Devolution and the Union

Debate between John Glen and Angus Brendan MacNeil

Thursday 20th November 2014 Commons Chamber

[John Glen (Salisbury) (Con)]

I am delighted that the motion is before the House and I would like to address two particular issues: spending disparities across the UK and the vexed issue of how to implement English votes for English laws. Before the recent referendum, party leaders promised a continuation of the Barnett formula and the powers of the Scottish Parliament to raise revenue. It is vital, if the integrity of political leaders is to be respected and believed, to take this promise to the Scottish people seriously and to work within the confines of the Barnett formula arrangement.

To say that the debate about the referendum did not make people across the United Kingdom think very carefully about the fairness of the allocation of resources is to miss the point considerably. The Barnett formula is just one aspect of the wider question of spending disparities across the UK.

[Mr MacNeil]

Will the hon. Gentleman give way?

--- Later in debate ---

[John Glen]

If the hon. Gentleman can contain his anger and listen to what I have to say, he will notice that I have not mentioned the word subsidies. It is he who keeps mentioning subsidy, and it is not in my speech—[Hon. Members: “The hon. Member for Esher and Walton (Mr Raab) did!”] But I have not and I will not.

To have an informed debate about funding reform, we need to think carefully about why the disparities exist. Some exist for reasonable historical reasons. However, differences in health spending, for example, due to different demographics and sparsity issues need to be fully examined and we must have a national debate on them. It is right to say that the case needs to be made for each significant disparity. The whole referendum debate has provoked a discussion in this country and we need to address it.

[Mr MacNeil]

Will the hon. Gentleman give way?

[John Glen]

No, I am going to continue with my speech.

That cannot be done on the basis of one short-term fix. In the next Parliament, the Government should establish a fair funding commission that would look comprehensively at the distribution of spending across all Government Departments over all regions and all aspects of that distribution. It could clearly take into account economic geography, a consistent definition of sparsity, demographic inequalities and historical differences in funding settlements. I believe that it would then quickly become clear that the distribution of taxpayers’ money is complex and that some proposals to deal with spending disparities are too simplistic. Fiscal devolution at a national level is not sufficient by itself. Some residents in Wales might use NHS services across the border in Herefordshire, for example, and vice versa, and it is important that we take account of such scenarios.

We also need to recognise the tension between the needs of metropolitan and rural communities, which particularly concerns my constituents in Salisbury. A fair funding commission would allow us to make mature, long-term decisions about funding levels based on comprehensive data and an appreciation of all the relevant factors across the whole United Kingdom. A wide range of options for reform would be available, including reviewing the baseline for formulas or introducing a fair funding consolidated grant.