Contribution
First, I want to rebut some of the nonsense that we heard from the SNP earlier. Scotland’s budget is going up by £600 million because of the choices made in this Budget for Scotland’s public services—that is up by £18 billion since Labour came into office—and talking of a £650 million cut is inadvertently misleading this House. I may say something a wee bit ruder outside the House.
This Budget will abolish gas standing charges, abolish VAT on electricity bills and give £100 to 1.8 million Scottish households between council tax bands A and D —if it is confirmed that the SNP will choose to hand it over in that way. The prices at the pumps that our constituents complain about have been brought about directly by the US and Israel’s war in Iran, but we have made a choice to freeze fuel duty, which I welcome, and maintain the 5p fuel duty cut till June. That is alongside the red diesel duty cut, which will be welcome in the many eligible sectors, especially agriculture.
As for working people in Falkirk, the permanent increase to the tax-free mileage should help traders who use their own vans for work. I also welcome the tripling of the trading allowance to £3,000. This Budget also rightly supports pensioners. Many pensioners in my constituency live on the state pension alone; as it has risen, too many have ended up with the administrative irritation of paying small amounts of income tax, with all the paperwork and worry that that brings. I welcome the new pension tax allowance from April 2027, which addresses that directly. It means that pensioners whose income is no more than the full state pension will not pay income tax.
To deliver good growth in my postcode, it is vital that we invest in the Grangemouth industrial complex, as I said last week. I welcome the British industrial competitiveness scheme, and the back-payment to 2026, but while I acknowledge the heightened cost of extending it to every manufacturing business—I believe that would be about £3.5 billion—I think, as do other colleagues, that we should look at extending it, especially for manufacturing businesses that are reliant on gas, and that have decarbonisation timescales that are not as quick as we might like.
I welcome the restatement of the Government’s intent to include refined products in the carbon border adjustment mechanism. It will be a vital tool in levelling the playing field, after the undermining of domestic refining. The same un-level playing field led to the closure of Grangemouth, because it was not dealt with over multiple years. A cross-party group wrote to the Treasury regarding this. I think it is important that we put a deadline on when we will introduce this, because this positive signal needs to be translated into real protection for our existing refining sector, as well as for the bio-refining sector that the Prime Minister rightly believes has huge potential to deliver for Grangemouth.
Turning to the Acorn project, I agree with the principle of getting better value for taxpayers’ money across Government capital plans, so that we can free up money for defence. I agree that that should include energy projects in our constituencies. Some of the rhetoric that we have heard from the SNP and their Ministers on supporting the project has been downright reckless and self-defeating. However, I hope that the Minister can acknowledge that much of the reasonable scrutiny on this has not been met with the clearest of answers. I would like to hear confirmation that the new route for previously committed funding has the support of all existing and committed commercial partners, and confirmation about the amount of funding committed already that is not being changed. I would also like to know why funding has been changed for Acorn but not for other carbon capture, usage and storage projects, such as Viking in Humberside, and, more broadly, what the changes will mean for reindustrialisation in communities like Grangemouth that are supposed to benefit from this infrastructure, especially considering that they have not had a fantastic experience with the debt equity model of the National Wealth Fund.
This Budget creates breathing space for families in Falkirk who are worried about the end of the month, and for the poorest pensioners who dread getting a tax letter. It lifts some of the pressure. This Government have shown in the Budget that they will act for working people, pensioners and industry. I ask Ministers to turn that breathing space into future certainty, particularly for an industry that can define the next 50 years positively, through new jobs, as it has defined the last 50.