United Kingdom Internal Market Bill

Alan Brown Excerpts

Consideration of Lords amendments
Wednesday 16th December 2020 Commons Chamber

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)]

I beg to move,

That this House agrees with Lords amendments 8P, 8Q, 8R, 8S, 8T and 8U.

I am delighted to be able to come back to the House today with positive news for business and for our constituents. As I have said before, I am immensely grateful to colleagues across both Houses for their constructive discussions with Government, and I would like to extend my thanks to all colleagues in both Houses for working with the Government to reach agreement on how we can best ensure that the frictionless intra-UK trade we enjoy today can continue into the future, especially as we recover together from covid-19. As we have made clear, this Bill is about protecting businesses and livelihoods—real people and real jobs—and I am pleased that both Houses have worked constructively to do that. I want to again extend my thanks to colleagues on the Opposition Benches in this place, and in the other place in particular, for their engagement.

As I set out to the House yesterday, the Government are committed to the common frameworks programme. We attach enormous value to the fora that they provide for collaborative working with the devolved Administrations. The Government have also been clear that the market access principles will work in tandem with common frameworks. We have been asked to provide as much clarity as possible on our continuing commitment to the programme, and we have thought long and hard about this over recent weeks. It is important that we respect the flexibility, and also the commonality, of common frameworks, paying close attention to the interests of all parts of the UK involved in the common frameworks programme and protecting the voluntary and consensus-driven nature of the programme. Indeed, these aspects are key to the effectiveness of the processes. The Government have listened carefully and reflected on the points put forward in both Houses about putting common frameworks on the face of the Bill, and we have now done so through these Lords amendments.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Obviously we welcome some sort of concession on common frameworks, but the Minister said yesterday that enshrining common frameworks in the Bill would create uncertainty for business, so what has changed from last night to today?

[Paul Scully]

What has changed from last night to today is the convivial and constructive discussions we have had to allow for amendments that are worded to the satisfaction of, certainly, the other place and I hope this place, that will allow us to progress with both the common frameworks as a voluntary process and the certainty of the internal market.

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[Lucy Powell (Manchester Central) (Lab/Co-op)]

Well here we are again—groundhog day. Early on, I dubbed this Bill the infernal market Bill, and it has certainly lived up to that name. It is good to see the hon. Member for Stone (Sir William Cash) in his seat again. I am not sure what he is going to do in a few weeks’ time after all his doughty energies tackling issues around Brexit. I am not sure whose fault it is all going to be in a few weeks’ time. Perhaps Ministers should watch their backs; they might find it is their fault once Brexit can no longer be blamed for all his ills.

Let me start by thanking Ministers and their officials for the discussions that we have had in recent days about how we can make the best of this bad Bill. Let us be honest: when it first saw the light of day, it was clear for all to see what a terrible Bill this was. It was wrong in seeking to break international law, and it was wrong in disrespecting the devolution settlement and failing to understand the way the UK now works through power sharing. That is why we have been so vociferously opposed to it in this House.

We led the way on that, starting, as you will remember, Madam Deputy Speaker, with my right hon. Friend the Member for Doncaster North (Edward Miliband) taking down every single argument of the Prime Minister, who was here himself on Second Reading. Through the Bill’s many stages in this House, we have been clear in our opposition to some of its serious flaws. It has been a long and difficult process.

[Alan Brown]

If Labour has really led the way, why did it back down in the votes in the other place on protecting devolution in respect of Westminster’s ability to spend and meddle in devolved affairs?

[Lucy Powell]

The hon. Gentleman knows that that is not the case. That is not what happened in the other place. It is thanks to the Labour leadership in the other place that we have seen improvements to the Bill, and I will say a bit more about that in a minute.

The Bill is now in much better shape than it was. It is far from good, let alone perfect, but it is better. That is thanks to the leadership shown by Labour colleagues in the other place, who built alliances and worked with guile and tenacity to get us to where we are. The Government, by the way, have a majority in the other place; despite that, we managed to inflict a number of Government defeats. As a result, the Government dropped most of part 5, which was the international lawbreaking part of the Bill originally and now upholds the Northern Ireland protocol.

