Graeme Downie MP: speeches
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Speeches
- 10 Dec 2024 · Armed Forces Commissioner Bill (First sitting) · Hansard source
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Q First, I thank SSAFA for the work it does in Fife. The work it has done, when I was a councillor and on an ongoing basis, has been incredible. To pick up on something you mentioned earlier, SSAFA has been around for a very long time, so what do you see as some of the thematic issues that have existed with forces personnel over the years? Where do you think the commissioner should be looking first? Are there two or three things from those thematic areas that they could look at? Lt General Sir Andrew Gregory: I will come to your question. There is an interesting discussion going on. The Minister for Veterans and People, Al Carns, has commissioned Operation Valour, which is great—both Nick and I have engaged with that—to look at how better we can support veterans. I do worry that we have bits looking at veterans and bits looking at servicepeople and their families, working slightly in isolation. I come back to the point about the continuum: for veterans, setting the conditions in service for success outside is absolutely critical. In terms of themes and areas that the commissioner might wish to focus on, there are some obvious ones, such as the issue of service accommodation. In defence, during my time, we started off with something called the future accommodation model, which then became the new accommodation model. What is the current term? Lt General Sir Nicholas Pope: Accommodation offer. Lt General Sir Andrew Gregory: Trying to get something that meets the aspirations of modern servicemen and women and their families has proven quite difficult. So I think that will be an area. I am very proud of my service. People say, “What would have made you leave early?” I would answer, “Had the services ever compromised on their values and standards.” But I do think there are some cultural areas of shame in the armed forces, and how better we can tackle some of those issues would be another area that the commissioner would certainly wish to look at relatively early in their tenure. Lt General Sir Nicholas Pope: I will go back to Haythornthwaite to answer the question. One of the pieces of evidence that we put in the report was about how over time the role of the family has changed, and how family conditions drive individual aspects. I was struck when I took Rick down to visit some of the Blades in Poole. We had a table like this one, with 25 members of the Special Boat Service sitting around it, and the question I posed to them was, “Who is going to be here in five years?” Not one hand went up, so I said, “That’s shocking. Why?” The reasons were family-based: time away from Christmases, accommodation standards and the inability to get spousal employment. The issues that matter are focused on spouses. If we have a commissioner who focuses on one area to make a difference, that should be spousal employment. I remember, about 10 years ago, taking the decision to bring the Army out of Germany, and selling it to the then Secretary of State, Phil Hammond, as a savings measure, because it was a lot cheaper to have the UK Army based in the UK—for the first time in 300 years. The reason we took the decision as an army was predominantly around the lack of spousal employment opportunities in Germany, to be brutally frank. Yes, there was a change in the geostrategic landscape, but we could not get enough young men—particularly men—to want to serve in Germany because it was going to impact on dual-income families. Spousal employment and opportunities and looking at family conditions would be an area I hope we could unpack in a big way.
- 10 Dec 2024 · Armed Forces Commissioner Bill (First sitting) · Hansard source
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Q On your point about shame factors around the Armed Forces in the past, do you see the role of the commissioner as being essentially proactive and preventive in heading those off? Lt General Sir Andrew Gregory: That is a great question. I hope the commissioner would, in that space, want to work to support the chain of command. I think the chain of command is trying desperately to get it right— I would say that of when I served. Nobody likes the awful headlines we have had over suicides. Obviously the biggest issue ever was Deepcut, but there have been plenty of examples where those of us who are part of the military community have hung our heads in shame, as we should have, because that is not how young people should be treated. The chain of command is not complacent; it is doing its best. You need someone who is there to say, “Right, I am going to challenge you,” which the commissioner must do, but equally to say, “I am going to support you, because we are all collectively on a journey to make this part of society and employment better.” Lt General Sir Nicholas Pope: Can I add a little codicil to that?
- 9 Dec 2024 · Syria · Hansard source
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In his statement, the Foreign Secretary referred to HTS co-operating with the international community on the monitoring of chemical weapons. Given the situation on the ground in Syria and the ongoing chaos, what confidence does he have that there is the capacity for HTS to conduct that work? Is there anything the UK Government can do to support the capacity in the region to keep those weapons safe?
