Budget Resolutions — House of Commons, 2021-11-01
Topic: Social Welfare
David Melvyn Linden (Scottish National Party, Centre-left): Somewhat uncharacteristically for an Opposition Member, I will start by mentioning some of the measures in the Budget that I do welcome Reducing the universal credit taper rate from 63% to 55% is certainly a modest step in the right direction, as is the £500 increase in the work allowance. However, I should make it clear that wider reform of universal credit is still desperately needed—a point to which I will return later in my speech. I also welcome the freeze in duty for Scotch whisky, which has had a torrid time in recent years as a result of Brexit, the pandemic and punitive US tariffs. I shall return to that later as well One of the so-called flagship announcements in the Budget was the announcement of that modest reduction in the universal credit taper rate, and I do not deny that some, although by no means all, will be able to benefit from it. However, despite all the hyperbole—some of which we have heard today—we must not lose sight of the fact that the Chancellor has merely tinkered around the edges of universal credit. The stark reality facing many of my constituents in Easterhouse, and across the east end, is that a modest reduction in the taper rate will come nowhere near to compensating for last month’s £20-a-week cut in universal credit We should also remember that changes in the taper rate will not benefit those who are out of work or unable to work owing to sickness or a caring responsibility, or indeed those who have a disability. Those living with a disability had already been cruelly overlooked by the Government on the £20 uplift at the beginning of the pandemic, so this is arguably a double blow to a group of people who are impacted—arguably even more so—by the cost-of-living crisis. We know that only about four in every 10 universal credit claimants are in work, so this change in the taper rate will not benefit 60% claimants living in Carmyle, Craigend or Carntyne To be blunt, this Budget was a missed opportunity to strengthen the UK’s social security net, which too many in our communities still fall through. We should have used this opportunity to build back better by scrapping the benefit cap, ending the punitive sanctions regime, binning the two-child limit and the rape clause, dropping the five-week wait, and abolishing the bedroom tax elsewhere in the UK. Instead, the Chancellor has opted to focus on tinkering around the edges, rather than transforming the lives of the most vulnerable in our communities. By scrapping the triple lock, it is clear that the Chancellor is balancing the books on the backs of pensioners who continue to get a raw deal from a pension system that they have paid into their whole lives I want to raise another concern that arose from Wednesday’s statement, and I do so as chair of the all-party parliamentary group on Scotch whisky. I welcome the freeze on alcohol duty, which we know disproportionately hits our iconic Scotch whisky sector. That sector supports 42,000 jobs, hundreds of which are in my own constituency of Glasgow East. However, it is worth reminding the House that the freeze on duty only gives breathing room to an industry that already faces a 70% tax burden. It will not be lost on the Scots that the same Budget that saw duty for Scotch whisky stay the same saw a tax cut for English sparkling wine. For a Government who talk a good game on levelling up, it seems that our premium spirit is indeed missing from that all-important level—something that our Scottish Tory colleagues might want to explain in their speeches tonight. Let me say clearly to the British Government: by all means, fly in and have your photo opportunities at Speyside distilleries and announce another review on alcohol duty, but do not be surprised when there is a backlash from distillers who can see that Scotch whisky will be left at a severe competitive disadvantage by a Treasury that must do much more to support Scotch The theme for tonight’s debate is levelling up, but this Budget demonstrates that levelling up is all spin and no substance. The Red Book says that this Budget is about "a stronger economy for the British people" In truth, it delivers more for sparkling wine than it does for social security. I can tell the House that my constituents in Cranhill will not be popping the prosecco and toasting this smoke-and-mirrors Budget.