United Kingdom Internal Market Bill Debate

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Department: Cabinet Office
Wednesday 16th September 2020

(4 years, 2 months ago)

Commons Chamber
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Alison Thewliss Portrait Alison Thewliss
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This UK Government appear to have no intention of making up the shortfalls on any of those growth deals. The growth deal in Aberdeen was huge and ambitious in setting out to change and challenge the economy in Aberdeen, the end of oil and moving towards that just transition—

Alison Thewliss Portrait Alison Thewliss
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If the hon. Member for Aberdeen has some more money from the UK Government for the growth deal, I would be happy to take his intervention.

Andrew Bowie Portrait Andrew Bowie
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Aberdeenshire—but I will forgive the hon. Lady for that mistake. I want to take her back to her point about bridges. On investment in bridges, will she join my campaign to get the Scottish Government to release much-needed funds to replace Park bridge, Abbeyton bridge and Oatyhill bridge, which cannot be reopened or replaced because the Scottish Government are starving Scottish local authorities and their ability to maintain vital infrastructure? We might be able to give money to that if the Bill is passed next week.

Alison Thewliss Portrait Alison Thewliss
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I would like to find out how much money the UK Government would like to put to that, because they have not put money to anything very much so far. I am sure the Scottish Government will hear his plea on that issue, and I hope to hear more about that.

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Alison Thewliss Portrait Alison Thewliss
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My hon. Friend is correct. These matters are clearly for the Scottish Parliament and the Scottish Government to decide, and the Bill is overreach at a ridiculous level. Either this legislation is very poorly drafted, which from the Government amendments it would certainly appear to be, or they do not understand devolution, which seems perfectly clear from the interventions we have had. Are they intent on dismantling 20 years of devolved decision-making on these islands, just so they can stick a flag on something? It is pathetic.

Then we get to clause 47, titled “Financial assistance: supplementary”. Subsection (1) states:

“Financial assistance under section 46…may take the form of grants, loans, guarantees or indemnities…may be provided subject to conditions (which may include conditions about repayment with or without interest)…may be provided under a contract.”

This nefarious Minister of the Crown not only has the power under the Bill to build some infrastructure in our country that the democratically elected Parliament of Scotland has not voted for, but it also gives them the power to stick Scotland with the bill and charge us interest. Gee, thanks guys. What can I say? So generous. It is the Skye bridge all over again. That was the first PFI project in the UK. It opened in 1995 and was notorious for its tolls. The then Scottish Executive had to buy the bridge back a decade later in order to abolish the tolls, which raised more money than the bridge cost in the first place. Do we really want to return to that level of generous investment in Scotland?

Six years ago today, I was pounding the streets of Glasgow with hundreds of other activists, knocking on doors, delivering leaflets and having animated discussions about what a new country could look like. We are a couple of days out from the anniversary of the 2014 independence referendum, which was a watershed moment for so many of us in Scotland. I cannot begin to describe the feelings of hope and excitement there were in the city of Glasgow, where my own constituency voted for Scotland to be an independent country.

I could not have imagined that six years later, I would be standing here, a Member of this Parliament. I could not have imagined that I would have had to fight three elections in five years, and I could not have imagined that Scotland would have been dragged out of the EU against our will. In my worst dreams, I could not have imagined that I would be standing here today, defending the very fabric of devolution from a full-scale attack.

Andrew Bowie Portrait Andrew Bowie
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rose—

Alison Thewliss Portrait Alison Thewliss
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If the hon. Member wants to tell me why he supports this attack, I will bring him in.

Andrew Bowie Portrait Andrew Bowie
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I thank the hon. Lady for giving way. I wanted more to go back to a point about Scotland being taken out of the EU against its will. It is obviously still the SNP’s position to rejoin the EU, and she speaks eloquently and powerfully about this autocratic Minister taking decisions over spending and restricting the powers of Scotland’s devolved Parliament. She is aware of the restrictions and powers of the unelected and autocratic European Commission regarding spending and powers in Scotland. All the powers that are coming back from Brussels to Edinburgh would then be given straight back with all the restrictions that applied before, and then some.

