Chamber and committees

I absolutely agree with Christine Grahame. She is completely correct to highlight those risks. It is important to understand that the economic and financial crisis that is being created by the Tories right now will potentially become a public health crisis in future. That will put significantly increased demand on our national health service, so it is important that we continue to work with the NHS and other partners, including Citizens Advice Scotland, to try to mitigate and manage that impact.

There is, of course, a more direct threat to the NHS for any Government that was to go down the path of tax cuts for the rich. I was struck this week by comments by the former deputy governor of the Bank of England, who, I think, is a current member of the Office for Budget Responsibility, although I will be corrected if I am wrong about that latter point. What he said was frightening. He said that the scale of the spending reductions that will be required to pay for the tax cuts would, in effect, mean the end of the NHS as we know it.

That is why it is vital that the United Kingdom Government reverses the tax cuts, but it is also why it would be wrong for anybody to demand that the Scottish Government follow suit on cutting taxes, given the risk that it poses to the NHS and other public services.

This is an exceptionally difficult time for people being made redundant at Arjowiggins in Aberdeen, and those affected are our immediate priority. Of course, they are already receiving support through our partnership action for continuing employment—PACE—initiative, and a partner event is taking place in Aberdeen today, with a jobs fair arranged for 10 October.

Scottish Enterprise has been working extensively with Arjowiggins. Unfortunately, conditions deteriorated and, despite everyone’s best efforts, it was not possible to secure a sale of the business. Scottish Enterprise is working with administrators to understand possibilities for the business going forward.

The Minister for Business, Trade, Tourism and Enterprise is providing regular updates to local elected representatives, has spoken with Unite the union today and will speak to the administrator this afternoon.

I absolutely agree with Jackie Dunbar, and I give her the assurances that she has asked for. I commend her for the work that she has done, and continues to do, on behalf of her constituents who are affected by the situation.

The Scottish Government firmly believes that there must be meaningful dialogue between employers and employees to ensure that, at all times, workers are treated fairly. As I have already outlined, we are committed to supporting all those impacted by the closure.

Jackie Dunbar has raised a really important issue about fair work practices. Employment law is, of course, a reserved matter, but it is our firm belief that a progressive approach to industrial relations and an effective voice for workers are at the heart of a fairer society in Scotland.

As I mentioned earlier, the business minister spoke with Unite the union earlier today and reiterated our on-going support through the PACE initiative and Scottish Enterprise. As I also indicated, he is speaking with the administrators this afternoon. He will emphasise the importance of engaging with all relevant stakeholders—including, of course, Jackie Dunbar, as the constituency MSP—and he will continue to update all elected representatives.

My view is that, when Gillian Martin says that it is “ill judged” for the Conservatives to ask the Scottish Government to emulate tax cuts for the richest that have sunk the pound, crashed the mortgage market, threatened people’s pensions and forced a bailout from the Bank of England, she is probably being diplomatic and polite. I think that people will listen to the Conservatives calling on the Scottish Government to deliver tax cuts for the richest—and, in so doing, to slash public spending for public services—and wonder what planet they are living on. What happened last Friday, in the so-called mini-budget, was economic vandalism, and it was economic vandalism that was done knowingly and, it appears to me, deliberately.

Gillian Martin rightly mentions the IMF; it is extraordinary to hear such comments from the IMF about a G7 country. However, the comments from others are just as damning. The chief executive of the Resolution Foundation describes the mini-budget as

“the worst unforced economic policy error of my lifetime”,

while the Institute for Fiscal Studies talks about “gambling” and “betting the house”. Unfortunately, the chancellor was not betting on his own house; he was betting on the houses of people across the country.

The decisions are disastrous and need to be reversed—not because of some political or ideological debate, but for the sake of the homes, the living standards, the pensions and the security of people across this country—-and they need to be reversed now.

I am not sure that anyone needs any more evidence this week of the financial, fiscal and economic illiteracy of the Conservatives, but I think that we have probably just had some more thrown into the bargain.

The Tories keep mentioning the money for an independence referendum, which would fall into the next financial year, not this financial year. However, in this week of all weeks, I think that it is pretty obvious to people why we so desperately need to be an independent country. We have a UK Government that Scotland did not vote for, that has already imposed Brexit on us against our will—a Brexit that is doing real damage to living standards and to the economy—and that has, this week, crashed the entire UK economy. The cost of that is being borne by ordinary people across the country. What has caused the crash in the economy? It is £45 billion in tax cuts that prioritise the very richest people in our society. Independence is about getting away from Tory incompetence and, frankly, Tory immorality. The sooner the people of Scotland have the choice of independence, the better for us all.

