Subsidy Control Bill

Baroness Bryan of Partick Excerpts

2nd reading
Wednesday 19th January 2022 Lords Chamber

[Baroness Bryan of Partick (Lab)]

My Lords, contrary to what the Minister said in his introduction, the Subsidy Control Bill is yet another step towards centralising power at Westminster. Even after 20 years of devolution, the UK Government do not seem to understand—or, perhaps more accurately, do not support—the purpose of devolution.

The summary of the Bill provided by the Minister states that the UK is no longer bound by bureaucratic and burdensome EU state aid rules. The Bill introduces equally bureaucratic and burdensome rules, excludes the devolved Governments from having a role in UK-wide policies and prevents them from developing their own policies on subsidies in their own economies. The Minister said that this gives freedoms, but those freedoms are constrained by the UK Government’s policies rather than by the devolved Governments’ policies.

The UK Government claim that they have had discussions with the devolved Administrations, but we heard from the noble Baroness, Lady Humphreys, that both the Welsh and Scottish Governments state they have had no opportunity to engage on the details of the Bill. Last Thursday the Government published a paper, Review on Intergovernmental Relations. Can the Minister explain why the Bill and the United Kingdom Internal Market Act were imposed on the devolved Administrations in advance of the new arrangements outlined in that paper?

There are many examples of how the Bill disregards devolution, and I will touch on a few. Clause 10, which defines and explains streamlined subsidies, states that only Ministers of the Crown may make streamlined subsidy schemes. Given that the regime impacts on areas of devolved responsibility, Ministers from devolved Governments should be able to lay such schemes before their own Parliaments. Clause 31, dealing with cooling off and mandatory referrals, should allow Scottish and Welsh Ministers to overrule such standstill requirements if they affect areas of devolved responsibility or where the devolved Government’s policy commitments may be delayed.

Clause 79 states that

“the Secretary of State must consult such persons as the Secretary of State considers appropriate.”

Can the Minister explain why, in the guidance on the practical application of the principles covered in Schedules 1, 2 and 3, the devolved Ministers are not given an explicit role in mandatory engagement? As the Bill is currently drafted, the Secretary of State is not even required to talk to the devolved Governments if he or she does not deem it appropriate, let alone take their positions into account.

Can the Minister explain why the UK Government have decided to include agriculture in this Bill? The WTO and the trade and co-operation agreement have separate subsidy regimes for agriculture. The devolved Governments should be entitled to use subsidies in the most appropriate way to meet their particular needs in relation to agriculture, which will inevitably differ across the nations.

Schedule 2 impacts on devolved areas of energy and the environment. Different nations have the right to develop different priorities, particularly in setting climate change goals. Subsidies may play an important role in achieving these goals.

The Scottish Government’s response to legislative consent argues that they are concerned that Schedule 3 impacts on devolved areas of economic development and, potentially, other areas of devolved competence. Can the Minister explain what the point of devolution is if the elected Parliaments are unable to develop their own priorities, policies and economies according to the platforms on which they were elected?

We started down the road of devolution while part of the EU. If that had not been the case, there would of necessity have been discussions about how the four nations shared power. If the UK is to stay together—that is a big if at times—it will have to involve a change in relationship that goes beyond the steps outlined in the review of intergovernmental relations. It requires finding a way of sharing sovereignty between the nations, but there is still little evidence that this Government understand that.

Subsidy Control Bill

Baroness Bryan of Partick Excerpts

Committee stage
Monday 31st January 2022 Grand Committee

[Baroness Bryan of Partick (Lab)]

My Lords, I too support this group of amendments.

I recognise that some aspects of the Bill should be welcomed. It has the potential to produce a more flexible and responsive system. The ability to streamline could make a crucial difference to local economies. What is concerning about the Bill is that the devolved Administrations are treated as having the same role in their economies as that of local authorities. It fails to recognise that each has a strategic responsibility for their national economy. Despite the Minister’s assurance that

“the Government have worked closely with the devolved Administrations, including sharing the consultation response document ahead of publication and carefully considering their representations”—[Official Report, 19/1/22; col. 1711.]

the devolved Administrations disagree and feel that they have been told rather than consulted.

The Scottish Government argue that the Bill should give Scottish Ministers the same powers as the Secretary of State has over matters such as referring subsidies to the Competition and Markets Authority, making streamlined subsidy schemes, and providing subsidies in response to natural disasters and other emergencies. The Welsh Government are concerned by the powers being given to the Secretary of State to shape the regime in future, with little scrutiny by the UK Parliament and none by Welsh Ministers or the Senedd. Both Governments agree that this legislation undermines powers which are fundamental to their ability to shape their own economies and industrial development.

People in Scotland and Wales view their devolved Governments and Parliaments as being responsible for the economy of their country. When they voted in last May’s elections, they chose to vote for policies that were different from those of the UK Government. My worry is that this Government want to turn back the clock to pre-devolution times.

