Economic Growth

Over the last year, this Government have taken action to fix the foundations of our economy, to put the public finances on a sustainable path and support growth. Despite the UK economy being forecast to be the second fastest growing G7 economy this year, and despite private companies such as Iberdrola investing £10 billion in Scotland’s energy sector alone, there is more to do. The recently published Muscatelli report shows that under the SNP, economic growth has been ignored, and the unique potential of communities across Scotland has been held back. That is why today the Chancellor will set out a Budget to boost economic growth in each and every part of the UK.

The latest growth figures in Scotland have been terrible—just 0.2%—and are even worse than Labour’s figures for England at 0.3%. What has been more damaging to the Scottish economy: SNP policies in Holyrood, or Labour policies here in Whitehall?

The SNP Government are clearly not doing what is required to drive growth in Scotland, but I say to the hon. Member that we are dealing with the legacy of 14 years of Conservative economic mismanagement, including their catastrophic policy of austerity, their mismanagement of the pandemic, and a failed Brexit deal. Members do not have to take my word for it: the current leader of the Conservative party has been clear that the Conservatives have no plan for growth.

Does my hon. Friend share my regret the Scottish Government have been content to keep £1 billion of underspend rather than building 39 new health centres or 30 new primary schools, employing 23,700 nurses in our NHS, or investing money in Scottish public services and having a consequential effect on Scotland’s economy?

I could not agree more. Since the election, this Government have delivered an extra £5.2 billion in funding for the Scottish Government, so they should be making life easier for Scots, but that money is being completely wasted by the SNP. What do we have to show for this record-breaking settlement? We simply cannot waste another decade with this failing SNP Government. It is long past time for a new direction.

I call the shadow Secretary of State.

A key driver of growth in Scotland is the agricultural sector, but Scottish farmers feel utterly ignored and totally abandoned by this Labour Government. I have received a copy of a letter that was delivered to all Scottish Labour MPs urging them to call on their own Government to reconsider the family farm tax. One farmer who wrote to Labour Members said that these tax changes would destroy the family farms that feed Scotland and that he was delivering the letter as a plea for their future. Will the Minister tell the House if those pleas have fallen on deaf ears?

The hon. Gentleman and I have discussed this issue many times, and he is aware that we are striking a fair balance between supporting farmers and fixing the public services on which all our rural communities rely. We have taken a fair and balanced approach that protects family farms, while also fixing the public services that we all rely on, including our own constituents.

Pleas from farmers to the Minister and the Secretary of State are being ignored, just as other pleas from other sectors that are key to driving growth in Scotland have been ignored. Scotland has the worst of both worlds: two socialist and economically illiterate Governments, and a Scotland Office that turns a deaf ear to the pleas of the sectors that could drive growth in our country. It is no surprise that the Scottish people are about to reject Labour in May’s election yet again. After today’s Budget, who does the Secretary of State think will feel most abandoned—Scottish famers, Scottish distillers, Scottish family businesses, Scottish oil and gas workers, or poor Anas Sarwar and the Scottish Labour party?

The hon. Gentleman is perfectly well aware that the majority—three quarters—of those claiming agricultural property relief will be completely unaffected. However, what will affect every single person in Scotland is the Chancellor’s Budget that is set to help with living standards, to drive growth and to put the financial management at the heart of our public finances.