Budget Resolutions and Economic Situation
Alan Brown Excerpts(1 year, 9 months ago)
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Michael Gove
I am very grateful to the right hon. Gentleman for his intervention. No one can doubt the sincerity of his concern and care for people, both in the private and the social rented sector—standing up for them has been a consistent theme of his time in this House—but I respectfully disagree with him. I think there are legislative changes that we can make in order to help those in the private rented sector, including the abolition of section 21, but if we want to ensure that there is a pipeline of affordable private rented homes for people, there are two things that we need to do. First, we need to improve supply, particularly in London, and to do so in partnership with the Mayor of London, who has not always been as energetic as his predecessor in bringing forward new homes. The other thing we need to do is make sure there is fairness in the tax treatment of landlords and others. I look forward to working with the right hon. Gentleman and others on that. A rent freeze, while often attractive, has the effect, as we have unfortunately seen in Scotland, of reducing the supply of rented homes. Although I know his heart is in the right place on this issue, the methods he proposes run counter to what we both want to see.
I was talking about supply-side reforms earlier, and I briefly mentioned pension reforms. It is important we recognise that the pension reforms unveiled earlier in the debate by my right hon. Friend the Chancellor of the Exchequer have been widely welcomed, including by the British Medical Association, the Royal College of Surgeons, the leaders of police and crime commissioners everywhere and, most conspicuously, the hon. Member for Ilford North (Wes Streeting), the shadow Secretary of State for Health and Social Care. He called some time ago for a change. He said that he recognised it may not be “progressive”, but that it was “pragmatic” to introduce a pension change that will see more doctors coming out of retirement and on to the frontline, ensuring that more patients are treated more quickly, that fewer people are in pain and that our NHS is there for those who need it.
This wholly welcome change to pensions was addressed in Treasury questions earlier. Labour Members had an opportunity to express their dissatisfaction with that change, but not a single Labour Back Bencher did so. I know that the measure is a source of synthetic and confected rage from elements of the Labour Front-Bench team, but this initiative will cut waiting lists, has been welcomed everywhere—from the shadow Health Secretary to Labour Back Benchers, and from the BMA to the Royal College of Surgeons—is progressive and is in the country’s best interests.
Other changes made in the Budget also contribute to economic growth and social justice. The full expensing of capital receipts is a way of ensuring that our companies address what is, as the right hon. Member for Islington North (Jeremy Corbyn) rightly pointed out, one of the long-term property problems in this country. We have not always had the level of business investment—this runs across Governments of all colours—that we need to ensure we have high-paying jobs and the capital required to take advantage of the technological changes of the future. The full expensing proposals, amounting to a tax cut of some £9 billion, are a pro-business tax cut, and they also mean we maintain not just one of the most competitive corporation tax regimes, but the most competitive business environment in the G7.
Alan Brown (Kilmarnock and Loudoun) (SNP)
The right hon. Gentleman must know by now that the measures taken on the annual allowance and all the rest of it were a sledgehammer to crack a nut. It did not need to be a full £4 billion package. In terms of growing the workforce, when he was having his cross-party summit to discuss Brexit problems, did they discuss the problems that ending freedom of movement has caused in the health and social care, hospitality and agricultural sectors? If they did not, why not?
Michael Gove
The hon. Gentleman makes an important point about freedom of movement. If we want to have the benefits of freedom of movement within the United Kingdom, and if we want to ensure that talented people across the United Kingdom can go to the jobs where they are needed, the one thing we need to avoid is a divisive debate focused on separatism, which he and his party have been leading. There is no more expensive and harmful intervention to the economy of this country and that of Scotland than a perpetuation of an obsession with independence.
I am grateful to the Member of the Scottish Parliament for Skye, Lochaber and Badenoch for how she has made it clear that the SNP needs to address its mediocre record in government, get rid of politically correct obsessions and focus once more on partnership with the UK Government in order to generate economic growth. If the hon. Lady wins, I hope we can work together in the interests of everyone in Scotland. If it is one of the other candidates, I am afraid that the SNP will continue on the vortex of decline, which I know will be a source of sadness to the hon. Member for Kilmarnock and Loudoun (Alan Brown) but a relief to many of the rest of us.
The other key changes that I want to mention in the context of improving productivity were the changes on regulation, particularly of the Medicines and Healthcare products Regulatory Agency. Those are coming about as a result of Sir Patrick Vallance’s review of how we can better regulate the science and tech sector outside the European Union. Then there is the investment in energy. I know that we are not going as far as the right hon. Member for Doncaster North wants—indeed, he is not even being allowed to go as far as he would want by the shadow Chancellor, the right hon. Member for Leeds West (Rachel Reeves)—but with our investment in Great British Nuclear and carbon capture and storage, we are ensuring that we move towards net zero in an environmentally and economically sustainable way.
