Strengthening the Union

Chloe Smith Excerpts

Monday 23rd July 2018 Commons Chamber

[The Parliamentary Secretary, Cabinet Office (Chloe Smith)]

I beg to move,

That this House has considered strengthening the Union.

The Prime Minister and the Government have said, time after time, that it is our responsibility and duty to govern for the whole of the United Kingdom. The UK Government are responsible for governing for the benefit of everyone in Scotland, England, Wales and Northern Ireland, but this reality is perhaps easy to forget. Devolution has changed the constitutional landscape of the United Kingdom, and with multiple Governments working across our four nations, it is perhaps easy to forget the value that this concept—this thing we call “the Union”—brings to us all, but the Prime Minister’s words show that this Union cannot and should not be taken for granted. It has always been of profound importance to all of us. It is central to our wellbeing, our security and our prosperity, as well as to who we are, whether we are from Scotland, Wales, England or Northern Ireland. It is a part of our identity as citizens of the United Kingdom, so I welcome this timely opportunity to discuss our Union of four nations.

I have the privilege of travelling regularly across the nations of the UK in my role as constitution Minister—I was also formerly a Minister in the Northern Ireland Office—and I see the strengths of our country. It is clear to me that delivering for all parts of the United Kingdom is—as it should be—at the heart of the Government’s approach. All parts of the UK need to work together to seize the opportunities of, for example, leaving the European Union. Being part of a bigger and stronger UK benefits all citizens in its four nations.

[Wes Streeting (Ilford North) (Lab)]

Perhaps the Minister can explain, then, why the former Foreign Secretary described Northern Ireland’s role in the Brexit process as

“the tail wagging the dog”

and sought to dismiss the serious concerns about the prospects of a hard border between Northern Ireland and the Republic of Ireland, or indeed, between Northern Ireland and Great Britain. Perhaps she can explain why that was and dissociate the Government from those comments, now that the former Foreign Secretary has dissociated himself from the Government.

[Chloe Smith]

The hon. Gentleman did the job himself in the final few words of his intervention. I will look forward to some better ones as we go on.

Let me start with a few points on identity. The individual identities of each of the four nations remain strong. We could ask any of the millions of football fans who watched England’s endeavours in Russia about that. Each of us is proud of our distinct history and culture and our different traditions, but we also see this through amazing events such as the Royal Highland Show and the Royal Welsh Show—taking place later this week—which, of course, Cabinet Ministers attend and support.

Although our distinct identities are proudly held, perhaps particularly when we are watching sport, there is another set of values and ideas that unite us all, from Coleraine to Colchester and from Campbeltown to Caernarfon. The values of tolerance, democracy, equality and fairness are central to who we are as citizens of the United Kingdom. We may disagree over whether we prefer Scotch whishky—I mean whisky. It sounds as if I have already been on the whisky, Madam Deputy Speaker! Let me start that sentence again. I am going to attempt to get through a sentence that compares Scotch whisky to English ale, to Northern Irish scones, to Welsh cakes—I may well get to the end of that sentence with a cheer from the House. Whichever one of us has the better cakes or drink, or the more noble history, we are united in our deeper beliefs, democratic traditions and our long history of working as one to benefit us all. When we come together as one people, we benefit from the security and stability that comes from being one of the largest economies in the world, pooling risks and sharing benefits.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

The Minister talks about benefiting all, but as she is aware, the UK is the most unequal state in the European Union, with inner London by the far the richest part of the EU while the communities that I represent are among the poorest, yet in Government figures published in the last few weeks, public expenditure per head in London is higher than in Wales. Why is that fair?

[Chloe Smith]

The hon. Gentleman highlights an important point that we will have the opportunity to consider when we look at issues such as leaving the European Union and how we will address, for example, agriculture support across our nation. The point I was making is that we are a larger economy when we are together as a Union, and that means we can do things together in a more effective way for all our constituents.

[Chris Elmore (Ogmore) (Lab)]

I speak as a proud Unionist, and I am very much in favour of the Union. The Minister must understand, however, that there are considerable concerns about Brexit and the Government’s long-term plan for regional continued development, which benefits my constituency enormously—structural funding, for example, and agricultural funding. Those uncertainties are not helping to keep the Union together. On direct funding to Wales, she has to accept that cutting electrification to Swansea from Cardiff and not supporting the tidal lagoon does not give us enormous confidence about this Government investing in Wales and its communities.

[Chloe Smith]

I am sure that we will come on to all those points during the debate. However, the hon. Gentleman and the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) were right to raise them, because it is in recognition of such issues that the Government plan to create a shared prosperity fund for the whole of the United Kingdom. We share those goals; we share those opportunities.

[Sammy Wilson (East Antrim) (DUP)]

I am sure that many Members from all over the United Kingdom will point to the inequalities and the lack of growth in some parts of our economy, but does not being part of the United Kingdom mean that fiscal transfers from parts of the UK that generate more revenue than others help Northern Ireland, Wales, Scotland, and many English regions?

[Chloe Smith]

That is precisely my point. When we see what we can do as a larger economy—when we see how we can attract the finest and the best across the UK economy —we also see that we are in a position to put that back into public services, including the NHS and many other services that are admired around the world, and which work together to make everyone’s lives better. That is true throughout the Union.

[Ian Murray (Edinburgh South) (Lab)]

Will the Minister give way?

[Chloe Smith]

I must make a few more moments of progress. We have a full debate ahead of us on the strengths of the Union.

