Commons Sense

House of Commons · Ministers' Questions

Spring Budget 2024

Wednesday 1 May 2024 · 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 5 Not answered 0

Key points

  • Gavin Newlands asked about the impact of the spring budget on Scotland; the response highlighted tax cuts and economic growth, with investment in Scotland exceeding 3 billion.
  • Anum Qaisar questioned the chancellor's spring budget impact on Scotland; the response dismissed the relevance of her point due to outdated HMRC data and criticized the SNP's tax policies.
  • Chris Stephens inquired about the levelling up agenda and budget cuts to Scotland; the response denied austerity claims, stating the Scottish Government received 41 billion and opposed the SNP's tax and service cuts.

Topics (select to filter)

Questions & Answers

Q1 Gavin Newlands SNP
Scotland
Context

The question arises from recent events in Scotland and concerns over economic impacts. The speaker references calamitous situations affecting Scotland.

Question

What recent assessment has he made of the impact of the spring Budget 2024 on Scotland?

Answer from Alister Jack

I have made an assessment of the spring budget and its impact. The UK Government is focused on cutting taxes for working people and growing the economy with investment into Scotland surpassing £3 billion. Additionally, the Scottish government will benefit from a £295 million funding uplift through the Barnett formula.

Partly answered

Not addressed: The response avoids directly addressing any calamitous events or specific issues in Scotland mentioned by the questioner and does not provide a comprehensive assessment of impacts on public services or economy.

How: Change Of Subject

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Q2 Anum Qaisar
Taxation Scotland
Context

The SNP's tax changes have been met with skepticism from Westminster, despite a report showing more taxpayers moving to Scotland.

Question

The reality is that the Chancellor's regressive spring Budget left the people of Scotland behind. In contrast, the SNP Scottish Government took the bold step of implementing a progressive tax scheme. Last week, HMRC reported many more taxpayers are moving to Scotland than leaving. Will he welcome this news and congratulate the Scottish Government?

Answer from Alister Jack

The hon. Lady's point is not relevant because the report she cites is from 2018-19, before we entered six tax bands in Scotland versus three elsewhere. I do not agree with her stance.

Not addressed: He did not address welcoming HMRC's findings or congratulating SNP on their tax scheme; instead questioned the relevancy of the report due to its timeframe and number of tax bands.

How: Change Of Subject

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Q3 Chris Stephens SNP
Economy Scotland
Context

The levelling-up agenda is criticized as benefiting other areas more than Scotland, which has seen cuts to capital funding and public services.

Question

He mentioned the levelling up agenda but the Budget cut public services and capital funding for Scotland. Given that Canary Wharf benefits from £16,000 per head in levelling-up funds, does he suggest Scotland should accept austerity?

Answer from Alister Jack

That is a ridiculous remark. The levelling up agenda has been successful in Scotland with no austerity, and Scottish Government received £41 billion block grant, highest since devolution. He criticizes SNP for raising taxes and cutting services.

Not addressed: He did not address the suggestion about austerity or cuts; instead criticized the Scottish government's budget decisions.

How: Change Of Subject

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Q4 Gavin Newlands SNP
Economy Taxation Scotland
Context

Westminster has been accused of cutting Scotland's capital funding, which affects the levelling up agenda. The Scottish Parliament's borrowing capacity is also questioned.

Question

The Secretary of State mentioned levelling up but cuts to Scotland's capital spending were announced. Did he argue against these cuts? Will he support raising more capital borrowing for Scotland?

Answer from Alister Jack

In the fiscal framework settlement, we agreed that resource funding could be reallocated to capital funding. Additionally, they have the ability to borrow £450 million if needed.

Partly answered

Not addressed: He did not directly address arguing against cuts or supporting increased borrowing capacity but instead explained current arrangements.

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Q5 David Mundell Con Dumfriesshire, Clydesdale and Tweeddale
Taxation Scotland
Context

Higher tax rates in Scotland may deter employment and business relocation from other parts of the UK.

Question

Is he aware that businesses are struggling to recruit employees due to higher tax rates in Scotland, damaging local economies?

Answer from Alister Jack

My right hon. Friend makes a good point; having six tax bands in Scotland versus three elsewhere does not incentivise relocating or working there.

Partly answered

Not addressed: He did not directly address awareness of recruitment struggles but focused on the issue of differing number of tax bands.

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Q6 Ian Murray Lab Edinburgh South
Taxation Scotland
Context

STV journalists are striking for fair pay. The spring budget is seen as damaging and mirroring a previous Prime Minister's policy.

Question

On May Day, Scottish Television journalists are on strike for fair pay. STV needs to get back around the table with its journalists for an acceptable deal. Has he discussed funding national insurance cuts or income tax rises?

Answer from Alister Jack

The UK Government has reduced NI by 4p, aiming to remove it altogether as it is a tax on jobs. We aspire to remove NI but not through income tax rises; we aim to reduce the tax burden in Scotland and across the UK.

Partly answered

Not addressed: While he discussed national insurance cuts, he did not provide details on discussions about funding these cuts or potential income tax increases.

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Q7 Ian Murray Lab Edinburgh South
Economy Scotland
Context

The situation involves significant dissatisfaction with both the UK and Scottish Governments' handling of public services, marked by a lack of stable leadership. The SNP group criticises the lack of funding for their aspirations.

Question

This is a £46 billion, unfunded aspiration, and the Secretary of State and the Government will not tell us where they will get the money from. With neither Government wanting to let the people decide, who does the Secretary of State think is most scared of a general election?

Answer from Alister Jack

We absolutely do not fear an election. As I watch the nationalists implode again, I say, “Bring it on.”

Not addressed: The question about funding and who fears elections was not directly addressed.

How: Changing Subject, Personal Attack

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Q8 Tommy Sheppard SNP
Economy Scotland
Context

TV journalists in Scotland are currently striking, leading to a blackout of Scottish Television, affecting the visibility of parliamentary proceedings. Additionally, there are concerns about forward planning assumptions made in the recent Budget that may imply significant cuts to public services.

Question

Let me also observe that fewer people in Scotland will see our proceedings today because of a strike by TV journalists at STV. I implore the management of STV to get back around the table with the National Union of Journalists, improve its pay offer and try to settle this dispute. What assessment has the Secretary of State made of those assumptions on the Scottish public finances?

Answer from Alister Jack

As I have said before, we have a record block grant. It is running over a three-year period and it averages out at £41.6 billion, with Barnett consequentials added to that. This year, that figure is £295 million.

Partly answered

Not addressed: The specifics of the forward planning assumptions were not addressed fully.

How: Providing General Funding Information

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Q9 Tommy Sheppard SNP
Economy Scotland Local Government
Context

The Institute for Fiscal Studies suggests that forward planning assumptions in the recent Budget could imply up to £20 billion in cuts to public services. The SNP group is concerned about these implications, especially given Labour's endorsement of the Budget framework.

Question

That sounds like no assessment at all has been made. According to the Institute for Fiscal Studies, these forward planning assumptions involve public service cuts of up to £20 billion. This can only imply savage cuts to the Scottish block grant in the next two to three years. Sadly, these planning assumptions and the framework are endorsed by the Labour party. If people vote either Conservative or Labour at the coming election, are they not consenting to massive cuts in public services in Scotland?

Answer from Alister Jack

Of course I do not agree with those figures. Public services in Scotland are in a desperate state. In their recent Budget, the Scottish Government froze council tax, thereby putting more pressure on local authorities to deliver those public services.

Not addressed: The question about voter consent and budget implications was not directly addressed.

How: Changing Subject, Criticizing The Opposition

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