National Insurance Contributions (Secondary Class 1 Contributions) Bill

Paul Holmes Excerpts

2nd reading
Tuesday 3rd December 2024 Commons Chamber

[Olivia Bailey]

The hon. Member should go on Google.

In the months that have followed, I have been proud that this Government have been willing to make the hard choices necessary to protect our economic security, and have taken the long-term decisions necessary to fix the foundations of our country and finally prioritise our broken public services. We are investing in the NHS, rebuilding our crumbling classrooms and recruiting thousands of teachers to end the era of government by press release and empty promises. That is why I support this legislation.

[Paul Holmes (Hamble Valley) (Con)]

The hon. Lady stated that she was intimidated by her Budget. I should imagine that is very true—

[Olivia Bailey]

I did not say that.

[Paul Holmes]

Okay. Well, was she intimidated by her Budget? I take it that she would be intimidated by the growth that has been revised downwards, by business confidence crashing, and by private sector employers stating that they will have to let employees go because of the red tape put on businesses, all through this Government’s Budget.

[Olivia Bailey]

I ask the hon. Gentleman not to twist my words. I very clearly said that I was intimidated by the sheer scale of the mess that the Conservative party left our economy in, and the hard conversations I have had to have with my constituents because of how much harder that has made it to make things better for them.

Some of the bigger businesses in my constituency will find the changes difficult, and I thank those who have shared their views with me, but I believe that this was a fair choice, given the situation that we are in. Small businesses in my constituency will benefit from the changes, and there is also the benefit to all of us from our significant investment in public services. Hairdressers, beauticians, cleaners, independent shops and artisan bakers—the lifeblood of Reading West and Mid Berkshire —will stand to benefit from the expanded employment allowance, which will allow them to employ the equivalent of four full-time workers on the national living wage without paying any national insurance contributions on their wages.

Businesses in my constituency will also benefit from our reforms of business rates, our action to tackle late payments, our significant investment in roads and infrastructure, our plan to restore our high streets, our commitment to the lowest corporation tax in the G7, and, of course, our cast-iron commitment to protecting economic stability and growing our economy.

As we heard from my hon. Friend the Member for Basingstoke (Luke Murphy), the Conservatives want to have their cake and eat it. They say that they support investment in our public services, but they do not say how they would pay for it. They have perfected faux outrage, but they crashed the economy and left a huge mess for us to clean up. They are yet again unwilling to make tough decisions in the national interest, but we will not repeat their mistakes. We will fix the foundations of our economy and our public services, working hand in hand with our great British businesses, and we will get our future back on track.

Finance Bill

Paul Holmes Excerpts

2nd reading
Wednesday 27th November 2024 Commons Chamber

[James Murray]

Every business knows that we can make investment decisions only on the basis of secure public finances and economic stability, which is why this Government’s first priority has been to wipe the slate clean of the mess we inherited from the Conservative party, to deliver economic stability and to provide the environment for businesses to make the investments on which we will grow the economy. That remains our No. 1 mission.

[Paul Holmes (Hamble Valley) (Con)]

Will the Minister give way?

[James Murray]

I will make some progress.

As the Chancellor set out in the Budget, we believe that before making any changes to the tax rates that people pay, it is vital that we do everything we can to close the tax gap. That is why, in the Budget, the Chancellor announced a step change in our ambition to do so, with a package raising £6.5 billion of additional tax revenue by 2029-30. This package will ensure that more of the tax that is owed is paid, and that taxpayers are supported to pay the right tax first time. Our plan involves boosting the capacity of His Majesty’s Revenue and Customs to ensure compliance and reduce debt, alongside changes to legislation, some of which this Finance Bill delivers, to remove loopholes used to reduce tax liabilities.

That is why this Bill includes measures such as introducing capital gains on the liquidation of a limited liability partnership, closing a route increasingly used to avoid paying tax. The Bill reforms rules for overseas pension transfers, closing a gap that allows individuals to transfer significant pension savings overseas tax-free. And the Bill implements the cryptoasset reporting framework, tackling complex compliance cases where a significant proportion of offshore risk sits.

In our manifesto, we said that we would take on the tax gap, and that is what we are doing in government.

