Scotland The Secretary of State was asked— Channel 4 Privatisation Jeff Smith (Manchester, Withington) (Lab) 1. What recent discussions he has had with Cabinet colleagues on the potential impact of Channel 4 privatisation on the television production industry in Scotland. The Secretary of State for Scotland (Mr Alister Jack) I can assure the hon. Gentleman that my Cabinet colleagues and I are committed to ensuring the further success of Channel 4. The Government are determined to support the incredible TV production industry in Scotland, and we believe that in the long run the UK production industry will benefit from a sustainable Channel 4. Jeff Smith Channel 4 is a key commissioner for Scottish independent production companies. It spends about £20 million a year on Scottish productions, supporting about 400 jobs in Scotland. Analysis from Ernst & Young says that privatisation could result in £1 billion being lost from the UK’s nations and regions, so for the sake of Scotland’s creative economy, will the Secretary of State make representations to the Secretary of State for Digital, Culture, Media and Sport to follow the evidence and keep Channel 4 in public hands? Mr Jack I have had discussions with the Culture Secretary and the previous Culture Secretary. The Government’s position is that we are looking again at the sale of Channel 4, and we will have further details in due course. We want Channel 4 to flourish, and we want independent production companies to flourish and thrive, because we recognise that we live in a challenging and changing media landscape. Freeports Iain Stewart (Milton Keynes South) (Con) 2. What recent discussions he has had with (a) Cabinet colleagues and (b) the Scottish Government on freeports in Scotland. Andrew Bowie (West Aberdeenshire and Kincardine) (Con) 3. What discussions he has had with Cabinet colleagues on when a decision will be taken on the winners of the bids for green freeports in Scotland. The Secretary of State for Scotland (Mr Alister Jack) I have held a number of discussions with the Levelling Up Secretary and his predecessors on freeports. This Government are committed to delivering two new freeports for Scotland to boost economic growth. The UK and Scottish Governments will be making an announcement shortly. Iain Stewart Five high-quality bids for freeports in Scotland have been received. Only two can be successful in this round. Will my right hon. Friend assure me that he will work with partners in the unsuccessful three so that they can realise their ambitions through other means? Mr Jack Before I answer the question, I would like to thank my hon. Friend for his diligent and excellent work in the Scotland Office. He made a huge impact, and I absolutely thank him from the bottom of my heart. In answering my hon. Friend’s question, the Government are committed to boosting economic growth in all areas of Scotland. We will use all the levers at our disposal to do so, and we will do that in partnership with the Scottish Government, as we are doing with freeports. Hopefully, that will also include investment zones—discussions are ongoing between officials—and I hope that those who are unsuccessful in their freeport bids can apply for investment zone status, which will help them to increase their economic activity, so the answer is yes. Funnily enough, I do not exclude the freeport winners from going for investment zone status, as that is not identical, and there are advantages in their becoming investment zones as well. Andrew Bowie Of all the five excellent bids, I know that my right hon. Friend agrees that, given the focus on a North sea revival, the importance of the North sea transition deal to our future energy security, the dynamic and pioneering spirit of business and industry in the north-east of Scotland, and the fact that we will create 30,000 new jobs in my constituency and around the north-east of Scotland, the Aberdeen and north-east freeport bid will be one that he announces as successful. Mr Jack I admire my hon. Friend’s enthusiasm for the north-east bid. He is right to be enthusiastic, as he represents that part of Scotland. It is a process, and we are following the metrics, as was done with the English freeports. It is important that we do not make a political decision, and that we make the right decision based on the bids before us. As I say, for those that are unsuccessful, hopefully investment zones will be another route. I have not shown any preference for any bid, and it is right that we do not and do it properly according to the metrics that we set out, because we cannot leave this open to judicial review, which would lead to further delay. Margaret Ferrier (Rutherglen and Hamilton West) (Ind) I am glad to hear the right hon. Member say that the Government intend to consider repurposing Scottish green freeports into investment zones. What discussions have been about environmental protection