Angus Brendan MacNeil
Main Page: Angus Brendan MacNeil (Independent - Na h-Eileanan an Iar)Department Debates - View all Angus Brendan MacNeil's debates with the Scotland Office
(9 years, 4 months ago)
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Sir Edward Leigh (Gainsborough) (Con)
New clause 3, which stands in my name, would deliver full fiscal autonomy, real home rule and a Scottish Parliament in control of everything save defence and foreign affairs. I am only a Back Bencher and I do not have the assistance of Government officials, so if the new clause is defective in technical detail, I apologise. If it were voted for tonight, however, it would establish a clear principle and a way forward.
The contention is clear: the new clause would deliver full fiscal autonomy. The Scottish Parliament would have full freedom to raise all taxes as it liked. It would not be restricted to fiddling around with bands; it would control all thresholds and all VAT dividends, and it would have full freedom to spend that money as it liked. That is what real Parliaments do, and that is why they are responsible.
The Scottish Parliament is constructed in a manner that is inherently conducive to the culture of grievance, and that would still be true even if the Smith commission proposals were adopted. The Scottish Parliament will raise only 50% of what it spends. Worse, under the 30-year-old, discredited Barnett formula, which even its conceiver condemned towards the end of his life, Scotland’s block grant will be based not on needs but on English levels of spending. No matter which tartan is chosen to clad the Scottish purse, the purse strings will still be controlled by England. That, I believe, has to change.
Following reports by the Office for Budget Responsibility and the Institute for Fiscal Studies, it has been said that Scotland faces a £7 billion black hole. Presumably, however, the SNP wanted independence in the next year. We cannot have an independent Parliament that does not have full fiscal autonomy, so let us have a real, informed debate about the figures.
Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)
When the hon. Gentleman uses the term black hole, does he mean a deficit? When people talk about the UK’s deficit, they say “deficit”. When they talk about Scotland’s deficit, they say “black hole”. Why the use of pejorative language?
Sir Edward Leigh
It can be referred to as a deficit. We have listened to the Institute for Fiscal Studies and the Office for Budget Responsibility, so now let us have an informed debate.
I want to make it clear, by the way, that I am not in favour of cutting Scotland loose. I am in favour of United Kingdom solidarity, and I am in favour of a new grant mechanism, if the need for one is proven. My aim is not to trap the SNP, call its bluff or reveal its timidity. I genuinely want to give the Scots what they want: the freedom to run their own affairs and not to blame others if things go wrong, but all within the buttresses and safety of the United Kingdom. I am a fervent Unionist.
Sir Edward Leigh
My personal view, for what it is worth, is that if we are to create a sustainable Union we must, in effect, create full fiscal autonomy for Northern Ireland, for Wales, for Scotland and, ultimately, for England. This almost imperial Parliament would remain determining the support mechanisms to ensure safety. So, yes, in that sense I am a federalist.
Barnett is a gift to those who want to break up the Union. It is also incredibly expensive for the English, with £1,680 more a year spending per head in Scotland than in England because Scottish spending is inextricably linked to English spending. When that is cut, SNP Members quite understandably—I do not blame them for this; they are good politicians—can cry foul, as they did last week, and say, “The Scots people didn’t vote for austerity but it’s being imposed on us.” They can vote on every education and health measure, and say, “What you spend in England on health and education is going to determine what we spend.” We then get a crazy situation whereby if some taxes in Scotland are raised the grant will go down. This simply does not work. It is not a recipe for preserving the Union or for a sustainable future.
Mr MacNeil
The hon. Gentleman mentions the Barnett figures. He will of course point out, for completeness, that Barnett is only about two thirds of total spending. For further completeness, he will also point out, I am sure, that the Barnett figures for London and Northern Ireland are higher than those for Scotland.
Sir Edward Leigh
I do not want to get into a sterile debate about whether London subsidises Scotland or vice versa; I simply want to be fair and open. I am happy for Scotland to have all its oil. It can determine its oil policy and its level of taxation, and as the oil revenues decline, if they do decline, I am happy for the United Kingdom Government to step in and increase its grant.
