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Chamber

Meeting of the Parliament (Hybrid) 20 April 2022

20 Apr 2022 · S6 · Meeting of the Parliament
Item of business
Cost of Living

I am grateful to the member for that intervention, but, as I said, action is required from both our Governments—the UK Government and the Scottish Government.

The cut to VAT would kill two birds with one stone. It would give businesses a boost by encouraging spending, and it would lower prices for consumers. That would be at the heart of the response to the crisis. We could and should also increase and expand the winter fuel payment and the warm home discount.

The recent 6 per cent increase to several Scottish social security benefits was necessary and welcome, but the Government is not going far enough when it comes to disability benefits, which are being raised by just 3.1 per cent. That is almost 4 per cent less than the figure for inflation that was announced last month, and it could be 5 per cent less than the figure that experts are predicting. That is simply not good enough for many Scottish households.

The latest figures predict that, this year, the country faces a £10.9 billion tax hit due to the Conservatives choosing to increase national insurance. The very last thing that struggling families need right now is more tax to pay.

The Scottish Government must also announce protection for households that are experiencing council tax rises due to the cuts that it has made to council budgets—cuts that should never have happened and which my party has opposed since the start.

Some energy companies stand to benefit from the crisis; they are profiting while people literally cannot afford to buy food. Now is the moment to impose a Robin Hood tax on those energy companies that make superprofits, in order to help fund the support that people need.

While we are at it, why do we not take the opportunity to finally crack down on the tax avoidance schemes that have been going on for far too long? Sadly, one does not have to look far to find people with exorbitant amounts of wealth who go out of their way to bend the rules and avoid paying their fair share. That simply has to stop—I am sure that members of the Scottish Conservative Party will agree whole-heartedly.

The Scottish Government must also reverse its recent 3.8 per cent rail fare hike. The SNP and the Greens should be making train tickets cheaper, not increasing their cost. The Government has known for two years that it would run ScotRail, and the Scottish Green Party had a specific manifesto promise to bring down rail costs. Instead, together, they have driven up those costs, which have risen by 4 per cent. They promise a review—more talk—while they put up the prices, which is a betrayal of everyone who is struggling right now. Make no mistake: a vote for the Government’s amendment is a vote against cheaper rail fares.

The Scottish Government could also activate an emergency nationwide home insulation programme to increase energy efficiency. We can help protect the environment and save people cash in the process. That would be an obvious step to take, and we should be able to agree on it across the chamber today.

I finish with the words of the American philosopher Ralph Waldo Emerson, who once wrote that

“to know that one life has breathed easier because you lived here. This is to have succeeded.”

Thousands of our neighbours, friends and, indeed, constituents are being strangled and suffocated by this crisis; they have not breathed easy for a very long time. We in Parliament are in the immensely privileged position of being able to take action that would lighten their burden in some way, and it is our duty to do so.

I move,

That the Parliament considers that both the Scottish and UK governments must immediately do much more to tackle the worst cost of living crisis for generations, and that without additional help this will have a devastating impact on household incomes and poverty; believes that every household could benefit from a cost of living rescue package; urges the UK Government to act through a cut to VAT to 17.5%, worth £600 to the average household, the reversal of the National Insurance rise, the doubling and expansion of the Winter Fuel Payment and Warm Home Discount, and a “Robin Hood” tax on the energy companies that are making super profits from the current crisis; urges the Scottish Government to use its wholly devolved powers to reverse the recent 3.8% rail fare hike and, instead, to expand the system of railcards so that everyone is eligible to get the benefit of rail discounts of at least one third off, based on the model that already exists throughout London and the south east of England; further urges the Scottish Government to increase the value of disability benefits, announce protection for households experiencing council tax rises due to the Scottish Government’s cuts to council budgets, and activate an emergency nationwide home insulation programme with reports provided monthly to Parliament on the impact of its interventions to increase household energy efficiency, and considers that together these steps would help insulate households from the cost of living crisis, where recent government decisions have added to their exposure.