- 3 Dec 2024 · Topical Questions · Hansard source
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T8. The previous Government left a mess of £22 billion for us to clean up following their short-term decisions and absolute lack of investment in services. This Government are taking a different approach, with long-term investment for our economic success. Will the Chancellor work with me to find the £3 million of long-term investment in the port of Rosyth that is required to bring back a ferry between Rosyth and Dunkirk? That would bring 51,000 passengers a year to Scotland and take 8.1 million km of freight traffic off the road, and it has the support of large local employers such as Mowi and Amazon.
- 26 Nov 2024 · Coastal Infrastructure: Scotland · Hansard source
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The hon. Gentleman is right that I should pay tribute to my predecessor, Douglas Chapman, who did much to champion this cause. My point is that we can do this in the current situation, and that is what we should be doing as quickly as possible. This debate is about how to get investment back into our coastal communities, and what better opportunity than a passenger and freight link between Rosyth and central Europe? As I discussed with my hon. Friend on the Front Bench prior to this evening’s debate, I wrote to the Chancellor of the Exchequer at the start of October, but I received a reply only very recently, and I suspect only because this debate was on the Order Paper. This is disappointing, particularly given the small amount of money and the deadline to make this project a reality in 2025. Of course, I do not expect my hon. Friend to be able to make any commitments this evening, and I certainly do not expect him to speak on behalf of the Treasury. However, it is critical that the Government deliver for Scotland in a visible and meaningful way as quickly as possible, by progressing projects that further Brand Scotland, which is a fantastic policy programme that sells Scotland to the world, benefiting people across my constituency and across Scotland. What actions are the Scotland Office taking to bring the correct partners around the table to make the Rosyth to Dunkirk ferry a possibility as quickly as possible, so that the option of bringing it back in 2025 can at least be seriously explored? Whether it is restoring the Rosyth ferry, addressing infrastructure challenges or unlocking the potential of initiatives such as the green freeports, now is the time to act. By working together, we can ensure that our coastal communities thrive for generations to come.
- 26 Nov 2024 · Coastal Infrastructure: Scotland · Hansard source
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I could not agree more. I had the pleasure of being in Belfast just a couple of weeks ago for a family occasion. I was not able to take the ferry on that short trip—sadly, I had to fly—but I could not agree more with the hon. Gentleman’s point. For coastal communities in my constituency, such as Kincardine, Culross and Torryburn, tourism is indeed a welcome industry, with the Fife coastal path and the Pilgrim Way welcoming thousands of people a year to enjoy the beautiful Fife coastline. Across Scotland in 2022, marine and coastal tourism was worth £633 million, providing a total of 31,000 jobs. However, although tourism is welcomed by such communities, it can bring difficulties as well. Villages that were never designed to deal with hundreds or thousands of visitors sometimes feel swamped, with locals understandably resentful. The situation has not been aided over the years by SNP cuts to local council budgets, which have delayed upgrades to critical infrastructure, including roads, paths, play parks and other local facilities. However, our coastal communities are not just scenic backdrops but economic powerhouses, cultural treasures and key players in our green future. They need our continued support and investment. In August this year, the Prime Minister said that our coastal communities are the lifeblood of Britain’s maritime economy. From supporting international trade to driving innovation in renewable energy, these areas must be at the heart of our plans to build a stronger, greener, and more prosperous future for the UK.
- 26 Nov 2024 · Coastal Infrastructure: Scotland · Hansard source
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Once again, I could not agree more. My hon. Friend has the pleasure of representing one of the most beautiful parts of the world, and I have been able to spend a bit of time there. He is absolutely correct about the challenges that our coastal communities face, and programmes such as Great British Energy have huge potential for green jobs. We must always make sure that the transition is carried out with sensitivity and in partnership with communities wherever we can. The Prime Minister is someone with whom I would always choose to agree, and I could not agree more with his views on coastal communities and the maritime economy. The national wealth fund announced by the Chancellor of the Exchequer is a potentially transformative opportunity for our coastal communities, with at least £5.8 billion of the NWF’s capital focused on sectors such as ports, green hydrogen, carbon capture, gigafactories and green steel.
