The UK Government must recognise that life in the Highlands comes with different costs and challenges, according to MP Jamie Stone, who is calling for targeted support for rural communities in Wednesday’s Budget.
The Caithness, Sutherland and Easter Ross MP has written to Chancellor John Healey ahead of the 28 October announcement, urging him to consider the financial pressures facing families, small businesses and employers across the Far North.
Among his priorities are relief on employer National Insurance contributions for smaller businesses, assistance for households relying on heating oil and measures to ease the cost of motoring.
Stone is also seeking a measured approach to beer and whisky duty, recognising the importance of hospitality and Scotch whisky production to Highland employment.
For many rural households, the cost of everyday life is shaped by circumstances that are not always reflected in national economic measures.
Long journeys for work, healthcare and essential services make access to a car particularly important, while homes without mains gas connections can face substantial heating costs.
Small businesses must also contend with the expense of operating in remote communities, where transport costs, recruitment difficulties and seasonal demand can place additional pressure on their finances.
Stone believes the Chancellor should recognise those differences when deciding how taxation and financial support will be distributed.
He said:
“People across the Far North work hard to support their families, run their businesses and keep our communities going.
“The Budget must recognise the particular challenges of those living in remote and rural communities.
“In the Highlands, small businesses face higher operating costs and many households rely on expensive heating oil.
“What’s more, people depend on their cars to get to work and access essential services.
“Life is simply not the same everywhere, I trust the Government has learnt that by now.
“I have also called on the Chancellor to recognise the importance of our whisky and hospitality industries to local jobs, and the need to increase our defence spending to protect the vital communications cables that run under the North Sea.
“I want to see a Budget that understands the realities of life in the Highlands and delivers practical support for the people who live and work here.”
His intervention also highlights the growing importance of protecting critical infrastructure beneath the North Sea.
Undersea communications cables carry essential international data traffic, while offshore pipelines and electricity connections form part of Britain’s energy infrastructure.
Stone wants greater defence investment to help safeguard those connections against emerging security threats.
The UK Government has already outlined proposals to strengthen the protection of undersea infrastructure, although decisions on future funding remain part of wider spending discussions.
For Highland businesses, attention will also turn to whether the Chancellor offers relief from employment costs and avoids further financial pressure on the whisky and hospitality sectors.
Stone has not proposed specific rates for the tax relief he is seeking, instead asking the Treasury to consider measures suited to the circumstances of smaller rural employers.
With the Budget due on Wednesday, his message is that national decisions must account for the realities of communities where distances are greater, choices can be fewer and local employment is essential to keeping places thriving.
The coming announcement will reveal how far those concerns are reflected in the Government’s spending and taxation plans.
Full letter:
Dear Chancellor,
Ahead of tomorrow’s Budget, I am writing on behalf of my constituents across Caithness, Sutherland and Easter Ross who work hard to sustain their businesses, support their families and contribute to their local communities in the face of the rising cost of living crisis and economic uncertainty.
The decisions you take tomorrow will have a direct impact on the livelihoods of people across the whole of the UK – including the Far North. I want to see a Budget that recognises the unique challenges facing rural and remote Highland communities, whilst giving businesses the confidence to invest in our area.
Firstly, I urge the Treasury to consider targeted relief on employer National Insurance contributions for smaller businesses. Employers in rural and remote parts of the Highlands face higher operating costs – from transport and logistics, to recruitment and access to markets. These additional pressures make it harder for small businesses to take on staff, increase wages and invest in their businesses in a sustainable long-term way. Reducing the burden of employer national insurance contributions would provide meaningful support to local employers, helping to protect jobs and sustain the businesses upon which the existence of our Far North communities depend.
I would also ask you to consider the impact of beer and whisky duty on the businesses and communities that depend on these industries. Scotland’s whisky sector is an extremely important source of employment, investment and export revenue, while pubs and hospitality businesses provide essential social spaces in many of our more remote areas. These businesses face considerable cost pressures, and further increases in duty risk adding to those challenges. The Government should take a measured approach that supports producers, protects local jobs and helps pubs and hospitality businesses remain viable.
For people’s households, I must urge the Government to recognise the disproportionate impact of heating oil costs on households across Caithness, Sutherland and Easter Ross. Many of my constituents live in areas that are not connected to the mains gas network and have little choice but to rely on heating oil to keep their homes warm. With limited alternatives and often higher costs associated with rural living, fluctuations in oil prices can place a significant strain on household budgets – particularly for pensioners and those on lower incomes. The Government must look at targeted support to help these households manage heating costs and ensure that people living in the Highlands – especially in the upcoming winter – are not left behind in efforts to tackle fuel poverty.
What’s more, the Government need to recognise the impact of fuel costs on motorists across the north of Scotland. The fact is that distances are vast and public transport options are often limited – having a car is a necessity rather than a luxury. For this reason, my constituents rely on their vehicles to get to work, access essential services and support their families, while local businesses heavily depend on them to operate. My Liberal Democrat colleagues and I have proposed a 10p cut in fuel duty to help ease these pressures. Motorists in rural and remote communities will stand to benefit considerably, and I urge the Government to take our proposal seriously.
Finally, I want to see your Government prioritise the protection of our critical national infrastructure. The undersea communications cables connecting the UK to the rest of the world are essential to our digital connectivity and national security. Given our geographical position, protecting this infrastructure is of particular importance to communities in the north of Scotland. Increased defence spending must translate into meaningful investment in the protection and resilience of these vital connections, in order to safeguard the services and communications upon which my constituents and everyone else in the UK depends.
My constituents want to see a Budget that delivers practical support for the people that keep our communities going. They want to see local, high-quality employment opportunities for young people and the confidence to build their futures in the Highlands, rather than feeling that economic decisions are being made without sufficient regard for the realities of life in the Far North.
I urge you to ensure that tomorrow’s Budget reflects this Government’s commitment to our communities everywhere, even those in the farthest corners of the UK.
Yours sincerely,
Jamie Stone MP
