and I know that my hon. Friend the Member for Aberdeenshire North and Moray East (Seamus Logan) will contribute on that issue.

Taxes

Debate between John Grady and Dave Doogan

Tuesday 15th July 2025 Commons Chamber

[John Grady]

All I will say, Madam Deputy Speaker, is the plain fact is that North sea oil and gas will be produced for many years to come, and the Government support that. The Government are also supporting investment in the industries of the future, such as offshore renewables. Under the Conservative Government, there was a contracts for difference auction with no successful bids, setting back our access to fixed-price, cheap electricity. That is the Tory economic policy on energy: turning up their noses at cheap, fixed-price energy. It is little wonder we are in such a mess.

[Dave Doogan (Angus and Perthshire Glens) (SNP)]

Will the hon. Gentleman give way?

[John Grady]

I would like to make some progress, because there are many speakers, but I will give way.

[Dave Doogan]

I would just like to follow up on the hon. Gentleman’s talking down of Scottish skills and training—classic Labour. How does he reconcile the disparaging characteristic that he paints of Scottish skills, entrepreneurialism and training when Scotland has, for 10 years running, been the top destination for foreign direct investment outside London? What is it that foreign enterprise can see in Scotland that no Labour MP ever will?

[John Grady]

I cannot recall saying anything disparaging about Scottish education. I did criticise the Scottish NHS—[Interruption.] Well, the reality is that businesses are absolutely petrified of the way the SNP is dealing with Scottish education. We have insolvent universities and colleges in crisis, and education standards are plummeting. Those are the facts, and they are why the Scottish SNP Government will lose in 2026 and we will have a new First Minister.

The Conservatives are meant to be patriotic and pro-defence. How is the investment in defence to be paid for? Would they reverse the record settlement for the Scottish Government given that we have Scottish elections next year? I think they should explain.