Anas Sarwar says that he has for years been listening to me accusing Labour of talking down Scotland. That is probably true, but it is because I have for years listened to Labour constantly talking down Scotland. That is all that it seems to be able to do. That is why Scotland decided to get its own back on Labour and to start doing down Labour in electoral terms. I do not see any evidence that that will change any time soon.

Under this Government, we have a position where our net energy consumption is already provided by renewable energy sources. [The First Minister has corrected this contribution. See end of report.] Scotland leads the world when it comes to renewable energy, and ScotWind is a shining example of that.

In the interests of finding a bit of consensus, I say that I want to see the back of the rotten, corrupt and failing Tory Government, just as much as anybody does. However, if it is to be replaced at United Kingdom level by a Labour Government, surely everybody has a right to hope that that Labour Government would be very different to what it would replace.

I will make another suggestion. Perhaps Labour could start by committing to reversing the Brexit that Scotland did not vote for. Just as the Tories are, Labour is now a pro-Brexit party, regardless of the economic damage that Brexit is doing. The fact is that, in relation to Brexit, as with so many other issues, the only way for Scotland to reach its full potential is through independence. Are not we really seeing what would be the benefits of independence right now? The sooner it comes, the better.

Before I come on to the specifics of the question, I note that Douglas Ross might want to make his mind up about what his allegations are. For months, now, he appears to have alleged—wrongly, I hasten to add—in the chamber and elsewhere that the Scottish ministers directed and forced Caledonian Maritime Assets Ltd, against its will, to award the contract to Ferguson’s shipyard. Today, it appears that he is alleging that CMAL in some way collaborated with Ferguson’s to ensure that the contract went to the shipyard. Perhaps he needs to get a little bit of clarity about the allegations that he is making.

Yes—I am happy to give support to policies of that nature. Perhaps Anas Sarwar would back a situation in which Scotland had the full powers over the energy market and the access to borrowing that are necessary in order for us to establish an energy generation company of that nature.

I am happy to support things that I agree with, but since we are on this ground today, here are some other policies that the SNP Scottish Government has introduced that Labour would perhaps now like to back. How about we see Keir Starmer and United Kingdom Labour backing a £25 per week child payment like the one that we have in Scotland? How about we see Labour backing an end to the benefits cap, or backing the abolition of prescription charges, or backing free personal care, the abolition of university tuition fees, higher health spending per head of population and more nurses and doctors per head of population? How about a rent freeze such as is being introduced here, in Scotland?

If we want to swap good ideas, I am happy to accept them when they come from Labour. Perhaps Labour needs to look to Scotland and to start emulating some of what we are doing here.

Potentially disastrously—and that is of deep and profound concern to me and, I am sure, everyone across the country. As the Bank of England had warned even before the recent falls in the value of sterling, a falling pound will add to inflationary pressures in the economy. With inflation already at 10 per cent, the Scottish Government’s budget is already worth about £1.7 billion less than it was when it was announced in December. The latest devaluation raises the risk of more real-terms reductions not just in the Scottish Government’s budget but in the incomes of already struggling households and businesses throughout Scotland. The spending cuts that will be required to pay for the Tories’ tax cuts for the richest also have potential implications for the Scottish Government’s budgets in the period ahead. As a first step to restoring the United Kingdom’s badly damaged financial credibility, the Chancellor of the Exchequer should urgently reverse the unfunded and unjustified tax cuts for top earners.

I lead a Government that has worked throughout the entire time that we have been in Government to protect police numbers and to support our police officers and the staff who support them. We will continue to discuss these issues in what is a very difficult context with the chief constable, Police Scotland and, of course, the Scottish Police Authority.

We will always do everything that we can to support the work, wellbeing and resilience of our police officers; they do a fantastic job day in, day out. I take this opportunity to thank the police for their recent outstanding work during operation unicorn. We will continue to do everything that we can to support our police and our other public services.

However, it is incumbent on me to point out, again, the reality of the context that we are operating in. We are operating within a fixed budget that has, because of inflation, already been eroded this year to the tune of £1.7 billion.

We are trying to give public sector workers the fairest possible pay increases, and I am pleased that we were able to conclude a pay deal with the police. These are difficult situations, which force us into difficult decisions.

We come at this with the determination to protect public services. I say to Pauline McNeill, as I would say to any member, that, in these really tough times, when much is completely beyond the control of the Government, if members think that we should be making different decisions, they should come and say that. However, members cannot simply ask us to spend more money in one area without saying where they think we should spend less. That is the responsibility that is demanded of the Government right now, and I think that it is the responsibility that people demand of all their politicians during this difficult time.