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Amendment of the law

I came along today hoping to discuss the environmental and energy aspects of the Budget, which, to be fair, includes some quite good measures in that respect. Unfortunately, we were treated at the outset to a Punch and Judy show between Front Benchers on the question of cuts. Whether one calls it an efficiency saving or a cut, the effect is the same at the end of the day—there is less money for services. The Government are going to cut £1 billion from the Scottish budget over two years. The problem, other than that they are cutting money, is the danger of choking off a recovery, should it start to happen—nobody believes that it will start in the next few months. We must look at, for example, what President Obama is doing. The state of Maryland has a similar population to that of Scotland. It will receive £2.6 billion in extra funding supporting 66,000 jobs over the next two years rather than destroying jobs with budget cuts. The Government need to look again at what they are doing in that regard. The problem is not confined to Scotland, as the First Ministers for both Wales and Northern Ireland have made similar points. During the initial exchanges between the Front-Bench teams, the Secretary of State said that people on short-time working were being helped by tax credits. I accept that, but a loophole exists that I have taken up with the Financial Secretary to the Treasury. He was here earlier and I hoped that he would return to the Chamber to hear me make the point again, as I am still waiting for a response. Many people in my constituency put on short time have ended up working for fewer than the minimum hours required to qualify for tax credits. For those who do not have children, that minimum is 30 hours. People are facing a double whammy—losing wages and also their tax credits—and that is causing a great many problems. I have asked the Treasury whether there is any scope for treating people whose hours have been cut as though they were still working the minimum number, as that would both avoid the double whammy that I have described and help them out of what is a difficult situation. I appeal to the Exchequer Secretary, who is on the Front Bench at present, to give consideration to that proposal. The problem is serious, and it is getting worse as short-term working increases. Many firms are trying to hold on to people and skills rather than making them unemployed, and the proposal that I have made would be a way to help them out in that regard. I turn now to the environmental element of the Budget. It makes a good start in some areas, although it remains well below what is known as the Stern test, which is that 20 per cent. of fiscal stimulus should go towards green initiatives. It compares unfavourably with South Korea, for example, which has achieved a rate of 82 per cent. The Budget has made progress in respect of carbon capture and storage—a subject in which I have had an interest for many years. It is possible that I have bored successive energy Ministers about it—