Kirsty McNeill

Kirsty McNeill

Labour (Co-op) — Midlothian

Speaking in the House of Commons on 2 July 2025

Debate

Spending Review 2025: Scotland

Contribution

I would be delighted to come to Dundee and hear from people directly, but I say gently to the hon. Gentleman that problems at the University of Dundee are a function of the decision making of a number of people, not least the university itself and the Scottish Government. I would of course be delighted to be in ongoing dialogue with it. The hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie) is a welcome new convert to the trade union cause. I would be delighted to pass on his best wishes to Sharon Graham and my fellow members of Unite, and I look forward to his backing for the new deal for working people. As he knows, the job of trade unionists and all those who are pro-trade union in the Government is to make sure the economy delivers for working people. That is exactly what we intend to do. The hon. Gentleman acknowledged that we live in challenging times. The Prime Minister has said that we will up our game on defence, and the Chancellor reaffirmed the Government’s commitment to increase defence spending to 2.6% of GDP by April 2027. We are backing our armed forces, creating British jobs in British industries and prioritising the security of Britain when it is most needed. Scotland is playing a leading role at the beating heart of the UK defence policy. The long-term future of the Clyde has been secured through an initial £250 million investment over three years, which will begin a multi-decade, multi-billion-pound redevelopment of HM Naval Base Clyde through the Clyde 2070 programme. HM Naval Base Clyde will play a crucial role for decades to come as we restore Britain’s readiness, deter our adversaries and help drive economic growth across the UK, including in Scotland, as part of our plan for change. As Members know, Scotland is already a centre of excellence for shipbuilding. The increased defence spending will see investment in UK sovereign capability, including in shipbuilding and naval technology. Further details will be set out in the defence investment plan later in the year. My hon. Friend the Member for Dunfermline and Dollar made an important point about a defence growth deal. The forthcoming defence sector plan will outline how we will reform, grow and innovate to build our defence industrial base, scale small and medium-sized companies and create industrial leaders. The Secretary of State and I are of course working closely with colleagues across Government and in the Cabinet to maximise the benefits for Scotland. I received a number of questions and representations about local growth. I assure hon. Members that the UK Government intend to ensure that every single part of Scotland benefits from the spending review. We are investing £1.7 billion in local communities over 10 years. The Government are investing £160 million over 10 years in investment zones in the north-east of Scotland and the Glasgow city region. At the spending review, the Chancellor confirmed £452 million over four years for city region and growth deals across Scotland, including a £100 million joint investment for the Falkirk and Grangemouth growth deal with the Scottish Government —£50 million from the UK Government and £50 million from the Scottish Government. That demonstrates the UK Government’s continued commitment to the Grangemouth industrial area. The growth deal for Argyll and Bute was signed on 10 March, which means that every part of Scotland is now benefiting from our city, region and growth deal programme. A new local growth fund and investments in up to 350 deprived communities across the UK will maintain the same cash levels as in 2025-26, under the shared prosperity fund. The Ministry of Housing, Communities and Local Government and the Scotland Office will work with local partners and the Scottish Government to ensure that money goes to projects that matter to local people. That investment will help drive growth and improve communities across Scotland. I am delighted that the spending review also confirmed in-flight commitments, including for Drumchapel town centre regeneration, and as well as funding for the Tour de France and Tour de France Femmes in 2027, when the Grand Départ will take place in Scotland. The hon. Member for Strangford (Jim Shannon) asked whether we will ensure that areas that have been historically underinvested in will get their fair share. I assure him that we are looking at both need and potential in allocations. I also repeat an undertaking that I gave on the Floor of the House: we are looking at increasing trade between Scotland and Northern Ireland, and I am delighted to be looking at that in the coming weeks. My hon. Friend the Member for Glasgow North (Martin Rhodes) asked what is to be done about devolution not to Scotland, but inside Scotland. I say to him that devolution is a habit of mind—one that the Scottish Government never acquired. They have been a hugely centralising Government, to the detriment of the Scottish people. I am delighted to reconfirm Scottish Labour’s commitment to further devolution inside Scotland today. This spending review delivers support for Scottish businesses. The National Wealth Fund is trialling a strategic partnership with