concerns and the removal of EU environmental standards? Mr Jack There is a full prospectus explaining all that, which we agreed with the Scottish Government. We have put it out to bid. We have five bids, from Orkney down to the Forth and the Clyde, and they all understand the environmental impacts. A lot of it is about reclaiming brownfield land, which is part and parcel of the levelling-up agenda, and I think everyone understands what has to be done environmentally to reclaim brownfield sites. Levelling-up Fund Caroline Ansell (Eastbourne) (Con) 4. What recent assessment the Government have made of the effect of the levelling-up fund in Scotland. The Secretary of State for Scotland (Mr Alister Jack) We have invested £172 million in Scotland in round 1 of the levelling-up fund, which is around 10% of the total UK funding. In March, we published a monitoring and evaluation strategy for the levelling-up fund. Further updates on the strategy will be published in due course, and results of round 2 will be announced later this year. Caroline Ansell That is wonderful to hear. In my beautiful constituency of Eastbourne, we are busy working to ensure that £20 million of Government levelling-up funding is energising and growing the visitor economy. [Hon. Members: “Scotland!”] My question is: how is the levelling-up fund doing the same in Scotland—the land of my forefathers—to ensure that all parts of the United Kingdom can capitalise on and consolidate the staycation market so much born out of the pandemic years? Mr Jack My hon. Friend makes an excellent point. Levelling-up measures are all about delivering local priorities and pride in place, which go hand in hand towards creating a sustainable tourist economy. The £150 million community ownership fund is allowing us to put cultural and heritage assets back in the hands of local people across the whole United Kingdom. Mr Speaker I call the Chair of the Scottish Affairs Committee. Pete Wishart (Perth and North Perthshire) (SNP) What would the impact have been on levelling-up projects if the Scottish Government had followed the advice of the Scottish Conservatives to give these unfunded and catastrophic tax cuts to the wealthiest in our society? Will the Secretary of State now apologise to the Scottish Government for insisting that they follow this disastrous and reckless course of action? Mr Jack The hon. Member is conflating two issues. The reality is that the levelling-up funds, of which there are £200 million in the current round, are being well received across Scotland. That is real devolution in practice. All local authorities are engaging with the UK Government—and guess what? They are enthusiastic when it comes to applying for money to help local projects. Devolution Settlement Allan Dorans (Ayr, Carrick and Cumnock) (SNP) 5. Whether he has had recent discussions with Cabinet colleagues on amending the devolution settlement with Scotland. Deidre Brock (Edinburgh North and Leith) (SNP) 7. Whether he has had recent discussions with Cabinet colleagues on amending the devolution settlement with Scotland. The Secretary of State for Scotland (Mr Alister Jack) The Scottish Parliament is one of the most powerful devolved Parliaments in the world and we believe that the devolution settlement strikes the right balance. We continue to work collaboratively with the Scottish Government to implement the Scotland Act 2016. This includes passing secondary legislation to deliver the extensive welfare and tax powers granted by the Act. Allan Dorans The vast majority of people in Scotland support the continued existence of the Scottish Government. Despite the settled will of the Scottish people for greater autonomy and self-rule, some senior Conservatives—there are Secretaries of State among them—are becoming even louder in their calls for the UK Government to claw back powers from the devolved Assemblies. Will the Secretary of State today commit before the House that the UK Government will not under any circumstances attempt to revoke powers devolved to the Scottish Government? Mr Jack Absolutely. In fact, since we left the European Union, we have given more powers to the Scottish Parliament. Actually, whenever asked, not a single Member of the Scottish National party has come up with one power that has been taken away. It is quite the contrary. We have given more powers and will continue to do that, because, let us be clear, we are the party that is strengthening devolution and the SNP wants to destroy devolution. Deidre Brock I believe that the EU forecasts that the Irish economy will grow by more than 5% in 2022, showing the real potential for growth that exists for smaller nations that are part of the EU. Meanwhile, on the back of the UK Government’s disastrous fiscal statement, mortgage payments for many Scots are rising dramatically and people will struggle to keep a roof over their heads, let alone to feed and