One key point of distinction between those on the Government Benches and those on the Opposition Benches is that this is the Government who legislated for net zero and who introduced the 25-year environment plan. We have been the greenest Government ever. We are also the Government who believe in moving to net zero in a sustainable way. If we are to do that, it is vital that we continue to have the means, through oil and gas from the North sea, to have a just transition. Jobs in the north-east of Scotland need to be protected, as do jobs in Middlesborough, Tyneside and Humberside. It is those on this side of the House who believe that we can have sustainable and prudent new exploration and new drilling. The message from those on the Opposition Benches, whether SNP, Liberal Democrat or Labour, to the north-east of Scotland and to workers in Aberdeen, Middlesbrough, Tyneside and Humberside is, “We put our ideology ahead of your jobs and growth.” Those of us on the Government Benches will not stand for it.
Alan Brown (Kilmarnock and Loudoun) (SNP)
This Budget follows on from the autumn statement, when the introduction of the energy profits levy and the electricity generator levy provided an additional £75 billion of predicted income to the Treasury. That money mostly arose from Scotland’s energy sector. In this Budget, the Government chose to increase the tax rate on whisky by 10%. What does Scotland get in the Budget? Acorn was overlooked once again, but we are expected to be grateful for £320 million of Barnett consequentials over a two-year period. Only the Scottish Tories can think that is a fair return.
One thing is for sure: this Budget is not about the Tories trying to help grow the Scottish economy. We have the highest energy bills in the UK, but we do have our fair share of the biggest cut in living standards since the 1950s and of Brexit’s 4% cut to GDP. Are we supposed to be grateful for being part of the broad shoulders of the UK when that is what being part of the sharing process looks like? There is £65 billion of additional income from oil and gas revenues, yet the UK Government will not even match the Scottish Government’s £500 million just transition fund, even though the Secretary of State was talking about the need for a just transition in the oil and gas sector.
Nothing sums up Tory pork barrel politics more than the fact that three out of the five community projects in Scotland have gone to the constituency of the leader of the Scottish Tories. That, plus £1.5 million for a bridge to be repaired that the local Tory council thought was too low a priority for them to bother with. What the Treasury does not say is that the whisky distillers in Speyside alone will be handing over more additional duty to the Treasury than the pennies that it is giving back in community projects. Where is the Scottish Tory leader on standing up for the whisky industry against the 10% duty rise? Is he pointing out the fact that 75% of the cost of a bottle of whisky is now tax to the UK Exchequer, or that draught beer, wine and cider are to be subsidised while 99% of spirits are excluded from the scheme? Let us not forget that distillers are excluded from the energy intensive industries support scheme, while other alcohol producers receive support. Instead of trying to grow the whisky industry, it is clear that the UK Government are treating it unfairly within the overall alcohol production sector.
When it comes to energy considerations, it seems that the intention is to sabotage the good work that has gone on in the renewable energy sector. While the United States has the Inflation Reduction Act, the Tories have given us the energy generator levy, but with no corresponding renewable investment allowance to encourage reinvestment. We had an announcement of £20 billion in funding for carbon capture and storage, but Acorn did not even get a mention in either the Budget book or the speech. That is shameful given the history of pulling funding from Peterhead.
Paragraph 4.99 of the Budget document mentions track 1 expansion later this year. Is that a realistic prospect for Acorn? If not, what is the timescale for announcing the track 2 processes? Not only is Acorn the most advanced cluster and the easiest to deliver, its progress is needed to address greenhouse gas emissions from Scotland’s two biggest polluters. It is the only way that Scotland can meet its 2030 commitments. The next time that Scottish Tories complain about Scotland possibly missing emission targets, they had better look in before they look out, and question the decisions made down here.
On storage, we have well-established pumped storage hydro technology, which is suited to complementing renewable energy. It uses spare energy to pump fill reservoirs and can generate electricity when there is peak demand. Coire Glas has been consented since 2020. SSE has £1.5 billion of capital available to invest in it. Just today, it has announced a £100-million commitment for site investigation and advance design works. It would be the first pumped hydro storage scheme to be constructed in the UK in 40 years, and would double the capacity of pumped storage in the UK while creating 500 construction jobs in the highlands. It will be able to power 3 million homes continuously for 24 hours. No subsidy is required; it is not looking for a regulated asset base model or even for taxpayers to share the risk. All that industry is asking for is a cap and floor mechanism to stabilise the price received for electricity generation.
I have raised this issue countless times over the years. The previous Secretary of State for Business, Energy and Industrial Strategy let his guard down by calling it a Scottish technology. That really does show the motives for the UK Government not to move forward with it, but they really need to revisit it. On the possibilities for pumped storage hydro, Drax has submitted a planning application to more than double the capacity at Cruachan dam, to take it up to 1 GW of generation capacity. Those are exactly the type of schemes that should complement intermittent renewables and take us towards the construction of a stable, low-carbon, truly renewable system. In contrast, National Grid ESO spent £4 billion to turn off wind turbines due to grid constraints. We need a better way of managing the grid system though a whole system approach, otherwise we are throwing money away.
