Angus MacDonald MP: speeches

Speeches

• 1 Jul 2025 · Hospitality Sector · Hansard source

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  When the hon. Lady was on that Bill Committee, did she consider the fact that a large part of the hospitality sector in Scotland would have no business rate relief, even though businesses in the south could get it? It was a favour done for England and Wales, but did not help Scotland.

• 1 Jul 2025 · Hospitality Sector · Hansard source

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  At the start, I declare an interest, as my children and I own a cinema, restaurant and big visitor centre in Fort William, employing more than 100 people. I was brought up in a rural inn and my brother has a brewery. I am steeped in the hospitality sector. At the autumn Budget, the Government increased the rate of NIC by 8.7%, which, added to other measures, resulted in an increase of 12.4% in payroll for hospitality businesses like mine. That is four times the rate of inflation. The hospitality sector in my constituency and other remote areas faces additional challenges, particularly the cost of energy. Businesses that cannot access mains gas often have to use electricity, which is four times the price of mains gas. A hotel in rural Britain, whether it be in Cornwall or the highlands, would need to pay £100,000 to heat itself using electricity; using mains gas, the cost would be £25,000, and if it were in America, heating would cost £10,000. Environmental tariffs are on the wrong energy source. They are on renewable energy and not on imported carbon fuel mains gas. That is just so wrong. The Government declared that they are a growth Government; we now know that they meant growth in costs rather than growth in revenue. The impact of the autumn Budget was a 2% increase in the cost of the public sector and a 2% reduction in the private sector. It seems that the hospitality sector is bearing the brunt of that. I would say that the hospitality sector in rural Britain has not struggled more in my lifetime. Both the last two Governments have plucked the golden goose of hospitality so often that it no longer has any feathers.

• 30 Jun 2025 · Driven Grouse Shooting · Hansard source

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  Rural Britain, and particularly remote Scotland, is in crisis. The young are moving to the cities, the schools are closing, healthcare is being centralised and the cost of living is far higher than in the conurbations. Soon, our glens will be populated only by incoming retirees. I took my townie friend, a senior politician, along the beautiful 30-mile single-track road along the south side of Loch Ness. The road winds through a patchwork quilt of well-managed heather moorland. It is lined with well-kept cottages, pubs and village halls. As we drove, I pointed out where I had stayed as a teenager, grouse beating one glorious August. I explained to my companion the extraordinary social role that shooting plays there. There were 50 folk from three generations together, many the descendants of those who have gathered there for the same purpose for two centuries. Back then, as no doubt today, the chat was great. We set off in a convoy of locally bought Land Rovers, ready to walk a dozen miles across the hill, with the beaters’ spaniels dashing back and forth in front of us. Interspersed along the long line were the gamekeepers: men and women from various estates nearby. Fit and strong, they are the pillars of the local community. They serve in the volunteer fire service, they run the village hall, and their spouses and partners staff the medical centre and pub. Without their children, the local primary school would close. The keepers are not in well-paid jobs. They earn a tenth of the income of a certain celebrity TV presenter who spends his time vilifying them. They do it for the love of the countryside, the wildlife, and the traditions of the land from which they hail. They know where the curlews nest, can identify a golden plover from 500 yards, and know how to restore a collapsed wall or lay a hedge. They keep the mink, rats, crows and other vermin under control. If they did not, our precious wildlife population would collapse. The founder of Curlew Action says that conservationists must choose between gamekeepers with curlew, or no gamekeepers with no curlew. Yes, there are a few unscrupulous keepers who, egged on by grouse-greedy lairds, kill raptors, but raptor deaths are at an all-time low, and there are bad eggs in every profession, as we MPs know only too well. The owners of the moors could take their money elsewhere, and buy yachts, or chalets in the Alps. Instead, they choose to pour money into our area for the love of grouse. Their passion results in good jobs in remote areas, and lots of spin-off economic benefits for caterers, fencers, diggers, drivers, gamekeepers and so on. Grouse moor activities also play an important role in reducing loneliness and mental health in rural areas. In the last 15 years, the big buyers of moors have been those wanting to conduct carbon offsetting by rewilding the land: conservation charities, corporates and wealthy individuals, almost invariably receiving massive Government rewilding grants, paid for by the unknowing taxpayer. Invariably, this involves the issuing of P45s and the loss of housing for the gamekeepers, some of whose fathers and grandfathers lived and worked on that same property. If we love our moorland, if we want to see our wildlife thrive, and if we strive for the economic viability of remote areas and good local jobs, we must keep grouse shooting going. Do not let urban MPs once more hammer us rural people without knowing the awful consequences. I conclude with a little ditty: “No more the keeper tracks the hill, His shotgun cold, his bothy still. The ghillie’s rod, the shepherd’s dog, Lie idle in the creeping fog. The red deer fall in bloody ranks, Not for food, nor sport, nor thanks, But culled like vermin, cast away, So saplings might have room to sway. No flight of grouse along the scree, Just silence now, for every tree. There is no healing of the glen, When land forgets the touch of men. The crofter’s roof caves in with rain; The keeper’s track turns wild again. The pub is shut, the school is bare— What future grows when none live there? So mark this truth in storm and soil: This land must live by native toil. Let birch and beaver find their place— But not at the cost of the Highland race.”

