Harriet Cross MP: speeches

Speeches

• 10 Dec 2024 · Finance Bill · Hansard source

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  Exactly. There must be a balance between production and demand—I will come to demand later. There is no point reducing our domestic production while our demand stays the same, because we will only fill the gap with oil and gas from abroad, which is produced with a higher carbon intensity in poorer working environments, where overseas jobs and investment will take precedence over investment at home. It makes no sense that while we are using oil and gas—the Minister himself confirmed that we will be for a while—we do not prioritise taking it from our own North sea domestic basins. New clause 3 also asks for a review on capital expenditure and investment in the UK. In Scotland alone, oil and gas contributed £19 billion of gross standard volume. In the UK, it contributed £27 billion. A 2022 report by Experian showed that for every £1 million of investment by the oil and gas industry, 14 jobs and £2.1 million of GVA are added. This industry is blatantly a net benefit to the UK and the Exchequer, and one in which we should encourage investment and capital expenditure, not an environment where the returns do not justify the risk of investment. As my hon. Friend the Member for Grantham and Bourne (Gareth Davies) said, the OBR’s own figures show that capital expenditure will fall by 26%, and therefore production of oil by 6.3% and gas by 9.2%, because of these changes. We must ask, can the UK afford this? Maybe those were the parameters that the Exchequer and the Treasury are looking for, if they see them as allowable. But if that is the case, what assessment has been made of the impact on the economy and jobs across the UK? The OEUK has put the projected drop in production down to a rapid decline due to underinvestment over the decade. Under new clause 3, we can assess the impact of the changes to the EPL and head this off to begin with because, as I said, it is important that while we have demand, we have production. It has been confirmed that we will need oil and gas in the UK for years to come, but through the changes to the EPL in the Bill, in particular clauses 15 and 16, which increase the EPL by 3% and remove the investment allowances, the Government are choosing to make our homegrown domestic energy sector so uncompetitive that current investment falls away and future investment is no longer on the cards. We cannot afford to lose investment because, as I said, it will drive the transition. It is so important that it is protected now, to help us bring the transition forward quickly and efficiently into the future. Clauses 15 to 18 were introduced without adequate consultation on the impact assessment. New clause 3 simply asks for proper scrutiny of their impact. If the Government are confident in their approach, why resist a responsible request for transparency? My Gordon and Buchan constituents, and people in Scotland working in the oil and gas sector and across the UK, deserve to understand how these changes will impact their livelihoods.

• 10 Dec 2024 · Finance Bill · Hansard source

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  I will speak to clauses 15 to 18 briefly, but mainly to new clause 3 in the name of my right hon. Friend the Member for Central Devon (Mel Stride). It would require the Chancellor to publish within three months a review of the expected changes introduced by the Bill on employment, capital expenditure, production, demand and the economy. It is inherently sensible, and considers the importance of the oil and gas sector to regional and national employment and economic growth in the UK. On the need to review the impact on employment, 82% of direct jobs in the oil and gas sector are located in Scotland. My Gordon and Buchan constituency is at the heart of that. New clause 3 would review the impact of the changes to employment across the country, as it is not just direct jobs that are on the line but supply chain and other indirect jobs. Of those, 90,000 are in Scotland and 200,00 are across the UK.

• 10 Dec 2024 · Finance Bill · Hansard source

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  How much of that profit was made in the UK versus globally?

• 10 Dec 2024 · Finance Bill · Hansard source

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  I thank the hon. Lady for giving way. At what point does she believe we will be fully reliant on renewables?

• 10 Dec 2024 · Finance Bill · Hansard source

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  Absolutely; sometimes there is a complete disconnect in this place between how much we can tax and squeeze something dry and what that does to investment. These companies, especially the global ones, do not have to invest in the UK—they can invest across the world. They are choosing to invest here at the moment, and therefore we get jobs, opportunities and employment. That investment can go abroad, and if it does, it will take jobs with it, to the detriment of all of us, but particularly us in north-east Scotland.

• 10 Dec 2024 · Finance Bill · Hansard source

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  I thank the hon. Member for giving way. She says it is clear who is on the side of working people versus the companies. My constituents are the people working in the oil and gas sector. They are the ones most at risk of losing their jobs if the changes brought in through the EPL go wrong. I am on the side of working people, and I am on the side of my constituents. No matter what MPs across the House say, I will always fight for my working people in Gordon and Buchan who just happen to be working people in the oil and gas sector.

