Cost of Living and Brexit

I beg to move,

That this House agrees that increases in the cost of living are having a detrimental impact on businesses and families across Scotland and the rest of the United Kingdom; notes that the United Kingdom’s exit from the European Union has played a significant role in driving those increases; further notes that the devolved administrations do not possess the full financial powers required to effectively mitigate the increases in the cost of living in the devolved nations; accepts that finding solutions to the cost of living crisis deserves dedicated parliamentary time to investigate all matters relating to increases in prices and of the contribution of exiting the European Union and of Westminster economic policy to those increases; and resolves that the following shall be a Standing Order of the House:

Cost of Living Committee

1. There shall be a select committee, to be called the Cost of Living Committee, to examine the causes of and possible solutions to matters related to the cost of living in the United Kingdom, the consequences of the United Kingdom leaving the European Union and the cost of living, how the effect of changes in the cost of living affects the economy, and other connected matters.

2. The committee shall be chaired by a Member from the second largest Opposition Party and shall additionally consist of 22 Members from the Government party and 22 Members from opposition parties, drawn from the following Committees

3. The committee shall have power—

a. to send for persons, papers and records, to sit notwithstanding any adjournment of the House, to adjourn from place to place, and to report from time to time; and

b. to appoint specialist advisers to supply information which is not readily available or to elucidate matters of complexity within the committee’s order of reference.

4. Unless the House otherwise orders, each Member nominated to the committee shall continue to be a member of it for the remainder of the Parliament.

5. The committee shall have power to appoint a sub-committee, which shall have power to send for persons, papers and records, to sit notwithstanding any adjournment of the House, to adjourn from place to place, and to report to the committee from time to time.

6. The committee shall have power to report from time to time the evidence taken before the sub-committee.

7. The committee shall have power to order the attendance of any Member before the committee and to require that specific documents or records in the possession of a Member relating to its inquiries be laid before the committee or any sub-committee.

8. The quorum of the sub-committee shall be eleven.

The cost of living crisis is the No. 1 issue for most of our constituents: how to keep a roof over their head with the rising cost of mortgages or rent; how to put food on the table when food inflation in the UK is the highest in Europe; how to pay energy bills that double in just a year; and how to cope with overall inflation, which is far outstripping wage growth. It therefore deserves serious focus by this Parliament to find solutions. The Government are already patting themselves on the back that inflation has eased from 10.1% to 7.8%. Of course, that does not mean that prices are falling, just that they are increasing at a slightly slower rate.

There is no question but that the covid pandemic and the war in Ukraine have contributed to the current crisis—particularly through the latter’s impact on global energy prices—but the UK is the only G7 country not to have recovered to pre-pandemic economic health, and consumers in the UK have faced the biggest energy price rises in Europe.

Despite the current easing of the inflation rate, it is still higher than in the OECD, the EU and the US. So why does the UK have the highest inflation and the poorest growth projections among similar economies? It is simple—the disaster that dare not speak its name: Brexit. As we approach the seventh anniversary of the referendum, one of its key architects may have just left the stage, but Brexit’s disastrous legacy will impact people across the nations of the UK for years to come.

I know as a doctor that the first step for someone in dealing with any problem is to admit that they have one, but both the Government and the Labour party appear to be in complete denial about the contribution of Brexit to the cost of living crisis.

The Labour party is keen to regain seats in Scotland from the Scottish National party. We obviously hope they do not, but why does my hon. Friend think the Labour party is ignoring the impact of Brexit even in Scotland, when the overwhelming position of the Scots is that they want to remain in the European Union?

I thank my hon. and learned Friend for her contribution. It is quite clear: we saw the discomfort of the Labour party on Brexit for quite a number of years, because its approach to Brexit had flip-flopped backwards and forwards, so it simply avoids the topic.

Until recently, people would think that there had been an omertà in the mainstream media when discussing the UK’s poor economic performance. Despite previously campaigning against Brexit, the Labour leader, the right hon. and learned Member for Holborn and St Pancras (Keir Starmer), is now clear that he will not consider rejoining the EU, the customs union or the single market, yet he claims that he can somehow reduce the trade friction that has cut exports by 15% and cost 4% of GDP.