Sir Edward Leigh
I hear what the hon. Gentleman says and nobody is suggesting that, even if my new clause 3 were passed tonight, full fiscal autonomy would start immediately. Of course there has to be a discussion and, inevitably, if oil revenues are declining, there has to be some sort of support mechanism from the United Kingdom Government. I say to SNP Members that they can have this new clause. Parliament is a democratic Assembly. I do not want to overplay my importance—I suspect the Whips might ensure that my new clause is defeated—but this is an historic opportunity to give full home rule to, and to establish that principle for, Scotland, which is what the Scottish people want.
Sir Edward Leigh
The hon. Gentleman is now going to tell the Committee that he supports my new clause.
Mr MacNeil
We seem to be very happy with the hon. Gentleman’s new clause at the moment, but he talks about support mechanisms as though they are unique to Scotland. Will he concede that the UK has itself been reliant on support mechanisms since 2001 and that it has not raised the taxes to match its expenditure since then?
Sir Edward Leigh
I am afraid we are getting into the historic arguments of who is to blame: is it the UK Government? The Scottish Government face a fundamental problem, in that spending is 20% higher but tax revenues are, inevitably, lower. That is a fundamental problem that SNP Members have to—[Interruption.] Well, I have lost them there—fair enough.
We can have that debate, but let us not get too bogged down on that. They want independence; they can have it—[Interruption]—full fiscal autonomy.
The fact is that the SNP’s capture of all but three of the Scottish seats is an even greater victory than Sinn Féin’s in Ireland in the 1918 general election. Then the Unionists managed to secure 22 of the 105 Irish seats. We have to listen: this is actually a very serious issue.
John Redwood
If SNP Members will allow me a little time, I will say things that they will like. I am not trying to make life difficult for them.
This is my analysis. In the referendum the SNP went for something more akin to home rule than what I would regard as full independence, but at that stage the Scottish people said no even to that. They seemed to say yes to the rather larger devolution of powers that the three main Unionist parties were then offering. However, we are now experiencing new circumstances.
Like my hon. Friend the Member for Gainsborough (Sir Edward Leigh), who has tabled a very interesting amendment, I think that this Parliament must listen to the new voice of the Scottish people. It is clear that there has been a shift of opinion towards more home rule than the Unionist parties were offering at the time of the referendum. That is why we are here today, listening very carefully to what the SNP has to say, and that is why I think it extremely important for us to have this debate on full fiscal independence, or fiscal autonomy. It would be one way for our Parliament to respond when the Scottish people have said, “We do not want to be completely independent as a separate country, but we want much more self-government—or home rule—than was envisaged by the Unionist parties at the time of the referendum, because we can see that that was not very popular.”
The Unionist parties collectively did rather badly in Scotland come the general election. [Interruption.] Well, between them, they received just under half the vote, while the Scottish nationalist party received just over half the vote. Because the Unionist vote was split, practically no Unionist Members of Parliament were elected, but it is still the case that Scottish opinion is fairly evenly balanced. The Scottish nationalists did not get 70% or 80% of the vote. If they had done, then, as far as I am concerned, they would really be in a position to tell us the answer, but, as judged by the vote, they speak for only about half the Scottish people. However, as representatives, they speak for practically all the Scottish people because they have most of the Members in this place.
I am listening very carefully and will want to hear more about what SNP Members want, but I am also very conscious that, in parallel with this exercise on powers as set out in this Bill, in some way far more important negotiations are already under way on what the new financial settlement will be, and those are not yet being reported to this House. That is crucial not just to the SNP and its representation of the Scottish people, but to the people of England. I find the more home rule that is on offer and the more we hear the Scottish voice, the more I have to be an advocate not of the Union, but of England, because someone needs to speak for England and to say that the consequences of much enhanced Scottish devolution, and some fiscal devolution as well, are serious for England. England needs to be in the discussion just as Scotland does, as this is our joint country and a major change in its arrangements will have a fundamental impact on England.
While I am very attracted to the idea of my hon. Friend the Member for Gainsborough that it would be a shrewd move to, for once, get ahead of the Scottish appetite for home rule and on this occasion to grant full fiscal devolution, we need to ask how feasible that is and what the consequences will be for Scotland and England. If Scotland wishes to be part of common welfare and pension guarantees, some limitation is already imposed on the spending side of full fiscal devolution. We have to think about the position of England if cross-guarantees are being offered for some part of that welfare package. If we are going to proceed in the way the Government currently plan and the way the negotiations are currently being undertaken—as I understand it, there is an attempt to find a way of adjusting the block grant for Scotland to take into account the new Scottish responsibilities, as some items of spending will have to be added in as a result of the devolution of new functions, and there will be a reduction in the block grant to take account of those taxes that are now Scotland’s to fix and collect—therein lies an immediate problem.