• 9 Dec 2024 · Terrorism (Protection of Premises) Bill · Hansard source

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  Does my hon. Friend agree that new clause 1 is not about a presumption of finding fault, but about ensuring that the proposals work correctly? It is so important that the regulator and the regulatory role work perfectly so that the Bill can be implemented in the way that is expected.

• 4 Dec 2024 · Farming and Inheritance Tax · Hansard source

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  As the hon. Gentleman will be aware, reservation of benefits applies when an asset that is still being used is passed on under the seven-year rule. Is he suggesting that a farmer who has been on their farm for their whole life should move out of their farmhouse, get off the land and pay market rate rent? Where will they get that money from, given that, as we know, farm profits are so small?

• 4 Dec 2024 · Farming and Inheritance Tax · Hansard source

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  Before the Budget, the hon. Member will remember attending a Westminster Hall debate that I organised specifically on agricultural property relief and business property relief. Will he agree that the Conservatives have not jumped on that since the Budget? We have been speaking about it for a very long time.

• 4 Dec 2024 · Farming and Inheritance Tax · Hansard source

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  I thank the Minister for giving way; he is being generous. He has mentioned claims for agricultural property relief and business property relief, but what about claims for business property relief alone? Have they been included in his figures?

• 4 Dec 2024 · Farming and Inheritance Tax · Hansard source

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  Will the hon. Gentleman give way?

• 4 Dec 2024 · Farming and Inheritance Tax · Hansard source

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  I thank the Minister for giving way. The CAAV calls the £3 million figure “unrealistic” and “unreasonable”. Does he not agree?

• 3 Dec 2024 · Management of Public Finances · Hansard source

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  The Treasury consistently insists that only 500 farms a year will be impacted by the family farm tax. However, the Central Association for Agricultural Valuers calculates that the real number will be five times higher and will include many farms in my Gordon and Buchan constituency. Who is right: the Treasury or the experts?

• 28 Nov 2024 · Fishing Industry · Hansard source

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  It is a pleasure to serve under your chairmanship, Mr Efford. As the Member for Gordon and Buchan, I represent a constituency that plays a key role in Scotland’s fishing industry. The strategic transport corridors of the A90, the A947 and the A96, which run through my constituency, are crucial arteries on which our fishing industry relies for its distribution network. Those vital links connect our coastal fishing communities to processors and markets across the UK and Europe. I will touch on three crucial issues: the vital role that fishing plays in our food security, the increasing spatial squeeze in our waters, and the TCA. Fish and fishing are part of our national food security. It should go without saying, but it is so important that the industry is not overlooked. The 2021 UK food security report stated that fish constitutes a valuable protein source, accounting for nearly 20% of the total animal protein consumed globally. With the consumption of fish going up in recent decades, both globally and in the UK, the figure will only increase. Our fishing grounds—we are seeing something similar with our farmland—are becoming ever more crowded, with increased pressure for space and with competing and often incompatible uses of the marine environment leading to spatial squeeze. About 37% of the seas around Scotland are now in one of the 240 offshore or inshore marine protected areas. The industry also has to be mindful of the “Will they, won’t they?” potential for highly protected marine areas. Coupled with the expansion of offshore renewable energy, such as wind, tidal and wave, that means that the space for fishing in our offshores is shrinking faster than ever. Fishing is currently excluded from about a third of Scottish waters. Back in the year 2000, the figure was only 1%, so we can see the scale and pace of change. Yes, we need renewable energy and we need to protect the marine environment—important sites such as Forvie in my constituency show that—but we also need proper consultation on how the fishing industry may be increasingly impacted. Generations of expertise relating to fishing, spawning grounds and species movement must be considered when other decisions are taken. The incoming competing pressures in our seas must not be prioritised over fishing or to the detriment of the fishing industry. The current balance does not feel equitable, despite the value of fishing in producing healthy, sustainable and low-carbon food, contributing to our food security and supporting thousands of coastal jobs around the country. As has been said, the upcoming discussions on the trade and co-operation agreement post 2026 are crucial and of real concern to the industry. There is a clear imbalance off our shores, with EU vessels catching in our waters six times the value of fish that we catch in theirs. That imbalance affects not only boats at sea, but the entire supply chain, including businesses and workers in my Gordon and Buchan constituency who form part of the north-east’s fishing industry network. That imbalance needs addressing in the TCA review, and the review offers an opportunity to do so, but the Government must prioritise our fishing sector and not grant EU vessels inequitable access to UK waters as part of a wider deal with the EU. The rhetoric of resetting relationships must not come at the expense of our fishing sector or our coastal communities. It is so vital that the Government prioritise the TCA. There was silence on it in Labour’s manifesto, and that cannot be replicated here.

