What estimate he has made of the number of self-employed people in Scotland who have not received support from the Government’s covid-19 financial support schemes.
Julie Marson (Hertford and Stortford) (Con)
What discussions he has had with Cabinet colleagues on supporting job retention in Scotland during the covid-19 outbreak.
I have regular discussions with my Cabinet colleagues, including the Chancellor, on all aspects of how the UK Government continue to support Scotland’s economy. The Chancellor recently announced a package of measures that will continue to support jobs and help businesses through the uncertain months ahead.
At the height of the biggest economic downturn this country has seen in our lifetime, the UK Government stepped up and protected nearly 1 million Scottish jobs through the job retention scheme and the self-employment income support scheme. Does the Secretary of State agree that those measures show that the UK Government have done everything possible to support people’s livelihoods across the entirety of the United Kingdom?
I note that the Government’s latest package of measures for the self-employed slashes their support from 70% of income to just 20%. And that is only for those who are eligible—many self-employed people have not received any help at all from the Chancellor. How many self-employed people in Scotland have fallen through the financial safety net, and what is the Secretary of State doing to help them?
The hon. Lady will know that we have brought in a new set of measures, as she said. There is the self-employment support scheme and the new job retention scheme. We have made a cut in VAT for the tourism and hospitality sector, and introduced the kickstart scheme. The self-employment income support scheme was a broad scheme. By definition, in a broad scheme it is inevitable that some people will sadly miss out, but I should say that in Scotland 283,000 grants were given, which came to some £777 million of support. The scheme now continues for another six months.
Julie Marson
Many hard-working people in Hertford and Stortford are set to benefit from the introduction of the job support scheme, offering employers and workers a transition from furlough. Will my right hon. Friend confirm that this job-saving measure will have the same impact north of the border, and that Scotland shares in this Government’s focus on jobs, jobs, jobs?
Businesses across Scotland, particularly in the hospitality, tourism and culture sectors, are still closed or nowhere near back to any sort of normality. With additional restrictions being reintroduced as cases have rocketed in Scotland, things are only going to get worse for those sectors. The high-profile case of Cineworld is the latest in a very large number of hammer blows to Scottish jobs. The Government do not seem to see that the health and economic responses to covid are one and the same thing. What message does the Secretary of State have for workers on the precipice of losing their jobs and business owners on the verge of losing their viable businesses, or is it simply the flippant response, as the Chancellor said yesterday to the culture sector, that they simply have to retrain and get new jobs?
In this pandemic, the Chancellor has been very clear that he cannot save every business and every job. The hon. Gentleman mentions Cineworld. Independent cinemas were supported through the culture fund to the tune of £97 million in Barnett money. As I said, sadly we know we cannot save every business. Retraining programmes and the kickstart scheme are being put in place, and we have reduced VAT for hospitality, leisure and tourism to 5%. To protect the Scottish economy, I encourage the Scottish Government to make the restrictions coming forward as local as possible.
I am grateful to the Secretary of State, but the reality on the ground is that the Chancellor’s measures simply do not go far enough to protect jobs. The employees and businesses in the sectors hardest hit will need more support, and what they are getting from the Chancellor’s announcement is less support.
Another area critical for jobs is the Scotch whisky industry. This week marks one year since the United States announced a 25% tariff on Scotch whisky. Figures from the Scotch Whisky Association show that that has led to a devastating 32% drop in US Scotch whisky exports, costing a massive £360 million. Given the thousands of jobs in the industry that this supports, rather than the Secretary of State just telling us that he will raise the issue again with the International Trade Secretary, what is he actually going to do to encourage the US to lift the tariffs on Scotch whisky, or is this just another example of what his new Scottish Conservative leader describes as the Tories not caring about Scotland?
The hon. Gentleman raises a very serious issue not just for the whisky industry, but for biscuits and cashmere. I am pleased that biscuits are now off the tariff carousel. The Boeing-Airbus dispute has been many years in the making. It is unfair. It is harmful to both industry and consumers. However, in the trade talks that have opened up with the US, we have now got agreement to a bilateral discussion—in other words, not using the EU negotiators any more—with the US. The good news I can tell him is that we have moved to a new phase. The Secretary of State for International Trade this week is starting discussions to try to resolve this problem.
I very much welcome the fact that 11,000 or more of my constituents have benefited from the furlough scheme. Covid is changing our economy. We therefore need to focus on creating new sustainable jobs. That is why it is even more important that we press ahead in the south of Scotland with the borderlands growth deal. Will my right hon. Friend agree that we need renewed impetus on, the deal, and in particular on delivery of the mountain bike innovation centre of Scotland in Innerleithen?
I thank my right hon. Friend for the invaluable work that he did in bringing the borderlands growth deal to fruition. I am also delighted to inform him that the business case for the mountain bike innovation centre was delivered by the Borderlands Partnership only yesterday. It obviously has to go through further assessments in the usual way, but I am well aware of and support the initiative, because mountain biking in what is a very beautiful part of Scotland is an incredibly popular sport, and it is locally a very popular initiative.
Knowing as we do the negative consequences that the delay to the autumn Budget will have on the Scottish Parliament passing its budget, will the Minister tell us whether he made his Cabinet colleagues and the Chancellor aware of these negative consequences, or was he himself unaware?
We have had one Budget this year in March. That was slightly delayed and, at the time, the then Finance Secretary in Scotland, Derek Mackay, said that that was going to be disastrous for Scotland and that it would be unable to set its budget, but that was incorrect. The Finance Secretary was able to set her budget, and the message goes out now from the Treasury, as it did then: if she has any problems setting her budget, Kate Forbes should come forward and talk to us.