If we are looking at a truly green system, the Budget document is notable for not using the phrase “green hydrogen” once. Are the UK Government now content to fall behind other countries? What is the real scale of their ambition? The day after the Budget, we had the updated allocations for the next renewable energy auction for assessment report 5. So despite rampant inflation and despite some projects struggling against the strike rates agreed for allocation round 4, the Government have decided to cut the overall budget by 30%. It is madness, and that needs to be revisited urgently.
Then we have tidal stream. Scotland is genuinely leading the world. MeyGen in the Pentland Firth is the largest consented tidal stream site in the world. It has generated 75% of the world’s tidal stream energy to date, but has seen a 50% cost increase since securing its allocation round 4 contracts for difference because of external inflation factors. The project can still go on and deliver against that, but only if it secures enough money going forward to be able to scale up. Instead of increasing the ringfenced budget for the tidal scheme, the UK Government have halved it, which puts the project and that technology at risk. Again, I ask the Government to revisit how they are doing this, because the project is an opportunity to grow our technology with a UK-based supply chain and then export that knowledge and technology around the world.
We have come to one of my hobby-horses: the UK Government have absolutely no problem with throwing money and promises at nuclear energy, with a £700 million stake in Sizewell C and the creation of Great British Nuclear, which is an oxymoron if there ever was one. The simple facts are that there is not yet a successful EPR nuclear project anywhere in the world. The only EPR station generating electricity to the grid is Taishan in China, but even that had one reactor offline for a year with damaged fuel rods, which is a possible inherent design flaw in EPR design. Olkiluoto 3 in Finland is 14 years late. It connected to the grid last March, but a year on it is still only in trial operation mode. The EPR in Flamanville, France, is four times over its original budget and a mere 10 years behind schedule.
“Now but,” they tell us, “all the lessons have been learned from these projects in time for Hinkley Point C.” However, Hinkley Point C was estimated to cost £18 billion in 2016, but it is now estimated to cost £33 billion, and guess what? It is running years late. Yet the collective madness from the Tory Front Bench, encouraged by the Labour Front Bench, says, “Let’s not worry. We will sort out the problems and we will learn the lessons for Sizewell C. What could go wrong?”
Even if they believe Sizewell C will cost less in relative terms than Hinkley Point C, given that Hinkley Point C is already estimated to cost £33 billion and that construction inflation and material costs are increasing all the time, Sizewell C will cost upwards of £35 billion, without any shadow of doubt. How can they talk about reducing debt when they want to put a further £35 billion of debt on our energy bills? It makes no sense.
And then we have the insult of passing that as a green technology. If we look at the costs of the existing nuclear waste legacy we see that the Nuclear Decommissioning Authority estimates it is going to cost us £235 billion to clean up. There is no solution yet for dealing with radioactive waste other than burying it for thousands of years, so why do we want to pass that as a green renewable energy system?
I am sure others will touch on this, but we have one other great hope for nuclear: small modular reactors. The reality is that there is not even a regulator-approved design in the UK for an SMR yet, but somehow Rolls-Royce says it could have them operational by 2029. It is the same rhetoric and the same mistakes, over and over again. In reality, each SMR will cost roughly £2 billion, so they are hardly a cheap alternative source of energy generation. If SMRs are so attractive, why is the taxpayer being asked to pay half the cost of a prototype and then sign up to a 35-year extortionate deal in terms of strike rates? It makes no sense, if it was so commercially viable.
In reality, nuclear means billions of pounds of increased debt added to our energy bills and future generations paying for decommissioning and handling of waste, no matter the pretence that that is somehow included in upfront estimates. It means years of further delays, when that money could and should be invested in renewable energy, storage, green hydrogen and, of course, in energy efficiency upgrades.
When people talk about the job creation that comes from nuclear, well of course spending £35 billion will create some jobs. The important thing is the cost-benefit ratio in terms of job creation, which can be done much better through alternatives.
It is clear that within the UK, Scotland has a drag on its economy and energy policy. We might be expected to doff our caps because of the £320 million of Barnett consequentials we are getting over two years, but I would argue that that, in the words of the Chancellor, is the very epitome of dependence, rather than independence, and I look forward to working with the Chancellor to secure the latter.
Mr McFadden
My hon. Friend is absolutely right. After 13 years, there really is nowhere left to hide.
Despite the Budget being billed as a Budget for growth, the UK is still experiencing the slowest recovery from covid in the G7. All the countries that make up this group had to cope with the pandemic. All of them have suffered the consequences of Russia’s invasion of Ukraine, yet Britain’s recovery is the slowest.
What is it about Conservative stewardship of the United Kingdom that makes us stand out in this way? Is it the political chaos inflicted on the country by the Conservative party, which makes a Chancellor who gets to deliver a Budget such a rarity? Is it the fact that, since 2010, our productivity growth has been the second lowest in the G7? Is it the disastrous Tory mini-Budget last year, which they would like to bury under 10 feet of concrete, but which people will not forget? It caused borrowing costs to soar, put our pension system on life support and rocked international confidence in the UK economy. Is it the former Prime Minister’s Brexit deal, which was supposed to give us global Britain but instead gave us the problem of how to send a sandwich to Belfast?