Alison Thewliss Portrait Alison Thewliss
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Those powers are not being given straight back. If we look at the provisions of the Bill, it is perfectly clear that, as the explanatory notes state:

“This creates a means for the UK Government to provide funding across a range of largely devolved areas that would sit alongside any funding provided by the devolved administrations.”

It is perfectly clear that this as an attack and an undermining of devolution. That is not just my opinion, but an opinion shared by legal experts around the world. The hon. Member is ignoring the truth of the situation. He must know that that is the case. When even senior figures in his party are saying that this is an attack on devolution and are resigning, he should see that that is the case. He knows that it is true.

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Caroline Lucas Portrait Caroline Lucas
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I do not think that is the logic of what I am proposing. It is perfectly possible to uphold the principle of devolution and that of saying that standards should be high. I do not quite understand why the right hon. Member has a problem with that.

The Government have a huge opportunity to reset the economy to create a just transition, with good green jobs to safeguard livelihoods and our precious and irreplaceable natural environment. The aim of amendment 20 is to make that opportunity a reality. I hope that a separate decision on this vital amendment will be possible, as it would do something different from the other amendments in the group—we are in a climate emergency, as this very House has declared—but if that is not possible, I hope we can return to it on Report, as no doubt many colleagues in the other place support the aims of the amendment and share my concerns. The amendment matters to millions of people around the country who care deeply about nature and the climate and are deeply concerned about the use of public money undermining those aims.

In conclusion, other amendments in this group are indeed vital. My amendment makes a separate but complementary point. It is about outcomes, not just process. The Bill takes breathtakingly wide powers following our departure from the EU. This is about how those powers are implemented. No other amendment in the group deals with that.

Andrew Bowie Portrait Andrew Bowie
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It is an unusual pleasure to speak so early in a debate.

I am delighted to stand to support Government clauses 46 and 47 and to speak against the amendments in the name of the official Opposition and the Scottish national party and the other amendments. I have only been in the House for three years—it sometimes feels like 30, given what we have been through since 2017—but these amendments and the arguments, especially those from the SNP, against the clauses, are among the most remarkable things I have seen, despite what we have been through in the last three years. The governing party of one of the devolved nations in this country is tabling amendments and using arguments that would prevent more money being spent in that nation. It is frankly astounding.

Chris Bryant Portrait Chris Bryant (Rhondda) (Lab)
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Will the hon. Gentleman give way?

Andrew Bowie Portrait Andrew Bowie
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I have only just started, but as it is the hon. Member, yes, of course.

Chris Bryant Portrait Chris Bryant
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I agree with the hon. Member about nationalism and separatism and all that, but we are a bit cynical and sceptical about offers from the Government at the moment. I have been trying to get £130 million outside the envelope for the flooding earlier this year in the Rhondda, but so far we have not seen a penny, not even for the coal tip that collapsed into the river at Tylorstown, which needs 60,000 tonnes removing. We still have not seen the £1.2 million. That is a Westminster responsibility.

Andrew Bowie Portrait Andrew Bowie
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I am reliably informed by a former Secretary of State for Wales, my right hon. Friend the Member for Preseli Pembrokeshire (Stephen Crabb), that that is a devolved responsibility, which is one reason why the hon. Member should vote for the Bill next week and against the Opposition amendments this evening.

Not only are these arguments incredible; they are also based on a complete falsehood: that the powers in the Bill, which will allow the UK Government to spend directly on specific projects in Scotland—I will contain my remarks to Scotland for obvious reasons—for the first time in 20 years, will somehow undermine devolution. This is not true.