• 24 Jun 2025 · VAT Registration Threshold: SMEs · Hansard source

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  I am reluctant to come in on the side of the Opposition on this issue, but I can tell the Minister that my constituency has never suffered as much in my whole business career as it has since the Budget last year. National insurance increases and related increases have absolutely crucified business up there. If the Government cared to come up to the highlands and come round local businesses with me, they would be in for a real shock, but I strongly recommend that they do so.

• 24 Jun 2025 · VAT Registration Threshold: SMEs · Hansard source

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  Thank you for allowing me to speak, Mr Vickers, after I turned up late. Few people can speak about VAT with such excitement as I can. I was UK entrepreneur of the year, I have lectured on entrepreneurship for 20 years, and I have mentored many early-stage businesses. I have concluded that the one thing we can do that could transform the small business community is to increase the VAT registration threshold to allow microbusinesses to scale up. Has anyone tried to get hold of a tradesman recently—a plumber, a decorator or an electrician? I will use the collective word plumber, to make it easier for people of my mentality to understand. There is an army of plumbers —mostly men who work alone—who seem incredibly hard to get hold of. They tend to be older, they learned on the tools or at a technical college, and they are happy to limit their income to squeeze below the £90,000 VAT restriction. There are many who, looking for a bit of holiday money, might do a job on the side for cash. There is a real shortage of plumbers, joiners and electricians, in part due to the closing down of technical colleges, and the young pursuing non-vocational degrees while loading themselves with student debt. Historically and internationally, skilled tradespeople have been held in great esteem, although not so much in today’s Britain. We all know good tradespeople with a great client list and reputation, all of whom make excellent money and are their own boss. An early learn for all those people is that the VAT registration threshold is essential: they need to pay 20% beyond that £90,000. My key point is that these sole traders will not take on an apprentice or an assistant, because that would take them over the VAT starting point. Not being VAT-registered is a fantastic advantage for a person. He or she has a 20% advantage over competitors who have several staff. In addition, the sort of person who likes being on the tools is not the sort of person who would relish the additional paperwork of being VAT-registered. It is not only doing the VAT paperwork that puts sole traders off growing their business; it is the real burden of hiring people, the payroll, the contracts of employment and the HR responsibilities. We need to make it worth their while, so an increase of a few tens of thousands will not do the job. There are 4.4 million self-employed people in the UK; just think what a catapult forward for our economy we would see if only 10% of them were to hire a couple of people. I propose that the VAT starting level be increased from £90,000 to £250,000 for all businesses. If that happened, I predict that a massive number of microbusinesses would hire an apprentice or two, creating a pool of young plumbers getting trained. As the availability of plumbers increased, householders would get work done quicker, there would be more competition and therefore lower charges, and clients would be happier. Small businesses, having built up a bit of a scale with three employees, might then grow into a proper business with 100 or more employees, like Pimlico Plumbers. It is believed that my proposal would cost the Treasury perhaps £2 billion in lost VAT, but I am sure that HMRC would win out overall. It would get income tax and national insurance from the newly-hired and well-paid staff, and the bigger companies would start paying corporation tax. It would also reduce the tax-avoidance cash economy. In my opinion, the 20% difference in the change from £90,000 to £250,000 would be easily made up. Arguments are made that we should drop the threshold to zero and make all sales subject to VAT, but that would be a massive disincentive to people starting a business. The results of my proposed VAT change would be more people in well-paid employment, a gateway for the young into an excellent career, a solution to skilled trade shortages, a stimulant to the economy, and higher tax collected by the Exchequer—a win-win. Why would we want to incentivise millions of people not to hire youngsters, not to grow their businesses and not to pay more tax?

