Economy

Part of the debate – in the Scottish Parliament at on 9 December 2020.

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Photo of John Mason John Mason Scottish National Party

I am very happy to take part in this debate on the economy.

It is ironic that the party that consistently argues for lower taxation and the subsequent inevitable cuts to public services has the gall to ask for increased public spending on business support. If the Conservatives are so keen on increasing public spending, I hope that they would support a tax rise in the budget next year. Maybe they would support a windfall tax at a UK level. How about increased tax for online businesses and others that have done so well throughout the pandemic? How about an increase in inheritance tax or capital gains tax?

We have already heard claims that there is a magic pot of money sitting somewhere that Kate Forbes can endlessly access. However, members know that the Finance and Constitution Committee has heard evidence that the Scottish Government has added to the resources that it has received from the UK Government. Much of the consequentials have already been spent; yesterday’s letter to the finance committee and today’s statement make that clear. Some money has to be kept for contingencies until 31 March 2021.

Most people, when they get their salary, do not spend it all on day 1. Rather, they keep it and spread it out over the month, keeping some for the bills that they know are coming up and some for emergencies, which are bound to happen from time to time. In the same way, we have to keep some money for consequentials up until the end of March.

Looking at the motion, I am interested in the phrase

“ensuring that businesses can access the support that they need”.

No government in any country can do that. Of course, we all want to help businesses as much as we can, but Covid is the enemy here and it is causing the damage. Covid has hit our citizens’ health and it is causing damage to our economy. The UK Government can borrow to an extent, but even that has its limits—it has now borrowed over £2 trillion and rising: that is something like £30,000 per head, which cannot continue.

The UK and maybe Scotland can raise taxes, but sadly, we cannot save every business. Are the Conservatives really arguing that no business should close and that Government should write a blank cheque for every business? That does not sound like normal Conservative policy, which, as I understand it, is that weaker businesses should be allowed to go to the wall. The Conservatives at Westminster have not given Debenhams the support that it needs. Are they saying that that is a mistake?

Then the Conservatives call in their motion for certainty for businesses for “next year”—presumably meaning from April 2021. First, no one can be certain at this point what will happen in April. Secondly, how can we have certainty for next year when the UK Conservative Government has refused to announce its budget at a responsible time? That will leave Wales, Northern Ireland and Scotland having to set their budgets in the dark. Surely members will accept that the UK is being irresponsible in that.

Thirdly, the UK Government has been incredibly poor at giving certainty to businesses with the furlough scheme, changing it at the last minute on several occasions. In contrast, countries such as France have given much more of a long-term plan. While I welcome the furlough scheme and its extension, I hope that Conservative members are embarrassed about the way in which their Government has treated business.

Fourthly and finally on the question of certainty, where is the certainty over Brexit? If the Conservatives were not so fixated on the constitution, they might do a better job of running the country and giving more certainty to business.

I said that I was happy to speak in this debate. It makes it so much easier when the Conservatives are in such a weak position.