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[James Murray]

My hon. Friend is right that every parent aspires to a high-quality education for their children, and that is exactly what this Government will achieve through the already announced £2.3 billion increase to the core schools budget for the financial year 2025-26, increasing per pupil funding in real terms. That includes £1 billion of additional funding for the special educational needs and disabilities system.

[Paul Holmes]

The Minister is dedicated to extolling the virtues of his manifesto. When he sat down to write the Budget with his right hon. Friend the Chancellor, did he recall whether the manifesto put to the country at the general election stated that growth forecasts under this Government would be lower than they were under the previous Government? Was the taxing of small family farms for a total revenue of £590 million in his manifesto? He is very keen on the manifesto, but did it outline that growth would be lower under this Government?

[James Murray]

I am keen on our manifesto, which delivered this Labour majority and this Labour Government. If the hon. Gentleman looks at the manifesto that we went into the election with, he will see the three words that open our pledges: “deliver economic stability”. After the mess that the previous Government made of the public finances, and the damage they did to our public services and our economy, that is crucial. Delivering economic stability, fixing the public finances and putting our public services back on a firm footing are essential to getting the investment and growth that our country badly needs.

Let me be clear about the VAT policy on private school fees: charging the standard rate of 20% does not mean that schools must increase their fees by 20%, because schools can reclaim VAT paid on inputs and reduce the cost to minimise the extent to which they need to increase fees. Many schools have already publicly committed to cap increases at 5%, or to absorb the full VAT costs themselves.

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[James Murray]

Let me put these decisions into context for the hon. Gentleman. The increase equates to £1 more for people taking domestic flights in economy class and £2 more for those flying to short-haul destinations in economy class. None of the decisions are easy, but we have to take them to fix the public finances and to get our economy back on a stable footing.

[Paul Holmes]

Will the Minister give way?

[James Murray]

I will make some progress. That is the impact the changes have on domestic flights and short-haul destinations in economy class. However, in addition to the broad changes in air passenger duty rates, the higher rates for larger private jets will also increase by a further 50% to ensure they contribute fairly to the public finances.

The Bill also renews the tobacco duty escalator and enables His Majesty’s Revenue and Customs to prepare for the introduction of a new duty on vaping products. The Bill increases the soft drink industry levy over the next five years to reflect the 27% increase in consumer prices index inflation between 2018 and 2024, as well as increasing the rate in line with CPI each year from 1 April 2025. Finally, while the Bill increases alcohol duty for non-draught products, in line with retail prices index inflation, duty on qualifying draught products will be cut by 1.7% in cash terms to support pubs, and we will increase the duty discount on products that qualify for small producer relief from 1 February 2025.

The Chancellor has been clear that the Budget was a once-in-a-generation event, at which the Government took difficult but necessary decisions. By taking those tough decisions, the Budget delivers economic stability, sound public finances and stronger public services. On those foundations, we will work day in, day out across the rest of this Parliament to boost investment and growth.

Many of the measures to boost investment are being delivered outside of the Finance Bill, from the planning reform that we got under way within days of taking office to the creation of mega-funds for pension investments, which the Chancellor announced at Mansion House. The Bill introduces additional reliefs for our creative industries, for visual effects within film and high-end TV, which will play a key role in strengthening the UK as a global hub for film and TV. Likewise, the Bill introduces measures to support the transition to electric vehicles, through higher vehicle excise duty first-year rates for hybrid and internal combustion engine vehicles, which boosts the incentive for EVs, and by an extension of first-year allowances for electric cars and charge points until 2025-26.

Above and beyond any individual measures, the impact of the Bill and the Budget that it follows is to lay the foundation for greater investment and growth, through fiscal responsibility, stronger public services and economic stability. We have laid the foundations for creating wealth, jobs and opportunity in every part of this country, enabling people to meet their aspirations for themselves and their families, and making people across Britain better off.

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[Connor Naismith]

We have heard lots of contributions from the Opposition Benches about the fantastic record of the previous Government, but that does not stand up to the lived reality of our constituents. That is exactly why we saw the result that we had in the general election. The sooner Opposition Members come to terms with that result, the better.

[Paul Holmes]

Will the hon. Member give way?

[Connor Naismith]

I am sorry, but I have given way several times already.

