The Scotland Office is playing a key role in driving economic growth in Scotland, ensuring that our new industrial strategy works for Scotland and securing Harland & Wolff’s future to protect hundreds of jobs in Arnish and Methil, and I led the cross-Government ministerial taskforce to secure £200 million from the National Wealth Fund for Grangemouth. Over the next 10 years the UK Government will directly invest £1.4 billion in local growth projects in Scotland. From the V&A in Dundee and the town centre of Elgin to a freeport on the Forth and local travel in Paisley, our plan for change will bring growth to every part of Scotland.
The formal redundancy consultation process started last week for laboratories and stores at the Grangemouth site, with emergency response and other shared services consultations also about to start. The redundancies are due to Petroineos serving notice to end shared services contracts because of the imminent refinery closure. The Prime Minister has announced a support package, guaranteeing workers’ incomes for 18 months. Will the Secretary of State reassure the shared services workers who are about to lose their jobs at the Grangemouth site because of the refinery closure that they too will be eligible for the package of income guarantee and for reskilling support from Forth Valley college?
I thank my hon. Friend for raising this issue in the House, and for protecting workers in his constituency. The UK Government are fully committed to seeking a sustainable industrial future for Grangemouth and all its workers. Following the work of the Scotland Office-led taskforce, the Prime Minister announced that the National Wealth Fund will provide £200 million of investment for the Grangemouth site. The UK Government, working with the Scottish Government, are providing a training guarantee for all staff at the refinery to support them into good jobs, and my hon. Friend will be pleased to hear that Unite the Union has welcomed the funding and said that the package
“safeguards Scotland’s energy security and delivers the jobs of the future.”
The defence sector contributes £3.2 billion to the Scottish economy, and Scotland’s contribution keeps us all safe. The Prime Minister has announced increased spending in our country, which also means more investment in Scotland, higher industrial production and higher incomes. Does the Secretary of State agree that this shows the difference a Labour Government make—both south and north of the border?
The Prime Minister is absolutely right when he says that the first responsibility of this Government is to protect our national security and keep our citizens safe. The last time that defence spending was at 2.5% of GDP was under the last Labour Government.
Scotland is a leader in the defence industry. Just this week, I had the pleasure of visiting JFD in Renfrew, which works with the Royal Navy to design, manufacture and operate world-class submarine rescue systems. From Babcock and BAE Systems to small businesses and start-ups, I am determined that Scotland leads the way in building our military industrial base.
Given that the defence sector already supports more than 20,000 jobs in Scotland, as well as hundreds in Harlow, does the Secretary of State agree that the Government’s commitment to increase defence spending will also help to grow Scotland’s economy and create more skilled jobs?
For years the defence sector in Scotland has been at the forefront of creating skilled, well-paid jobs, despite the SNP’s refusal to stand up and back UK defence. This week is Scottish Apprenticeship Week, and I hope that those on both sides of the House—particularly Members from Scotland—will join me in paying tribute to Scotland’s wonderful defence sector apprentices, who do a great job at not just keeping our country safe, but helping our economies grow and building the skills base of Scotland’s future.
A proper industrial strategy is key to economic growth, which is why industry has been asking for support for many years. My constituents in Newcastle-under-Lyme were failed by the Tories, and the people of Scotland have been failed by the SNP since 2007. Can the Minister set out what work the Scotland Office has done to ensure that a new national industrial strategy delivers for Scotland, as well as for the good people of Newcastle-under-Lyme?
The Scottish Government and SNP Members seem to think that defending the defence industry is done on Twitter. This Government inherited not just a fiscal crisis but an industrial one, because we have had well over 10 years without a clear industrial strategy. I was pleased recently to meet the chair of the Industrial Strategy Advisory Council, and I welcomed my right hon. Friend the Business Secretary to Scotland last month to meet business leaders at the forefront of Scotland’s industrial future. This Government have already delivered, among other things, £200 million for Grangemouth, £2.6 million for the V&A in Dundee, and job security for 300 skilled workers at Harland & Wolff’s shipyards in Methil and Arnish. Just this morning, we announced £55 million for the Cromarty Green freeport to expand its capability for floating offshore wind. That is the commitment to growth that this Government make to the country.
The SNP Government continue to be opposed to nuclear energy, despite the huge economic benefits it would bring to Scotland. We can see that in the jobs and investment that the Torness power station generates. Does the Secretary of State agree with me that investing in nuclear would help bring down bills for our consumers, help the environment and create many more jobs?
I could not agree more with the hon. Gentleman. Our nuclear policy in Scotland should allow us to have nuclear power to bring down bills and give us energy security. Of course, he is also right that the SNP is against nuclear power in Scotland, but very happy to take the baseload from England.
The Scotch whisky industry is central to the economic growth of Scotland, and I was very pleased to hear from the Dispatch Box yesterday that the Department for Environment, Food and Rural Affairs is not moving forward with its consultation on single malts. However, can the Secretary of State explain why we were in that position in the first place? What discussions were had between DEFRA and the Scotland Office before that consultation was opened?
I agree with the hon. Lady about the commitment given by the Chief Secretary to the Treasury at the Dispatch Box yesterday, and I reiterate that the only watering down of whisky in Scotland will be the little bit of water that some put in to taste.
The Secretary of State will be well aware of the manifold range of family-owned businesses in Scotland, many of which are very large and trade with multimillion-pound balance sheets every year. The Chancellor’s move to change the rules on business property relief threatens at best these businesses being sold off to plcs and at worst their being liquidated to pay their liabilities to His Majesty’s Revenue and Customs. What assessment has the Scotland Office made of the potentially catastrophic implications for Scottish enterprise of the BPR changes in train from the Treasury?
It seems to me that SNP Members decided when they came back to the House in July to defend the Conservative Government’s economic record. We inherited a £22 billion black hole, and when the Chancellor came to the Dispatch Box for the Budget, she had to fill that black hole and end austerity. It is what we promised, and it delivered £4.9 billion to the Scottish budget, which the hon. Gentleman’s party is intent on spending. This is the key point: SNP Members in this House have objected to every single measure in that Budget, but they are very happy to spend the money.
If the Secretary of State wants to help economic growth in Scotland, I suggest he looks at oil and gas. Ending the licensing of domestic production, which will not make the slightest difference to how much we consume, will lead to the loss of tens of thousands of jobs—35,000 jobs—and billions of pounds in tax revenue, and we will then import oil and gas with higher embedded emissions. The Secretary of State knows that that is crazy. He cannot say so publicly at the Dispatch Box, but can he use his good offices to persuade his fellow Cabinet members that this is not a sensible course for Scotland?