Scotland Bill Debate

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Department: Scotland Office
Monday 9th November 2015

(8 years, 6 months ago)

Commons Chamber
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Edward Leigh Portrait Sir Edward Leigh
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I do not want to get into a debate about a black hole, the deficit and all the rest of it. I remember that I was intervened on by the hon. Member for East Lothian (George Kerevan) and I accepted that there should be transitional arrangements. I made the point that this was not a right-wing Tory trap for the SNP. This was not a device to get rid of Barnett because we were claiming that the Scottish people get £1,600 a year more. I said precisely that if there was full fiscal autonomy and we got rid of Barnett, we should retain the United Kingdom and there should be a grant formula based on need.

If, for instance, Scotland had a particular problem, as we have in Lincolnshire with the sparsity factor in relation to education provision, or with declining industries, we are a United Kingdom Parliament. We are a fraternal Parliament. I believe in the Union, I believe in our standing together. If there is a need for the United Kingdom—I called it the imperial Parliament, as it were—to help out our friends in Wales—[Interruption.] SNP Members do not like that word, but I used it advisedly. That was the term that was used during the debates on Irish home rule. It is a technical term. If our friends in Northern Ireland, Wales or Scotland need extra help from the United Kingdom Parliament, we should give that help, but it should be based on needs, not on an automatic formula based on Barnett, which is an outmoded concept that has outlived its usefulness. It is also, as I have said, very dangerous in the context of the debate on English votes for English laws.

I am sorry to take the Labour party to task, because I respect the shadow Secretary of State. Labour is making some progress, but it is still behind the curve and I do not believe it will ever get back in front of the curve in Scotland unless it is bold. I repeat the point I made back in June: whether we like it or not, we have the election system that we have. We, the Unionist parties, went to the Scottish people. We based our arguments on the Smith commission, and we lost 56 of the 59 seats in Scotland.

The hon. Member for Nottingham North (Mr Allen) can complain about that, but that is the parliamentary system we have. We have to accept that, whether we like it or not, the Smith commission was rejected by the Scottish people. If we want to save the Union—and I am as passionate about the Union as the hon. Gentleman —we cannot be behind the curve on this. We have to be big-hearted, we have to be bold, and we have to move with full fiscal autonomy and move with it now.

Angus Robertson Portrait Angus Robertson (Moray) (SNP)
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I rise to speak to the amendments tabled in my name and those of my right hon. and hon. Friends in proceedings which, thus far, most viewers in Scotland will frankly view as a total travesty and a farce. We are told that this is a piece of legislation of amazing proportions and importance, yet there are fewer than 10 Back Benchers on the Conservative Benches and fewer than 10 Members of Parliament on the Labour Benches. What does it say about the Unionist parties in this House that they cannot even be bothered to turn up for a debate about something they think is so important? We are debating the Report stage of the Scotland Bill with 200 or more amendments and new clauses before us—200!—yet we have heard extended speeches about English local government and a whole series of other things that have absolutely nothing to do with today’s proceedings.

The context of these proceedings is clear to people listening and watching in Scotland. First, a promise—a vow—was made. Secondly, we heard day in, day out that devo-max would be delivered, even from Labour MPs of the time. The former Prime Minister, Gordon Brown, said that we were near to federalism:

“Within a year or two, as close to a federal state as…can be.”

One can call this Bill many things, but it is not a charter for federalism—it is a long, long way from that. We all know about its shortcomings; they have been denied by the Government, but they are clear to pretty much anybody else who cares to look. We know because others who are not in political parties, and do not have a vested interest, have said so, including the Scottish Trades Union Congress, the Scottish Council for Voluntary Organisations, Carers Scotland, Enable Scotland, and—how about this—the cross-party committee of the Scottish Parliament, on which senior Conservative and Labour MSPs served, that had the obligation to look at this. It said that the Scotland Bill “falls short” in some “critical areas”, and that it does not meet the “spirit or substance” of the Smith commission’s recommendations and requires extensive redrafting in other key areas.

What about those who do have a political vested interest? How about—let us pick one—the deputy leader of the Labour party in Scotland, Mr Alex Rowley? He said on BBC Radio Scotland on 18 September 2015:

“No ifs, no buts, Smith has not been delivered”

and

“We will stand shoulder to shoulder with SNP Ministers to deliver Smith.”