I welcome the Government going even further in the Bill to level the playing field and ensure that those with the broadest shoulders take the heaviest burden. That is why we need the legislation to close loopholes such as the non-dom status, change the furnished holiday lettings tax regime and provide more resources to HMRC to tackle the tax gap. That will help us address the financial black hole that the Conservative party clearly had no regard for, claims does not exist and has failed to apologise for. The Bill will allow us to fix what the Leader of the Opposition admitted today were broken foundations. I believe that the Government’s Budget and the Bill will be a vital starting point on a long road to recovery for this country. I commend the Government for their work and support this Bill’s progression through the House.

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[Jerome Mayhew]

In a moment. If we add that all up, there would be £50 billion that could be spent on the frontline. However, the problem with the Labour party is that it takes money and spends it on inflation-busting wage rises for its union paymasters, but not on increasing and improving the outcomes for the people who use services. That is the big difference between the Conservative party and the Labour party. The focus of our spending is not the people providing the services; we are for the people who use those services—the people of this country.

[Paul Holmes]

My hon. Friend is making a typically eloquent and excellent speech. I challenged a number of Labour Members to outline that public services can be invested in if, in addition to some of the tax-raising mechanisms they have chosen, we have economic growth. Will my hon. Friend outline how much growth has been cut by under the Government’s proposals compared with ours? Am I correct in thinking it is 0.7% over the Parliament?

[Jerome Mayhew]

My hon. Friend is entirely correct: over the course of the forecast period, the Office for Budget Responsibility estimates that growth will be cut by 0.7%. It is worse than that, however, because we also have an increase in taxes on businesses of £25 billion through the national insurance contributions, which the OBR tells us will be paid for overwhelmingly by reduced pay for workers, amounting to £7.5 billion. It also forecasts that more than 50,000 full time-equivalent jobs will be lost as a result of the policies that Labour Members plan to vote for.

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[Jerome Mayhew]

The hon. Gentleman’s intervention was not on the point that he rose for, but there is one thing that he does not mention, and that is the covid impact. [Interruption.] Hon. Members can laugh about it, but we spent £400 billion supporting the economy and the people of this country in a once-in-a-century impact on our economy.

[Paul Holmes]

If my hon. Friend will forgive me, will he give way?

[Jerome Mayhew]

Yes, I will. That was extraordinary.

[Paul Holmes]

Does he agree with me that there seems to be a collective amnesia among colleagues on the Labour Benches? If we had taken their advice during covid, when we were making reasonable decisions, not only would we have seen the longer lockdowns that the now Prime Minister was calling for, but more economic damage, which they now deny ever happened in the first place.

[Jerome Mayhew]

My hon. Friend is absolutely right, and there is a point worth making here. Since covid, the private sector has improved productivity by about 6%. Productivity in the public sector has yet to improve, although before the general election it was starting to do that.

Oral Answers to Questions

Paul Holmes Excerpts

Tuesday 29th October 2024 Commons Chamber

[Rachel Reeves]

I am sure the right hon. Gentleman told them about the £22 billion gap in the public finances that his Government left, which has required the difficult decisions this Government have had to make to clean up the mess left by the Conservative party.

[Paul Holmes (Hamble Valley) (Con)]

With the promised £300 cut in energy bills not materialising, the winter fuel payment scrapped for pensioners, and now the bus cap lifted for working people—whatever definition of that term the Chancellor is using today—can she honestly say that living standards will improve for everybody under this Government?

[Rachel Reeves]

On the bus price cap specifically, the hon. Member will know that the previous Government put no money in to extend that cap. We have put money in to ensure that the bus price cap remains at an affordable level for people, unlike the previous Government, who just had short-term gimmicks.

VAT: Independent Schools

Paul Holmes Excerpts

Tuesday 8th October 2024 Commons Chamber

[Damian Hinds]

My hon. Friend makes a very good point.

[Paul Holmes (Hamble Valley) (Con)]

rose—

[Damian Hinds]

I will take one more intervention before making progress, so as not to try your patience too much, Mr Speaker.

[Mr Speaker]

It is not that my patience is being tested, but I do worry when shadow Secretaries of States cover a subject at length. I understand, but we need to get on, because lots of Back Benchers are desperate to get in. In fact, we have a very eager Opposition Whip coming in now.

