Delivery of Public Services — House of Commons, 2022-06-28
Topic: Macroeconomics
Marion Fellows (Scottish National Party, Centre-left): It is a pleasure to conclude the Back-Bench contributions to this debate. This Tory Government’s catastrophic Brexit and austerity agenda are fast pushing the UK economy into recession, as evidenced by the fact that the UK has the slowest growth of any G7 economy, according to the OECD. The chief economist at the Joseph Rowntree Foundation has been highly critical of the length of time it took the UK Government to act to help people with the additional financial pressures caused by inflation. She noted: "Inflation continues to hit highs not seen since the early 1980s, heaping more pressure on millions of families who were already struggling…The support package announced last month shows the Chancellor is finally grasping the scale of the crisis. The continuing rise in food prices means the decision in April not to uprate benefits in line with inflation has left low-income households…facing a difficult"— really difficult—three months until they receive their first payment in July It is extremely reckless and frustrating that the UK Government have decided to bring forward legislation that deliberately sets them on an entirely avoidable collision course with the EU. Risking a disastrous trade war in the middle of a cost of living crisis is unthinkable and indefensible. This news has been met with dismay by Scottish businesses, which stand to face months of uncertainty in a year with record increases in their input prices. Scotland has a direct interest in the Northern Ireland protocol, particularly with regard to trade and border control, yet despite repeated requests, the UK Government have shown absolutely no willingness to engage with the Scottish Government on those issues It is staggering that Labour and the Liberal Democrats remain committed to Brexit, even as it causes vast damage. Last week, the Resolution Foundation put out a report, "The Big Brexit: An assessment of the scale of change to come from Brexit", which noted that the long-term aggregate impact of Brexit "will be to reduce household incomes as a result of a weaker pound, and lower investment and trade." Scotland’s food and drink sector has borne the brunt of a hard Tory Brexit. In 2019, Scottish exports were growing consistently in all directions—to the rest of the UK, the EU and the rest of the world. We now know that Scotland’s total trade with the EU was 16% lower in 2021 than in 2019, and Scotland’s trade with non-EU countries fell by only 4% in the same period. An Office for National Statistics report found that Northern Ireland’s GDP grew by 1.4% from July to September 2021, compared with gains of only 0.9% and 0.6% in Scotland and England respectively. That may well be due to Northern Ireland having continued access to the single market. Brexit is hindering the UK’s potential as a key 21st-century trader, and is actively disadvantaging UK producers and businesses. The UK’s new relationship with the EU implies an increase in trade costs of 10.8% for exports to the EU and 11% for imports from the EU, and those figures rise to more than 16% when accounting for the fact that the EU is likely to integrate further in future years. It is the SNP’s view that rejoining the EU at the earliest opportunity as an independent country represents the best future for Scotland. I am happy that more and more people in Scotland are coming round to that point of view Transport is being run into the ground, especially for people who travel by train or plane. There are vast queues at Dover, with people forced to wait in unsanitary conditions, due to Brexit delays and mitigating measures have been limited by the fact that the Transport Secretary—