Mr MacNeil
Would not an easier solution be for Scotland to collect its own tax, as Catalonia does, and then pay into the centre, rather than the centre paying out? The taxes should be raised by the Government of the territory paying the taxes and paid into the centre rather than giving them to the centre for it to then pay out. In that way, the centre will have to stop saying it is subsidising people when it returns their own taxes.
John Redwood
But if Scotland wisely decides to have lower tax rates to make itself more popular, the Union will be losing out if those lower tax rates collect less money.
Mr MacNeil
The right hon. Gentleman should realise that it is not lower taxes that have made the SNP more popular; it is better public services in Scotland—that has given us 50% of the vote versus his party’s 37%.
John Redwood
No, I do not think that we need a constitutional convention, because that would create endless delay and complications. I agree with previous comments that we are here to try to solve this problem for our respective constituents. I spent quite a lot of my time during the election speaking for England and saying that I wanted to ensure that England got a reasonable deal out of this. SNP representatives clearly did the same in relation to Scotland, and we both achieved similar levels of success in attracting lots of votes for what we were saying.
Mr MacNeil
The right hon. Gentleman talks about getting good deals for the various parts of the UK, but let us look at the wider British Isles. Does he think that the aggregate GDP of the British Isles would be as high as it is today without the full fiscal autonomy that the Republic of Ireland, the Isle of Man and the United Kingdom all enjoy? If the aggregate GDP of the British Isles is higher for those reasons, does he not agree that it will be higher still when Scotland achieves its full fiscal autonomy?
John Redwood
I start from the point of view of democracy. A democratic state has to have the full range of powers, including fiscal autonomy and its own currency. That is different from asking: what is your state? I would still rather have the United Kingdom as my state, but I have just explained that if it is the will of the Scottish people that the UK is no longer their preferred state, they must leave—of course they must.
Mr MacNeil
The right hon. Gentleman is being very kind in enabling our dialogue to continue. I am sure he would acknowledge that the UK functioned between 1603 and 1707, when the Parliaments were independent.
John Redwood
Well, it functioned after a fashion, but I would not have wanted to live through that time. The nations were clearly not nearly as rich as they are today. Labour Members sometimes try to pretend that we have gone back to an ancient age, but I am sure that none of them would willingly go back in time and live in that era, because we are obviously so much better off now.
Mr Graham Allen
Sir David, it is a great pleasure to see you in the Chair this afternoon. Like many colleagues, I had assumed that you would be in your green tights dancing around the maypole with many other dignitaries at Runnymede. [Interruption.] Yes, the thought does bring tears to the eyes. I am talking about a serious occasion, but it is, by necessity, a backward-looking, occasion. Eight hundred years ago, in what was a great leap forward in its time, Magna Carta was sealed, if not signed. What we have been hearing about today—and this has been a really superb debate so far by all parts of the House—is the next 800 years. We are certainly looking at the foreseeable future and at our democracy. One thing we cannot do is go back to business as usual. We have a majority party in the House, and we cannot just ram stuff through the Commons. We must consider all these sorts of Bills seriously.
I mean no offence when I say that the Scotland Bill is not the property of the people of Scotland let alone of the political parties of Scotland. The Scotland Bill is about the Union. Whether we are in a transitional period or whether we have another 800 years of happy family relationships is still to be decided. As we discuss this Bill, the local government devolution Bill, and the European referendum Bill, those colleagues who are new to the House—to all parts of the House—should be excited that they have come here at this moment. It is a time of immense potential. People from all parts of this House have expressed the view that we need to look at this matter seriously. The word “statesmanlike” has been thrown around quite a bit, but it is pertinent to this debate. What we do today and over the next four Mondays will be of great importance to all of us in the Union.
Mr MacNeil
As usual, the hon. Gentleman is making a thoughtful contribution. He said that the Scotland Bill is the property of the House, but he will recognise that the House has been forced, kicking and screaming to reach the point it is at the moment. In the previous Scotland Bill, an amendment was moved to devolve Crown estate control to Scotland, and the House would not agree to it. It has now conceded on that point because of the weight and the power of the votes from the people of Scotland and it has done so easily. Is it not a huge mistake for this place to give away too little too late and not to listen to the hon. Member for Gainsborough (Sir Edward Leigh)?
