Smith Commission

Debate between Alistair Carmichael and Iain Stewart

Thursday 27th November 2014 Commons Chamber

[Mr Carmichael]

The Barnett formula remains in operation, but only for the portion of the budget going to the Scottish Parliament that is not accounted for by the taxes that are currently reserved here and are going to be devolved. Detailed technical work is currently under way on this between the Treasury and the Scottish Government. Announcements will be made on its practical application in relation to the 2012 powers in fairly short order.

[Iain Stewart (Milton Keynes South) (Con)]

I particularly welcome Lord Smith’s comment in his foreword to the document,

“that neither the Scottish nor UK Governments will lose or gain financially from the act of transferring a power.”

Following on from the remarks of my right hon. Friend the Member for Banbury (Sir Tony Baldry), does that not underline the fact that if a Scottish Government wanted significantly to increase public spending in Scotland, Scottish taxpayers would foot the bill, and that is good for the accountability of Holyrood?

[Mr Carmichael]

I could not agree more. The Scottish Government keep telling us that they want to spend more money; well, now they can, and in order to do so they will have to raise taxes or cut money elsewhere. That is how politics works.

Scotland within the UK

Debate between Alistair Carmichael and Iain Stewart

Monday 13th October 2014 Commons Chamber

[Mr Carmichael]

Lord Smith has been charged with building a consensus in relation to further powers for the Scottish Parliament. I am sure that if the hon. Gentleman has a view informed by his experience of devolution in Northern Ireland, Lord Smith will certainly be interested to hear it. Given the remit that we have given Lord Smith, however, I do not expect him to say anything in relation to changes for Northern Ireland.

[Iain Stewart (Milton Keynes South) (Con)]

Will my right hon. Friend assure me that the business community on both sides of the border will be fully consulted on the further devolution of powers over personal taxation, because they shoulder much of the administrative burden? Much as further devolution might be desirable, it must not increase the regulatory burden on wealth and job creators on both sides of the border.

[Mr Carmichael]

Indeed, the voice of business is very important in this process, as it was throughout the referendum campaign. I know from my discussions with the CBI, the chambers of commerce and others that they are working on their proposals. I urge all collective organisations, individual businesses and individual citizens who have something to say to come forward and say it—this is their time.

Oral Answers to Questions

Debate between Alistair Carmichael and Iain Stewart

Wednesday 2nd July 2014 Commons Chamber

[Mr Carmichael]

That was pitiful. I cannot believe it sounded good even when the hon. Gentleman rehearsed it in the mirror this morning. It is typical, though, of what we hear from the Scottish nationalists. They are desperate always to talk about how we will debate. They do that only because they want to avoid the actual debate, because they know that the force of argument is on the side of those of us who want to remain in the United Kingdom.

[Iain Stewart (Milton Keynes South) (Con)]

15. Will my right hon. Friend make sure that before 18 September the public have full information at their disposal about the significant extra powers for the Scottish Parliament for which this Parliament has already legislated? It is perfectly possible for Scotland to have more autonomy without ripping up our country.

[Mr Carmichael]

That is exactly the position. As of next year, as a result of the Scotland Act 2012, the Scottish Parliament will have control over stamp duty land tax and the landfill tax, it will have a borrowing power and, come 2016, it will have the power to set a Scottish rate of income tax. Those are significant tax-raising powers. I want to see us go further on that. Of course, that will require Scotland to decide to remain part of the United Kingdom.

Oral Answers to Questions

Debate between Alistair Carmichael and Iain Stewart

Wednesday 7th May 2014 Commons Chamber

[Mr Carmichael]

The only reassurance I can give is that if people in Scotland vote no, they will continue to enjoy the use of the pound and they will continue to have the Bank of England as a lender of last resort. Beyond that, everything is uncertain.

[Iain Stewart (Milton Keynes South) (Con)]

6. What assessment he has made of the potential effects of Scottish independence on cross-border trade and employment.

[The Secretary of State for Scotland (Mr Alistair Carmichael)]

Scotland’s place in the United Kingdom means we have a truly single domestic market, with no barriers to trade and employment across the United Kingdom. Independence would fundamentally change that. The resulting “border effect” would disrupt trade and free movement of workers, reducing real incomes by, it is estimated, around £2,000 per Scottish household per year.

[Iain Stewart]

My constituency is home to a large number of national logistics and distribution companies. Is my right hon. Friend aware of the growing concern in that sector that separation could make some cross-border routes less attractive, as they would become international rather than domestic ones?

[Mr Carmichael]

Indeed, and I hear the same message from a range of business interests. The financial services industry, for example, says that independence would bring extra costs with different taxation and different regulation. The supermarkets have made it very clear that extra costs would fall to Scottish consumers if Scotland were independent.

Oral Answers to Questions

Debate between Alistair Carmichael and Iain Stewart

Wednesday 18th December 2013 Commons Chamber

[Mr Carmichael]

It is a classic of the genre—synthetic outrage at its very best. The hon. Gentleman knows that the Barnett formula is one reason the people of Scotland reject independence. That is why he is operating his own little “Project Smear” to pretend that it is somehow at risk. The position has been put beyond any doubt today by the Prime Minister in a letter to the First Minister. The hon. Gentleman should explain that and tell the people of Scotland that the best way to get rid of the Barnett formula is to vote for independence.

[Iain Stewart (Milton Keynes South) (Con)]

Does my right hon. Friend agree that the Scotland Act 2012 transferred substantial tax-raising powers to Holyrood, and that these complex changes should be allowed to bed in before we start making any further radical changes?

[Mr Carmichael]

Not only do I agree with my hon. Friend on that point, but I believe that the energies of the Scottish Government would be much better served if they were devoted to dealing with the implementation of those highly complex tax changes, which are due to come on stream in 2016, rather than running around and setting up scare stories of that sort.

Oral Answers to Questions

Debate between Alistair Carmichael and Iain Stewart

Wednesday 6th November 2013 Commons Chamber

[Mr Carmichael]

I am grateful to the hon. Gentleman for his welcome to what is, in fact, my first session of Scottish questions as Secretary of State. I have been present for Scottish questions once or twice before.

Let me also associate myself with the hon. Gentleman’s tribute to my right hon. Friend the Member for Berwickshire, Roxburgh and Selkirk (Michael Moore), who did an excellent job. The additional powers that were given to the Scottish Parliament through the Scotland Act 2012 and the negotiation of the Edinburgh agreement are a lasting legacy from him.

I am aware that Glasgow airport is an important asset for the hon. Gentleman’s constituency, and I commend him for the vigorous way in which he prosecutes its interests. I always welcome any representations from Members in any part of the House, but air passenger duty is a matter for the Chancellor of the Exchequer, and the hon. Gentleman should get his representations in early ahead of the autumn statement. Good luck to him.

[Iain Stewart (Milton Keynes South) (Con)]

I, too, welcome my right hon. Friend to his new position.

An important legacy from London 2012 was better working between the transport agencies and providers. May I urge my right hon. Friend to work with Transport Scotland and other agencies to ensure that a similar legacy can be secured for Glasgow?

[Mr Carmichael]

I hope very much that that will happen. A significant transport legacy has already been established by the organisers of the games, and I see no reason why the lessons of the Olympic games, which are substantial and readily available, should not be learnt by those in Glasgow.