• 24 Jun 2025 · VAT Registration Threshold: SMEs · Hansard source

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  The hon. Gentleman mentioned the increase in the registration threshold from £85,000 to £90,000, which came after many years of it not being increased and is far below inflation. In your time in office, you did no favours for small businesses, as far as VAT is concerned. Would you agree with that?

• 18 Jun 2025 · Businesses in Rural Areas · Hansard source

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  I wonder whether I can make the case for real support from the Government for community benefit from renewable energy. It is being proposed at a fairly modest level by the Department for Energy Security and Net Zero, but it is one of the biggest opportunities for rural Britain to transform its economy.

• 18 Jun 2025 · Businesses in Rural Areas · Hansard source

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  I want to make the case for a review of the VAT system. VAT starts at £90,000 and above, and I think that that level should be increased to £250,000. The UK has 3.1 million sole traders. Many of them do not want to grow above £90,000 because they do not think they are in the business of administration, and quite a lot do cash business in March just to get past that. If we lift the limit to £250,000, many of them would employ an apprentice or two. Some might become quite major. We would enable a junior level of people who were not particularly good at school to join the trades sector, in plumbing, for example. This is a fantastic opportunity if we want to take the foot off the neck of micro-businesses and would allow us to grow a worthwhile SME sector.

• 4 Jun 2025 · Business Rates Relief: High-street Businesses · Hansard source

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  I suggest that England is in an extraordinarily lucky position, because in Scotland we are not getting business rates relief. There is none for retail or leisure; there is some for hospitality, but only up to a point. The hon. Member should thank the Lord he lives in England.

• 29 Apr 2025 · National Wealth Fund: Opportunities for Industry · Hansard source

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  The domestic user of electricity pays 24p per kilowatt; the domestic user of mains gas pays 6p. People who live in urban Britain buy their energy for a quarter of the price paid by people in rural Britain. This is a massive problem, and I wonder whether the Minister could explain how the Government will address it.

• 5 Mar 2025 · Renewables Obligation Certificate Scheme · Hansard source

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  Does my hon. Friend recognise the fact that we have major issues with environmental tariffs being placed on renewable energy but not on the carbon fuel of mains gas? That is really hitting the renewable energy industry and the cost for consumers.

• 3 Mar 2025 · Finance Bill · Hansard source

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  May I draw the attention of the House to my entry in the Register of Members’ Financial Interests? Let me voice my support for my hon. Friend’s new clause, which would require the Government to review the impact of alcohol duty increases on key sectors. Scotch whisky is one of Britain’s greatest industries, accounting for 22% of the whole of Britain’s food and drink exports and supporting tens of thousands of jobs. Yet despite repeated assurances from the Government, the industry continues to face sharply rising duty costs. Since the duty on Scotch and other spirits was—

• 12 Feb 2025 · Support for the Scotch Whisky Industry · Hansard source

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  The share price of Diageo is down by two thirds, that of Pernod Ricard has halved—the whisky industry is in a difficult place. In the Budget, the duty added to a normal bottle was 32p, taking the total duty on a bottle of spirits up to £9.18. Does the Minister not think that we are plucking the golden goose once too often?