Mr Allen
I am probably one of the worst in this House for blaming Westminster. Westminster and, above all, Whitehall—that is a distinction that we can educate each other in over the next five years—deserve to have that blame attached to them, but the hon. Gentleman and his colleagues are now part of Westminster. They will need to use the Westminster system and to be a part of it, if only because they wish to get such Bills passed. The Bills that have been passed to free Scotland in the way that it needs to be freed up, that Nottingham, Leicester and Derby need to be freed up and that England, Wales and Northern Ireland need to be freed up have been passed by this place because of the efforts of people such as Donald Dewar and those who got the Scotland Act 2012 through and because of the efforts of all the parties in this House, who will, I hope, pass the Scotland Bill effectively through this Committee.
Mr Allen
If I may just make this point while I am thinking about it, I will then give way. If we continue that process, we might end up in a place that is better for everybody and we might end up with the sort of liberation of our localities and communities that we all want, whichever nation of the Union we represent.
Mr Allen
We all have a stronger common interest than we sometimes dare admit, and we certainly all have an interest in making devolution work. The bigger issues that I want to come on to concern some of the structures through which we might all work together to do some of that. Some were raised by my Select Committee, which was an all-party Committee of this House and proved that we can do other things and move forward on devolution.
Let us imagine where we might be in 20 years’ time with the federal Parliament, which this is. Even the strongest small c conservative—they can be found throughout the House—would not say that we will be in exactly the same place in 20 years as we are today. That would be inaccurate. We will definitely be in a different place. What will it look like? I suspect the position will unfold. It may not be devised at 10 o’clock tonight, as the amendments envisage, but there will be progress over those 20 years. What does it look like? For some it looks like separation or independence. For others, it looks like a Union refreshed and renewed. For me, it looks like my people in my area being allowed to make more decisions of their own as of right, not because people feel they are giving them a little play out of Westminster.
Mr MacNeil
I see that my patience has paid off and I am grateful to the hon. Gentleman. Is not one of the problems, in yet another Scotland Bill three years after the previous one, that Westminster may give away a little bit here and a little bit there? Would it not be better to turn the telescope around and have the relationship that the Faroe Islands have with Denmark? They can take the powers that they want to take and it is not a big deal for Copenhagen to give Tórshavn those powers. In Westminster it seems a massive deal to give people control over the minimum wage in Scotland—a power that Labour blocked, for goodness sake. It should not be like that. If Scotland wants it, let Scotland take it and let this place be gracious about it.
Mr Allen
It is always good to knock off a quick anti-Westminster point, so I will join the hon. Gentleman and say that everything that he resents about Whitehall, I resent at least as much in so far as it impacts badly on one of the 10 poorest constituencies in the United Kingdom, so—I mean this in a friendly way—he does not need to lecture me about how inadequate Westminster and Whitehall are at freeing up and liberating people to get better jobs, improve skills and improve their schooling, all the things that all of us hold in common as we move forward.
What I am saying is that we need to figure out how progress that has been made in Scotland—massive progress, which I fully support—can be replicated, not just in a narrow sense of “This is good for us”, but if it is so good, how it can be good also for Wales, Northern Ireland and England.
Mr Allen
I am sure that I would be called to order if I went into too much detail on the pros and cons of a written constitution. Suffice it to say that reams and reams of judge-made law exist, but our citizens are not allowed to see the basis on which that framework is put into place.
Mr MacNeil
Further to the point of order made by the hon. Member for North Antrim (Ian Paisley), France knows that it is France, but the UK does not seem to know that it is the UK. That is an extraordinary state of affairs.
The Temporary Chair
Order. Again I say to the Committee that that is a point of argument, not a point of order.
Stewart Hosie
I welcome the hon. Gentleman to Parliament, but he does not need to jab his finger and point. The small business bonus has cut or reduced business rates for 80,000 people. At £640 million, the Scottish Government are delivering the most effective business rate tax relief across the whole of the UK. One could make a very strong case that we have ended a tax on ill health by removing prescription charges. The hon. Gentleman’s failure to know what he is talking about was why he was defeated in Angus by my hon. Friend the Member for Angus (Mike Weir).
