Commons Sense

House of Commons · Ministers' Questions

Living Standards in Scotland: UK Fiscal Policy

Tuesday 26 January 2021 · 4 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 2 Not answered 0

Key points

  • David Linden asked about discussions on the impact of UK fiscal policy on living standards in Scotland.
  • Stuart McDonald referenced the decade of UK austerity and its effect on living standards, especially for the struggling.
  • Alison Thewliss questioned the Chancellor's approach to furlough and expressed concerns over the 20 universal credit uplift.

Topics (select to filter)

Questions & Answers

Q1 David Linden SNP
Economy Scotland
Context

The question is prompted by the need to understand the discussions between the UK government and the Scottish Government regarding the effect of UK fiscal policies on living standards in Scotland.

Question

What discussions has he had with his Scottish Government counterpart on the effect of UK fiscal policy on living standards in Scotland?

Answer from Steve Barclay (Chief Secretary to the Treasury)

I have frequent discussions with the Scottish Government's Finance Minister, and may I take this opportunity to add my congratulations on the announcement yesterday of her engagement?

Not addressed: The MP asked for details about discussions on fiscal policy impact, but the answerer congratulated the minister instead.

How: Changing Subject

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Q2 Stuart McDonald SNP
Economy Scotland
Context

The MP questions the government's commitment to investment rather than cuts in light of a decade of austerity that has led to declines in living standards. The question references a specific budget announcement for Scotland.

Question

I think every Member will join me in congratulating Scotland's Finance Minister, Kate Forbes, on her happy news. A decade of UK austerity delivered unprecedented declines in living standards and incomes, especially to those already struggling. Now even the OECD says that making cuts instead of investment after the financial crisis was the wrong approach. With the Scottish Budget set for Thursday, will the Minister confirm that this time the UK Government will invest to stimulate economic recovery, or will more Tory cuts put Scotland's recovery at risk?

Answer from Steve Barclay (Chief Secretary to the Treasury)

It is a little odd, in a year when Scotland has received £44 billion through the Barnett formula, to be talking of cuts. The hon. Gentleman refers to the Scottish Budget, and he will be aware that there are opportunities with the powers that the Scottish Government have, whether that is to exercise their flexibilities on elements of universal credit, to top up benefits and create new ones, or to introduce new tax powers. The Scottish Parliament has powers, and we wait to see how the Scottish Government use them.

Partly answered

Not addressed: The MP asked for confirmation about investment, but the answerer discussed Scotland's budget flexibility without addressing specific investments from the UK government.

How: Changing Subject

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Q3 David Linden SNP
Taxation Energy
Context

The MP highlights the financial burden consumers face due to higher electricity and gas bills while adhering to public health guidelines. The question suggests a temporary reduction in VAT on home energy bills as a solution.

Question

In asking the public to stay at home, protect the NHS and save lives, there must be an understanding that in doing so consumers are running up higher electricity and gas bills. Does the Minister understand that 2.1 million people are behind in their energy bills at the moment, and that one way to help them would be to reduce VAT temporarily on home energy bills?

Answer from Steve Barclay (Chief Secretary to the Treasury)

The hon. Gentleman makes a fair point; there are household costs. That is why my right hon. Friend the Chancellor, through the package of measures, has supported the incomes of the poorest. The distributional analysis from the Treasury shows that the poorest working households have benefited most from the measures introduced by my right hon. Friend. The best way of supporting those families is through schemes that the UK, through its broad shoulders, is able to offer, such as the furlough scheme and the self-employed income support scheme, which have supported so many jobs across Scotland.

Partly answered

Not addressed: The MP asked for VAT reduction on energy bills, but the answerer discussed other financial measures without addressing the specific proposal of VAT reduction.

How: Changing Subject

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Q4 Alison Thewliss SNP
Economy Scotland
Context

The MP questions the effectiveness of the furlough scheme, criticising its stop-start approach that has allegedly led to job losses. The question also mentions polls indicating support for Scottish independence.

Question

The Chancellor's chaotic stop-start approach to furlough last autumn undoubtedly cost jobs. Failing to continue the £20 universal credit uplift and extend it to legacy benefits is set to plunge struggling families into hardship, and now the Conservatives are signalling tax rises and a return to austerity. To what extent does the Minister believe that that approach has contributed to 20 consecutive polls in favour of Scottish independence?

Answer from Steve Barclay (Chief Secretary to the Treasury)

There is a factual error in the hon. Lady's question, in saying that there was a stop-start approach to furlough—

Not addressed: The MP asked for an opinion on how economic policies affect support for Scottish independence, but the answerer disputed the facts about the furlough policy without addressing its impact.

How: Changing Subject

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