The Secretary of State for Scotland (David Mundell)
I beg to move, That this House agrees with Lords amendment 1.
Mr Deputy Speaker
With this it will be convenient to discuss Lords amendments 2 to 62.
David Mundell
This is a truly significant day for Scotland. If this Bill completes its parliamentary progress, it will add to the already extensive responsibilities of the Scottish Parliament a range of important new powers. It provides even greater opportunities for the Scottish Government to tailor and deliver Scottish solutions to Scottish issues. The Scottish Parliament that returns in May will be a powerhouse Parliament that has come of age. Crucially, it will be much more accountable to the people who elect it, which is the hallmark of a mature democratic institution.
I am pleased to say that Lord Smith of Kelvin has confirmed that the Bill puts into law the agreement that the five main political parties in Scotland reached, and that the fiscal framework that was agreed means that the recommendations of his commission have been delivered in full.
Last week, the Scottish Parliament debated the motion on whether to grant legislative consent to the Bill before us today, and the agreement was unanimous. Deputy First Minister John Swinney remarked:
“The Smith process delivered an agreement for additional powers that—if they are used in the right way—can benefit the people of Scotland.”—[Scottish Parliament Official Report, 16 March 2016; c. 3.]
I agree with him wholeheartedly on that.
The debate last week demonstrated the consensus among all parties in Scotland that these new powers present a tremendous opportunity for Scotland. That was clear in their unanimous vote to grant legislative consent to this Bill. This process goes to show that both of Scotland’s Governments and both of Scotland’s Parliaments can work effectively together in the interest of the people in Scotland and right across our United Kingdom.
No individual or party held a monopoly of wisdom on how the Smith agreement might best be translated into legislation. Many people, both inside and outside this Chamber, have contributed to the Bill as it stands before us today. I thank hon. Members and noble Lords for their contributions as the Bill passed through this House and the other place.
John Redwood (Wokingham) (Con)
I am grateful to the Secretary of State for giving way. When this important work was being done, there were obvious and big consequences for England. Which Minister or Ministers spoke for England during the negotiations?
David Mundell
My right hon. Friend has asked that question before. This legislation has been debated on the Floor of this House and on the Floor of the other place. Extensive scrutiny of the Bill has taken place. Indeed, there has been the opportunity to scrutinise the fiscal framework as well, so extensive scrutiny has been delivered in relation to this legislation for the people of England, Wales, Northern Ireland and Scotland.
The Bill has been strengthened by the scrutiny it has received, and I am pleased that the amendments that I will cover shortly are a positive and constructive culmination of that process.
Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)
Going back to the previous intervention, it was obvious from the voices on the Scottish National party Benches that all the other Ministers, especially those from the Treasury, spoke for interests other than those of Scotland. Is it not time to move away from this form of devolution, whereby we effectively get the crumbs from the table at Westminster, to a model that Copenhagen shares with the Faroe Islands and Greenland, in which the larder is always open and they get to choose their own powers. Instead of taking the crumbs from Westminster, we should be able to take the powers that we want from Westminster when we want them.
David Mundell
The hon. Gentleman’s colleagues may agree with him, but I do not think that the people of Scotland do. The people of Scotland made it very clear in September 2014 that they wanted to remain part of our United Kingdom, but they wanted a Scottish Parliament with enhanced powers, which is what this Government are delivering. The hon. Gentleman strikes a rather sour note, given the consensus within the Scottish Parliament and among his colleagues in the Scottish Government—a consensus that recognises the importance of the powers that will be delivered by this Bill if it completes its passage today.
I also acknowledge the work of the Committees of both the Scottish and the UK Parliaments, including those chaired by the hon. Member for Perth and North Perthshire (Pete Wishart) in this place, by the noble Lords, Lord Lang, Baroness Fookes and Lord Hollick, in the other place and by Bruce Crawford in the Scottish Parliament. The broad range of evidence and expertise they marshalled in the Bill’s scrutiny has improved it materially.
I also wish to thank the Deputy First Minister, John Swinney MSP, and Scottish Government officials for their always courteous engagement in this process. Scotland gets the best outcome when its two Governments work together.
I am truly grateful to all my officials at the Scotland Office and the officials from the 10 other Whitehall Departments whose hard work has got us to this stage. My noble Friends Lord Dunlop and Lord Keen of Elie have played an essential role in the Bill’s passage through the other place; I also commend Lord McAvoy and Lord Wallace of Tankerness in particular for their work. The origin of the Bill is the Smith agreement, and I once again pay tribute to Lord Smith of Kelvin and the representatives of all five of Scotland's main political parties for reaching an agreement that redefined the devolution settlement.
Angus Robertson (Moray) (SNP)
I am delighted to follow the hon. Member for Edinburgh South (Ian Murray). It is a calumny that he has been described as negative. He spent much of his time at the Dispatch Box trying to be positive about the Scotland Bill. Parts of his speech were positive and we welcome that, and we also welcome the Secretary of State’s positive comments.
The Scotland Bill is an important step in extending the responsibilities of the Scottish Parliament and in Scotland’s journey towards greater self-government. That journey has quickened in pace since the Scottish National party was first returned to power in 2007. The Bill follows progress including the Scotland Act 2012, the independence referendum and the Smith commission itself. As Deputy First Minister John Swinney has said, the Bill delivers additional powers that can benefit the people of Scotland, including extended powers over tax, new powers over welfare, and responsibilities for the Crown Estate, tribunals and the licensing of onshore oil and gas activity.