Alan Brown Portrait Alan Brown
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As I said earlier, the Tory Chair of the Public Administration and Constitutional Affairs Committee, the hon. Member for Hazel Grove (Mr Wragg) has stated clearly that the Bill will create new powers of reservation. It is ripping up the devolution settlement. When will Conservative Members understand that there is a massive difference between protecting devolution and protecting the powers of the Scottish Parliament and what they see, which is an SNP Scottish Government? It is about respecting devolution and the Scottish Parliament.

Andrew Bowie Portrait Andrew Bowie
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I would have to see the details of what my hon. Friend the Chair of PACAC said. I would have to study it before responding, but I must stress that creating more powers is not ripping up the devolution settlement. That is not the case. The founding father of devolution, Donald Dewar, a Scottish Labour Member—there are not many left in this place these days—stated that devolution was a journey, not a one-way street. We need to have a discussion about where powers are best held, and that is what we are doing here today.

What is most remarkable about these arguments and the amendments that have been tabled by the SNP today is that they are drafted by parties that want to take Scotland and Wales back into the European Union. The SNP made much yesterday, and has again today, of the Competition and Markets Authority and the Office for the Internal Market, while the hon. Member for Glasgow Central (Alison Thewliss) spoke about autocratic Ministers of the Crown spending in Scotland. The hon. Member for Midlothian (Owen Thompson) yesterday decried the need for the Office for the Internal Market, claiming it was unnecessary, undemocratic and appointed, and complaining that it would

“decide whether a Bill met the test of the internal market, putting permanent constraints on the Scottish and Welsh Parliaments and the Northern Irish Assembly.”—[Official Report, 15 September 2020; Vol. 680, c. 248.]

That is quite remarkable from a party determined to take Scotland back into the European Union, but then maybe I missed the complaints from SNP Members when, in August 2015, the unelected and unaccountable European Commission suspended the payment of more than £45 million to the Scottish Government, under the European social fund, due to accounting “irregularities” and because it had not been given specific assurances from the Scottish Government as to how the money was being spent.

I must also, then, have missed hon. Members’ complaints to the—again—unelected and unaccountable European Commission when it threatened to fine the Scottish Government £125 million for botching up the farm payments system in 2015-16. I hate to break it to the SNP, but the restrictions placed on member states in order to preserve the internal market of the European Union are much—inordinately—more prohibitive than anything we are proposing here today.

After Brexit—indeed, because of Brexit—the Scottish Government will be free to spend, and indeed mis-spend, and free to exercise their expanded and increasing powers as they see fit. Nothing in the Bill threatens that in any way whatsoever—no powers to curb spending or cut revenue, no powers to fine for messing up payment systems, more money, more power, protecting jobs. What on earth is it in the Bill that the SNP could be objecting to so much? Why on earth is the SNP so happy to accept EU cash, with all the rules and regulations around spending and how it is spent, but will not allow the British Government to spend directly on specific projects that will benefit the lives of individual Scots?

None Portrait Several hon. Members rose—
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Andrew Bowie Portrait Andrew Bowie
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I am spoiled for choice, but I will give way to the hon. Member for Glasgow Central.

Alison Thewliss Portrait Alison Thewliss
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I have a question for the hon. Gentleman. Why does he feel it is appropriate for the UK Government to spend money on courts and prison facilities in Scotland?

Andrew Bowie Portrait Andrew Bowie
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I think it is appropriate for the UK Government to be able to spend on projects that will benefit people in every corner of the United Kingdom, and that is why I am voting for the Bill next week and why I am going to oppose the amendments tabled by the hon. Lady. I will tell the Committee why the SNP is so against the Bill—because with the SNP, it is Brussels over Britain, any day of the week. SNP Members do not care that this Bill protects jobs. They do not care that it enshrines in statute the existence of Scotland’s most important market. They do not care that it could mean more money for Scotland’s starved local authorities.