After Labour worked cross-party with colleagues and others to ensure successive Government defeats in the other place, and after several rounds of ping-pong— I have lost count of how many—the Bill has been improved in a number of ways. We have the one-month mechanism for the devolved Administrations’ consent on regulations; the operation of the internal market in the interest of consumers; the consent and involvement of the devolved Administrations on the make-up and operation of the Office for the Internal Market, and the removal and review of the Henry VIII powers.

Today, we welcome the Government’s concessions on common frameworks in response to Lord Hope and Lord Stevenson’s amendments. In particular, amendments to clauses 10 and 17 allow for agreements arising from common frameworks to be excluded from the application of market principles. They also include in the Bill a definition of a common framework agreement, something that we have been seeking from the beginning. We also welcome the amendment to clause 31 that provides for the Competition and Markets Authority and the Office for the Internal Market to include in their five-year reporting details of the interaction between market access principles and common framework agreements, and of the impact of common framework agreements on the operation and development of the internal market.

We have fought long and hard to ensure that the Bill does not undermine devolution, because we believe in devolution. These are important safeguards that really do strengthen the Bill.

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[Deidre Brock]

I do not want to be rude to the hon. Gentleman, but he presents us with a glorious example of exactly why many on the SNP Benches want to get away from this House of Commons.

Scotland faces the same situation as we did in the last quarter of the last century: a UK Government of a hue that we did not vote for and would not support are riding roughshod over the interests of the Scottish people and will ignore them if they can. This Bill will pass today, but the debate will continue, and we have not yet begun to fight.

[Alan Brown]

I would like to briefly add to what my colleagues have said. We welcome some sort of recognition of the common frameworks. There is a lot still to be teased out in terms of how that will work. We know that Westminster’s sovereignty will overrule things, and that is still a big concern, but we welcome that measure. I still do not understand how the Minister stood at the Dispatch Box yesterday and said that common frameworks could not be enshrined in the Bill, because it would be so bad and would cause businesses uncertainty, and now he says, “We’ve listened to the Lords, and everything’s okay.” It would be good if he could clarify that when he sums up.

Despite what the hon. Member for Manchester Central (Lucy Powell) said, Labour did not lead the way on this. Labour gave up on devolution, and it gave up in the other place. Labour did not even back my hon. Friend the Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) in the Reasons Committee. Labour sat on its hands in the vote in that Committee. Lord Stevenson said, “We will not divide the House.” That is giving up. Labour gave up in the Lords.

Let us look at clause 48 and what Labour gave up on. Westminster is now allowed to provide infrastructure at places in the United Kingdom, including infrastructure connected with any of the other purposes mentioned. That infrastructure includes water, which is still publicly owned in Scotland, electricity, gas, telecoms, sewerage—also publicly owned in Scotland—railway facilities and roads or other transport facilities. As the hon. Member for North East Fife (Wendy Chamberlain) said, that paves the way for the glorious Union bridge or Union tunnel that we do not want and do not need, because we can invest better in transport infrastructure ourselves.

There is no doubt that the greatest improvements in Scotland’s infrastructure have come since the introduction of the Scottish Parliament, making decisions for the people of Scotland on behalf of the people of Scotland and representing the people who elected them. [Interruption.] Does the hon. Member for Manchester Central want to intervene? No. As I was saying, the greatest improvements in Scotland’s infrastructure have come since the introduction of the Scottish Parliament. MSPs are answerable to the people who elected them. Unfortunately, we have a right- wing Tory Government who Scotland did not elect, and now they are free to overrule us. Labour backed down. It does not matter what the hon. Member for Manchester Central said; Labour backed down and gave up.

The Bill allows Westminster to spend not only in Scotland but in Wales, overruling the Welsh Labour Government on health, education, culture, sports facilities, court or prison facilities and housing. We are leading the way in building social housing in Scotland. We ended the right to buy. The Tories obviously still think that the right to buy is a good thing, forcing councils to get rid of their housing stock. How dare Westminster legislate to provide housing in Scotland—we have done very well without your help, thank you very much.