Just as Brexiteers claim the problem is just that Brexit is not Brexity enough, we now have Labour claiming that they will “make Brexit work”. It cannot work, but if the Labour leader wants to reduce some of the damage of Brexit, he should support the idea of a Committee to identify proposals that could be put to the EU prior to the review of the trade and co-operation agreement in 2026. Otherwise, what is the plan—close his eyes, click his red heels together and make a wish? Talk about not reading the room.

Just as polls show that a majority across the UK recognise that Brexit is a mess and would support rejoining the EU, the supposed official Opposition have lashed themselves to the mast of the floundering Tory Brexit ship. I am not quite sure why they are called the official Opposition when they do not seem to do much opposing and just go along with the policies of this Tory Government, whether that is on Brexit, immigration, outsourcing the NHS in England to private companies or denying the right of the Scottish people to choose their own future.

Labour may have abandoned almost all its previous pledges, and does not offer much real change after the next election, but the politicians who have caused the current damage to the UK economy are those with their bahookies squarely planted on the Government Benches. Tory austerity may initially have made the Treasury balance sheet look better, but 13 years of benefit cuts and public sector pay freezes have sucked money out of local economies, leading to dead high streets and rising poverty, particularly among children, pensioners and disabled people.

Does my hon. Friend agree that it is also an absolute scandal that during a cost of living crisis, when we are seeing prices such as those she described, we have produce going to waste in Scotland because we do not have enough people to actually pick the fruit and veg?

I thank my hon. Friend for that point. While soft fruit is a particular issue in Scotland, this is an issue right across the UK because of the lack of European staff in harvesting. As my hon. Friend says, the sector is seeing food rotting. We are also seeing this issue in other sectors; there is hardly a sector that is not struggling for workforce.

With regard to the checks on incoming foodstuffs from the EU, the former ill-named Brexit Opportunities Minister, the right hon. Member for North East Somerset (Sir Jacob Rees-Mogg), delayed the checks for the fourth time last year. At the time, he suggested that they would cost £1 billion, and described them as an “act of self-harm”—duh! I could have told him that in 2016. On top of that, the now-infamous mini-Budget that tanked the pound and the stock market while the then Chancellor, the right hon. Member for Spelthorne (Kwasi Kwarteng), was still on his feet, sent mortgage costs spiralling. The relentless rise in interest rates in response to inflation is making home ownership unattainable for young families, as well as pushing up rents.

My hon. Friend has rightly pointed to the disastrous mini-Budget that was imposed on us by our previous Prime Minister, the right hon. Member for South West Norfolk (Elizabeth Truss). Does the leader of the Scottish Conservative party group in the Scottish Parliament, the hon. Member for Moray (Douglas Ross), who initially demanded that the Scottish Government implement those disastrous policies, and now demands that they spend billions of pounds to mitigate their effects, have any credibility?

It would be a more appropriate response by the Scottish Conservatives to get down on their knees in the Holyrood Chamber and apologise for the abuse they gave the Scottish Government for not following such crazy policies.

I had the honour to be a Member of the Scottish Parliament for some 12 years, and the Minister served in the Scottish Parliament. I know a good deal about the committee system; indeed, I chaired one. Members of the Scottish Parliament who were not members of a committee could come and speak at it—it was almost never not allowed.

I am not a member of any Committee in this place. Given the size of my party, only three of our Members are on Committees. Due to the structure of the proposed Committee, the door would be locked against me applying for a place on it. I feel disenfranchised, and I do not see why my constituents should not be given the chance for their representative to have a voice. I cannot vote for the structure of the Committee as it stands—it is very sloppy work.

That is incorrect: there will be Members from the three devolved nations. It will be—as described—a large Committee, which might provide a place for the hon. Member or one of his colleagues from a devolved nation. It is nonsense—there is no exclusion.

Will my hon. Friend might lend me her Order Paper? The one I have might be out of date, but it does not show an amendment from the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone), or his party, to change the composition of that Committee. Am I reading the Order Paper wrong, or is the hon. Gentleman perhaps a little bit out of touch?

I do not think my hon. Friend is reading the Order Paper wrong.

