Covid-19 — House of Commons, 2020-11-02
Topic: Macroeconomics
Gavin Andrew Stuart Newlands (Scottish National Party, Centre-left): Covid-19 has produced the biggest health and economic challenges since the war. Those two factors are inextricably linked, and until we have the virus under some kind of control, the economic impact will continue to be felt in all areas of our economy and, indeed, our country. We must end the fallacy promoted by excitable columnists and their right-wing chums that there is a choice to be made between protecting the economy and protecting the people. There is not, and those who spread this dangerous nonsense should know the damage and distress they are causing. For example, the founder of Pret a Manger has said: "Society will not recover if we do it again to save a few thousand lives of very old or vulnerable people." I wonder what Mr Metcalfe’s elderly relatives thought of his outright dismissal of the value of their lives. That sort of dangerous and nonsensical rhetoric implies that there is some sort of trade-off between premature death and our society’s wealth. I do not accept that for a moment, and I hope that this Government will condemn those attitudes completely. Society itself is linked to the economy and, until we are past this virus, ensuring that people stay alive, safe and healthy is not just the right thing to do as human beings, but the right thing to do for our wider society and prosperity The economy is not an abstract concept; it is where my constituents, indeed all our constituents, earn their living. As a constituency Member representing an airport, I am all too aware of the huge pressures that the aviation industry in particular has been under during these past eight months. I totally respect the UK Government’s view that travel outwith the UK will not be allowed for residents of England. They are entitled to draw up restrictions that best fit England, but they will have an impact on aviation and airports across England, and the Prime Minister and his Government have to recognise that. Even with furlough, this industry, which directly and indirectly employs nearly a million people across the UK, needs the kind of bespoke support that the Chancellor promised at the beginning of this pandemic. Regional economies across the country face disaster if that support is not forthcoming. There must be a recognition that the restrictions that come into force this week in England require not only a furlough package, but targeted intervention in key sectors of our economy, including in aviation. That targeted intervention must also encompass the wider transport industry Already we have seen Alexander Dennis announce 650 job losses driven by a collapse in demand for buses from operators. We face the prospect of high-skilled, high-value jobs being lost forever, because the Government will not come up with a plan to secure our manufacturing industry that faces a short-term crisis in the middle of long-term growth and strength. The Transport Secretary stood at the Dispatch Box in July and promised £3 billion to help build 4,000 buses. That is welcome, but that money and those orders are needed now to protect the remaining jobs at Alexander Dennis and beyond, otherwise by the time that money gets spent, we will be buying those 4,000 buses overseas rather than supporting indigenous businesses and jobs The Scottish Government are doing everything in their power to stimulate a sustained economic recovery, but while other Governments are able to borrow to finance a response, the Scottish Government are unable to do so. In fact, Transport for London will be able to borrow 400% more this year than the entire Scottish Government will be able to borrow for this year. Such are the constraints that are put in place by the devolution settlement That being said, Scotland is seeing some early tentative success in driving case rates down with the measures introduced in the central belt last month. That is down to the hard work and collective action taken by the majority of people in Scotland. Indeed, Scotland’s five-level restriction system went live today. It is a system aligned as much as possible with England’s three tiers for simplicity and the easier application of Treasury support. This has been hard for all, but harder still for many. It is also clear that the situation is still finely balanced, and that balance is not helped by devolved and local authorities being hamstrung by a Treasury that does not recognise that the world and the UK constitution have moved on in the past 30 years, and that its grip has to loosen, especially as we are in the middle of a public health emergency I urge the Treasury to come to its senses and agree a framework with the devolved Administrations that gives real flexibility on furlough and allows Governments to protect jobs and protect the economy. Announcements of this kind need to be taken in close consultation, not by surprise announcements on Twitter or from a No.10 podium. Following the failure to confirm this over the weekend, the general secretary of the Scottish Trades Union Congress said that continued UK Government opposition to flexible furlough "would mark a new low point in the UK government’s treatment of Scottish workers and public health in Scotland." Even the hon. Member for Moray (Douglas Ross), the leader of the Scottish Conservatives here, believes that that should be the case. He asked, "how could a Unionist government not restart the scheme if a second lockdown is required in Scotland?" Let us try to forget the fact that he has come a little late to the party and embrace the fact that he has shown up at all. None the less, it does take something special to unite the Scottish Tories and the Scottish trade unionists, but that was and is the reality in Scotland following the Prime Minister’s Saturday night address We face a fairly chaotic situation now following the Prime Minister’s answer to the aforementioned hon. Member. He arrogantly dismissed questions from many Members from across the UK—not just from SNP and Scottish Members—about furlough being extended to Scotland, Wales, and Northern Ireland when it is needed. He went on to give a fairly woolly assurance to the hon. Member for Moray who is now running around quoting him, trying to claim a grand political victory for the Scottish Tories when, a very short time ago, there was no agreement that the furlough scheme actually had to be extended at all. The sad thing is that the statement the Prime Minister gave is not what the Scottish Office is saying, it is not what the Scottish Conservative shadow economy spokesperson said on the radio and, crucially, it is not what the Treasury is saying to the Scottish Government. I am not saying that I mistrust the Prime Minister, but until I see an assurance in writing from the Treasury, I will assume the status quo remains Of course, this U-turn, coming as it did well beyond the eleventh hour, has come far too late for many businesses and many workers who are without a livelihood as we approach the bleakest winter for job prospects for decades. This disrespectful approach to the devolved Governments confirms what most people in Scotland have thought for years—that it is Greater London that drives the political agenda of the UK. When devolved Governments joined business leaders and unions to ask for furlough to be extended to save jobs and give Cardiff, Belfast and Edinburgh flexibility in their public health approach, the Government said, "No, we can’t afford it." When MPs, Select Committee reports, business groups and others called for support for the 3 million excluded from Government programmes, the Government said, "No, we can’t afford it." When the Mayor of Manchester asked for Treasury funds to support the local lockdowns, the Government haggled and said no. But when it was suggested that an English national lockdown was required and that London and the south-east would be affected, the Chancellor suddenly remembered where he had put the magic money tree and said yes The truth is that the Government like to call themselves a one-nation Government, but if there was any doubt whatever which country that was, we can now see it, plain as day. Even if only for their precious Union, the Treasury must see sense, treat the devolved Governments and the people of Scotland, Wales and Northern Ireland with respect and agree a scheme that recognises the different needs across these isles. It must be on the same basis as the Chancellor has delivered for England.