keep themselves warm. Today, the Office for National Statistics tells us that there was a slump of 0.3% in GDP in August in the UK, before that disastrous event. Why will the Secretary of State and his Cabinet colleagues not accept that their fiddling with devolution while the UK economy burns will never be enough to protect the Scottish people he supposedly represents and accept that an independence referendum has to happen so that the Scottish people can protect themselves? Mr Jack You will not be surprised to hear, Mr Speaker, that I think that that is absolute nonsense. This is not the time. A vast majority of Scots do not believe that now is the time for an independence referendum and that is very clear. The constitution is reserved to Westminster—that is in the process of going through the Supreme Court to be determined now. To me it is very clear that the people of Scotland want this Government to get on. The support we gave during covid, with 900,000 jobs furloughed, the support we have given to households and businesses for their energy costs and our helping to grow the Scottish economy through freeports and investment zones: that is what the people of Scotland want. Douglas Ross (Moray) (Con) Devolution is about Scotland’s two Governments working together and we have seen the success of that with city and region growth deals and with the progress towards freeports. Does the Secretary of State agree with me that language is also really important? When the First Minister said that she “detests the Tories”, she was insulting—[Interruption.] Cheers are coming from the SNP. She is insulting hundreds of thousands of Scottish Conservative voters when she should be representing the whole of Scotland as First Minister. Mr Jack Of course I agree with my hon. Friend. Language is terribly important in politics. We saw the desperate death of David Amess and others before him, and people cannot incite people using words such as “detest”, which, as can be seen in the dictionary, is another word for hate. The irony is that the Scottish Government are bringing forward a hate Bill yet we have language such as “detest”. My hon. Friend is absolutely right to call it out. Cost of Living Janet Daby (Lewisham East) (Lab) 6. What recent discussions he has had with Cabinet colleagues on the cost of living in Scotland. Carol Monaghan (Glasgow North West) (SNP) 10. What recent discussions he has had with (a) Cabinet colleagues and (b) the Scottish Government on the cost of living crisis in Scotland. Alison Thewliss (Glasgow Central) (SNP) 11. What recent discussions he has had with (a) Cabinet colleagues and (b) the Scottish Government on the cost of living crisis in Scotland. Alan Brown (Kilmarnock and Loudoun) (SNP) 13. What recent discussions he has had with (a) Cabinet colleagues and (b) the Scottish Government on the cost of living crisis in Scotland. The Parliamentary Under-Secretary of State for Scotland (David Duguid) The Government fully recognise that families, households and businesses are worried about rising costs. That is why we have taken decisive action to get families and businesses through this winter and next, and we are focused on growing the economy to raise living standards for everyone. Janet Daby According to Citizens Advice Scotland, the cost of living crisis is the “perfect storm” that risks sweeping tens of thousands of households across Scotland into poverty, problem debt, and destitution, and nothing could be closer to the truth. Scottish Labour has a plan and is calling for an emergency cost of living Act. Will the Minister raise with Scottish Ministers what both Governments could urgently do, using all the levers at their disposal, to help individuals and families in Scotland through this terrible crisis? David Duguid The UK, like Europe and other countries around the world, has been forced to respond decisively to the challenges posed by high energy prices resulting from, among other things, Russia’s weaponisation of energy markets. Because of action taken by this Government, the most vulnerable households will get at least £1,200—some much more—of cost of living support this year on top of the benefit of the energy price guarantee. Of course, the hon. Lady is absolutely right that this Government and the devolved Administrations must work together to make sure that the most vulnerable get the most support. Carol Monaghan According to the Joseph Rowntree Foundation, if the Government do not uprate benefits in line with inflation, then claimants, many of whom are working, will experience the biggest ever real-terms cut to benefits in a single year. Is it not the case that the Minister’s Government are prioritising growing the wealth of the richest while not doing enough for the vulnerable, including the elderly, in our communities in Scotland? David Duguid Again, it will come as no surprise that I do not totally agree with everything that an