The combination of rising energy, food and housing costs, on top of years of benefit cuts and stagnant wages, means that, for many families, the sums simply do not add up. The Scottish Government are trying to use their now very limited powers of devolution to mitigate the crisis, particularly for those on the lowest incomes. However, the Scottish budget for the day-to-day running of services is less in real terms than it was in 2010, with no uplift for inflation and—as we all know—no significant borrowing powers. Despite that, the Scottish Government have provided additional funding for the fuel insecurity fund and the Scottish welfare fund. Low-income families are now supported through five childhood grants, including the Scottish child payment, which together provide £10,000 of support during the early years and will provide over £20,000 by the age of 16.

Does the hon. Member agree that the way to improve the situation for everyone, not just in the devolved nations but throughout the United Kingdom, is for those who are elected to the Scottish Parliament to work hand in glove with those of us who are elected to this Chamber, and particularly with the other Government for Scotland in the United Kingdom? Rather than set up another cumbersome Committee, which is a process, would it not be better to work together for the benefit of everyone in the United Kingdom?

The hon. Lady knows well that on issues such as trade deals and Brexit, we see very little genuine consultation between the Government here and the devolved Government. She is also well aware of how devolution is being rolled back and hollowed out, with legislation that has been passed blocked and undermined.

Will the hon. Member give way?

No, I am sorry. I have just given way to the hon. Lady.

The Institute for Fiscal Studies’ analysis of the Scottish tax and benefit system showed that it was more progressive, with almost 30% of low-income families £2,000 a year better off in Scotland, but Scotland aspires to something more radical than just mitigating Westminster austerity such as the two-child limit or the six-year benefit freeze. Our vision is to be a fairer, greener nation. The Scottish Government founded the Wellbeing Economy Governments Group in 2018 with Iceland and New Zealand, and Finland and Wales joined later. A wellbeing economy does not just focus on GDP, which includes the profits of damaging sectors such as the tobacco industry, but invests in the physical and mental health and social, economic and environmental wellbeing of every citizen. It is a holistic approach that recognises that our society and economy depend on the success of every individual, every family and every community.

Therefore, in addition to the targeted anti-poverty measures, the Scottish Government invest in the wellbeing of all those living in Scotland, from the baby box that welcomes the birth of a child and university tuition that allows our young people to reach their full potential to the free personal care that allows older people to stay in their own home for as long as possible. However, with the tightening limitations of devolution, the Scottish Government do not have the power over their own economy or the control of taxation and social security that are required to deliver the wellbeing economy we aspire to. We all know that we need a different type of economy by the end of this decade, or we will leave our grandchildren to face climate collapse. The pandemic brought everything to a standstill, which gave us a unique opportunity to decide what kind of economy and society we wanted to rebuild.

Before my hon. Friend goes on to talk about the kind of economy we want to see, will she make the observation that in an important debate on the cost of living and its evil twin Brexit, on the day after an urgent question on the Tories’ mortgage crisis, we have one Tory Back Bencher and two Labour Back Benchers in the Chamber? Does that not tell the Scottish people everything they need to know about how little Unionism really cares for ordinary people?

The proposal for this economy, as I said at the beginning of my speech, is not just for the people of Scotland: it is for the people of the four nations of the UK. The review of the TCA will come up in 2026, and while it is not possible to make Brexit work, it is possible to mitigate some of its worst effects. For that, though, we need to understand what Brexit is doing to the UK’s society and economy and have proposals that we can bring to the EU to ask for change.

Unfortunately, the opportunity to change to a different economy and society has not been taken. We already see poverty and inequality rising, and the climate emergency being pushed off the action list—including by Labour, which has just U-turned on its pledge to invest £28 billion in the transition to a green economy. Unfortunately, the climate crisis cannot wait. Scotland is blessed with extensive green energy potential, from wind and tidal power to green hydrogen and pump storage hydro. The current Government have failed to support Scotland’s green energy potential, and sadly there is now little reason to expect much change under Labour, either.

My hon. Friend talks about Scotland’s energy opportunities, and green hydrogen is indeed one of the key ones. Does she agree that it is perhaps illuminating that the Foreign Secretary himself does not even know about those opportunities, nor has he taken the opportunity to engage with the US on its Inflation Reduction Act regarding the supply pipeline for green hydrogen? Does she think that is absolutely indicative of the relationship of the Government of this place with the needs of the Scottish people?