In leaving the European Union, we are re-joining the rest of the world. Our trade with the EU is in deficit and declining, and our trade with the rest of the world is in surplus and rising. The golden opportunity presented to us by Brexit is for Britain to lead the world as a global free-trading nation, championing trade liberalisation and taking on the voices of protectionism.
My constituency is dominated by the truly global oil and gas industry, which is, to quote Oil & Gas UK’s “Blueprint for Government”:
“A global energy industry, anchored in the UK, powering the nation and exporting to the world”.
That is seen in current industry exports, which are expected to account for 43% of the UK supply chain turnover in 2017, up from 41% in 2016. To secure the industry’s global competitiveness and ensure that it captures a large share of an ever growing energy market, it is crucial that the right fiscal and regulatory regime is put in place to incentivise investment. To date, this Conservative Government have created one of the most competitive fiscal regimes anywhere in the world, by providing an unprecedented level of support for the North sea sector, with tax breaks worth £2.3 billion, the creation of the Oil and Gas Authority, and investment in the Aberdeen city region deal.
We all recognise that the job was not quite done yet, and our top ask, as a group of new Scottish Conservative MPs, was for the Chancellor to introduce transferrable tax history. I am delighted that Scottish Conservatives, engaging positively and constructively with our colleagues, have exerted influence at the heart of Government to deliver for Scotland. This policy change in the Budget can help to unlock upwards of £40 billion of new investment by allowing the transfer of tax history from the seller to the buyer when North sea assets are sold on. TTH can bring new inward investment by enabling more deals to be done on late-life assets. It can prolong the life of mature fields by many years. This highly competitive fiscal regime will ensure that the UK is a global leader in mature basin management and support the industry in meeting its vision for 2030 and its aim of doubling the supply chain’s share of the global market from 3.7% to 7.4% by 2035. This industry is one of the true global industrial success stories of the UK, and with its truly global reputation, it is a shining example of the global role that Britain can play outside the EU.
There is more to Aberdeen and the north-east than oil and gas. The region is also home to a thriving food and drink industry, and it is known for its whisky exports. That is why I am delighted that, in this Budget, Scottish Conservative MPs have delivered for the industry a further freeze on the duty on spirits, making a bottle of whisky £1.15 cheaper than it would otherwise have
been since the duty rise ended in 2014. With the opportunity to forge our own new bilateral trade deals and agreements, we can take Scottish whisky to growing markets of the world such as India, and with the support of this Government, whisky will thrive with Brexit. As we have heard, there are huge opportunities for the United Kingdom. We have a new and historic opportunity to design a new trade policy and sign new deals. Let us seize that opportunity, and let us make the most of it.
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