hon. Member said. The hon. Lady asked about raising benefits in line with inflation. The Secretary of State for Work and Pensions is looking at that—as she would do on an annual basis in any case—and will announce in due course the decision on benefits uprating. Alison Thewliss According to Joseph Rowntree Foundation figures, 15,378 people in Glasgow Central receive means-tested benefits such as universal credit, and many of them will be working in low-paid jobs. The Scottish Government have done their bit by introducing the leading Scottish child payment, but what representations has the Minister made to his colleague, the Secretary of State for Work and Pensions, to support the uprating of benefits? He has not been clear about what representations he has made for the people of Scotland. David Duguid The hon. Lady makes excellent points. On making representations to my ministerial colleagues, having been in this post for a very short time, I have not quite got there yet, but these discussions are happening. Under the agreed fiscal framework, the Scottish Government, through the levers that they have, will receive an estimated £340 million of additional funding as a result of just the basic rate tax cut. It is for the Scottish Government to use that additional funding as they want to, including on increased spending or tax cuts. Alan Brown In the policy decisions chapter of the so-called “Growth Plan”, line 9 on page 26 shows that reversing the corporation tax increase will cost £68 billion over the next five years. Given the cost of living crisis, did the Minister and his Secretary of State argue for or against a £68 billion subsidy to the biggest, wealthiest companies in the UK? David Duguid The hon. Gentleman is probably aware that the Government have committed to reversing the planned corporation tax increase from 19%, so it is staying at 19%, which will attract businesses to Scotland and across the rest of the United Kingdom. It is often missed that the Government have delivered on top of the recently announced energy price guarantee. It means that typical households receiving means-tested benefits will receive £1,200 of support; those on disability benefits on top of that will receive £1,350; low-income pensioner households will receive £1,500 of support; and low-income pensioner households who are receiving disability benefits will receive £1,650 of support. As well as that, the energy price guarantee will mean that a typical household will pay no more than £2,500 on their energy bills. Mr Speaker I call the shadow Minister. Peter Kyle (Hove) (Lab) The shadow Secretary of State for Scotland, my hon. Friend the Member for Edinburgh South (Ian Murray), has a long-standing family commitment, which is why the privilege of asking questions falls to me today. The UK Government’s so-called mini-Budget has created a financial crisis—made in Downing Street but paid for by working people all over this country, including in Scotland. Has the Minister’s Department made an assessment of how much worse off Scottish households will be as a result of the Chancellor’s disastrous actions? David Duguid I welcome the hon. Gentleman to his place instead of the shadow Secretary of State, the hon. Member for Edinburgh South (Ian Murray). As I said, the energy support put in place means that a typical household will not pay more than £2,500. That is on top of the additional benefits that were announced earlier this year and more recently and which will make sure that many households, including those on the lowest incomes, will actually be better off than they would have been. Peter Kyle The only long-term solution to this crisis is a more sustainable energy policy, which the Government have failed to deliver for 12 years. In 2017, Nicola Sturgeon announced a national energy company for Scotland. Five years on, we are in an energy crisis and that plan has been ditched, so does the Minister agree that the right way forward is through Labour’s plan for Great British Energy, a home-grown, publicly owned company run for and by the people of this country and for the interests of people in this country? David Duguid The hon. Member is absolutely correct to point out the Scottish Government’s commitment, made back in 2017, to have created a nationalised energy company in Scotland by now. That has not happened, and quite frankly I do not think that it should. I do not think that Labour’s plans should be implemented either. Mr Speaker I call the SNP spokesperson. Mhairi Black (Paisley and Renfrewshire South) (SNP) The first mini-Budget from this Government required two Bank of England interventions just to stabilise the economy. It tanked the pound and it massively worsened the already brutal cost of living crisis that our constituents are facing. Will the Minister and the Secretary of State, as Scotland’s representative in Cabinet, confirm that any future fiscal event from this