So far, we have not heard a single speech as to why we should not have full fiscal autonomy. I am sure that one will come, but let me focus on that matter now. The objections that we have so far heard are rather odd and almost entirely without principle. In essence, in order to say no, our opponents fall back on one or two flawed analyses of the Scottish economy, which are basically snapshots of one particular point in time.
Mr MacNeil
Was that not an extraordinary intervention from the hon. Member for South Leicestershire (Alberto Costa)? The Conservative party wants to handcuff itself and not use any of its tax powers at all, as we heard from the Chancellor only last week. Does that not show the deep malaise of understanding? When we have tax powers, they are not used all the time. For instance, in the last Parliament, VAT was changed only once. Let us hope that the Conservatives do not use that power again. The point about having tax powers is to use the power that is necessary or important to use at a particular time. Tax powers are not used willy-nilly, as the hon. Gentleman’s own Chancellor has conceded.
Pete Wishart
I thank you, Sir David, for calling me to speak, and I thank my Back-Bench colleagues. Have not we been blessed on this first Committee day of the Scotland Bill? We have had contributions from the hon. Member for Christchurch (Mr Chope), from the hon. Member for Nottingham North (Mr Allen)—who unfortunately is no longer in his place—and from the hon. Member for North Durham (Mr Jones). What have we done to deserve such good fortune today? We have all very much enjoyed their speeches. This just goes to show how different these debates are now. My hon. Friend the Member for Moray (Angus Robertson) and I are veterans of Committee debates on Scotland Bills, and we remember the braying, the aggressive shouting down and the interventions by 40 Scottish Labour Members of Parliament. They are no longer here. This is the salutary lesson of today’s Committee debate. We are now in the new Scotland, which has made certain critical decisions about how it wants to be governed and how it wants to progress with its constitutional agenda. The challenge for this Government, and for those on the Labour Front Bench, is to respond to that. They can ignore my hon. Friends who are sitting on these Benches in such great numbers—we represent 56 of the 59 seats in Scotland—and they can ignore the fact that the SNP secured more than 50% of the vote. They can pretend that we do not exist and hope that we go away, but we are going nowhere. We are going to be here on Committee days, demanding that the Scottish people secure what they voted for in overwhelming numbers.
I support my hon. Friend the Member for Moray in setting out the three key principles that we are advocating. The critical one—the one that we have to secure—is that the Scottish people get what they voted for and what they expect from this House, which is to have the Smith commission proposals delivered in full, alongside everything that was promised to the Scottish people in what Gordon Brown, the former right hon. Member for Kirkcaldy and Cowdenbeath, called the “vow plus”, including federalism and home rule.
Mr MacNeil
My hon. Friend mentions the vow plus and the promises made to the Scottish people. In reality, these powers are wanted not only by the yes voters but by the no voters as well. The fact is that 100% of the people of Scotland voted for these powers. Whether they voted yes or no, they voted for this.
Pete Wishart
My hon. Friend always gets right to the heart of the matter. We know that everything in this Bill that we have been trying to secure is supported by the Scottish people. It is also supported by the massed ranks of SNP Members here, and by the 60% of the Scottish people who want everything devolved to the Scottish Parliament other than foreign affairs, defence and treason. The hon. Member for Gainsborough (Sir Edward Leigh) forgot to mention treason in his list of powers that would remain reserved. An opinion poll last week showed not only that we won more than 50% of the vote but that we are now on course to win 60% of the Holyrood vote next year. It showed that there is a clear desire to ensure that we move forward progressively.
I shall turn to the central issues in the Bill, starting with the permanence of the Scottish Parliament. That was about the most useful thing to emerge from the Smith commission’s report. It followed the vow that was reported in the Daily Record as stating that the permanence of the Parliament should be a predominant issue. We were disappointed that the draft Scotland Bill could not find an appropriate form of words to encapsulate that proposal. The thing that has struck me is the Scottish people’s surprise that this House could actually do away with the Scottish Parliament. I do not think that people really believed that that was the case. We have to resolve this issue.