Glasgow city region, providing enhanced, hands-on support to help it develop and finance long-term investment opportunities. I was delighted to hear from my hon. Friend the Member for Paisley and Renfrewshire North (Alison Taylor) about how people are taking advantage of that in her constituency. The settlement for investment in the spending review allocated £750,000 each year to champion Brand Scotland trade missions to make sure that we are getting inward investment and exporting. Last year, the Secretary of State for Scotland made successful trips to Norway and south-east Asia; in April, he travelled to Washington DC and New York. In the United States, he met with business leaders and investors, promoted our world-class culture and took part in Tartan Week with members of the Scottish diaspora. In May, the Secretary of State launched the Brand Scotland fund, offering the UK’s international network grants of up to £20,000 for innovative and creative activities to market Scotland overseas. It was my privilege to be in Spain at the start of June with 16 Scottish female entrepreneurs to maximise the benefits of the recent UK-EU deal, tackle the Scottish gender export gap, promote Brand Scotland’s iconic goods and services, and encourage Spanish investment into Scotland. The Scotland Office director also recently supported a Glasgow chamber of commerce trade mission to Shanghai and over the next financial year will deliver a number of overseas trade missions and collaborations with the Scottish Chambers of Commerce and other key industry stakeholders. My hon. Friend the Member for Dunfermline and Dollar asked about US immigration pre-clearance at Edinburgh airport. The Scotland Office is aware of that issue and has supported Edinburgh airport in discussions with the Home Office, Department for Business and Trade and US authorities. We have also engaged directly with the US Government officials on this issue. Although I agree it would be a welcome development for Edinburgh airport, it is not currently US policy to extend pre-clearance arrangements in this way—but we will continue to engage with them going forward. My hon. Friend the Member for Dunfermline and Dollar also raised Rosyth and Dunkirk shipping routes. My officials are in touch with the company behind the new proposed route and relevant Scottish Government and Department for Environment, Food and Rural Affairs officials. They are looking to arrange a meeting as early as next week to look at possible solutions that would allow the project to go ahead. Scotland is playing a key role as part of our industrial strategy. We have demonstrable strength in eight of the key sectors. The accompanying industrial strategy sector plans will promote Scotland’s wide-ranging strength to investors. I turn to energy. Working people from across Scotland will benefit from significant investments in clean energy and innovation, creating thousands of highly skilled jobs and strengthening Scotland’s position as the home of the United Kingdom’s clean energy revolution. As my hon. Friend the Member for Glenrothes and Mid Fife (Richard Baker) pointed out, the UK Government have confirmed £8.3 billion in funding for GB Energy in Aberdeen. That is alongside an increased commitment to the Acorn carbon capture usage and storage project, which—I am pleased to confirm for the hon. Member for Arbroath and Broughty Ferry—will receive £200 million in development funding, and the wider funding will be announced in due course. We believe that carbon capture and storage is critical for the UK’s future energy security and industrial ambitions, and recognise the importance of the role that it can play in securing growth and our clean power future. My hon. Friend the Member for Livingston (Gregor Poynton) and the hon. Member for Gordon and Buchan (Harriet Cross) asked about the future of oil and gas. This Government have been clear that that will be part of the mix for decades to come, but that we have to invest in the transition so that people can get renewable jobs of the future. That is why I was pleased earlier this year to launch the energy skills passport when I was in Aberdeen. The spending review also allocated significant investment in Scotland’s trailblazing innovation, research and development sectors, including—say it with me— £750 million for the supercomputing facility at Edinburgh University. To clear up any confusion for the record, what happened last year was not that this UK Labour Government cancelled the project; they put it on pause, because the previous Conservative Government had announced the project and not allocated a single penny to its realisation. Taking the responsible course, we took a year to make sure that it could be funded in full, and I believe Edinburgh University is delighted that we have now secured that funding. Like the hon. Members for Caithness, Sutherland and Easter Ross (Jamie Stone) and for Edinburgh West (Christine Jardine), I am a committed devolutionist, and I share their despair that the Scottish Government are absolutely addicted to wasting money. That notwithstanding, this Government are responsibly committed to resetting the relationship, so that we can make representations to ensure the best results for the people of Scotland.

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