[Paul Holmes]

You will find out, Mr Speaker, that I will not test your patience. I want to take my right hon. Friend back to the point he made about the Education Secretary’s tweet, which I thought was disgraceful. [Hon. Members: “Where is she?”] The divisive language behind that tweet was a disgrace, given the many independent schools that work hard and play by the rules. Does my right hon. Friend agree that the embossed notepaper that the Secretary of State focused on is sent to many children who are being sponsored through bursaries or scholarships, and whose parents work hard to give their children the best education? The Education Secretary should apologise for that disgraceful tweet.

[Damian Hinds]

I am grateful to my hon. Friend, who, as ever, makes important points. I too am disappointed that the Education Secretary is not with us for this important debate. I will make progress, Mr Speaker, because I do not want to go on longer than I should.

To be clear, we want to talk first and foremost not about revenue, but about education, schools and children—all children. [Interruption.] No, I have been talking about schools and children throughout. If the Government insist on ploughing on with this divisive policy, they must at least exempt certain groups of children for whom it would be especially unjust or counterproductive to impose this tax. Surely, schools that charge the same as, or even less than, the average cost of a school place were not in the Government’s sights when they devised this scheme. There are small religious groups that have no state sector provision for their denomination. Why should they be disadvantaged? The continuity of education allowance exists expressly to support families who are serving our nation in the armed forces. Surely they should be protected.

The Government acknowledge the role of centres of advanced training and performing arts schools that come under the music and dance scheme, because, again, there is no equivalent specialist schooling available in the state sector. Then there are the many children who receive special educational needs support, including those with an education, health and care plan, whether or not they are at the school named in the plan, and those children who are applying for a plan.

Winter Fuel Payment

Paul Holmes Excerpts

Tuesday 10th September 2024 Commons Chamber

[James Murray]

Thank you, Madam Deputy Speaker. The hon. Member who just intervened, and indeed everyone on that side of the House, might like to reflect on what the legacy of the last Government truly was. It was one of irresponsible overspending, of uncosted commitment after uncosted commitment, and of Ministers running away from taking difficult decisions. As a direct consequence, when we came to power we were faced with a £22 billion black hole in the public finances for this year alone.

[Paul Holmes (Hamble Valley) (Con)]

I am genuinely grateful to the Minister for giving way. He is a Minister at the Treasury, so I am hoping he will be able to outline some of the facts and answer my question. He will outline today that the saving made by cutting the winter fuel payment is £1.1 billion. If everybody accepted the means-testing that he is proposing, it would cost £3.3 billion, so can he outline to the House, despite the bluster that he has just made about saving money for the great British people, how it will save money when it will cost more under his proposals?

[James Murray]

I thank the hon. Gentleman for his intervention. The announced savings include an assumption of an increased take-up of pension credit, which is in line with the highest levels ever achieved. Frankly, if more people are taking up pension credit when they are eligible for it, we should welcome it because it means that support is being targeted at those in greatest need.

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[Paul Holmes (Hamble Valley) (Con)]

The change that the Government announced this morning will mean than 18,300 of my constituents will go without their winter fuel payment this Christmas. In the brief time that I have, I will set out why I believe that is just the start from the Government.

The first reason is that cutting winter fuel payments for poorer pensioners is a political choice, not a necessity, despite what the Leader of the House says. Over the election period, Labour said that it would not cut the winter fuel payment. It has broken its promise to the British people, and they will remember that. Labour also said that it would possibly do more, although it has denied that it would not do more. Today’s measures will save £1 billion, as I outlined in my earlier intervention, but Labour has awarded inflation-busting pay rises of £9 billion to its union paymasters.

[Peter Swallow]

Can the hon. Member explain to the House and to his constituents why he would not back fair pay rises for teachers, nurses, prison officers and members of the armed forces in his constituency?

[Paul Holmes]

I will not take any lectures from the hon. Member, but I say to him that I always defend pay rises for people in this country who deserve them, which is exactly what the Conservative Government did. What our Government did not do was award inflation-busting pay rises of 22% to the people who paid for our general election campaign, increasing inflation in this country. I believe that people deserve pay rises, but that should be done within a responsible fiscal envelope. The Labour Government simply have not done that.