Having looked closely at the Minister’s response at Second Reading, and the concerns raised about the exclusion of the devolved Administrations from some of the powers given to UK Ministers, I could find no explanation for why this should be the case. I hope the Minister will give a clear reason why these Parliaments and elected Governments should not have similar powers to those that the Bill awards to UK Ministers.

[Baroness Jones of Moulsecoomb (GP)]

My Lords, these amendments, which I fully support, allow the Senedd Cymru and the Scottish Parliament actually to decide issues for themselves. The legislation itself is deeply annoying because this should be standard in every Bill. I do not understand why the Government keep leaving it out.

In the Scottish independence referendum, the people of Scotland were promised devo-max. They received no such thing and then Brexit came along and gave this Government an excuse to steadily unpick devolution and centralise power in the UK Government. This is evidenced by Clause 1(7), which allows the UK Parliament to legislate contrary to the Bill but does not allow the devolved Parliaments any similar power. I simply do not understand that.

I will support these amendments if they come back on Report. I hope by then the Minister will understand that this should be in every single Bill. It should not be fought over every time. We do not want constant battles in Parliament to enact the devo-max that Scotland was promised. So please let us get some movement on this and actually make it fit for purpose.

Subsidy Control Bill

Baroness Bryan of Partick Excerpts

Lords Hansard - Part 2 & Report stage
Tuesday 22nd March 2022 Lords Chamber

[Lord Bruce of Bennachie (LD)]

My Lords, I support the second part of the amendment tabled by the noble and learned Lord, Lord Thomas, on the point about equality. There is a poll out today which says that the majority of people in Scotland do not expect the union to survive for the next 10 years. I think and hope that they are wrong, but it is indicative of how serious this issue is and that it is really important that not only the law but the Government’s approach recognises the need to accommodate equality of treatment between the devolved Administrations and the UK Government. The noble and learned Lord’s amendment puts that quite clearly, and the Government should take it seriously.

[Baroness Bryan of Partick (Lab)]

My Lords, I too support Amendment 55. I travelled from Scotland this morning to support it, so I hope that despite the late hour, your Lordships will bear with me.

On the devolved Governments, this is yet another very modest amendment and provides the very minimum recognition that devolved Governments have responsibility for important areas of their economies and should have the right in relation to call-in and enforcement.

I thank the Minister for his letter of 15 March with the update on the Bill’s progress. I do not think that anyone was surprised to read that, despite what he terms the Government’s best efforts, they have not been able to secure the legislative consent Motions. However, I was very sorry to read that the Government have decided to proceed without them. The Minister wanted to emphasise the Government’s determination to continue working collaboratively and transparently with the devolved Administrations, but both the Scottish and Welsh Governments do not believe that there has been a strong attempt to work collaboratively. Instead, they feel that they have been told rather than consulted.

The explanation given in Committee by the noble Baroness, Lady Bloomfield, in her closing comments on the set of amendments dealing with devolution, made it clear that the Government believe that they have every right to override the concerns of devolved Governments on the grounds of the UK Parliament’s status as

“the supreme legislative body of the United Kingdom”,

believing that it is merely

“a reflection of constitutional reality.”

She also stated that she simply did not believe that

“it is appropriate to require the Secretary of State to seek consent even when the Secretary of State may ultimately proceed without that consent on a reserved matter.”—[Official Report, 31/1/22; cols. GC 115-117.]

This issue is at the heart of the problem that this amendment tries, in some small way, to deal with. As has been mentioned, the Secretary of State is acting for what the Minister describes as the “supreme legislative body” but at the same time is representing the interests of England.

Speakers in Committee described this as lacking justice and being unfair. The Minister did not answer on this issue in Committee, nor was it referred to in his letter. We hope that we will find out in due course whether the review of intergovernmental relations will make a real difference. While the UK Government show so little understanding of and lack of esteem for the devolved Governments, it is hard to imagine that there will be a significant change. I hope the Minister can give some reassurance that the Government will reconsider allowing the role for devolved Governments outlined in Amendment 55 as, if they do not recognise the legitimate concerns of the devolved Governments, I fear it will contribute to the break-up of Britain, as the noble and learned Lord, Lord Thomas, and the noble Lord, Lord Bruce, warned.

[Lord Wigley (PC)]

My Lords, I will detain the House for only a moment as it must take for read my feelings on the devolved questions which we have threshed around so much. I want to put on record how much I and, I hope, the House appreciate the contribution of the noble and learned Lord, Lord Thomas of Cwmgiedd, not only to this debate and earlier debates but for his work in Committee. That he is willing at this stage of his distinguished career to put hours of work into an amendment such as this demands that the Government take notice. He has raised serious points in a professional manner. If the Government cannot respond positively to them now, there is still a chance for amendments to come forward at Third Reading to take on board the points that he has made so eloquently.