- 26 Nov 2024 · Coastal Infrastructure: Scotland · Hansard source
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Scotland’s history is intertwined with our coastal communities. From shipbuilding on the Clyde to fishing off Peterhead and Fraserburgh, these areas helped fuel the UK’s growth as a global power. Closer to my home, the Forth estuary has a proud industrial legacy. Longannet power station, near Kincardine, once powered UK industry and, to this day, the Babcock dockyard in Rosyth plays a pivotal role in naval shipbuilding. The Forth remains an active and busy waterway, with tankers and barges constantly on the move. None the less, in common with other areas, the decline in industry in the Forth is obvious. In some places, industry has been partially replaced by tourism, with 9 million visitors coming to Fife last year and contributing £570 million to the local economy.
- 26 Nov 2024 · Coastal Infrastructure: Scotland · Hansard source
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I thank the hon. Gentleman for that intervention. Given the additional co-operation we are seeing between the UK and Scottish Governments, with the UK Labour Government in power and resetting that relationship, there will absolutely be opportunities to work together for the benefit of all parts of the United Kingdom on energy. In 2022, passenger and freight water transport was worth £250 million to the Scottish economy and supported 1,600 jobs. The port of Rosyth in my constituency currently handles 600,000 tonnes of bulk cargo, ranging across a variety of incomes, including road salt, which has been much needed in the past week. It was definitely required in Fife, as I found out on my trip to the airport earlier this week. In addition, the port of Rosyth works with oil and gas companies for the import and export of vital industrial components, and when I was near the port recently, I could also see turbine blades and other components for renewable energy sitting on the dockside—a sign of the future, hopefully, for my constituency. The Rosyth waterfront, currently being cleaned up by the Scarborough Muir Group, was once home to a 250,000-tonne capacity concrete tank and 5,000-tonne steel tanks, all used to fuel the fleet during world war two. The development of the site offers a further exciting glimpse into the possible future of the Fife coast, given the required sustained investment. The green freeport offers exciting opportunities up and down the Forth estuary on both sides, with plans for Rosyth including additional freight and passenger transport and improved rail link options, all of which take freight off the roads while at the same time providing new jobs and helping us on the pathway to achieving net zero. Over the longer-term trend, the Scottish marine economy contracted by 14% between 2013 and 2022, a shocking decline for which both the SNP and Tory Governments must carry the can. We must do more to support our coastal economy, and there is one specific measure on which I would like to focus in the remainder of my time. Between 2002 and 2018, there was a direct ferry line from Rosyth to Zeebrugge operating as a passenger and freight service, and latterly as a freight-only service. I believe, as many of my constituents do, that now is the time to bring this project back. To that end, I have held several discussions with those co-ordinating these efforts, as well as with DFDS Ferries, which has said that it would like to bring the service back as soon as spring 2025, but between Rosyth and Dunkirk instead. Additional investment in the port of Dunkirk, including on facilities and additional upgrading of freight and rail, makes this an optimal moment to bring back this service from Scotland to Europe. The facilities at Dunkirk are ready and the national wealth fund would appear to be the ideal opportunity for this Government to take the lead on developing the facilities at Rosyth that are needed to make that happen. Never mind £5.8 billion, it could take as little as a £3 million investment in Rosyth to bring back a regular passenger and freight service between Scotland and mainland Europe, but time is of the essence if it is to be fully realised. With £3 million of funding, we could get a jump-start on all of this as soon as spring 2025. This Government have said that they want to move quickly with investments that deliver. To my mind, there is no better example of that than getting a passenger and freight ferry back up and running between Scotland and mainland Europe, with Rosyth perfectly positioned for the service. The infrastructure needed is not extensive. All that is needed is improvement of some of the access roads, space for new security checks and the installation of power and associated works. It is estimated that a direct ferry link would carry 51,000 passengers per year, rising to 79,000, and bring an additional £11.5 million spend to the Scottish economy each year. On freight, it is estimated that the route would begin by carrying 22,000 freight units per year, taking 8.2 million km of freight traffic off UK roads, with a corresponding reduction in carbon emissions. The kind of increased passenger and freight links that I want to see in Rosyth would revitalise the economy not only in my constituency but across Fife more broadly and would support the Government’s net zero ambitions while underpinning the Scotland Office’s plans for Brand Scotland, selling Scotland to the world. I have spoken to major employers in the constituency, including Amazon and Mowi, which have both said that they would welcome this ferry link as it would help their contribution to the local economy. Mowi plays a key part in the Scotland Office’s Brand Scotland efforts by promoting and selling Scottish salmon to the world. There are other hurdles that would need to be overcome in order to finalise bringing the service back to Rosyth, including addressing the failure of the SNP Scottish Government to amend the necessary legislation that would allow border control at Grangemouth to be used for Rosyth for certain freight. There is also the matter of the delay by the Scottish Government in confirming Transport Scotland funding for the waterborne freight grant. While the SNP continues to delay and make excuses at its end, this Labour Government have the opportunity to jump-start this process.