Government will neither make further cuts to the Scottish budget nor introduce further cuts to our already crippled public services? David Duguid On top of the already record increased block grant of £41 billion that the Scottish Government have already received, measures announced in the Chancellor’s recent fiscal statement mean hundreds of millions in extra money going to the Scottish Government. As I said to the hon. Member for Glasgow Central (Alison Thewliss), it is for the Scottish Government to decide whether to spend that on tax cuts or to increase spending. Mhairi Black After 12 years of austerity, which has caused in excess of 300,000 deaths in the UK, this Tory Government have cost the public billions. They have given dodgy covid contracts to their pals. They are scrapping the bankers’ bonus cap. They have forced a hard Brexit on Scotland against its will. They are now helping the richest people in the country, on the backs of millions of people who are choosing between heating and eating. I ask the Minister: is it genuinely a surprise to him and his colleagues to discover why most people in Scotland detest the Tory party and its values? David Duguid I must say that I am disappointed that the hon. Member chooses to double down on the hate-filled language of her party leader. I repeat that the Scottish Government have received a record amount of block grant funding—£41 billion—since devolution began, and all the other measures from which people and businesses across Scotland will benefit. Those in the most vulnerable households and on the lowest incomes will particularly benefit from the measures that this Government have taken. Domestic Energy Costs Matt Western (Warwick and Leamington) (Lab) 8. If he will make a comparative assessment with Cabinet colleagues of domestic energy costs in (a) Scotland and (b) the rest of the UK. The Parliamentary Under-Secretary of State for Scotland (David Duguid) The Government’s recently announced energy price guarantee will support households with their energy bills across the whole United Kingdom, including in Scotland. This decisive action will save the typical household at least £1,000 a year for the next two years. Matt Western (Warwick and Leamington) (Lab) May I follow up on the question that my hon. Friend the Member for Hove (Peter Kyle) asked about the Scottish Government’s decision to abandon their plans? Will the Minister confirm what discussions he has had with his Scottish counterparts about ensuring that Scotland’s renewable potential directly benefits the people of Scotland and the people of the United Kingdom, given that the cost to the consumer of renewable energy is so much lower? David Duguid As I have said, Ministers in the Scotland Office discuss such matters regularly with our colleagues in other Departments. Energy policy is reserved, as I am sure the hon. Member will understand, but we endeavour to work constructively with the Scottish Government on everything that can have an impact on the livelihoods of people and communities in Scotland, as well as businesses. Mr Speaker I call the shadow Minister. Liz Twist (Blaydon) (Lab) One of the most critical ways of reducing domestic energy costs in Scotland is by supporting renewable energy generation and carbon reduction efforts. I have raised before at the Dispatch Box the fact that the UK Government chose to sideline the Acorn carbon capture and storage project in the north-east of Scotland. The Scottish Government have refused to provide financing either. The Secretary of State may be interested to hear that Labour has put forward a fully costed plan to invest in Britain’s infrastructure, which includes providing the funding for the Acorn project. Will the Secretary of State encourage his Cabinet colleagues—[Interruption.] Mr Speaker Order. I must ask the hon. Lady to start the question again, because I could not hear. Liz Twist I believe the Secretary of State and the Minister may have heard the first part of the question, so I will conclude by asking the Secretary of State to encourage his Cabinet colleagues to look again at how the carbon capture and storage project can be supported to enable it to get under way as a matter of urgency. David Duguid As the hon. Lady may be aware, the Acorn cluster looms large in my own constituency, so I have nothing but the greatest support for that project. I can also assure her, and the rest of the House, that this Government have stood firmly behind it: we have invested £41 million in the project directly, and it is also the reserve cluster in the Track-1 sequence. Track-2 sequencing for carbon capture and storage across the United Kingdom is coming soon, I am told, and I look forward to that announcement with great interest. Mr Speaker Before we come to Prime Minister’s questions, let me point out that a British Sign Language interpretation of proceedings is available to watch on parliamentlive.tv.