Patrick Grady Portrait Patrick Grady
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I thank the hon. Gentleman for giving way. He is obviously passionate about Britain, and good luck to him, because he is not going to have that passion available to him for much longer once we are independent. Is he content with the idea that the Bill will gain Royal Assent without the legislative consent of the Scottish Parliament, the Welsh Assembly or indeed the Northern Ireland Assembly? Is not that the real power grab—the undermining of the Sewel convention? That is shaking devolution to the core. That is the power grab that is happening here. Is he really content with that?

Andrew Bowie Portrait Andrew Bowie
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To be honest with the hon. Gentleman, I would be trying to convince his colleagues in Edinburgh that this is a very good Bill and they should give it legislative consent and see it sail through the Scottish Parliament. But they have refused to give legislative consent to Bills that have become law in the past, and I am sure they will do so again.

I return to my point about Scotland’s cash-strapped local authorities. In north-east Scotland—I see the hon. Member for Gordon (Richard Thomson) in his place—Aberdeen City Council and Aberdeenshire Council are two of the lowest funded local authorities in the country, despite contributing more in revenue to the SNP Scottish Government than almost any other local authority. The idea that the Scottish National party would vote to deny them more funds to spend on specific projects truly is a kick in the gut.

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Andrew Bowie Portrait Andrew Bowie
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I will avoid commenting on the meagre amount of chips that you get in the House of Commons Dining Room. I was one of the loudest to complain about the state of my fish and chips. On the hon. Gentleman’s point, I cannot believe that a Member representing an Aberdeenshire seat is defending the fact that the Scottish Government give it one of the lowest amounts of funding for any local authority in the country. The people of Aberdeenshire will be listening to him, and I am sure they will explain to him their dissatisfaction with that comment.

I urge the hon. Gentleman to try explaining that to constituents next door in West Aberdeenshire and Kincardine, the people of Durris and Drumoak—a community divided due to Park bridge being closed, possibly never to reopen. [Interruption.] I hear the hon. Member for North Ayrshire and Arran (Patricia Gibson) groaning. The mask is slipping from the Scottish National party. The hon. Member for Kilmarnock and Loudoun (Alan Brown) underlined that when he earlier described these bridge closures as “wee pet projects”. These are communities divided because the Scottish Government are not funding Aberdeenshire Council to the requisite level to fix those bridges and reconnect those communities. The fact is that, unless it is in Glasgow or the central belt, the Scottish Government just do not care.

Patricia Gibson Portrait Patricia Gibson
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I was groaning in despair because all the hon. Gentleman’s remarks deny one fundamental principle: that the people of Scotland are sovereign. The people of Scotland are represented by a democratic Parliament in Edinburgh, and there are clearly defined devolved areas that are the responsibility of that sovereign Parliament. This Bill denies that. Why can he not just be honest enough to say so?

Andrew Bowie Portrait Andrew Bowie
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The hon. Lady is powerful and passionate in making her case, but this Bill does nothing of the sort. This Bill reinforces devolution, with over 100 powers coming from Brussels to Scotland, and it is for the Scottish Government to determine how they are acted on and how the money going to Edinburgh is spent.

The fact is that the SNP has been found out. They do not like this Bill because they know that it will demonstrate the relevance, the strength and the spending power of the British Government to the people of Scotland, and that endangers their grand plan: the separation of our country. For that, really, is all the SNP cares about—not people, not jobs, not the health service, not Scottish Water, as we heard earlier, and not powers over minimum unit pricing of alcohol. Those are all a front—a distraction. They do not like this Bill, despite the fact that it will benefit Scotland, because it promotes and unites our United Kingdom. That is the policy of the SNP, and it is clearer today due to these amendments than at any time before. The SNP would rather that Scotland was poorer if it meant that the United Kingdom Government had less power. That is the truth of it; it is clear from these amendments.

I am delighted that the British Government are enshrining the internal market in statute. I am delighted that we are voting to protect jobs in Scotland and around the rest of the United Kingdom, and I am delighted that, once again, this place will be able to directly spend money that will benefit the lives of my constituents. I am delighted that we are binding our country together, with no threat to the NHS, no threat to the existing powers of the Scottish Parliament and no threat to devolution. I will take great joy in voting down these amendments tonight. I will be voting to strengthen the Union, enrich Scotland and protect jobs. The SNP will be doing the opposite.

