Oral Answers to Questions

Debate between Alan Brown and Lord Wharton of Yarm

Monday 14th December 2015 Commons Chamber

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

9. What assessment he has made of the effect of policies in the spending review and autumn statement 2015 on his Department's expenditure on policies and services which in Scotland are devolved to the Scottish Government.

[The Parliamentary Under-Secretary of State for Communities and Local Government (James Wharton)]

As the hon. Gentleman will know, the services of this Department are devolved to Scotland, so there are Barnett consequentials of spending decisions that affect the Department. As a result of the spending review, the Scottish Government’s capital budget will increase by 14%.

[Alan Brown]

The Chancellor confirmed in the autumn statement the extension of the right to buy to housing associations, thereby effectively privatising them. As we all know, the existing right to buy has decimated social housing stock throughout the United Kingdom. The Scottish Government recognised that, and abolished the right to buy. Given that the new discounts and the so-called one-for-one replacements are not being financed by additional Government funding, will the Minister explain what effect the Chancellor’s proposals will have on housing in Scotland?

[James Wharton]

The hon. Gentleman is right to draw attention to the policy intention to replace homes on a basis of at least one for one, which is greatly welcomed by Conservative Members. As I have said, the spending review will have a Barnett consequentials impact on the Scottish Government’s capital budget, amounting to £1.9 billion, which is in addition to the borrowing powers they already have. That will enable them to deliver on what they want to do for Scotland—just as we want to deliver on our objectives and manifesto priorities in England and Wales.

--- Later in debate ---

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

Further to my earlier question, if the new one-for-one replacement for right to buy was funded directly by the UK Government instead of other means, what would the Barnett consequentials be for Scotland?

[James Wharton]

As I said earlier, the Scottish Government are seeing a significant increase in their capital budget as a result of the announcement in the spending review. The Barnett consequentials of individual policies are worked through and delivered. The British Government—the Government here in this place—meet our obligations in that regard, and will continue to do so, to ensure that the Scottish Government get a fair deal and can continue to deliver what they need to deliver to meet their obligations and the concerns of hon. Members.