The Scottish Parliament is now the key focus of the national debate on our nation and our political culture in Scotland. As we have continued to secure more and new powers for the Scottish Parliament, it has become an intrinsic feature of what we are about as a nation. The fact that this House can simply decide, perhaps on a whim, to abolish the Scottish Parliament is totally unacceptable to the Scottish people and has now to be put right. We have this one opportunity to address it by getting our amendment through this evening—we could sort this out.
I pay tribute to the right hon. Member for Orkney and Shetland (Mr Carmichael) because he recognised that situation when he was Secretary of State for Scotland. He said—I paraphrase him and I will let him intervene if I have this wrong—that something must be done about it. It was then thrown over to the new Secretary of State to pick up; it now falls in his lap, and he has to address it and ensure that we get what we want, which is the permanence—
Pete Wishart
Sorry, I was expecting a bit more of a substantial contribution from the hon. Gentleman, and I am almost disappointed we did not get some more fulsome prose from him. I thought he made quite a good case for his new clause, but I say ever so gently to him that we favour our amendment, because it is the way we should be doing this. It seeks to give time for the Scottish Parliament to progress towards full fiscal autonomy. If we suppose Government Members are right that there is this huge deficit that we keep hearing about again and again, surely they should be working with us, through a fiscal framework, to work towards full fiscal autonomy. Surely what should happen is a process that starts by giving us the important early new powers—powers over the minimum wage, national insurance contributions and welfare. There is a process of moving towards this. If they are right about that, what is wrong with working with us to try to achieve and secure it? Surely that is how we should be doing this. As I have said, the themes are the same; oil and gas is a burden and a curse with independence, as it is with full fiscal autonomy. It is as though they have learned absolutely nothing, because these were the very themes put to the Scottish people during the general election campaign. I am not trying to speak for the Scottish people, but on the doorstep I was hearing that there is a tiredness and a deep despondency among the Scottish people at being told that they cannot do something, that they are in such a diminished position that we cannot take responsibility. That argument does not work any more. We have been through a process of national self-definition, of finding ourselves and of ensuring that we try to do something different.
Mr MacNeil
That despondency and disbelief among the Scottish people becomes even stronger when we look at those islands close to Scotland. The Faroe Islands, for example, have 50,000 people and full control of their taxes. The Isle of Man has 80,000 people and full control of its taxes. Scotland, which is the size of Denmark, cannot have full control of its taxes, because the Government say so. That time is now over.
Pete Wishart
I am grateful to my hon. Friend for his intervention. He is a great champion and passionate advocate of the island nations. This evening, we invite this Committee to support us in the next stage of Scotland’s constitutional journey, which is about securing more powers, making our Parliament permanent, and granting full fiscal autonomy to our nation so that decisions about how we run our country are made in Scotland by the elected Members who represent the people of Scotland. Tonight, I invite the Committee to support us in that effort.
Mr MacNeil
At the time of the referendum, the yes side included full fiscal autonomy in its proposals. After the vow, the no side also included full fiscal autonomy. What has changed since the referendum that has made the no side resile from that? The vow was as near to federalism as possible, and it would have included full fiscal autonomy. Why does the hon. Gentleman now want to leave those powers in the hands of the Tories at Westminster rather than with the Parliament of the Scots in Edinburgh?
Ian Murray
There is a very simple answer to that question. We all want what is best for Scotland. The latter part of my speech sets out how full fiscal autonomy would be bad for Scotland according to all the information we have. We can either have a sensible debate in this Chamber about our fundamental principles on people’s lives and livelihoods in Scotland, or we can have a political knockabout on who will vote with who, who prefers who and who said what to whom during the referendum debate. The Bill is critical to future livelihoods in Scotland, and if all we can get from those on the SNP Benches is simple party point scoring we will get no further forward in improving the Bill.
To answer the question asked by the hon. Member for Na h-Eileanan an Iar (Mr MacNeil), we are here today because the vow put together the Smith agreement. The five political parties, including the SNP, which was represented on the commission, have come forward with proposals that are now in the Bill. Labour wants to take the Bill a little further. I keep emphasising that and I emphasised it consistently on Second Reading.
Ian Murray
I will give way to the hon. Member for Ross, Skye and Lochaber (Ian Blackford), who got in before the hon. Member for Na h-Eileanan an Iar.