Alun Cairns Portrait Alun Cairns
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It is a privilege to have the opportunity to contribute to this debate and to serve under your chairmanship, Ms McDonagh. It is also a pleasure to follow the excellent contribution from my hon. Friend the Member for West Aberdeenshire and Kincardine (Andrew Bowie), who underlined the position in relation to Scotland. Most of my comments will relate to Wales, but they will relate equally to each of the nations of the United Kingdom.

Clauses 46 and 47—part 6 of the Bill—are fundamental to the future of the United Kingdom, particularly as we leave the European Union and after one of the most challenging times in terms of public health and the economic difficulties ahead of us. This is a time when the nation needs to come together and when the might of the UK Government to support every part of the United Kingdom will be extremely important. So these clauses are excellent news for all nations of the UK.  They empower a UK Minister to support and contribute to the economic, social and cultural needs of every nation, whatever part of the country someone comes from. More importantly, at a time when our nation is at a greater risk of fragmentation, these provisions make the UK Government relevant to constituents in all nations. A UK Minister can at last respond to their calls if a devolved Administration choose to ignore their needs.

The devolved nations host some of the most deprived communities in the UK. West Wales and the Valleys has qualified for the highest levels of EU aid for 20 years, and gross value added there was about 70% of the UK average. I have long argued that a persistent wide wealth gap will create tensions in any nation, and since devolution the current legislation has prevented a UK Minister from acting in support of constituents and communities in Wales, Scotland and Northern Ireland in devolved policy areas, even in those areas where GVA is at the lowest levels.

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The hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie) and I had an exchange earlier when he accepted my intervention, for which I thank him. May I recommend to him, for his bedtime reading tonight, the “Scottish Local Government Finance Statistics 2018-19”, particularly chart 2.2, where his eyes will feast on the general fund net revenue expenditure figures for Scotland? He will see that the Scottish average spend is £1,981 per head, and in Aberdeenshire it is £1,970, which is just immediately below the average. I commend it to him. Many criticisms can indeed be made of the funding formula. I will be glad to share that diagram with the press when his press release goes out later, and I will be glad to add some factual context to it.
Andrew Bowie Portrait Andrew Bowie
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The hon. Gentleman has been very generous with his time, and I am listening intently to what he is saying. I do take the point about the fiscal framework and local authorities, and I get his point regarding the per head spend, but that figure amounts to £50 million less that they can be spending on infrastructure projects and roads. I heard what he said about the growth deals, the sector deal and investing, and I would back him and join him in all those campaigns, as he fully knows—perhaps except for borrowing powers for the Scottish Government—but I stress that I hope that he would join me in my campaign to see Aberdeenshire Council being treated fairly and, given the revenue it has delivered to the Scottish Government, getting a fair share to spend in the north-east of Scotland.

Richard Thomson Portrait Richard Thomson
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As I was about to say—the hon. Member was doing so well until he said he would not back the borrowing powers, which is very disappointing because it could change so much—legitimate criticisms can be made of the Convention of Scottish Local Authorities funding formula. I voiced them myself when I was the council co-leader in Aberdeenshire. However, the Bill will not resolve or change that. I hope that the hon. Member would agree that if we are to make changes to that, they should be based on factual analysis and evidence, rather than just recycling old tropes.

Richard Thomson Portrait Richard Thomson
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My hon. Friend makes an excellent point. As I say, if this were backed up by additional resources, we might be having some different discussions, but it still would not make the case for this encroachment on devolved powers.