In the same item of business

The Deputy Presiding Officer (Annabelle Ewing) SNP
The next item of business is a debate on motion S6M-04050, in the name of Alex Cole-Hamilton, on the cost of living crisis. 15:30
Alex Cole-Hamilton (Edinburgh Western) (LD) LD
I am very pleased to bring this motion before the chamber on behalf of the Scottish Liberal Democrats in our parliamentary time. What began as a struggle t...
Christine Grahame (Midlothian South, Tweeddale and Lauderdale) (SNP) SNP
For clarity, I note that VAT policy is reserved.
Alex Cole-Hamilton LD
I am grateful to the member for that intervention, but, as I said, action is required from both our Governments—the UK Government and the Scottish Government...
The Deputy Presiding Officer SNP
I call Shona Robison to speak to and move amendment S6M-04050.3 for up to six minutes. 15:36
The Cabinet Secretary for Social Justice, Housing and Local Government (Shona Robison) SNP
I thank Alex Cole-Hamilton for bringing a debate on this important topic to the chamber. We are indeed facing the worst cost of living crisis for generations...
Pam Duncan-Glancy (Glasgow) (Lab) Lab
Will the cabinet secretary give way?
Shona Robison SNP
Just a second. The chancellor did not take the opportunity to help those who were hardest hit and has not only failed to mitigate rising costs but actually ...
Pam Duncan-Glancy Lab
The cabinet secretary is right to point out the failings of the Tory Government. However, does she also accept that the Scottish Government is failing by tak...
Shona Robison SNP
The member must have anticipated that I was just about to talk about our second tackling child poverty delivery plan, which was published last month and was ...
Alex Cole-Hamilton LD
Will the minister take an intervention?
Shona Robison SNP
Very briefly.
Alex Cole-Hamilton LD
I know that those benefits are controlled in London but that is only because the SNP has chosen not to take full control of the powers, which it has had the ...
Shona Robison SNP
That is not the case. Disability benefits are hugely complex and, as Alex Cole-Hamilton knows, work is well under way on transferring them. While they are ad...
Pam Duncan-Glancy Lab
Will the minister take an intervention?
Shona Robison SNP
I want to make some progress. More than 450,000 low-income households are protected from council tax bills through our council tax reduction scheme, with al...
The Deputy Presiding Officer SNP
Cabinet secretary, could you bring your remarks to a close, please?
Shona Robison SNP
Taken together, all that means that we are investing more than £770 million in tackling the cost of living crisis next year. That is a substantial package of...
Liz Smith (Mid Scotland and Fife) (Con) Con
I begin by fully acknowledging that the current cost of living situation is a serious issue for many families across the country, who see their household bil...
Shona Robison SNP
Will Liz Smith give way on that point?
Liz Smith Con
I will not, if Ms Robison does not mind. Local authorities have warmly welcomed that extra support. As the Scottish Fiscal Commission has stated many times...
Shona Robison SNP
Will the member give way?
Liz Smith Con
Have I got time, Presiding Officer?
The Deputy Presiding Officer SNP
If the intervention is very brief.
Shona Robison SNP
Obviously, any funds are welcome, but does Liz Smith not recognise that the new arrangements will involve £32 million being allocated to Scotland for 2022-23...
The Deputy Presiding Officer SNP
I am the one who does the refereeing here. I invite Ms Smith to respond to the cabinet secretary’s intervention.
Liz Smith Con
I am sorry, but I gave way to the cabinet secretary. I was simply asking about time. Let me say clearly that one of the reasons regarding the EU fund is t...
Pam Duncan-Glancy (Glasgow) (Lab) Lab
People in every neighbourhood across Scotland are struggling to make ends meet. Middle-income households are squeezed, and people on low incomes and those wh...
The Deputy Presiding Officer SNP
We move to the open debate. 15:54
Christine Grahame (Midlothian South, Tweeddale and Lauderdale) (SNP) SNP
I welcome this short debate and acknowledge the concerns and anxieties of households that face energy costs and costs of living that are skyrocketing. I will...