As we heard from the Chancellor earlier, the measures that she has announced will cost more than the savings generated from scrapping the winter fuel payments—that is a shambles. The Government have done this at a time when energy bills will increase by 10%, despite the Labour party’s promise in Opposition that it would freeze energy bills—another broken promise that pensioners will have to face this Christmas. The Government have also refused to rule out scrapping the 25% single occupancy discount for pensioners and single people. If that goes ahead, they will deprive pensioners of another £600 on average. That is a political choice and a cost of living bombshell that this Labour Government—supposedly the party of hard-working people—will impose on vulnerable and poorer pensioners across the country.

Labour Members have a choice this afternoon and going forward. They should reverse the cut, stand up for the thousands of people in their constituencies who will be made poorer by the Government, and reject the measures that they outlined earlier. Let me put it this way: 18,000 people in my constituency rely on the winter fuel payment, as do thousands of Labour Members’ constituents. When we go to the ballot box in four years’ time, I look forward to Labour Members standing up and explaining to those pensioners why they made them poorer.

Public Spending: Inheritance

Paul Holmes Excerpts

Monday 29th July 2024 Commons Chamber

[Paul Holmes (Hamble Valley) (Con)]

The Chancellor spent the election campaign saying that she was going for growth through investing in infrastructure. Instead, she is cutting it, while funding inflation-busting pay deals and scrapping pension benefits for the worst-off. Does she agree that in the battle for the two faces of the Labour party, the face of tax rises, borrowing and boom and bust won, and the British people—hard-working people—will ultimately lose under her leadership?

[Rachel Reeves]

There is nothing pro-growth about making unfunded spending commitments. There is nothing pro-growth about a lack of respect for taxpayers’ money. We will continue to provide the winter fuel payment for the poorest pensioners, those in receipt of pension credit.

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[Rachel Reeves]

I thank the hon. Gentleman for his questions, and for persevering for so long. I fully agree that the focus should be on frontline public services. We have committed ourselves to back-office efficiency savings of 2% in all Government Departments, and a reining in of consultancy and Government communications spending. Those things got out of hand under the last Government, and we will rein them in.

May I end by saying this? We have been here for two hours, and in that time not a single Conservative Member on either the Front Bench or the Back Benches has apologised for the state of the public finances and the state of our public services. That says all we need to know about the outgoing Conservative Government, and they should never have their hands on power again.

[Paul Holmes]

On a point of order, Madam Deputy Speaker. May I raise a significant issue that I am concerned about, in relation to the Chancellor’s statement? [Interruption.] The Chancellor obviously does not want to stay in the Chamber to hear this.

In the course of her remarks, the Chancellor appeared to indicate that the Government had knowingly laid wrong or misleading estimates before the House on Thursday last week which differed significantly from what she has presented today, one working day since those estimates were laid. This, if true, is of serious concern. What steps can we take to ensure that the Government retract either the estimates laid or the document that they produced today, and can you tell me whether this possibly constitutes a breach of the ministerial code?

[Madam Deputy Speaker (Caroline Nokes)]

The hon. Member will know that the Chair is not responsible for the content of contributions made by Ministers, but I am sure that his concern has been heard on the Government Benches. I am sure that if an error has been made in this instance, the Minister will seek to correct it as quickly as possible. It is for the Government to decide on the estimates that they put before the House.

Oral Answers to Questions

Paul Holmes Excerpts

Tuesday 19th March 2024 Commons Chamber

[Dr James Davies (Vale of Clwyd) (Con)]

13. What fiscal steps his Department is taking to support small businesses.

[Paul Holmes (Eastleigh) (Con)]

16. What fiscal steps his Department is taking to support small businesses.

[Mrs Flick Drummond (Meon Valley) (Con)]

18. What fiscal steps his Department is taking to support small businesses.

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[Gareth Davies]

My hon. Friend is right that at the autumn statement, this Government extended the retail, hospitality and leisure relief in England—a tax cut worth £2.5 billion for small businesses. The Barnett formula applies to allow the Welsh Labour Government to offer similar relief if they want to. It is disappointing, if not surprising, that when given the opportunity, Labour decides not to cut taxes for working people.

[Paul Holmes]

Does my hon. Friend agree that one of the best steps that the Government can take to support small businesses in Eastleigh, Hedge End and Botley is through a package of business rate reductions? Will he outline to the House the progress the Government have made in this regard, which was desperately needed?

