Commons Sense

House of Commons · Ministers' Questions

Cost of Living

Wednesday 12 October 2022 · 9 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 7 Not answered 0

Key points

  • Minister acknowledged discussions with Cabinet colleagues and Scottish Government on cost of living crisis.
  • UK Government took decisive action to support families and businesses through winter and next year.
  • Minister stated that Scottish Government's plan for a national energy company did not materialize and should not have.

Topics (select to filter)

Questions & Answers

Q1 Alan Brown SNP
Economy Scotland
Context

The cost of living crisis is affecting families, households and businesses across Scotland. The issue has prompted concerns about economic stability and the need for government intervention.

Question

What recent discussions he has had with (a) Cabinet colleagues and (b) the Scottish Government on the cost of living crisis in Scotland?

Answer from 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.

Partly answered

Not addressed: Did not provide details of discussions with Cabinet colleagues or Scottish Government

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Q2 Janet Daby Lab Lewisham East
Economy Scotland Energy
Context

Citizens Advice Scotland has warned about a 'perfect storm' leading to poverty, problem debt and destitution for many households. Scottish Labour proposes an emergency cost of living Act.

Question

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?

Answer from 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.

Partly answered

Not addressed: Did not commit to discussing urgent measures with Scottish Ministers directly

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Q3 Carol Monaghan SNP
Scotland Benefits & Welfare
Context

The Joseph Rowntree Foundation warns that if benefits are not raised with inflation, many will face the largest real-terms cut to benefits in a single year. There is concern over prioritizing wealth growth for the richest.

Question

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?

Answer from 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.

Partly answered

Not addressed: Did not address prioritization issues directly, instead referred to ongoing review without specifics

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Q4 Alison Thewliss SNP
Scotland Benefits & Welfare
Context

Joseph Rowntree Foundation figures indicate significant numbers of people in Glasgow Central receiving means-tested benefits and working low-paid jobs. The Scottish Government has introduced the leading Scottish child payment.

Question

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.

Answer from 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.

Partly answered

Not addressed: Did not clarify specific representations made to Secretary of State for Work and Pensions

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Q5 Alan Brown SNP
Economy Taxation
Context

The Growth Plan shows that reversing the corporation tax increase will cost £68 billion over five years. This decision is controversial given the ongoing cost of living crisis.

Question

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?

Answer from 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.

Partly answered

Not addressed: Did not provide details about arguments for or against corporation tax increase reversal

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Q6 Peter Kyle Lab Hove and Portslade
Economy Scotland
Context

The UK Government's mini-Budget is seen as creating a financial crisis affecting working people across the country, including Scotland. An assessment of its impact on Scottish households would be beneficial.

Question

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?

Answer from 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.

Partly answered

Not addressed: Did not provide an assessment of how much worse off Scottish households would be

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Q7 Peter Kyle Lab Hove and Portslade
Scotland Energy
Context

A national energy company for Scotland was proposed but has since been abandoned. The Labour party is advocating for a publicly owned Great British Energy.

Question

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?

Answer from 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.

Not addressed: Shifted focus from agreeing with Labour's plan to disagreeing with the idea of a public energy company

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Q8 Mhairi Black SNP
Economy Scotland
Context

Following economic instability caused by the first mini-Budget, which required interventions from the Bank of England to stabilise the economy.

Question

The first mini-Budget led to two Bank of England interventions to stabilise the economy. It worsened the cost of living crisis for constituents. Will the Minister confirm that future fiscal events will not further cut Scottish public services or the budget?

Answer from David Duguid

The Scottish Government has already received a record increased block grant of £41 billion. Measures in the Chancellor's recent fiscal statement mean hundreds of millions extra for Scotland, allowing the government to decide on tax cuts or spending increases.

Partly answered

Not addressed: Did not confirm that future events will avoid further budget or service cuts

How: Double Down On The Hate-Filled Language

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Q9 Mhairi Black SNP
Economy Scotland Benefits & Welfare
Context

After a period of austerity and recent controversial policies, many people in Scotland have negative views towards the Tory party.

Question

After years of austerity leading to over 300,000 deaths, giving contracts to friends, scrapping the bonus cap for bankers, forcing a hard Brexit on Scotland against its will, and helping the richest at the expense of millions choosing between heating and eating, is it surprising why most people in Scotland detest Tory values?

Answer from David Duguid

Disappointed with hate-filled language from her party leader. Scottish Government has received record funding of £41 billion since devolution, and measures will particularly benefit vulnerable households.

Not addressed: Did not address why people in Scotland detest Tory values

How: Double Down On The Hate-Filled Language, Benefits For Vulnerable Households

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