- 26 Nov 2024 · Topical Questions · Hansard source
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T7. Given the upcoming audit into the UK’s relationship with China, how does the Foreign Secretary plan to strike a balance between economic growth and growing security concerns about China’s dominance in critical national infrastructure and Chinese-made IoT modules?
- 21 Nov 2024 · G20 and COP29 Summits · Hansard source
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What was clear throughout the Prime Minister’s statement was the need for defence collaboration across the world, as we live in a much more unstable global situation. In his discussions with the Australian leadership, was he able to recommit the UK to AUKUS? Can he give us an update on the next steps, please?
- 20 Nov 2024 · Defence Programmes Developments · Hansard source
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I thank the Secretary of State for his statement. It is clear both from the statement and from the follow-up questions that the previous Government have wasted millions of pounds in defence spending that could have been spent better, making it clear that Labour is the party of defence. That money could also have been spent better in our economy, to support the defence sector across the UK. What steps will the Secretary of State take to ensure that future programmes will be spent in the UK? What guarantees can he offer to support shipbuilding across this country?
- 19 Nov 2024 · Food Banks · Hansard source
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That is pressure, Ms Vaz; It is a pleasure to serve under your chairmanship. I congratulate the hon. Member for Aberdeenshire North and Moray East (Seamus Logan) on securing this debate. Every Member wants to reduce the number of people relying on food banks and to tackle poverty effectively. I am surprised that the hon. Member for Aberdeenshire North and Moray East chose to reference so many devolved policy areas—he made clear in his point of order in the Chamber yesterday that he does not believe that such behaviour belongs in Parliament. I shall begin by thanking the 200 volunteers who operate the Dunfermline food bank in my constituency. It has one site in Dunfermline itself and four satellite sites around the area. It is led by the fantastic Sandra, whom I was delighted to meet over the summer. I spoke to Sandra again this week and asked her for an update. She said that, in the year from April ’23 to March ’24, the Dunfermline food bank fed just under 9,000 people, approximately one third of whom were children. The Government have already delivered a genuine living wage in Scotland, meaning a pay rise for more than 200,000 of the lowest-paid Scots and £3.4 billion of extra funding for Scotland. The question now for the SNP is: how will they spend that? There are no hiding places. Will they carry on as they have to date, scrapping the fuel insecurity fund from £30 million to zero, cutting and scrapping the parental transition fund, and driving more people towards food banks? I genuinely hope that the SNP take action in their budget in December to tackle poverty, and I truly hope that they are successful, but the warning signs are not positive. Groups such as the Poverty and Inequality Commission and the Joseph Rowntree Foundation have said that we are running out of ways to stress the need for rapid action from the Scottish Government. Food banks and the Trussell Trust have told us that the cap on universal credit deductions is one of the main things pushing people towards food bank use. That is why I am delighted that the Budget last month reduced the cap from 25% to 15%. Is this the limit of what the Government and I want to achieve? Absolutely not, but the Budget set a clear direction and showed the priorities of the Labour Government. I will return to Sandra, who said to me: “I am the only person who wants to see my job eliminated. I want to be out of a job, because it would mean we have successfully ended the need for food banks in this country.”