It could be all those things, but whatever the reasons, the overriding fact for our constituents is that they are still living through the biggest fall in living standards in living memory. Their money goes less far, their incomes have been squeezed and they are living in a country that is poorer than it was four years ago.
Alan Brown
The right hon. Member mentioned Brexit. Are not some of the issues related to Brexit associated with leaving the single market, leaving the customs union and not being part of freedom of movement? That has a big detrimental impact on the economy and Labour will not change any of that.
Mr McFadden
I understand why people regret the result. What I do not understand is why the response to that should be to erect even more trading barriers inside the United Kingdom, as the hon. Member wants to do.
Even if the fall in living standards is at its most severe this year and next, it is not just a short-term dip, because since the Government took office, real-terms wages have not risen and are not expected to get to their pre-2010 levels until 2026. That is what people feel in their lives—that year after year, it gets harder to make ends meet and harder to pay the bills. The question that people are asking themselves is the one that has been posed by the shadow Chancellor, my right hon. Friend the Member for Leeds West (Rachel Reeves). Are my family and I better off? The answer is no. Are our public services in better shape now than when the Tories took office in 2010? Time after time, once again, the answer is no.
When he made his statement last week, I thought there was one significant thing about the way the Chancellor spoke: he was happy to own the whole 13 years that his party have been in office.
John Glen
No, I will not.
Inflation in the UK will fall from 10.7% in the final quarter of last year to 2.9% by the end of 2023. If debt is left unchecked, it acts as a ceiling on our economic potential. That is why we are bringing it down. Under this Government, we will pay our own way.
On growth—the focus of the Budget—there were those who said that we would fall into recession in 2023, but last week the OBR said that we will not enter a recession this year. Instead, after this year, the UK economy will grow in every single year of the forecast period, including by 2.5% in 2025. As we look to the future, we are now rolling out the biggest employment package ever, we are overhauling incentives to get businesses growing, and we are unleashing our green energy sector while supporting families and businesses with bills in the short term. But, contrary to the characterisation in many Opposition speeches today, there is no complacency from this Government. There will be no let-up in our relentless focus on enabling growth.
The subject of today’s debate is halving inflation, reducing debt and growing the economy. During the course of the debate, we have heard some excellent speeches from right hon. and hon. Members on both sides of the House, and I would like to respond to some of them now. I will respond first to my right hon. Friend the Member for Middlesbrough South and East Cleveland (Mr Clarke), one of my predecessors. Although he welcomed many measures in the Budget, he drew attention to the question of corporation tax. Let me draw his attention to the remarks of the Chancellor, who expressed his determination that the full expensing measure will be a permanent intervention of this Government.
I thank my right hon. Friend the Member for North West Hampshire (Kit Malthouse), my parliamentary neighbour, for his constructive suggestions about the simplification of childcare. I also draw his attention to the fact that this Government have committed £492 million over this year and next to ease the supply for those who will provide our child support.
I also want to refer to the speech from my hon. Friend the Member for South Cambridgeshire (Anthony Browne), who gave us a helpful contextualisation of the world economy and pointed out the fact that, contrary to what we heard in many Opposition speeches, since the Conservatives came to power in 2010 we have grown more than major countries such as France, Italy or Japan, and about the same as Europe’s largest economy, Germany. We have halved unemployment, cut inequality and reduced the number of workless households by 1 million. I also want to refer to my hon. Friend’s remarks on the pensions intervention. That was called for by many in the medical profession over many months, but our pension reforms benefit other experienced key workers as well as doctors, including headteachers, police chiefs, armed forces clinicians, senior armed forces personnel, air traffic controllers, prison governors, senior Government scientists, Government-employed vets and, yes, even senior people in the private sector who create jobs, sustaining growth across the economy.
I also thank my hon. Friend the Member for Harrogate and Knaresborough (Andrew Jones), who had a characteristically clear understanding of how economic challenges will be met. He also mentioned the support of his local brain surgeon. Many more people working in the NHS are realising that within two weeks they will be able to continue working, knowing that their pensions are safe.
I thank my hon. Friend the Member for Filton and Bradley Stoke (Jack Lopresti) for his remarks on defence expenditure. I suspect that there will never be enough money for him on defence, but he shows a clear understanding of the extra commitment the Chancellor has made in the Budget to invest in continuing to support our efforts in Ukraine.
There were many other worthwhile contributions from Members on both sides of the House, and I think it is important that we recognise that one of the major themes of this Budget was levelling up across the whole United Kingdom. I welcome the contribution from my hon. Friend the Member for Barrow and Furness (Simon Fell), who drew attention to the value of the announcements on nuclear, particularly Great British Nuclear, and the transformation that will bring to his economy and to the country as a whole.
Alan Brown
On nuclear, and the fact that the Minister is talking about reducing debt, why does he think it is a good thing to sign bill payers up to £35 billion of debt for Sizewell C through the regulated asset model? Surely that is just a burden on all future generations.
John Glen
What is important is that this country knows that we have a Government who will take long-term decisions about energy security for this country.