[Gareth Davies]

My hon. Friend is right. Business rate relief is a great way to support small businesses in Eastleigh and across the country. Our small business rate relief means that one third of all properties in England already pay no business rates at all. We have frozen the small business multiplier, protecting more than 1 million properties from a multiplier increase. As I was just saying, we are supporting high streets with our retail, hospitality and leisure relief.

Oral Answers to Questions

Paul Holmes Excerpts

Tuesday 19th December 2023 Commons Chamber

[Paul Holmes (Eastleigh) (Con)]

4. What fiscal steps his Department is taking to support small businesses.

[The Financial Secretary to the Treasury (Nigel Huddleston)]

A very jolly Christmas to you and all, Mr Speaker.

Small and medium-sized enterprises are the backbone of the economy, and we support them to thrive using levers across government. Our small business rate relief means that one third of business properties in England already pay no business rates. We provide tax reliefs benefiting SMEs, such as annual investment allowance and employment allowance, we support investments in SMEs through the British Business Bank programmes and we fund the schemes offering SMEs training and advice.

[Paul Holmes]

Merry Christmas to you and yours, Mr Speaker. The autumn statement was a huge success for small businesses across the country, with the Federation of Small Businesses describing it as “a game changer”. Will my hon. Friend outline to the House how the autumn statement package will benefit those small businesses in my constituency on which my towns and villages rely?

[Nigel Huddleston]

I thank my hon. Friend for his continuing support for small businesses in his constituency. Measures in the autumn statement to help them include extending the retail, hospitality and leisure relief for another year, which will support around 230,000 properties in England. That tax cut is worth nearly £2.4 billion. Meanwhile, by freezing the small business multiplier for a fourth consecutive year, we will be protecting more than a million properties from a multiplier increase. Other announcements that could benefit his constituents include the Help to Grow, management and Made Smarter programmes and moves to tackle late payments.

Economic Growth

Paul Holmes Excerpts

Tuesday 14th November 2023 Commons Chamber

[Drew Hendry]

Tory Members keep peddling this line, but what they know, and what everybody else knows, is that they started from a lower base because they tanked the economy in the first place. They have to live up to that responsibility. They claim higher growth from a lower point of entry. [Interruption.] They can try to shout me down, but I will make progress.

The King’s Speech, which was alarmingly brief on tackling the cost of living crisis, was a missed opportunity to offer concrete measures for relief. It paid lip service to reducing inflation and easing living costs, but lacked substantive policy proposals. Labour, too, is offering little on the cost of living crisis. Where are the measures that could be taken now to help people in their homes? Completely absent. Of course, that is just part of Labour’s “don’t scare the Tory voters” approach to securing office. The UK’s economic stagnation, which is evidenced by recent data, underscores a systemic failure to foster growth, post financial crisis. There is nothing in the King’s Speech to help support people, our food and drink industry, or our tourism and hospitality sector. That is something the Chancellor will need to correct before next week.

In a UK battling—unlike what the Government claim—rampant destitution, the failure of the King’s Speech to prioritise poverty reduction is indefensible, with millions, including a shocking number of children, unable to meet their basic needs. The situation in the UK is dire. Scotland’s lower destitution rate is a testament to SNP policies such as the Scottish child payment, but there is no attempt to replicate that anywhere in this House or to suggest that we do so. The eradication of poverty remains a more distant prospect under the current Westminster regime. Labour’s stance, echoing Tory rhetoric and policies, leaves independence as Scotland’s only hope for a fair and dynamic economy.

[Paul Holmes (Eastleigh) (Con)]

The SNP spokesman is outlining to the Chamber his utopian world under an SNP Government. Can he outline why under the SNP Government education standards in Scotland have fallen at record levels and NHS standards in Scotland have fallen at record levels, and why his Government have failed the people of Scotland on the delivery of public services?

[Drew Hendry]

That is what the hon. Gentleman has in his prepared statement, but when we look at the facts, we see that that is not correct. Scotland’s accident and emergency departments, for example, have outperformed the rest of the UK for the past eight years. We have more doctors and nurses per head of population than anywhere else in the UK. On public services, the Tories are pushing councils to bankruptcy in England. In Scotland, we are managing to negotiate with unions to avoid strikes and keep the economy moving, which is not being replicated by this Tory Government down here.