- 18 Nov 2024 · Armed Forces Commissioner Bill · Hansard source
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May I, too, begin by welcoming contributions from across the House? It has been a remarkably cross-party, consensual debate so far, and I am sure that will continue. Unlike some who have spoken, my family do not have a veteran, but I grew up for three and a half years on an RAF base in Berlin. It was subject to something called the Berlin budget, which ensured that adequate housing was not a problem, thanks to taxpayers in Berlin. It is interesting that this provision is modelled on an existing German position—that is always something I would welcome, and a country that I have great feelings for. It is a pleasure to speak in this debate, as this Labour Government continue at pace to put in place more of the many commitments made to my constituents, and others, in our manifesto. The Government have already taken action to stabilise our economy, unleash investment, and reform the House of Lords. For Scotland, the recent Budget saw a record £3.4 billion of additional funding, a pay rise for 200,000 Scots, and many other benefits. In defence, as others have mentioned, the Government have increased pay for our armed forces, delivered an extra £2.5 billion for the defence budget, on top of £3 billion annually for Ukraine, for as long as it will take to defeat Vladimir Putin. The Bill will help to protect those serving in our armed forces and their families. In the Dunfermline and Dollar region and the wider part of Fife we have a proud heritage of military families, both serving and in veteran communities. From the Royal Navy and Rosyth Dockyard in my constituency, to the former RAF base at Leuchars, now used by the Army, the existing RAF base at Lossiemouth, the nuclear deterrent on the Clyde, and training grounds for commando and special forces units throughout the highlands, Dunfermline, Fife and Scotland know a lot about what is needed to support soldiers and their families, which is why I welcome the Bill. Forces families face long periods apart, frequent moves, educational changes, housing issues—those have already been mentioned—inconsistent access to healthcare, and sometimes even different tax arrangements within the UK. The nature of the military, with the vital and necessary chain of command can lead, and in the past has led, to a closed shop, and the development of toxic and unhelpful practices and cultures. While some issues must continue to be dealt with by the chain of command, because the role of serving personnel often means that their families must follow them around, there must also be a route that allows them to raise broader issues of concern—something that the Bill will achieve with the Armed Forces Commissioner. As others have mentioned, we must ensure that living conditions are appropriate for our armed forces personnel, both with their families and when apart. It is unacceptable to expect our armed forces to live in inadequate housing, not just from a health perspective but because that is not conducive to modern family life. I spoke recently to veterans in my community, and they said that sometimes they would just welcome access to adequate wi-fi, so that they can keep in touch with their families when abroad. On a related matter, I strongly welcomed the announcement by the Prime Minister and the Government’s actions with the homes for heroes commitment, and I thank my right hon. Friend the Defence Secretary, and his ministerial team, for the rigour that I know they are applying to its implementation. I wish we could see more action, particularly from the SNP in Scotland, where I would like to see a much more committed approach to services for our armed forces and veterans. If we do not begin to address some of these issues quickly and directly, and with the highly competitive career market that we face, it will only become harder to recruit and retain armed forces personnel. In an ever more unstable world, we must ensure that UK armed forces are an attractive employer, not only for those on the frontline but for the thousands of essential staff who might otherwise choose to work in the private sector, in areas such as logistics or technology. We must ensure that bullying, harassment and discrimination are driven from our armed forces at all levels. Not only is that the right thing to do, and how we make the armed forces an attractive and responsible employer, and not only is it how we build and maintain morale, and recruit and retain staff, but it is also how we ensure that our armed forces are able and ready to fight when we need them to. The independent role that the Bill seeks to establish offers the possibility to create an effective and independent process that will provide people with confidence that they can raise concerns and see an established and transparent process for how those concerns will be investigated and addressed quickly and effectively. I do not welcome the future position of Ministers who must respond to some of these reports, as I believe they will lay bare some of the challenges that have been allowed to build up over years and decades, but face them we will and face them we must. When the Minister responds, will he explain how the commissioner is intended to work with the devolved Administrations and local authorities inside those Administrations? Where we have another layer of government, we must ensure that it does not fail local authorities—I am, of course, thinking particularly of Scotland. It has taken a long time for a Parliament and Government to recognise and address the different lives lived by our armed forces and their families. It should be no surprise that it has once again taken a Labour Government to take the necessary action to protect our armed forces.
- 11 Nov 2024 · Defence: 2.5% GDP Spending Commitment · Hansard source
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Like others on this side of the House, I welcome the increase in defence spending that was announced in the Budget, after years of Tory cuts to our armed forces. Does the Secretary of State agree that we need to increase defence spending in response to emerging threats around the world, from Ukraine to the middle east and Asia-Pacific, and that the figure of 2.5% should be kept under review in the light of changing events around the world?