State aid is something else that Labour gave up on. It has been stated clearly that state aid was never a reserved function, and therefore it was devolved to the four nations, so why is Westminster taking it back? Does it think that that sends out a good message?

People are watching. Studies in Scotland have shown time and again that people in Scotland trust the Scottish Parliament to legislate and invest in these matters over Westminster, so why Westminster thinks it can do a better job is beyond me. As my hon. Friend the Member for Inverness, Nairn, Badenoch and Strathspey said, it looks like independence is the only way that we can protect the powers of the Scottish Parliament. Bring it on.

[Paul Scully]

Let me quickly answer a few points. My hon. Friend the Member for Stone (Sir William Cash) asked for a bit more detail on the amendments. In the small number of cases in which the market access principles apply to divergence agreed under a common framework, clauses 10 and 17 could be used to exclude the agreement from the market access principles. The Secretary of State would be able to do so following a consensus agreement that that was appropriate under the common framework. That is the appropriate way to ensure that the market access principles in the Bill can ensure certainty and a seamlessly functioning internal market while still respecting agreed limited divergence under the common frameworks programme.

Originally, Lord Hope’s amendments would have required the Secretary of State to exclude any divergence agreed under the common frameworks process from market access principles; by contrast, the Government’s amendment makes it clear that this is an option open to the Secretary of State, thereby giving the Secretary of State the discretion to ensure that the disapplication of the market access principles would never lead to the emergence of unacceptable trade barriers within the United Kingdom.

The hon. Member for North East Fife (Wendy Chamberlain) talked about the CMA, the OIM and what would happen with international players. The CMA and the OIM have the flexibility to investigate and report on any issues that they choose, but they are not themselves decision makers on market access principles. Throughout the Bill’s passage, we have made sure that both the OIM and the Bill itself will apply rules to each part of the UK—to England, Scotland, Wales and Northern Ireland—equally.

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[Paul Scully]

No, this is about spreading. I readily accept that the discussions on common frameworks continue, and I very much welcome that. As I say, common frameworks go wider than just trade and the measures covered in the Bill. None the less, to walk away from discussions on the internal market a full year or 18 months before we reached this position is really to walk away from the responsibility to help to shape the discussions, as we have seen in the more fruitful conversations with the Welsh Senedd, including in recent days.

We heard the hon. Member for Edinburgh North and Leith (Deidre Brock) talk about pre-written barbs, but time and again when we have come back to this place it has just been a rehearsal of the arguments not about the devolution settlement or the Bill itself, but about independence. It has been the same debate time and again, instead of Members involving themselves in the detail of the Bill and giving certainty to business.

[Alan Brown]

Will the Minister give way?

[Paul Scully]

I will not give way.

I finish by thanking everyone who spoke in the debate, and by once again thanking all hon. and right hon. Members and noble Lords who have engaged with the Bill over the last few weeks. I thank the Public Bill Office for its support to all Members and officials across Government. I pay tribute to the entire ministerial team across both Houses and all Departments, who have worked jointly to deliver the Bill—in particular, Lord Callanan, Lord True and the Minister for the Constitution and Devolution, my hon. Friend the Member for Norwich North (Chloe Smith), and the Minister of State, Northern Ireland Office, my hon. Friend the Member for Worcester (Mr Walker). I also pay tribute to Yasmin Kalhori and the team of the Leader of the House of Lords.

I welcome the contributions and the constructive discussions that we have had in recent days with Opposition Members in both Houses that have got us to this place. We have had some passionate debates on the Bill, because of the importance of the issues. However, the Bill will ensure that UK businesses can trade across the four parts of the UK in a way that helps them to invest and create jobs, just as they have for hundreds of years. I am therefore delighted to ask the House to agree to the amendments, and to complete our scrutiny and consideration of the Bill.