The agreement on a fiscal framework published on 25 February increases the Scottish Parliament’s financial responsibility, is consistent with the Smith principles of no detriment, and is fair to the people of Scotland. As the Bill, including the amendments under discussion, provides useful powers and has moved towards delivering more of the recommendations made by the Smith commission reports, and as the agreement on the fiscal framework would be a fair basis for future funding consistent with the principles agreed by the Smith commission, the Scottish Government recommended that the Scottish Parliament should consent to the Bill. On 11 March 2016, the Devolution (Further Powers) Committee published its report on the Scotland Bill and the fiscal framework. Although it makes recommendations on specific policy areas, its overall conclusion is that the Scottish Parliament should consent to the Bill. That is what is before us. On 16 March, the Scottish Parliament consented to the legislative consent motion for the Bill.
The SNP has, of course, governed in Scotland for nine years, and every indication is that the people of Scotland have been delighted with the governance of Scotland under the SNP. I join the Labour party spokesman in paying tribute, as I did earlier today, to every outgoing Member of the Scottish Parliament—not least my right hon. Friend the Member for Gordon (Alex Salmond)—of all political parties, who have worked hard to achieve the best governance that decision-making closer to home can bring.
The outgoing Scottish Government have already acted with pace and creativity, in consultation with others, to be ready to use the limited powers—there are, of course, limits on the powers that are being devolved. That includes introducing a social security Bill within the first year of the new Scottish Parliament, to support the transfer and administration of Scotland’s new, devolved social security benefits. It also includes enhancing opportunities for employment and inclusive economic growth by improving support for people to move into employment through reform of the Work programme and linking employment programmes with training and education.
The outgoing Scottish Government have also committed to abolishing fees for employment tribunals, to reduce the burden of air passenger duty by 50%, and to promote equalities by taking early action on gender balance on public boards. They have also set out longer-term intentions for further income powers, are committed to a progressive taxation policy and have applied that to the decision on existing tax powers. Commencement of most of the new powers will take place in 2016, but new arrangements for the use of major new powers on matters including tax and welfare will not be in place before April 2017 following scrutiny of the proposals by the Scottish Parliament.
On 11 March 2016, the Scottish Parliament’s Devolution (Further Powers) Committee published its final report and gave its unanimous recommendation that legislative consent be given to the Scotland Bill. That was described as
“a significant milestone in a remarkable political process”
by Committee convener Bruce Crawford MSP. I pay tribute to him and his colleagues on the Committee, as I do to my hon. Friend the Member for Perth and North Perthshire (Pete Wishart), the Chair of the Scottish Affairs Committee, for their work. Although the Scotland Bill and the Smith commission could have delivered more effective and coherent powers to the Scottish Parliament, the Bill provides useful additional powers in important areas such as taxation and social security.
The UK Government amended the Bill to reflect some of the comments of the Scottish Government, the Scottish Parliament and its Committees. With an agreed fiscal framework that increases the Scottish Parliament’s responsibility and protects the Barnett formula, the Scottish Government recommended that the Scottish Parliament consent to the Scotland Bill. The final report of the Devolution (Further Powers) Committee also had some important things to say:
“There are still some areas where we feel that the Scotland Bill continues to fall short of the spirit and substance of Smith…Nevertheless, the Bill has been improved during its passage through our detailed scrutiny and we welcome the fact that the Secretary of State for Scotland has been prepared to listen to the evidence we have presented and improve the Bill in other areas…in our view, on the basis of the information provided to date by both governments, we are prepared to endorse the fiscal framework underpinning the powers to be devolved to Scotland as part of this Bill. Therefore, on balance, we recommend that the Scottish Parliament gives its legislative consent to the Scotland Bill.”
UK Government amendments that implement more of the Smith report, including the permanence of the Scottish Parliament, are welcome. However, it needs to be said that the Scotland Bill continues to fall short of the spirit and the substance of Smith in some areas, including the devolution of employment programmes and the future operation of the legislative consent provision. It is important to understand that the UK Government can still effectively veto the exercise of devolved powers over universal credit by inserting their own date for the changes to commence. The social security provisions on discretionary payments and assistance are still subject to restrictions, notably for those who are under sanctions. The Smith report was clear that the Scottish Parliament should have complete autonomy over devolved benefits. The Scotland Bill is many things, but it is not federalism or near-federalism. Anybody who understands the powers of the German or Austrian Länder knows that to be true. It is an improvement, and it is progress.
We in the SNP thank all in the Scottish Government who have been involved, especially John Swinney. We also thank those on the UK Government side, even though—this is an important rider—I see that there is a Minister from the Treasury on the Treasury Bench, and we all know that the Treasury wanted a fiscal framework that would have made Scotland worse off by £7 billion. Thank goodness for the efforts of John Swinney and colleagues in the Scottish Government. I would like to take the opportunity to thank my SNP MP colleagues, who have worked so hard on the Bill throughout the parliamentary process. In fairness, it is also right to place on record the fact that Members in the other place spent a lot of time on the Bill.
Most importantly, I thank all those in Scotland who have believed in more powers. They did not draw lines in the sand or say, “This far, and no further”, as others have done, even in the recent past. Thanks to all those yes voters and all those SNP voters, Westminster has had to take note. This is just the latest stage on Scotland’s journey, and there will be many more. We agree with the amendments, and we wish the Bill to proceed. That is exactly what will happen today.
David Mundell
I will not detain the House for long, but I want to respond briefly to some of the points that have been made.
I add my best wishes to all Members of the Scottish Parliament who are leaving at this election, particularly my colleagues and others who were elected to the Scottish Parliament alongside me back in 1999. A number of people who have served in Parliament throughout that period are leaving, and others who are standing in the election will be leaving, although not necessarily of their own accord. We should wish them well.