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The Deputy Leader of the House of Commons (Michael Ellis)
I start by saying what a pleasure it is to appear before you, Mr Bone, a fellow Member from Northamptonshire. I congratulate the hon. Member for Glasgow North (Patrick Grady) on securing this debate, which is one in a series along similar lines, I think, that have been secured. It has been an important opportunity to discuss the democratic tradition in Scotland, of which both the 1689 and 1989 Claim of Right documents form an important part, and to highlight the significance of that tradition today. It is good to be reminded that the constitutional issues which we grapple with are not new. Of course, it is arguable that the Claim of Right was put into practice in 2014, as the hon. Member for Edinburgh South (Ian Murray) mentioned. The people had a say then—they voted to stay in the United Kingdom and that should be respected.
The United Kingdom shares a democratic tradition, exemplified by the Parliament in which we are gathered today, which works in harmony with and not against the particular traditions of Scotland. That was recognised in the devolution settlement, for which the 1989 Claim of Right, drawn up by the Scottish Constitutional Convention, helped make the case, and which was voted for in the 1997 referendum and reaffirmed in the 2014 referendum. That settlement respects the right of the Scottish people to have a say, in two Parliaments, on a range of important issues affecting their lives while remaining a strong and vital part of the United Kingdom.
Most recently, the Scotland Act 2016 ensures that the Scottish Parliament has a significantly greater say on matters including taxation and welfare support in Scotland, putting into practice the agreement of the Smith commission, to which my right hon. Friend the Member for Surrey Heath (Michael Gove) alluded. That agreement was reached by all the major parties in Scotland. The heads of agreement in the commission’s report recognise the principles of the 1989 Claim of Right by citing
“the sovereign right of the people of Scotland to determine the form of government best suited to their needs.”
The Act now being implemented, with a number of its new powers having already come in force, provides the right balance to the devolution settlement and will create a more powerful and accountable Scottish Parliament within a strengthened UK. That is what the people of Scotland voted for. It balances the desire for more decisions to be taken in Scotland, closer to those they affect, with retaining the strength and security which come from membership of the larger United Kingdom and for which people voted in the crucial, once-in-a-lifetime referendum in 2014.
The Scottish Parliament at present has extensive powers. Today, it has a budget of around £30 billion, but with little responsibility for raising the funds it spends. The 2016 Act, when implemented, will provide the Scottish Parliament with much greater tax-raising powers. From responsibility for raising around 10% of what it spends today, Holyrood will in future be responsible for raising more than 50% of what it spends. As my right hon. Friend the Member for Surrey Heath mentioned, the Scottish National party is not currently using the powers that it has, and one can draw conclusions from that.
The Scottish Parliament will be given unprecedented flexibilities on income tax to set income tax rates and thresholds for earned income, including the ability to introduce new bands. These crucial powers represent around £12 billion of income tax revenues. In addition, there are extensive new powers over welfare and employment support, which allow the Scottish Parliament and the Scottish Government to support those who need it in a way that reflects Scottish circumstances.
What is important now is how those new powers will be used for the benefit of people in Scotland. We respect the importance of historical traditions and we have heard a great deal this afternoon about the 1689 Claim of Right. Traditions are very important, but the priority should be the future. We have delivered on our commitments in the Smith commission, and the United Kingdom Government will support the Scottish Government using those powers in the interests of the Scottish people.
On the outcome of the EU referendum, the Prime Minister has had constructive discussions with the First Minister and has made her position clear. Hon. Members may have heard that position enunciated frequently: Brexit means Brexit and we are going to make a success of it. It was a high priority for the Prime Minister to visit Scotland and meet the First Minister to discuss that matter very soon after she became Prime Minister, but in 2014 the Scottish people decided in a legal, fair and decisive referendum to remain a strong part of the UK. That is a vivid example of the Claim of Right in force, and should be respected. That is how we will now approach our negotiations for leaving the EU—together as one United Kingdom. I say to the SNP that our focus should now be on working together to get the best deal for Scotland and the whole of the United Kingdom in the negotiations with the European Union. The people of Scotland will expect the United Kingdom and Scottish Governments to work closely together, as part of team UK, to find a constructive way forward and therefore, as we prepare for a new negotiation with the European Union, we will fully involve the Scottish Government. I say in the strongest terms that our aim should be to unite to ensure the best deal for Scotland and the whole United Kingdom as we take forward the necessary work following the referendum result.
The 1689 Claim of Right and its more recent successor are important documents that reflect a venerable democratic tradition in Scotland, but they should not be invoked now in an attempt to justify another independence referendum. That is not what should happen. Respecting the will of the Scottish people means respecting the result of two referendums by ensuring that we negotiate an exit from the European Union that achieves the best deal for Scotland so that it remains stronger within the United Kingdom. The focus now should be on working together to achieve that aim and, at the same time, on ensuring that the significant new powers that the Scottish Parliament has are implemented and used in such a way that delivers practical benefits for the Scottish people.