How ironic. Where were those voices today—where were the speeches? Perhaps we can hear them later. We have not heard a single one that reflects those realities.

We should not lose sight of the fact that the Smith commission followed the referendum. As I have said in previous debates in this House, we recognise and respect the result of the referendum, and we proceeded to work with the other political parties in the Smith commission. We then went to the country in a general election, and, like other political parties, we stood on a manifesto. The manifesto said:

“We welcome the proposals set out in the Smith Commission, as far as they go. The further watering down of the agreed proposals, by the UK government, is unacceptable. There should be no effective veto for UK ministers on the exercise of the various new powers, in particular over the welfare system. We share the view of many organisations across Scotland that the package, as it stands, does not enable us to deliver fully either the greater social justice or the powerhouse economy that our country demands. As the STUC has said, ‘there is not enough’ in the Smith Commission recommendations ‘to empower the Scottish Parliament to tackle inequality in Scotland’… The Smith Commission proposals were, in many respects, a missed opportunity. Decisions about more than 70 per cent of Scottish taxes and 85 per cent of current UK welfare spending in Scotland will stay at Westminster.”

We also went to the country with the following pledge:

“Scotland should have the opportunity to establish its own constitutional framework, including human rights, equalities and the place of local government. The Scottish Parliament should also have the ability to directly represent its interests on devolved matters in the EU and internationally.”

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David Mundell Portrait David Mundell
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Since the hon. Gentleman has put that on the record so many times, I want to point out that the Conservative party polled more votes in the 2015 general election than in 2010 election. He has sought to distort those figures. Perhaps he would like to join me in congratulating the new Conservative councillor in Aberdeenshire, who topped the poll in the very constituency of the right hon. Member for Gordon (Alex Salmond).

Angus Robertson Portrait Angus Robertson
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Oh dear, oh dear! The right hon. Gentleman had the opportunity to name a single country in the industrialised democratic world where a centre-right party does worse than the Scottish Conservative party, but he could not think of one because there are none. The Scottish Tories polled 14.9%, down two points on the previous general election. To be proud of that—

David Mundell Portrait David Mundell
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Twenty thousand votes up.

Angus Robertson Portrait Angus Robertson
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For the Secretary of State for Scotland to deny the facts just goes to show how far the Conservative party, the Labour party and—[Interruption.] I was going to add the Liberal Democrats—there is not a single one in the Chamber—because they lost 10 out of 11 seats in Scotland.

The point of saying all this is to understand where the democratic mandate lies. We went to the country saying that Smith should be delivered in full and that further powers should be delivered, and the Scottish National party won an overwhelming mandate to come to this place and make our case.

Lord Austin of Dudley Portrait Ian Austin
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Will the hon. Gentleman give way?

Angus Robertson Portrait Angus Robertson
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The hon. Gentleman will have time to make a speech later. There is very little time, and I am the first parliamentarian from the SNP to be called in these proceedings more than an hour after the beginning of this debate.

The sole purpose of the Scotland Bill is to implement the Smith commission in full. The UK Government’s amendments are a welcome admission that the Scotland Bill, as published, did not deliver Smith. However, the Government’s amendments tabled on Report still fail to deliver Smith and still fail Scotland. SNP Members have tabled a range of amendments that will give the people of Scotland the powers they were promised and the powers that they will need. We have tabled amendments on tax credits, which would devolve control over all aspects of working and child tax credits, and on employment rights, which would devolve control over employment rights and industrial relations to the Scottish Parliament. We will debate those in the next group of amendments, when they will be addressed by my hon. Friend the Member for Banff and Buchan (Dr Whiteford).

We have also tabled new clause 36 to devolve the power to hold a referendum on Scottish independence to the Scottish Parliament. There should only be another referendum on Scottish independence when the people of Scotland indicate that they want one, but it is right that the Scottish Parliament—the people of Scotland’s Parliament—should hold the power to react to the wishes of the people of Scotland.

We should not lose sight of the fiscal framework. That is the financial underpinning that will allow the transfer of powers to operate without detriment to the people of Scotland.

Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
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I spoke to the right hon. Gentleman before the debate, so he knew that this question was coming. This debate is clearly about the constitution and tax. The Scottish Parliament intends to end tax relief for sporting estates, which bring substantial revenue and many jobs to Scotland. Scotland is famed for its outstanding scenery and tremendous field sports opportunities. This must be about the approach to managing natural resources. Does he agree that, when it comes to recreating tax forms and making sure that the distribution of moneys is correct, this is a great opportunity to enshrine safe ground partnership principles at the heart of government?

Angus Robertson Portrait Angus Robertson
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The hon. Gentleman has put his point of view on the record. I encourage him to get in touch directly with the Cabinet Secretary for Rural Affairs, Food and Environment in Scotland, Richard Lochhead. We are proud of the Scottish Government’s rural affairs agenda. Incidentally, I commend the hon. Gentleman’s party for turning up in greater strength to this debate than the Liberal Democrats.

To hold the 2014 referendum, the Scottish and UK Governments were required to agree a section 30 order, which amended schedule 5 to the Scotland Act 1998, to grant the Scottish Government the legislative competence to hold a referendum, providing that a number of conditions were met—namely, that it was held before the end of 2014 and that the ballot paper included one question.

New clause 36 would permanently transfer to the Scottish Parliament the power to legislate for a referendum on Scottish independence. It is right that the Scottish Parliament should decide on that, and not this place. As the First Minister has made clear, the SNP manifesto for next year’s Scottish election will set out our position on a second independence referendum and consider in what circumstances such a referendum might be appropriate at some point in the future. However, the final decision on whether there is another referendum and on whether Scotland ever becomes independent will always be for the people of Scotland.

In the meantime, I observe that support for Scottish independence has continued to grow. If people back home are watching this debate, I have no doubt that it will rise even further. A Panelbase poll for The Sunday Times found that 47% of people in Scotland currently support independence and that more than two thirds believe that the country will be independent by 2045.

Support for independence has risen as the UK Government have failed to meet their promises on more powers; continued with austerity; introduced further welfare cuts; and promoted English votes for English laws. Since the referendum, the UK Government’s attitude towards Scotland has angered a great many people. Those who are watching proceedings today have good reason to be angered yet more. On EVEL, the Scotland Bill and austerity, the UK Government have shown scant regard for the voice of the people of Scotland.

We will not lose sight of the financial arrangements that relate to the Bill. We raised them in Scottish questions last week. We understand that a negotiating process is under way between the UK Government and the Scottish Government. It is critical that that financial framework is negotiated in good faith between both Governments and without detriment to the people of Scotland.

Ian Murray Portrait Ian Murray
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I am grateful that the right hon. Gentleman has got on to the fiscal framework. At Scottish questions last week, I asked the Secretary of State whether we could have a little more transparency about the discussions to prevent anyone or any party in this Chamber from misinterpreting what the fiscal framework is trying to achieve. The Scottish people can then make their own judgment about whether it is detrimental to Scotland or otherwise.

Angus Robertson Portrait Angus Robertson
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Without wanting to concern the hon. Gentleman, I agree with him. Transparency is a good thing. Our colleagues in the Scottish Parliament are significantly happier than we are here with the open approach that the Scottish Government are taking on this matter. Obviously the negotiations are between the two Governments, but the Secretary of State could easily come to this House and provide more information to the hon. Gentleman’s satisfaction and mine.

The Smith commission identified that Scotland’s budget

“should be no larger or smaller simply as a result of the initial transfer”

of powers. It recommended that the devolution of further tax and spending powers to the Scottish Parliament

“should be accompanied by an updated fiscal framework for Scotland”

and that

“the Scottish and UK Governments should jointly work via the Joint Exchequer Committee to agree a revised fiscal and funding framework for Scotland”.

The UK and Scottish Governments are negotiating the fiscal framework on an ongoing basis. It should allow the Scottish Government to pursue their own distinct policies that meet the needs and wishes of the people of Scotland. For fiscal devolution to work, it is essential that the Scottish Government have the flexibility to pursue distinct fiscal policies, consistent with the overall UK fiscal framework.

The block grant adjustment should be robust and transparent, deliver a fair outcome for Scotland and be agreed by both Governments. The effect of the adjustment should be to ensure that the Scottish Government’s budget is in broad terms no better or worse off in the long term compared with what the devolved taxes would have raised had they not been devolved. The Scottish Government have said that they will not sign up to any adjustment that is not fair to Scotland. That is in line with the “no detriment” principle set out in Smith.