I would like to address a number of significant themes of this afternoon’s discussions on the cost of living. Support for households with higher bills has been worth £94 billion—on average, £3,300 per household—across 2022-23 and 2023-24. That means that in this coming year more than 8 million households on means-tested benefits will receive three cost of living payments totalling £900; more than 8 million pensioner households will receive a cost of living payment of £300; and more than 6 million people on disability benefits will receive a cost of living payment of £150. Since this Conservative Government came to power in 2010, we have grown more than major countries such as France, Italy or Japan, and we are now on track.
I want to address public sector pay, which was also raised by a number of Opposition Members. Through the efficiency and savings review, Departments have reprioritised and identified further efficiencies, building on the 5% efficiency challenge set at the 2021 spending review.
We have faced a global energy crisis. We have had high global inflation. There has been a global economic downturn. We needed to bring about stability—we did. We needed sound money—we have it. We now need long-term, sustainable, healthy growth—this Budget delivers it. Many Opposition Members have asked who this Budget was for. It was for the families struggling with energy bills, the left-behind communities that will receive record investment, and the entrepreneurs who drive growth. The OBR’s forecasts show that this Budget will deliver improvements in growth and inflation, but this Government will continue to do everything we can to beat those forecasts. It is with humility, focus and determination that we tackle the challenges facing this country. We will deliver a stronger, cleaner economy for the whole of the United Kingdom, and I commend this Budget to the House.
Question put and agreed to.
Resolved,
That income tax is charged for the tax year 2023-24.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
The Deputy Speaker put forthwith the Questions necessary to dispose of the motions made in the name of the Chancellor of the Exchequer (Standing Order No. 51(3)).
Oral Answers to Questions
Alan Brown Excerpts(1 year, 11 months ago)
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David Linden (Glasgow East) (SNP)
Alan Brown (Kilmarnock and Loudoun) (SNP)
The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Felicity Buchan)
When we work together as one United Kingdom, we are safer, stronger and more prosperous. We are better able to tackle the big problems—from supporting families with the cost of living, to leading the international response to Russia’s war in Ukraine and to being a world leader in offering the vaccine to all our citizens. We are taking specific action in Scotland, Wales and Northern Ireland, including putting local voices at the heart of decision making.
Felicity Buchan
We respect the priorities of the Scottish people, who are focused on improving the NHS, on education, on tackling inflation and on getting a ferry that actually works and takes them to the islands. We will work in co-operation with the Scottish Government. We respect devolution and we want to work with them to implement the people’s priorities.
Alan Brown
If the Government and the Minister, as a proud Scot, respect the wishes of Scottish voters, surely they will respect the votes in the last Scottish parliamentary election, which elected a pro-independence majority in Parliament. Also, an opinion poll last year showed that 72% of Scots want to remain in the EU—what has happened to respecting that wish? If this is a voluntary Union, what is the mechanism for the people of Scotland to demonstrate their consent or otherwise to staying in it?
Felicity Buchan
I am very proud to be a Scots person. The hon. Gentleman mentioned the 2021 Holyrood elections: less than one third of the Scottish electorate voted for the SNP in that election.
Called-in Planning Decision: West Cumbria
Alan Brown Excerpts(2 years ago)
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Alan Brown (Kilmarnock and Loudoun) (SNP)
The decision has been condemned by the Chair of the Climate Change Committee. Chris Stark, chief executive of the committee, retweeted that this is
“climate vandalism and economic incompetence on a scale difficult to believe”.
The International Energy Agency previously stated that no further fossil fuel projects can be built if net zero is to be achievable by 2050 and OECD countries need to end use of coal by 2030, so why license this mine to 2049? Ron Deelan, a former chief executive of British Steel, called it
“a completely unnecessary step for the British Steel Industry”.
Chris McDonald, chief executive of the Materials Processing Institute research centre, previously advised that British Steel could not use this coal because it is
“not of the right quality”.
The reality is that 85% of this coal is going to be exported, so talking about cancelling imports is a complete red herring. What we are doing is increasing our carbon footprint to support industry in the EU. It is illogical and we know demand for coking coal will fall, as the EU is further ahead on the development of green steel. Where is the UK progress on green steel? Coking coal is not even identified on the UK’s critical mineral strategy or in the National Security and Investment Act 2021, although it is a critical mineral for the EU. But, clearly, this mine is not needed for the UK. Given this decision, what steps are being taken to rapidly accelerate the net zero pathway, for example, by changing the Scottish carbon capture and storage cluster to track 1 status?
The Secretary of State hides behind the recommendations of the Planning Inspectorate. Why did his Government override the Planning Inspectorate on Sizewell C? This coking coal is not critical for the UK. It is going to be exported, so why has he made this decision just to appease Tory Back-Bench climate change cynics?