• 11 Feb 2025 · Cost of Energy · Hansard source

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  I congratulate my hon. Friend the Member for Bath (Wera Hobhouse) on securing this important debate. Much of what I was going to say has been mentioned, but I want to reiterate a few things. How can it be that households on renewable electricity pay four times as much as those who get fossil fuel gas? That is inappropriate, not least because the cost of electricity generation from onshore wind was one third of the cost of generating electricity from fossil fuels, yet electricity bills remain nearly four times the price of mains gas. To put that into perspective, my parliamentary flat in London, which runs on mains gas, costs 5.8p per kilowatt-hour to heat, while my home in the highlands costs 23.7p. That premium is paid not just in the highlands, but across the countryside and in rural Britain, and in high-rise properties throughout cities across Great Britain. It is an enormous and painful gap. We all believe that net zero is the way ahead—we all support that—but we do not think that the current pricing is just. In England, the level of fuel poverty is 13%, and as the hon. Member for Moray West, Nairn and Strathspey (Graham Leadbitter) said, it is much higher in the highlands at 47%. We have a dramatic problem with fuel poverty in the north of Scotland. In 2021, an estimated 16% of households that used gas for heating were classified as being in fuel poverty, and 41% of those who required electricity. There is a clear link between fuel poverty and lack of access to mains gas. That damages business as well: a hotel in rural Britain is paying £80,000 if it is using gas, but it would cost only £25,000 at most in a city for the same amount of heat. If the hotel was in the United States, the same amount of heat would cost only £10,000. We have touched on the coupling of renewable energy and gas, and I do not think anybody would disagree that they need to be decoupled. I am sure that the Minister will talk about that. We have also touched on the environmental surcharges that are put on the electricity price, so 20% or more of an electricity bill, but just a fraction of a gas bill, is an environmental tariff. Ironically, it is people using renewable energy who are shouldering those environmental charges, not those using fossil fuels—mains gas. I am glad that we have had this debate. I hope that the Minister will give an idea of how the enormous injustice of environmental charges, the standing charges and all the excess charges on renewables can be removed to balance things out with people who are relying on gas.

• 30 Jan 2025 · Finance Bill (Fourth sitting) · Hansard source

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  I support what the shadow Minister said, almost word for word. My career has been in business, and in my two days sitting in the Committee, I have been appalled by what seems to be tax increase upon tax increase. Small and medium-sized businesses across the UK are on their knees and we have done a catastrophic job since the Budget in ruining things for businesses.

• 30 Jan 2025 · Finance Bill (Third sitting) · Hansard source

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  The amendment would mean the relevant rate of duty would be unchanged from last year. I am one of the few MPs from Scotland on the Committee, but I am sure I am not alone in understanding the vital importance of the Scotch whisky industry not just to Scotland but to the UK economy. However, it bears repeating just how significant the industry is, and I would like to highlight a few key statistics. Scotland is home to the production of 70% of UK spirits—whisky, gin and vodka. In 2023, Scotch whisky accounted for 74% of Scotland’s food and drink exports, and the industry employed 41,000 people in Scotland and an additional 25,000 throughout the UK. The Prime Minister himself recognised the importance of the industry. He went to the InchDairnie distillery in November 2023, and afterwards tweeted: “Labour will put growth at the heart of our government and back Scotch producers to the hilt.” The hon. Member for West Dunbartonshire (Douglas McAllister) echoed this sentiment when he co-signed a letter to the Chancellor prior to the Budget, urging her to: “Back one of our great industries, undo the damage of last year’s duty increase, and allow Scotch Whisky to deliver for the economy.” Despite those commitments, the 2024 autumn Budget fails to deliver the support that the Scotch whisky industry so urgently needs. A new survey reveals that 43% of 18 to 34-year-olds have given up drinking alcohol entirely. The share prices of the biggest two spirit companies halved over the past year. The Bill proposes 1p off a pint of beer, which I think we can all agree is a bit of a stunt, while increasing the tax on spirits by 32p, with a related VAT increase of 6p. That means that the duty is £9.18 on a standard bottle of vodka, gin or Scotch whisky. Over the past 16 years, the duty on spirits has doubled. I am concerned, and so are many others, that we are plucking the golden goose one time too many. UK alcohol duty is the highest in the G7. A double measure of spirits is taxed four times more than the average-strength pint of cider in pubs, even when the cider contains more alcohol. Effectively, we are taxing whisky, gin and vodka four times as much. What is worse, this punitive duty does not even deliver more revenue for the Treasury. This is an important point. Last year, the previous Government increased the duty on spirits by 10.1%, but according to HMRC the revenue from the duty fell by £237 million in the following 17 months. That clearly demonstrates that higher taxes on Scotch and spirits do not lead to higher revenue. The increase was forecast to bring in £800 million. Revenue from the duty has therefore fallen dramatically. I understand that in recent years alcohol duty has risen in line with inflation under the new system. However, freezing it in this Budget would send a clear message that the Government stand behind one of our greatest industries. The troubled hospitality industry and the Scotch whisky industry do not need hollow words of support: they need meaningful action. I urge the Government to freeze alcohol duty on Scotch whisky and other spirits, and keep their promise. The Prime Minister said that we need to “back Scotch producers to the hilt.” Let us give this industry the angels’ share that it deserves.