• 28 Nov 2024 · Fishing Industry · Hansard source

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  I agree with the hon. Member, and I certainly hope that that is the case. It is important that these negotiations go well, and it is important that our fishing communities are helped and represented. As I was going to say, money that is spent in the fishing environment has an economic impact onshore that is 2.5 to 3.5 times greater. It is important for everyone across the country, including our fishing communities, that this is handled correctly. I hope the Minister will address the concerns about how we manage the growing spatial squeeze that is felt by our fleet. There must be a proper assessment of the impact on supply chains and distribution networks. The strategy for the 2026 negotiations will be really important, given that they are starting so soon. The right hon. Member for Orkney and Shetland (Mr Carmichael) paid tribute to those working at sea, and I want to pay tribute to the RNLI crews. It is a charity close to my heart. Its brave crews risk their lives to save lives at sea; they do us all a service, and they do us proud.

• 27 Nov 2024 · Finance Bill · Hansard source

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  On the topic of the Scotch whisky industry, does the hon. Member agree that increasing the levy by 3.65%, so that a bottle of whisky now has £12 of tax added before it is even out of the door, is another attack on one of Scotland’s main industries?

• 27 Nov 2024 · Finance Bill · Hansard source

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  May I clarify whether the hon. Member believes that the farmers making on average less than £45,000 year, and the 25% making less than £20,000 a year, are those with the broadest shoulders?

• 27 Nov 2024 · Finance Bill · Hansard source

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  I thank the hon. Gentleman for his question. We must remember that investment allowances have now been reduced and taken away. Increasing the EPL by a further 3% while decreasing investment allowances makes the North sea a really difficult place to invest in.

• 27 Nov 2024 · Finance Bill · Hansard source

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  Does the Minister think that that is the right balance, given that Offshore Energies UK suggests that the changes will cost £12 billion in tax revenues?

• 27 Nov 2024 · Finance Bill · Hansard source

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  The fact that Apache’s announcement came within a week of the Budget speaks for itself when it comes to the question of the final straw that broke the camel’s back. As I was saying, the energy profits levy has the greatest impact on our local, home-grown businesses. It is turning the lights off in the very businesses that we should be supporting and championing. By removing investment allowances, the Government are forcing companies to scale back their North sea projects, thereby increasing our reliance on expensive imported energy from overseas. North-east Scotland is already leading the charge on renewable energy. We have hydrogen projects in development, wind farms off our shores, and expertise that could and should position us as a global leader on clean, renewable energy technologies. However, a rushed, ill-thought-out transition—to which the EPL contributes—will undermine our efforts. The skills of our oil and gas sector are precisely what we need in order to deliver a sustainable transition. The companies that will be penalised by this levy are the ones that we need to invest in green technologies. Just yesterday I met developers of floating offshore wind farms, and I asked them about the EPL. They hope that one of their projects will involve collaboration with an oil and gas field; the floating wind farm will help to decarbonise the rig, and in return, the oil and gas producer will help to fund the cabling back to shore. However, now they fear that the increasing and extended EPL will jeopardise the oil and gas company’s ability and willingness to invest. This Labour Government are turning what was a windfall tax into a permanent feature of our tax system, creating long-term uncertainty that will drive investment away from north-east Scotland. The energy profits levy is a blunt instrument, not a balanced strategy. The Government must listen to industry experts, local businesses, and communities like mine in Gordon and Buchan. We need a competitive, open business environment that attracts investment and will support our energy transition, while protecting jobs and supply chains and securing our energy supplies. The nation’s energy security depends on it.