Michael Gove
I am grateful to the hon. Gentleman for his questions. He quotes a number of individuals and draws explicitly—he was good enough to acknowledge this—party political conclusions. I relied on the inspector’s report and on the evidence in front of me. As I explained in my decision letter, no evidence was provided to suggest that any other metallurgical coal mine in the world aspires to be net zero, so the proposed mine is likely to be much better placed to mitigate greenhouse gas emissions than comparative mining operations around the world. On that basis, it is entirely in keeping with our net zero commitments, and indeed with the commitment to not only jobs, but the environment, to approve the inspector’s case.
Oral Answers to Questions
Alan Brown Excerpts(2 years, 1 month ago)
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Gavin Newlands (Paisley and Renfrewshire North) (SNP)
Alan Brown (Kilmarnock and Loudoun) (SNP)
The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)
Ministers meet their counterparts in the devolved Administrations regularly, and on 10 November the Prime Minister and First Ministers met in Blackpool to discuss the economic outlook and working together on the cost of living. The Chancellor of the Exchequer joined that meeting virtually. The Chief Secretary to the Treasury met with Finance Ministers in the context of the autumn statement, and officials in all Departments remain in constant contact in the interests of all of the people across these islands.
Michael Gove
We will announce shortly the details of levelling-up bids and freeport bids. But when it comes to delays in implementation and the industrial investment that the west of Scotland needs, I simply and gently draw the hon. Gentleman’s attention to the divergence between a UK Government who have recently delivered six new warships on the Clyde and the Scottish Government who in the meantime could not even finish painting the windows on a ferry.
Alan Brown
We are supposed to be eternally grateful for the £1.5 billion of Barnett consequentials over two years, but that is easily dwarfed by the £1.7 billion of inflationary pressures on the Scottish budget this year. When the Secretary of State discussed with the Scottish Government Scotland’s needs, such as the need to cover that £1.7 billion inflation cut, the additional money for pay and their other spending priorities, did he just ignore what they were saying?
Michael Gove
No, we never ignore what the Scottish Government are saying. We have fruitful relationships with Ministers in not just the Scottish but the Welsh Government. I gently point out to the hon. Gentleman that, although he rightly acknowledges the Barnett consequentials—the Union dividend—that the Treasury pays to the people of Scotland, when he talks about inflation, he does not acknowledge that, if we were to follow the Scottish National party’s approach to a separate currency for an independent Scotland, we would see a flight of capital, massive interest rate increases and galloping inflation there. There would be no worse consequence for working people in Scotland than the currency folly that his colleagues put forward.
Ukraine Sponsorship Scheme
Alan Brown Excerpts(2 years, 9 months ago)
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Michael Gove
There are at least two very important points there. First, of course we need to move faster to move people from hotel accommodation into more suitable long-term accommodation, but there are constraints. I am not criticising anyone; it is just that there are constraints in Luton and elsewhere. That is why we need to think about how we can find, and indeed secure, more suitable accommodation. We have done amazing work—the Under-Secretary of State for Levelling Up, Housing and Communities, my hon. Friend the Member for Walsall North (Eddie Hughes), has done amazing work—in making sure that homeless people, some of whom were originally from eastern Europe, are off the streets and in secure and safe accommodation, but more must be done.
The £350 payment has been designed to support people who are offering up their own homes, but let us see how it goes and see what more we can do in future.
Alan Brown (Kilmarnock and Loudoun) (SNP)
Bryce Cunningham of Mossgiel farm in my constituency has already done a fantastic job of organising getting aid out to a Polish charity. He is interested in being a sponsor and providing employment for Ukrainian refugees, but he does not have the physical accommodation in which to put them up. Would he be able to use the £350 a month housing allowance to, say, come to a rental agreement with the local authority? Would the Secretary of State reconsider allowing local authorities and community bodies to access that £350 a month so that we can provide as much help as possible for as many refugees as possible?
Michael Gove
Although I do not know all the details of the hon. Gentleman’s constituent, it seems to me that what he wants to do is wholly admirable and something that we should facilitate. I will ask my team to be in touch with the hon. Gentleman and East Ayrshire Council to make sure that they can deliver in the way required.
Post Office Court of Appeal Judgment
Alan Brown Excerpts(3 years, 7 months ago)
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Paul Scully
I thank my hon. Friend for his work in this area. There are clearly wider lessons to be learned from this, as well as the direct lessons about who knew what in the Post Office. It is about justice and how private prosecutions work, although there has not been a private prosecution in this area for a few years now. We also heard stories about people pleading guilty to lesser charges to try to avoid prison. That is not justice as we see it. There are clearly wider lessons to be learned that I am sure the Government will look at.
Alan Brown (Kilmarnock and Loudoun) (SNP)
Following on from that point, the reality is that the Post Office remains the only body in the UK to run its own prosecutions and it starts from an assumption of guilt when it comes to disputes. Here, for Horizon, it acted as judge, jury and executioner, operated at standards way below the CPS and blocked the forensic account in Second Sight’s Horizon review. When is the Post Office going to be stripped of these prosecution powers? When will a fair dispute resolution process be put in place?
Paul Scully
As I said earlier, there have been no private prosecutions in this area for a number of years, but clearly there are lessons that need to be learned. That will be addressed in the inquiry.