Ian Murray
This is the nub of the matter: if we try to scrutinise what would be a devastating policy for Scotland, we are accused of not being ambitious for Scotland. For the avoidance of doubt, that £7.6 billion is over and above the UK deficit. I agree with the hon. Lady that the Conservative Government made a complete shambles of getting rid of the deficit in the previous Parliament, breaking all their promises and only halving it. But the actual deficit—I have the IFS paper here—is not just £7.6 billion, but £7.6 billion over and above the current UK deficit, which is £14.2 billion. That is not a lack of ambition for Scotland, but a warning against a fiscal policy that would be folly for families up and down Scotland.
Ian Murray
I will give way to the hon. Gentleman, before he bursts a blood vessel.
Mr MacNeil
It is now clear that the policy of Labour’s Front Benchers is to leave Scotland’s tax powers in the hands of this Tory Government. The vow did not say that; the vow included full fiscal autonomy. Will the hon. Gentleman tell us when he changed his mind?
Ian Murray
The Bill before us will transfer nearly 50% of tax and 60% of spending to the Scottish Parliament. We promised to make it the most powerful devolved Parliament in the world, and that is a promise we will keep. As I have always said, we will ensure that the Bill is delivered in full, both in spirit and in substance. We will go further, as we will debate in Committee in due course.
Let me return to the £7.6 billion deficit—[Interruption.] I know that SNP Members do not like to talk about the £7.6 billion deficit, but it is important to get it on the record. It is unfortunate that they have consistently misquoted the figures from the Institute for Fiscal Studies, and indeed it has had to ask them to retract what they have said about its figures.
We have also heard no mention of the Office for Budget Responsibility’s oil report, which was published last week. It showed that the reliance on oil as an underpinning of the Scottish economy is no longer a viable projection. The collapse of revenues from oil will see the tax take from that source drop from £37 billion to just £2 billion over the 20-year period to 2040. That would be catastrophic for Scottish public finances. The question, then, is this: will SNP Members vote with the Tories to deliver what they want, as they have said they will do, or will they finally admit that their flagship policy of full fiscal autonomy is economically illiterate?
David Mundell
Today is the first of four days in Committee on the Scotland Bill. I assure the hon. Member for Edinburgh East (Tommy Sheppard), whose contribution I enjoyed, that I will be listening and reflecting. Contrary to the suggestion made by the hon. Member for Perth and North Perthshire (Pete Wishart), this is not the only opportunity for changes to be made to the Bill. I will be meeting the Devolution (Further Powers) Committee of the Scottish Parliament next week to discuss points that it has raised in its report.
I would not normally begin a contribution by suggesting that anyone read one of Gordon Brown’s books, but tonight I will do so. Gordon Brown has been misquoted a number of times in the Chamber today, and it is important to put on the record the fact that in his book “My Scotland, Our Britain: A Future Worth Sharing”, he states that neither his proposals nor those of any of the pro-UK parties involved a federal solution. Although they came close to the idea of home rule, they were not home rule. Therefore, it is a myth, which has been perpetuated this evening, that Gordon Brown has called for either federalism or home rule.
David Mundell
The hon. Gentleman has already spoken a great deal on the subject this evening. I would also like to see empirical evidence to back up the suggestion made by the hon. Member for Edinburgh East that the vow and the offer of additional powers made a significant change to the referendum result, because I do not believe that such empirical evidence exists.
David Mundell
What I am suggesting is that the hon. Gentleman cannot bring forward a shred of evidence to suggest that those proposals changed the referendum result and that somehow the people of Scotland have been defrauded. The people of Scotland voted decisively no in the referendum. They voted for a strong Scottish Parliament within the United Kingdom. The vow, which was set out in the Daily Record and other outlets, was taken forward on the basis of the Smith commission, of which the Scottish National Party was a part and to which it was a signatory. I received an interesting letter today from John Swinney, the Deputy First Minister of Scotland, who was a signatory to the Smith commission recommendations. He now tells me that the Smith commission recommendations, which he signed, were incoherent. I do not understand how he came to sign those recommendations if he genuinely believed that they were incoherent. If that was the case, he should have been making some of the arguments that we have heard this evening and during the general election campaign.
David Mundell
Not at this stage. The result of the general election represented a call from the people of Scotland for the delivery of the powers in the Smith commission recommendations. The Scottish National party set itself up as the voice of the people of Scotland to ensure that those powers were delivered, and they will be delivered in the Scotland Bill.