• 27 Nov 2024 · Finance Bill · Hansard source

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  I will speak about the impact of the Government’s changes to the energy profits levy on people and businesses in my constituency, and on the UK as a whole, in terms of the energy security the Government are meant to ensure and the Government’s ever-more ambitious decarbonisation targets, which are being put at risk. The Chancellor’s decision to increase the EPL rate to 38% and extend it to 2030, while also removing investment allowances, demonstrates a fundamental misunderstanding of our energy sector—indeed, the global energy sector—and the communities here that depend on it. According to Aberdeen and Grampian chamber of commerce, 100,000 energy-related jobs across the UK, but disproportionately in Aberdeen and Aberdeenshire, are being put at risk because of the changes. The OBR’s figures project that capital expenditure will fall by 26%, with oil production down 6.3% and gas production down 9.2%. For businesses across my constituency, that means fewer contracts, reduced investment and diminishing opportunities. Or to put it another way: fewer jobs, fewer prospects and more redundancies. What is incomprehensible about the changes to the EPL is that they make no economic sense. Studies by Offshore Energies UK show that the changes will cost the Treasury £12 billion in lost tax revenue—£12 billion. If the Chancellor is so convinced that she is in a hole, maybe not digging deeper would be a good idea. The OEUK put that down to a rapid decline in production due to under-investment. While we are still going to use oil and gas for years to come, the Government are therefore choosing to take it from overseas producers where there are low environmental credentials and worse employment standards, rather than from the UK where we will be able to increase employment, secure employment, help our tax revenues and secure our economic growth both locally and nationally. Labour’s changes in the Budget will see a wholly punitive regime, with the effective tax rate being 78% on oil and gas companies—the highest of any comparable off-sea mature basin. What other industry in the UK would be expected to deliver something as fundamental as our heating, lighting or transport fuel—indeed, energy to ensure the NHS can operate and schools can run—while also being taxed to such an extent that the Government are driving away investment in a sector so crucial to our national security? What is particularly concerning about the EPL is the impact on home-grown energy businesses. These are not global multinationals that are often used as examples of the energy giants who make massive profits; companies that can and do buffer the impacts of EPL by increasing their overseas investments and reducing their investments in the North sea. Instead, this policy hits hardest the companies that have emerged and grown out of north-east Scotland, employing local people, supporting local supply chains and helping our local economies.

• 27 Nov 2024 · Engagements · Hansard source

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  Q2. Sarah and her family have farmed beef cattle in my constituency for over 70 years and they had always planned for her sister to continue the family legacy. Earlier this year, Sarah’s mother died suddenly and unexpectedly. She was just 58. Sarah said to me that, despite already having a tragic year, it was made even worse after the Budget. She said:“Changes to agricultural property relief have hit us hard while we’re already struggling to cope with bereavement and losing Mum.”What would the Prime Minister say to Sarah and her family, in what has been the most difficult year of their lives, in the light of the family farm tax?

• 18 Nov 2024 · Armed Forces Commissioner Bill · Hansard source

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  How does the Secretary of State envisage the commissioner standing alongside others in the armed forces in terms of the chain of command? Has an assessment been made on that?

• 12 Nov 2024 · Great British Energy: Job Creation · Hansard source

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  Last week, just days after the Budget, Apache announced that it would exit the North sea by 2029. It said: “The onerous financial impact of the energy profits levy…makes production…beyond 2029 uneconomic.” What assessment have the Government made of the impact of those policies on current jobs in north-east Scotland, and how will Great British Energy compensate for the loss of those jobs?

• 11 Nov 2024 · Rural Affairs · Hansard source

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  The Minister shakes his head, and he has been shaking his head throughout the debate. The issue is this: the Government are not listening to farmers the length and breadth of the country. They are not listening to the National Farmers Union, and they are not listening to the CLA. People who speak for the farming community, people who represent the farming community, are not being listened to, and that is why they are in this position. It does not matter, it seems, how much we say to the Minister, or how much we say what our constituents are saying. The Government are not listening, and they are not willing to listen. Last Friday, I met members of NFU Scotland’s north-east region. Perhaps the Minister will not listen to this either, but they told me about some matters that they had been concerned about. One was a farmer whose father, aged 90, still owns the land and still farms it. He said to me, “I will have to sell. I thought I had a lifetime of farming ahead of me, but now it turns out that I only have what is left of my father's lifetime.” He did not sound angry; he just sounded broken. Another put it like this: “It is just a waste. Do they”—the Government—“not understand the resource that we have invested into family farms for generations—the skills, health and safety, teaching about husbandry and agronomy? We invest so much more than just money into farms, and this will all be lost. It is just such a waste.” In their manifesto the Government said that “food security is national security.” They reiterated that last week, adding: “The Government’s commitment to supporting farmers and rural communities is unwavering.” —[ Official Report , 4 November 2024; Vol. 756, c. 23.] However, in the few months since the election, the Government have done nothing to justify those claims. Granting solar farms on prime land, taxing fertiliser, removing the ringfence from the agricultural budgets for Scotland, Wales and Northern Ireland, and making changes to inheritance tax will impact family farms for generations. The Government have missed a key point: it is not words that impress or satisfy our farming communities; it is action, and so far this Government’s actions have let our farmers down.