Greensill Capital
Alan Brown Excerpts(3 years, 8 months ago)
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Paul Scully
Treasury Ministers, like other Ministers, have had a number of meetings with lenders of all sorts, because as we heard earlier it is so important to have a diversity of lenders involved to create an understanding of their model and what support they can give. The accreditation itself was determined independently by the British Business Bank.
Alan Brown (Kilmarnock and Loudoun) (SNP)
The inquiry announced by the Prime Minister seems to focus on the actions of David Cameron, but it is quite clear that the bigger consideration is the actions of Government Ministers and how they interacted to get Greensill what it wanted. It goes along with Government business as usual: crony appointments to the House of Lords and crony appointments to external bodies and regulators. Tory peer Baroness Harding was appointed to roll out the failed track and trace system. Then we have all the dodgy PPE contract awards. Surely it is not a short inquiry that is needed, but a public inquiry into the entire actions and dealings of this Government.
Paul Scully
The review goes beyond the actions of one man in this matter, but it is important to remember that the Chancellor in particular rejected what Greensill actually wanted, so there is no case in that regard, because that was rejected out of hand.
Coronavirus: Supporting Businesses and Individuals
Alan Brown Excerpts(3 years, 9 months ago)
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Alan Brown (Kilmarnock and Loudoun) (SNP) [V]
We are effectively a year on, and solutions for the 3 million excluded still have not been found, so we know that this is a Government choice. Excuses about quick implementation, complexities and the risk of fraud no longer stand up to scrutiny as an excuse for doing nothing.
Let us look at the limited company director issue. First, it is absurd to still be going on about being unable to distinguish between earned income and unearned income from dividends. It is quite clear that the majority of these sole traders are not exactly living it large from a portfolio of other investments, and HMRC has access to their tax returns. There is a solution available: the directors income support scheme, which is supported by the Association of Chartered Certified Accountants, ForgottenLtd and the Federation of Small Businesses. This award would be based on the trading profits of a company. Maximum thresholds could be applied, and the Government could even look at rates being based on the living wage, but there seems to be a dogged determination that nothing is possible.
Let us also look at the lack of targeted sectoral support that has been announced. The Scottish Government and other devolved Administrations have responded much better in this regard. In Scotland, for example, there has been food wholesaler funding, given that these major suppliers were excluded from hospitality sector support. The UK Government need to do likewise, given the extended lockdown we are still in. They also need to copy the bus, coach, taxi and private hire funding packages, among other things. Now is the time for the UK Government to look forward by investing in battery and hydrogen-powered buses. It is an ideal time to support manufacturers in a way that will grow businesses as well as provide short-term support.
Where is the support for the wedding industry and the travel industry? The latter is even more crucial, given the restrictions that will be in place for a long period. The Scottish Government have announced a further rates relief extension for airports and a travel agent support scheme. Surely the UK Government could do likewise, which would create further Barnett consequentials.
We know that freelancers in the creative industry have been completely hung out to dry. To make matters worse, Brexit and the lack of visa-free travel has taken away further work opportunities, which is completely crazy.
If we look at the hospitality and leisure industry, we see that the Scottish Government have just committed to rates relief for the next year, which goes beyond Labour’s call for six months. In this period, we should also look at extending the temporary VAT level of 5% for the full year, considering the latest road maps we have, where some businesses could be looking effectively at a five-winter scenario. This ties in with the need to start looking at converting these loans to equity or grants. When the loan schemes were first devised, it was not envisioned that we would still be in restrictions a full year later, so clearly, the terms of these loans need to be reassessed.
Going forward, there is going to be a massive debate about what an independent Scotland could do to recover better, and I look forward to that as well.
United Kingdom Internal Market Bill
Alan Brown ExcerptsWednesday 16th December 2020
(4 years ago)
Commons ChamberRead Full debate United Kingdom Internal Market Act 2020 View all United Kingdom Internal Market Act 2020 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Commons Consideration of Lords Message as at 16 December 2020 - (16 Dec 2020)
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.
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.
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.
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.
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.
United Kingdom Internal Market Bill
Alan Brown ExcerptsTuesday 15th December 2020
(4 years ago)
Commons ChamberRead Full debate United Kingdom Internal Market Act 2020 View all United Kingdom Internal Market Act 2020 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: HL Bill 159-I Marshalled list for consideration of Commons reason - (15 Dec 2020)
Paul Scully
The purpose of the Bill has been from the start and remains to give businesses certainty as we leave the transition phase—to have one single internal market.
Alan Brown (Kilmarnock and Loudoun) (SNP)
The Minister spoke about certainty for business. Can he give an example of something that he thinks would fall in these exclusions that would cause widespread panic in businesses in the UK?
Paul Scully
The hon. Gentleman needs to speak to Scottish businesses more to see that they are concerned. They want to have the Bill in place to have the certainty, with 17 days to go until the end of the transition phase.