Despite constraints, the Scottish SNP Government have implemented significant policies to alleviate the cost of living crisis. We have frozen council tax, introduced the Scottish child payment, supported disabled children, offered free school meals and provided free bus travel. Those are just a few examples of the Scottish Government’s proactive steps. Those measures, though effective, highlight the limitations of devolution under the Westminster system, underscoring the urgent need for greater powers in Scotland, for Scotland, to support its citizens fully.

Despite being a nation rich in energy resources, our people still face the pressing challenges of fuel poverty and high energy costs. Current UK energy policies and management continue to fail the people of Scotland. The fact that our energy wealth is significant is not open to challenge. Despite numerous attempts to tell the people of Scotland that their oil and gas resources are running out, the UK Government now say that they will grant new licences every year. Scotland is producing six times more gas than it consumes. However, that abundance contrasts sharply with the high prices they are expected to pay and the increasing fuel poverty faced by our elderly in particular. In just two years, the fuel poverty rates among pensioners are a concerning trend that highlights another disconnect between resource richness and public benefit. Westminster policies have continually failed to translate Scotland’s natural energy wealth into tangible benefits for its populace—they have done quite the opposite. They have resulted in an oppressively toxic cost of living and inflationary effect for Scottish households.

The lack of targeted measures in the King’s Speech to address energy bill support further underscores that. Critics from various sectors have voiced their disappointment, emphasising the need for far more action on prices, investment and insulation, and many more renewable energy sources. The SNP has said we should have a £400 energy bill rebate and action on basic costs. We should have mortgage interest rate tax relief and there should be action on food costs, but of course we have not heard that from anywhere else in this Chamber.

In response to the challenges posed by Westminster’s policies, the Scottish Government have been proactive in implementing measures to mitigate the impact on its residents. Those actions include, as I mentioned, freezing council tax and providing additional support for heating costs for the most severely disabled children and young people during winter. Furthermore, the Scottish Government’s commitment to renewable energy and sustainability aligns with the broader goal of transitioning to a cleaner, more self-sufficient energy future. Westminster has singly failed to invest, most notably over a decade of dither and delay on the Peterhead carbon capture opportunity and subsequent potential hydrogen bonanza, and in its abject failure to meet the Scottish Government’s £500 million investment in the just transition—incidentally another area where the Scottish Government have had to step in to plug the gap on reserved Westminster inaction.

The transfer of energy, employment, welfare and economic powers to the Scottish Parliament is essential. With those powers, the Scottish Government could implement more effective policies to support their citizens through the ongoing energy and cost of living crisis.

Looking globally, nations comparable in size to Scotland boast vibrant economies that benefit their citizens. Countries such as Iceland, Norway and Denmark exhibit lower income inequality and poverty rates, and higher social mobility compared with the UK. That comparison raises a crucial question: why should Scotland remain tethered to a Westminster system that fails to resonate with its values and hinders its potential to be fairer, wealthier and happier?

The King’s Speech was a stark reminder of Westminster’s detachment from Scotland’s needs and the UK’s broader societal challenges. It highlighted the necessity of independence for Scotland—the only path that leads towards a more equitable, prosperous future in line with the aspirations and values of the Scottish people.

Mortgage and Rental Costs

Paul Holmes Excerpts

Tuesday 27th June 2023 Commons Chamber

[John Glen]

I appreciate the passion with which the hon. Gentleman presents his point, but we have made an agreement with the FCA and with lenders, and in the next couple of weeks the details will be available for consumers and mortgage holders up and down the country. As I say, we have already moved from three quarters to 85% of lenders and I expect others to join in due course. We will continue to have dialogue with the FCA and to look at further ways to help consumers.

The purpose of our intervention is to provide people with more flexibility and optionality to find the best deal for their circumstances. Mortgage arrears and defaults remain at historically low levels, with less than 1%—I think it is 0.86%—of residential mortgages in arrears in 2023, a lower level than just before the pandemic.

[Paul Holmes (Eastleigh) (Con)]

We heard the shadow Chancellor outline the utopian elements of her compulsory scheme. Can the Chief Secretary outline which scheme goes further—our scheme, which is not mandatory but delivers 12 months before repossessions happen, or the Labour Party’s mandatory scheme?

[John Glen]

My hon. Friend makes a wise point, and I will come on to talk about some of the other measures in a moment. For those families involved, it is extraordinarily distressing to lose their home, so we will do all that we can to support people who find themselves in such a challenging financial position.