Andrew Bowie Portrait Andrew Bowie
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I am listening very intently to what the hon. Gentleman is saying, as I did to what the hon. Member for North Ayrshire and Arran (Patricia Gibson) said, and I actually agree with a lot of what he has said, yet he has made no argument for not giving the Government more powers to spend. Yes, there are areas where the UK Government could be and, in my opinion, should be spending in Scotland, but there is no reason to vote against giving them more powers to do just that and support our local authorities to develop and deliver infrastructure projects in Scotland.

Richard Thomson Portrait Richard Thomson
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On the contrary, there is every reason to do that precisely because I have been making the argument—I do not know how carefully the hon. Member has been listening to it—that there is absolutely no need to encroach on the existing devolved settlement to deliver all the things that we are being told need to happen.

Frankly, this is nothing more than an arrogation, a usurpation and a trespassing on the principle that the decisions taken exclusively for Scotland should be made in Scotland by those who are directly accountable to the people of Scotland, taking us back to the bad old days prior to devolution, when Ministers of a party elected on a minority of the votes and seats could nevertheless rule the country without going to the trouble of winning an election beforehand.

Devolution was once described as

“the settled will of the Scottish people”—

as a way to accommodate legitimate desires for growing democratic aspirations within an old Union. That was certainly how it looked until 1997, and it is how it has looked for many in Scotland until recently, but the Union that Scots were invited to vote for in 2014—the balance that existed between Parliaments, Governments and institutions in London, Brussels and Edinburgh—has already gone. The failure to back an amendment of this nature shows that the very principles of autonomy, consent and respect that lay at the heart of the devolution settlement are also about to go.

People who voted in 2014 to be part of two Unions—the European Union and the British Union—can now see that they can only possibly be part of one. If this amendment falls and is not taken on board by the Government, it will show that the entire basis of devolution—that decisions should be taken for the people of the devolved nations and regions by those elected by and directly accountable to them—is being similarly trashed.

If the UK Government wish to depart from the EU and to deploy their majority to crush these principles, there is very little that I or my colleagues can do in practice to stop that, although there is plenty that can be done outside this place. For all that I used to make the argument that one day, the Scottish Parliament might have its wings clipped by a politically motivated activist Conservative Government, I never imagined for one day that a Government would come along so stuffed full of John Bull as to make it actually happen.

The polls across Scotland—I am sure that private polls in the Scotland Office confirm what the public polls say—show that increasing numbers of Scots know and understand that to re-attain EU membership, independence is required. If the Bill is passed unamended, it will become equally clear that independence is also required to preserve Scotland’s hard-won democracy and autonomy. It will give me no satisfaction to be proven right, from back in 1997, about where devolution might end up. There is if not yet a settled will, very definitely a settling will in Scotland that that is the case. If yet more of the Scottish people reach the conclusion that independence is now the only way to protect Scotland’s Parliament, this Government, having acted in haste, will be left to repent at leisure and in not very splendid isolation.

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Dehenna Davison Portrait Dehenna Davison
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There are multiple devolution Acts, which I am happy to email to the hon. Lady if she wants to find that out for herself. Let us not forget that the British people have demonstrated the right and power to operate with sovereignty time and time again.

Andrew Bowie Portrait Andrew Bowie
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Does my hon. Friend not agree with me that it is rather concerning that a member of the governing party of Wales does not seem to understand what powers they have in Wales to spend on and support the Welsh people?

Dehenna Davison Portrait Dehenna Davison
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As in so many things, I completely agree with my hon. Friend.

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Pete Wishart Portrait Pete Wishart
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It is probably just as well I have eaten, because I would otherwise consume that with no problem at all. Can I just say to the hon. Gentleman that we would take the authority of the EU looking over Scotland any day, rather than rogue state UK. I say that very candidly and sincerely.

Andrew Bowie Portrait Andrew Bowie
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Will the hon. Gentleman give way?

Pete Wishart Portrait Pete Wishart
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No, I won’t. [Interruption.] I might give way later, as the hon. Gentleman is a prize on the Government Benches, and we will of course want to hear from him in time, because I enjoy our little exchanges.