It is important to reiterate that the common frameworks are processes, not outcomes, and therefore broad exclusions are not suitable in this legislation. That leads me to amendments 1F, 1G, 1H, 1J, 1K and 1L. The common frameworks programme facilitates a conversation about a common approach and thus provides for consensus-based decision making in sectoral areas of the economy. However, it is neither the purpose nor in the purview of common frameworks to determine whether matters should or should not be in the scope of the market access principles. It is only right that the UK Parliament and parliamentarians from across the UK have the final say on this matter.
The Government also believe that the system that they have designed creates a proper balance between the independent operation of devolved powers and the automatic application of the principles that protect the market and give certainty.
Alan Brown
The Lords have tried to improve the Bill, but it has been subject to only minor improvements. I wish that, during ping-pong, the Lords had done double insistence and brought down the whole rotten Bill. That is what is really needed—for it to go away and be brought back in a completely different form.
It is no wonder that the Government have been so pig-headed about rejecting these amendments. As we have heard, last night in the Lords, Labour—the self-styled party of devolution—gave up the key fundamentals and principles of devolution. It gave up on direct spending and on state aid, which drives a coach and horses through the whole devolution settlement. It gives Westminster carte blanche to do what it wants in Scotland and Wales, where there is a Welsh Labour Government. Labour has given up on its own Government in Wales.
When summing up in last night’s debate, Lord Thomas said that the one thing he was holding on to was the thought of
“the catastrophic result for our union if the Government did not adhere to the principles that have been explained”.—[Official Report, House of Lords, 14 December 2020; Vol. 808, c. 1480.]
Basically, he hopes that the Tory Government will do the right thing. If not, that will bring down his precious Union. It seems that Labour is now relying on this right-wing Tory Government to do the right thing with the precious Union—good luck there.
On Lords amendment 1F, the Government have already refused to adhere to the common frameworks principle and enshrine that in the Bill as a way for the devolved nations to co-operate. The amendment massively waters down that principle, but it would prevent divergence on harmonised rules that have been agreed through the common frameworks. Why do the Government want to reject that? If there is agreement between the nations, and common frameworks with agreed rules and regulations, why do the Government reject that that is something to be protected? That tells us everything we need to know about what they think of devolution.
It has been said many times, but it is worth repeating. The Prime Minister has said:
“A pound spent in Croydon is of far more value to the country than a pound spent in Strathclyde.”
Who is kidding who if we think that this Tory Government, under that Prime Minister, are suddenly going to spend lots of money in Scotland and Wales for our benefit? It is a joke and it undermines their whole attitude to devolution.
On state aid and Lords amendment 8M, why do the Government want to reject protection of environmental standards and of public health? Why should those things be excluded from the simple protection of state aid? Again, that tells us all we need to know about what they think of devolution. What Lord Thomas says is going to happen: the Union will end.
Joanna Cherry
I support the Lords amendments because they seek to protect the devolved settlements and also policy divergence across the United Kingdom. Lord Hope’s amendment attempts to salvage the common frameworks process and to prevent this UK Government from giving themselves the power to override policy divergence in devolved areas. As Lord Hope himself said:
“It was because of devolution that the common frameworks process, and the opportunity for policy divergence, was instituted with the encouragement of the UK Government in the first place. Their support for that process must involve support for policy divergence too.”—[Official Report, House of Lords, 14 December 2020; Vol. 808, c. 1446.]
He is quite right. Lord Stevenson’s amendment exempts environmental standards and public health from market access principles. In so doing, it also seeks to protect policy divergence. As Baroness Bennett pointed out in the Lords, the smaller nations of the United Kingdom have often led the way on environmental policy divergence and it would be a shame if that was to stop.
I am speaking with a sense of weariness and inevitability because we have all been here before and we all know what is going to happen today. We know that these amendments will be defeated by a Tory majority that does not represent the political reality on the ground in Scotland, or indeed Wales. Once more, the Minister will get to his feet and mouth meaningless platitudes about speaking to the devolved Administrations. Scotland did not vote for Brexit. Scotland did vote for devolution. It is anti-democratic that Brexit is being used to undermine devolution, and it is happening in breach of all the promises that were made to no voters in 2014, including the infamous vow, which included a promise from all three parties that the Scottish Parliament, as well as getting extensive new powers, would have the final say on spending in all devolved matters.
It is therefore a really sad state of affairs that the official Opposition could not field a single Back Bencher to speak up for devolution today. I know that they only have one hon. Member in Scotland, but they are not always averse to putting forward MPs from other parts of these islands to opine on Scottish affairs. Their no-show here today is not surprising, though, given that their colleagues in the Lords sat on their hands yesterday with regard to amendments seeking to keep state aid a devolved matter and Lord Thomas’s amendment challenging the Government’s clauses on direct spending in devolved areas. This is happening in direct breach of the vow that the then leader of the Labour party signed. But Labour does not care. It is happy to wheel out Gordon Brown to talk about federalism when independence is riding high, but when it comes to defending the existing devolved settlement, it is missing in action. This is a shameful state of affairs, and it falls to the SNP to defend devolution. We are doomed to fail, but that will simply further reinforce the case for independence.