Before us today, we have 200 amendments and new clauses. They are massively important to people in Scotland. Sadly, they are clearly not important to the Labour and Conservative parties, which are here in such small numbers. I will bring my contribution to a close to ensure that more Members of Parliament for Scotland have the opportunity to take part.

The people of Scotland are watching these proceedings. We are told that this is the mother of all Parliaments. This is supposed to be the most important legislation about the future of our country, yet it has been shoehorned into less than one day of proceedings. Incidentally, for the information of the shadow Secretary of State, that happened against the wishes of the Scottish National party, which pressed for another day of proceedings so that we could look into the proposals in detail. People should look and learn, because if this is the way to legislate, we do not need it. The Scottish Parliament is a 21st-century Parliament. If ever a case was put for the Scottish Parliament to be able to exercise power over all issues that matter to the people of Scotland, this is it.

Alberto Costa Portrait Alberto Costa (South Leicestershire) (Con)
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It is a pleasure to follow the right hon. Member for Moray (Angus Robertson)—[Interruption.] I apologise for my pronunciation—I have lived in England for over 15 years and one’s accent does change. It was also a pleasure to listen to the hon. Member for Perth and North Perthshire (Pete Wishart). I agree that this is an important constitutional Bill. We are hearing today about how the Bill will make the Scottish Parliament not just a permanent institution in the United Kingdom’s constitutional arrangements, but one of the world’s most powerful devolved Parliaments.

Crucially, the Bill will allow more decisions that affect Scotland to be taken in Scotland. It will increase the financial responsibility of the Scottish Parliament and its accountability to the Scottish public. Perhaps that is a word that SNP Members do not wish to hear, because accountability is something that has been lacking these last eight years in Scotland, when gripes and grievances have constantly been thrown to London about decisions and powers that already rest with the SNP Scottish Government.

The package that has been brought before the House today by the Secretary of State and his team contains substantial financial powers, including over income tax and VAT, the devolution of substantial elements of the welfare system and a range of other powers, including constitutional powers and powers over transport, such as responsibility for air passenger duty.

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Angus Robertson Portrait Angus Robertson
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Just now, in response to my hon. and learned Friend’s point about our being excluded from the Joint Committee, the hon. Member for South Leicestershire (Alberto Costa) said, “Good.” Might she take an intervention from him so he can explain why the party that represents almost every constituency in Scotland should be excluded from that important Committee?

Joanna Cherry Portrait Joanna Cherry
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I am grateful to my right hon. Friend for drawing that to my attention. I would be delighted to take that intervention. Will the hon. Gentleman, whom I believe is a lawyer of sorts, tell us and the people of Scotland why he thinks it acceptable for all Scottish MPs to be excluded from the Joint Committee?

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Angus Robertson Portrait Angus Robertson
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As is customary, it is appropriate to put on record the appreciation of all parties, and I do so on behalf of the effective opposition in this Chamber, the Scottish National party. I thank, too, colleagues in the Westminster SNP group who have taken part in the debate, and colleagues in the Scottish Government, with whom we have worked closely throughout the passage of this Bill.

Those watching at home, as opposed to those sitting in the Chamber—for those who are not aware of it, our proceedings are trending among the top 10 most discussed issues on Twitter tonight; a great many people in Scotland have been watching our proceedings—will have noted a number of things. They will have noted that for the first half of proceedings there were more SNP Members in the Chamber than those of all other parties combined. They will have noticed that, with less than six hours allocated for debate—notwithstanding the fact that an offer was made by the SNP for a second full day on Report—the Government tabled 200 new clauses and amendments, and we had an opportunity for only seven Divisions. On an issue that is supposed to be defining for Scotland’s constitutional future, that is no way to legislate. The idea that legislating as we just have is worthy of the mother of all Parliaments, as some people choose to call it, is way out of place.

We have heard a great many claims about the delivery of the vow. This evening, we have seen Labour Members agreeing with the Conservatives, as they have so often over the last years—[Interruption.] Indeed, they are signalling their co-operation and that they work closely together. That has been noted. In particular, it has been noted that this evening, the Labour party voted with the Tories against tax credits being devolved to the Scottish Parliament. On a defining issue—