- 11 Nov 2024 · Rural Affairs · Hansard source
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I congratulate those who made their maiden speech this afternoon. My constituency of Dunfermline and Dollar has a significant rural area, particularly through west Fife and Clackmannanshire. While rural areas often face different challenges from urban areas, the concerns are often the same. They include access to health, education, transport and other public services, so while this debate is about rural affairs, we must always be careful to ensure that we tackle the different challenges faced in rural areas with thoughtful consideration and sensitivity, and without creating division with those who live in urban and suburban areas. I begin by mentioning concerns that farmers in my community have raised about changes in the Budget to agricultural property relief. Along with five Scottish Labour colleagues and Conservatives and Liberal Democrats, I was recently able to meet NFU Scotland and have a constructive conversation on that and other issues. It was disappointing, however, that no one from the Scottish National party was able to attend. Constructive engagement, rather than the often misleading and divisive rhetoric we have seen from some Conservative Members, will always be appreciated by our farming communities. I am awaiting further information from NFUS, but I believe that it understands the intention of the policy that has been announced, and our eagerness to work with it and others to support Scottish farmers. My constituency includes former coalmining villages such as High Valleyfield, Oakley and Blairhall. Their rurality, along with high levels of deprivation, presents unique challenges. Bus services are irregular and unreliable, making access to healthcare difficult. It can take more than an hour to get to Dunfermline by bus, a journey that takes just 15 minutes by car. Similarly, without a car it is next to impossible to access train or bus services to cities such as Edinburgh or Glasgow, while the lack of services after 6 pm in some areas means that park-and-ride options are not viable for those who want to commute by public transport. Living in rural areas presents a further difficulty in accessing health services. Buses to either Forth Valley hospital near Falkirk or Victoria hospital in Kirkcaldy can take more than an hour, so getting to an appointment at a specific time without a car is difficult and very disruptive to day-to-day life. The community in High Valleyfield experienced this just over a year ago, when the breast screening van was withdrawn. People were then required to travel to Dunfermline, a journey of more than two hours each way. Sadly, I heard of women of all ages no longer making their appointments, and I do not think anyone in this House would want that. At a recent surgery in Dollar, I was told of the incredible challenges in accessing hospital transport services; the excessive bureaucracy and other barriers disadvantage people living in rural areas. Although failing transport infrastructure causes challenges, digital infrastructure is similarly problematic and is not the panacea for accessibility that it is sometimes heralded as being. Rural areas suffer from delays in getting broadband infrastructure. Openreach was very excited to bring cabinet service to the village of Blairhall in my constituency. Everyone was looking forward to it, and it was completed—other than for seven houses on one street, where Openreach decided it was not commercially viable to introduce the service. The SNP’s R100 programme, already delayed and over budget, will eventually get to delivering this upgrade, but not until 2026 or 2027. After the pandemic, increasing numbers of tourists have sought to take advantage of the beauty to be found in rural Scotland. Tourists increasingly visit Culross, a village in my constituency where movies and TV shows such as “Outlander” were filmed. As we approach Christmas, the House might be interested to know that much of the film “Christmas in Scotland” was filmed in this beautiful village. But, of course, this brings its own pressures, as thousands of visitors and hundreds of tour buses visit Culross each week. I am delighted that Fife council is working with the excellent and very active Culross community council on these issues, but we must balance the needs of visitors with the needs of, and impact on, the local community. I could go on and on about the fantastic rural communities in my constituency, but I will end with my commitment to continuing to champion and advocate for the different needs, priorities and considerations of our rural communities throughout my time in this House.
- 11 Nov 2024 · Universal Credit: Assessment · Hansard source
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Last week, I was made aware of a constituent who is a carer for his wife, who experienced a stroke in 2016. The constituent is a veteran who lives with chronic obstructive pulmonary disease and was awarded carer’s allowance in 2017. Late last year, the DWP began demanding the return of more than £51,000 in alleged universal credit overpayments, and this April, under the previous Government, the DWP began taking it from his state pension without warning. Will the Minister meet me to discuss this case in more detail so that I can help my constituent?