• 30 Jan 2025 · Finance Bill (Third sitting) · Hansard source

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  Will the Minister comment on whether, when the Government fix all these additional taxes, they take into account what happens in Scotland, where many in the hospitality industry do not get business rate relief? We are getting it twice on exactly the same issue.

• 30 Jan 2025 · Finance Bill (Third sitting) · Hansard source

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  I do not have a great deal to add. I did miss out, when we declared our interests earlier, the fact that I own a pub, which hon. Members are very welcome to visit when they are next in Fort William—do not all rush at once. It never rains there. I want to come back, briefly, to the 1p a pint reduction that we were promised. The whole hospitality industry and beer industry have come together to agree that that is a stunt, and that that 1p will not be passed on to the customer. It is just not relative at all, because the reduction in business property relief and the national insurance and minimum wage increases effectively mean that the cost to the hospitality industry is going through the roof. The Minister knows that perfectly well, but he still continues to trot out his line. On the whisky industry, I am not sure that account has been taken of the potential tariffs. We talk about exports being very strong, but they are not actually very strong at the moment. Lastly, on tax overall, when I make a submission to Scottish Government Ministers about the tax on hospitality, the whisky industry and so on, they all blame Westminster, but when I speak to Westminster Ministers about it, they all blame Scotland. The net result is that industries such as hospitality in Scotland are suffering from both sides, and that is simply not fair.

• 28 Jan 2025 · Finance Bill (Second sitting) · Hansard source

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  Will the Minister consider the fact that the increase in national insurance has harmed many companies that have really struggled? An increase in the top rate of income tax or capital gains tax would at least have hit organisations that are making proper profits and proper money.

• 28 Jan 2025 · Finance Bill (First sitting) · Hansard source

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  My point was really about the cumulative effect of many different taxes and restrictions making it more and more difficult for people in the letting business, which is crucial to the economy of tourist areas.

• 28 Jan 2025 · Finance Bill (First sitting) · Hansard source

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  Did the Minister consider the different legislation in Scotland, where we have short-term letting licences, visitor tax and a whole load of extra legislation coming in, which is making it difficult and reducing the amount of holiday letting available? How relevant is the proposal for Scotland?

• 23 Jan 2025 · High Streets: Autumn Budget 2024 · Hansard source

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  I wonder whether the Minister will consider what I am about to say. I have been asked to go to the Isle of Skye on Saturday for a crisis meeting. There is a group of hotels, which are family-run businesses, not big multinationals, and they face an awful combination of increases across the board, including heating price increases. Their No. 1 issue is national insurance contributions and minimum wage costs. They think that, on average, their costs will go up by between £40,000 and £70,000. They are in a very poor state indeed. Can the Minister give me any encouragement that I could pass on to them on her behalf?

• 23 Jan 2025 · High Streets: Autumn Budget 2024 · Hansard source

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  Will the Minister say why taxes were put on poor, struggling organisations, such as high-street shops and hotels, rather than the massive online businesses that are emptying our high streets? Why did she not consider imposing a higher rate of corporation tax or income tax, rather than hitting the poorest businesses in our society?

• 14 Jan 2025 · Agricultural and Business Property Relief · Hansard source

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  Will the hon. Gentleman give way?

• 14 Jan 2025 · Agricultural and Business Property Relief · Hansard source

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  Will the Minister give way?