Autumn Budget: Discussions with Scottish Government

We have reset the relationship with the Scottish Government, and I have met the Deputy First Minister numerous times to discuss the autumn Budget and other issues. Between the moment when my right hon. Friend the Chancellor stood up and the moment when she sat down, Scotland was better off to the tune of £4.9 billion in Barnett consequentials alone—again, money that the SNP voted against, but will spend today. I encourage the Scottish Government to use that money to strengthen frontline services, bring down NHS waiting times and lift attainment in our schools. There can be no more excuses. We ended austerity, and it is time that they followed.

I thank my right hon. Friend for his answer. A thriving retail, hospitality and leisure sector is critical to brand Scotland. Following the welcome decision in the Budget to ensure a 40% rates relief for RHL businesses in England, what guarantees, if any, has my right hon. Friend had from the Scottish Government that the extra Barnett consequentials linked to non-domestic rates will be passed on in today’s Scottish Budget? Does he agree that any failure to do so would be deeply damaging to the sector?

I thank my hon. Friend for his question; he is absolutely correct. The UK Budget chose investment over decline, including investment directly in my hon. Friend’s constituency as part of the £200 million towns fund, as well as the biggest Budget settlement in the history of devolution. He is also right to say that our hospitality businesses need the rates relief more than ever. The Scottish Government should use their Budget to deliver growth and investment to help our high streets, and passing on the relief should be the bare minimum.

We have delivered the biggest Budget settlement for the Scottish Government in the history of devolution, with, as the House has heard today, more than £4.9 billion of extra funding that can go towards public services. Does the Secretary of State agree that there are no more excuses for the SNP, and that Scots expect and deserve delivery and improvement of our public services?

Of course, I could not agree more. It is not just the £4.9 billion, but all the other investment that the UK Government made outside the Barnett consequentials. The Labour Government have delivered billions of pounds more for schools and hospitals in Scotland. It is more money than ever before, but the SNP MPs voted against it. They voted to deny Holyrood its biggest ever Budget settlement by voting against the Finance Bill last week, but of course they will happily spend it in their Budget today. They also voted against Great British Energy, which will be based in the SNP leader’s own constituency. Given what we have read about the SNP’s selection processes, I guess the SNP MPs are keener to send themselves to Holyrood than billions of pounds of extra funding.

I am sure that pensioners in the Secretary of State’s constituency are as relieved as those in Argyll, Bute and South Lochaber that the Scottish Government’s Budget will introduce a pension-age winter heating payment for all Scottish pensioners. The SNP Government are doing the right thing by Scottish pensioners. Will he join me in urging the Labour Government here in Westminster to do the right thing by pensioners in England and Wales and give them back their winter fuel allowance as well?

What the hon. Gentleman has just proved is that the winter fuel payment in Scotland is actually devolved.

One of the consequences of the Budget was to remove £5 million of regeneration funding for Perth city centre. We got practically nothing from the levelling-up fund, save for that paltry £5 million, which the Secretary of State is taking away. Just what is it that the UK Government have against the city of Perth?

No projects have been cancelled. The Perth deal is under consideration by the Ministry of Housing, Communities and Local Government and the Treasury. It has not been cancelled; it has merely been paused. The hon. Gentleman should speak to his colleagues in the Scottish Government, who have £4.9 billion extra in Barnett consequentials to spend today. Perhaps he could even have a chat with some of his colleagues sitting next to him, who seem happier in Holyrood than they are here.