- 6 Nov 2024 · Road Fuel Market · Hansard source
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I thank my hon. Friend for that intervention. I will come on shortly to the action the Government are taking and where I think there is still more to be done. The impact goes beyond personal strain; it creates an uneven playing field for businesses, hindering economic growth by harming small business owners in Dunfermline who rely on vehicles for operation. In this Budget the Government have taken a wide range of steps to help working people across the country, including in my constituency: a wage rise for 200,000 Scots, record funding to Scotland, fixing the mineworkers’ pension scheme, protecting the pensions triple lock and, as I have said, committing funds to maintain the freeze on fuel duty that the Conservatives failed to do and which would otherwise have seen people like my constituent Aimee paying even more for fuel. I am also pleased that this new Government have confirmed that they will implement two of the CMA’s recommendations: an open data scheme called fuel finder that will require all fuel retailers to share their prices in real time, and a road fuels monitoring function that will report on the state of competition in the road fuel market. Scenario modelling by the CMA suggests that pump prices could reduce by between 1p and 6p a litre as a result of these measures, helping to ensure that drivers get a fair deal for fuel across the UK. I am keen to hear from the Minister what more she thinks the Government can do specifically around ensuring a fair and functional fuel market, so that pricing is fair and not allowed to cluster into local price-fixing, as seen in Dunfermline. Fuel prices are undoubtedly subject to a range of external factors, as we have seen over the years, but by increasing transparency and ensuring real competition between forecourts, we can have a functioning market where competition helps drive down prices. However, nothing is preventing fuel retailers from choosing to do the right thing right now and to stabilise fuel prices, to remove price clusters like we see in Dunfermline and to ensure that people such as Aimee are not financially penalised for where they live. I hope this Government will build on the excellent start they have made to protect working people and small businesses, and I hope we will be able to do more to stop fuel retailers profiteering on the back of hard-working people up and down the country.
- 6 Nov 2024 · Road Fuel Market · Hansard source
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I thank the hon. Member for his intervention; I believe that taking an intervention from him is a rite of passage in this House. I could not agree more, particularly in relation to constituencies such as my own, where there is a mix of urban and rural areas and the rural pricing hits particularly hard. Those are often areas that have poorer public transport as well, so the impact is felt even more. Most small businesses rely on efficient and cost-effective transport for their deliveries, staff and customers, and that often means running and fuelling a car or van. High prices at the pumps have a direct impact on small businesses and squeeze already thin margins in the ongoing crisis in the cost of living and of doing business. Research by the Federation of Small Businesses shows that more than three quarters of small businesses saw their costs go up in the last quarter, and of those more than a quarter said that the increased price of fuel was one of the main reasons for that rise. My constituency is just 20 miles from Scotland’s oil refinery in Grangemouth, yet residents in Dunfermline consistently pay a full 5p a litre more than those nearby in Glasgow, Stirling, Glenrothes or Kirkcaldy. That is despite the local supermarkets Tesco and Asda, as well as a host of other outlets in the city such as BP, all supposedly competing to be the driver’s choice. What we see in Dunfermline is a cluster of prices around the same level within the city, and price clustering around Dunfermline as well, with all supermarkets and suppliers at roughly the same price. That is not local competition; that is a local cartel. Even worse, my constituents are paying 134.7p per litre at Asda in Dunfermline, whereas in the Asda Bridge of Dee store in Aberdeen, 112 miles further north, they pay just 121.7p at the pump. Never mind 5p—that is a difference of 13p per litre. In rural and semi-rural areas, as was said earlier, where public transport infrastructure is less entrenched—certainly in my constituency, where the train service is frequently short-formed, delayed or cancelled at short notice—fuel is not a choice; it is a necessity. My Dunfermline and Dollar constituents rely on their vehicles more heavily, yet often face the highest prices. That is an issue of basic fairness. I am all in favour of market forces being used to shape prices, but not where the market is demonstrably broken, and fuel pricing has all the signs of a broken market mechanism. It is nothing short of outrageous that the most essential aspects of daily life are subject to broken competition, a non-functioning market and what appears to be price clustering by retailers. Across the constituency, small businesses and sole traders such as plumbers, builders, florists and taxi drivers, along with families, are paying the price. As we might say in Scotland, small businesses are being pumped at the pumps. Like many fellow Members of this House, I welcome the Chancellor’s announcement in the Budget, which we passed this evening, on freezing fuel duty, which will help people who are still feeling the impact of out-of-control inflation on their take-home pay. However, while this pricing behaviour by retailers continues, I am concerned that the full benefit of the Government’s efforts to keep down fuel costs will not be passed on to my constituents. To