Graeme Downie

Graeme Downie

Labour — Dunfermline and Dollar

Speaking in the House of Commons on 2 July 2025

Debate

Spending Review 2025: Scotland

Contribution

Thank you, Sir John. I will of course take that on board. You will glad to hear what I am coming to next. Economically, however, we have seen the SNP’s failure to take responsibility for the Scottish economy, as confirmed by the Scottish Fiscal Commission. That has cost the country about £1 billion and left it unable to keep pace with UK economic growth. Yet all we hear, after 19 years in power, is that it is someone else’s fault. We have also seen the proposed closure of Alexander Dennis in Larbert and Camelon, with the potential loss of 400 jobs. The chief executive stated: “the Scottish Government has little regard for domestic bus manufacturing jobs in Scotland”. I now turn to the actions that I believe the UK Government can take, following the spending review, to support economic growth and other aspects in Scotland. As an island nation, we depend on maritime and aviation infrastructure. There are promising opportunities in Fife for the development of sustainable aviation fuels and their maritime equivalent. Those sectors were a priority in the spending review, so money was set aside to support them, and legislation on this matter is currently passing through the House. I urge the Government to support investment in those key sectors. The spending review also stated that aviation infrastructure must be improved. One practical step that we can take is to finalise a US visa pre-agreement clearance at Edinburgh airport, where I understand there have been negotiations between the Foreign, Commonwealth and Development Office and the US State Department. Will the Minister prioritise that issue and do everything she can to make it a reality? While on the subject of transport I must raise again the matter of a direct passenger ferry route between Rosyth and Dunkirk. Despite the genuine best efforts of my SNP predecessor, who worked incredibly hard on this issue, progress has been stymied by legal complications regarding border control posts. However, it is estimated that such a route could carry 79,000 passengers annually and bring an additional £11.5 million to the Scottish economy, and on the freight side remove 8.2 million km of freight traffic from UK roads, significantly reducing carbon emissions. To meet the target of launching the service by spring 2026, we must resolve the legal issues swiftly. There are strong indications that the Scottish Government can act in the short term, but I think there is genuine legal confusion. I have written to the Secretary of State just this week to ask if he will work with Scottish Ministers on a legal assurance letter that would guarantee the issue will be investigated in time to solve the problem for 2026. Will the Minister pursue that with the Secretary of State as a matter of urgency? Finally, I turn to defence. The spending review confirmed that defence spending will rise to 2.6% of GDP from 2027, with an ambition to reach 3% in the next Parliament. We have seen announcements this week around the NATO summit that defence spending will rise even more, which I fully support. This aligns with the strategic defence review and underscores the Government’s commitment to national security. Scotland viewed on a globe rather than a flat map is a frontline nation in defence of NATO’s northern flank. From the high north, Russian ships and submarines pose a threat to NATO merchant shipping and critical underwater cables in the Atlantic. Both the strategic defence review and the spending review rightly highlight the need to strengthen NATO’s deterrence in northern Europe and the high north. NATO Secretary-General Mark Rutte has also emphasised the importance of an expanded role for NATO in that region. It is a source of great pride for me that Scotland’s highly skilled defence workforce is at the forefront of meeting the UK’s defence needs, including building and launching new Type 31 frigates from Rosyth in my constituency. The Minister for Defence Procurement and Industry, the right hon. Member for Liverpool Garston (Maria Eagle), has confirmed the importance of export orders for this ship. Can the Minister to assist me in any way possible to support the workforce and secure orders for both export and the Royal Navy of this versatile ship? Thankfully, defence is mainly reserved to Westminster. However, the total failure of the Scottish Government on devolved matters such as skills and infrastructure has directly impacted the defence sector, our armed forces and the ability of the spending review to meet its goals, along with the strategic defence review. We have the farcical position that senior people in the SNP say that it is party policy that public money should not be spent on military equipment, denying young people the chance to become welders—a skill much sought after across a range of sectors. Even more ridiculously, the SNP has responded to a request for medical aid from Ukraine by dictating that aid could not be used on military casualties—a preposterous view that is utterly detached from reality. Millions of pounds are wasted on embassies, but the SNP cannot even handle a simple request from an ally. The spending review has unlocked the start of long-term plans in other Departments, which can also support the wider defence industry in Scotland, securing jobs and investment. This week, the Secretary of State for Business and Trade spoke about the prospect of a defence growth fund in Scotland. What discussions has the Minister had with her colleagues about that fund? How is she ensuring that it will include a broad partnership in Scotland, including in areas such as skills, so that young people in my constituency can benefit from the necessary increase in defence spending? The UK Government’s spending review offers Scotland a path forward—one of investment, opportunity and renewal. To realise this potential, we must first confront the failures of the SNP Government and demand better for our constituents. We must ensure that every pound allocated is spent wisely, that every opportunity is seized and that every Scot has the opportunity to thrive in future.

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