help the House understand fully the consequences of this kind of price clustering and the effects of a broken market, I will share the experience of one of my constituents, Aimee, a 20-year-old apprentice who wrote to me last month. Aimee was proud to secure her apprenticeship, which she started this autumn, earning the apprentice minimum wage of £6.40 an hour. With just over £1,000 a month to live on, Aimee uses £200 a month of her hard-earned wages on fuel. She gets her petrol at Asda in Dunfermline where, as I mentioned, unleaded was 134.7p per litre yesterday. Her £200 is buying her 148.48 litres of fuel. However, if Aimee was buying her petrol at Asda Bridge of Dee in Aberdeen, where unleaded was 121.7p a litre yesterday, she would have paid just £180 for the same amount of fuel. That is a full £20 a month difference. Over the course of a year, Aimee would have to work an additional 36 hours just to pay for the difference in price of petrol for her to get to and from work. That is not justifiable. Aimee, who is learning while earning, is experiencing a real-terms pay cut differential due not to anything she has done, but to the effects of this broken market. We encourage the use of greener transport, but we have seen the failures of the SNP Government and ScotRail to provide Fife with a reliable service, so that is not an option for people such as Aimee, with short trains and unreliable service, particularly in West Fife. One step that the SNP-Green coalition at Holyrood did take was to remove peak fares, which saw a 6.8% increase in train usage. However, that encouragement of behavioural change was swiftly removed—just like the Scottish Greens from the coalition—when the financial incentive of fairer train fares was also removed. Behavioural change of a positive nature does not happen overnight, but the switch back to the car from the train does, and has. That short-sighted decision—like the short-formed trains that often serve the region—has put people off using green transport. Having been let down by the Scottish Government, commuters in Dunfermline are being taken advantage of by fuel retailers and market competition in my constituency.
- 6 Nov 2024 · Road Fuel Market · Hansard source
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The topic for this, my first Adjournment debate, is fair fuel pricing, an issue that has been raised repeatedly with me by residents of Dunfermline and Dollar since I was elected in July, and that has been examined by previous Governments of all colours and by the Competition and Markets Authority. In July this year, the CMA said that weakened competition in the fuel sector is negatively impacting drivers’ wallets. Its examination found that, in 2023 alone, high prices cost motorists a staggering amount of money. In the midst of a cost of living crisis, that seems especially egregious. The CMA’s warning was not, however, the first or even the second significant warning on fuel pricing. After launching a market study in July 2022, which reported a year later and made a series of recommendations to protect consumers, the CMA has issued three interim reports. In those reports, the CMA found that drivers were overcharged at the petrol pump by £900 million in 2022 and a further £1.6 billion in 2023. That means that, in just two years, drivers were overcharged by some £2.5 billion on their fuel in the midst of a cost of living crisis. That is shameful profiteering, which we know hits lower-paid workers and families the hardest. The cost of living crisis has meant that changes in the prices of utilities and fuel have been sorely felt. We have long understood the argument that rural drivers might pay more for fuel due to the increased logistical costs and additional staffing costs. I do not always find such arguments convincing, but they at least have a perceived logic to them. However, fuel is not a luxury; it is a lifeline. It enables people to commute to work, take their children to school, and provide care and support to loved ones.
- 31 Oct 2024 · Income tax (charge) · Hansard source
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Will the hon. Gentleman give way?
- 31 Oct 2024 · Income tax (charge) · Hansard source
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I believe the Chancellor outlined all of that absolutely perfectly yesterday. I would never seek to improve on the performance of our fantastic Chancellor, from whom we heard just yesterday. Whereas the rest of the UK has only had to endure 14 years of the Conservatives’ incompetence, we in Scotland have suffered even more. We have had 17 years of the SNP blaming the Tories for its own economic incompetence and decisions. We have had years of two failed Governments who have been content to play political games, rather than come to the help of the people of Scotland.
- 31 Oct 2024 · Income tax (charge) · Hansard source
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The right hon. Member was keen to quote the IFS earlier. Does he also agree with the IFS that “it was not credible for Jeremy Hunt to claim that planned departmental spending limits would hold” and there was “no world in which 2 per cent rises would have happened and been sustained”?
- 31 Oct 2024 · Income tax (charge) · Hansard source
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The right hon. Member mentioned people fleeing the country. Could he point to at least three examples of anyone at the investment summit now saying that they will withdraw that money?
- 31 Oct 2024 · Income tax (charge) · Hansard source
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I ran a small business for at least 10 years. Does the hon. Gentleman welcome the increase in the Budget to the allowance on national insurance from £5,000 to £10,500, which will protect small businesses and help them grow?
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