Let me say something about the shared economy and the strong internal market, which is one of our biggest strengths, and which is important for all our prosperity. The UK internal market is, of course, the vital first market of the UK. As one of the largest economies in the world, we buy and sell among our nations, and that creates wealth and jobs for every part of the UK.

As we leave the EU, we must protect the benefits of the UK domestic market. We are a world leader in financial services, defence technology, car production, food and drink, digital technology, energy, music, films and television, and all parts of the UK have their role to play in those world-leading industries. Scotland’s exports to the rest of the UK are worth four times more than those to the EU, and 56% of Northern Ireland’s external sales are to the rest of the UK. We as a Government are committed to strengthening these links between the economies of our nations. For example, between England and Wales we are abolishing the Severn bridge tolls and investing in cross-border railway links such as the Halton curve. Let us not forget how many people cross our internal borders every day as part of normal life. As the Prime Minister pointed out during her speech in Northern Ireland on Friday, our Union is rooted in both our history and our collective achievements, but it is our future together that is our greatest strength.

[Ian Murray]

Will the Minister give way?

[Chloe Smith]

Yes, I will now.

[Ian Murray]

I am very grateful to the Minister—and may I compliment her on her rather fine Sean Connery impression earlier in her speech?

The Minister has just reeled off a list of service industries in this country, which, of course, are not covered by the Chequers agreement. What analysis has her Department conducted of how much the UK’s GDP will be reduced as a result of that agreement?

[Chloe Smith]

I do not think the hon. Gentleman can have been listening when I included, for example, car production and food and drink in my list, but the point is that the Chequers agreement seeks to secure the best deal for the whole UK economy, together. That covers both goods and services in different ways—in ways that will complement our strengths—but it also returns us to the key point about the whole UK economy, together.

Let me now say something about the industrial strategy. It is a vital part of the plan set out by the Prime Minister to drive growth across the whole UK, and to create more highly skilled, highly paid jobs and opportunities. It is intended to address the long-term structural challenges that can hold British businesses back, while building on the country’s strengths. New sector deals and investment and research and development will support the industries of the future where the UK has the potential to lead the world, from electric vehicles to biotech and quantum technologies.

It is important that we continue to look to the future. As was announced earlier this month, a £2.5 million grant has been awarded for a spaceport site in Sutherland, on the north coast of Scotland. That the first ever satellite launch from the UK could be from Scottish soil highlights our commitment to investing in all parts of the UK, and there are other launch sites too, such as those planned in Cornwall, Glasgow and Snowdonia, which will also be boosted by a new £2 million development fund. The UK is set to build on its world-leading expertise in aerospace with the development of these spaceports.

On the city and growth deals, we are supporting clusters of cultural and economic strength concentrated in places throughout the UK, and we want to see city and growth deals across the four nations to ensure that prosperity is shared across the UK. We have already seen important investments in a number of deals such as Cardiff, Glasgow and Swansea, as well as investment in other important cultural work such as the V&A in Dundee. Further deals are being developed. We have recently announced the Stirling and Clackmannanshire city region deal, and negotiations have been opened on the north Wales growth deal and with the Belfast city region partners. These deals make a vital contribution to local economies and, as I have said, provide jobs and growth across the UK. There is more, of course. In Cardiff, we have invested in the development of a compound semiconductor industry cluster, and in Aberdeen we opened the oil and gas technology centre with an investment of £180 million, which will unlock the full potential of the North sea and anchor the supply chain in north-east Scotland.

Transport and connectivity are also crucial themes. As we support clusters of growth across the Union we must be connected geographically through our transport and infrastructure links. The expansion of Heathrow will help with this, creating hundreds of additional flights per week from London to the nations and regions across the UK, with new routes emerging to support our economic co-operation. As well as the importance of being connected geographically, the Government recognise that world-class digital connectivity is essential for the modern world; it is essential to people at work and at home and we are committed to improving that across the UK. We are investing over £1 billion to stimulate the market to build the next generation of infrastructure that the UK needs for the future through both the national productivity investment fund and the digital infrastructure investment fund.

Turning to international benefits, the strength in our unity of nations is demonstrated by our common voice on the international stage. We use our seat at the top international organisations to protect the interests of all parts of the UK, to influence issues that matter to people in the UK, and to make the world a better place. When we faced an attack on our citizens, we worked with countries around the world to respond. We use our influence to pursue issues that matter to people across the UK: leading the way on international aid, leading global action to tackle landmines, stopping the trade in ivory, and combating modern slavery. People across the UK can be proud of the role we can play because we are together in our international approach.

That international standing is also vital to the security of our country. Our UK defence expertise and excellence is joined up across the UK and has been built up across decades, from new radar stations in Shetland and Cornwall, to Scottish-built aircraft carriers based in Portsmouth, fast jet response aircraft in Lossiemouth and Lincolnshire, the SAS in Hereford, GCHQ in Cheltenham and the Royal Marines commandos in Arbroath. This is one very large UK defence network protecting us all at home and abroad. And we are spending across the country to be able to keep the whole UK safe. In the last financial year the Ministry of Defence spent £1.6 billion with Scottish industry and commerce, while a recent review found that defence invests £945 million in Welsh industry. The spectacular fly-past we saw only last month as part of the Royal Air Force’s 100th anniversary celebrations reminds us of the work of all our armed forces, who are drawn from, and based across, the whole of the United Kingdom. We saw the same at last month’s Armed Forces Day in Llandudno; it was a proud display of Wales’s military association, while the Edinburgh Tattoo demonstrates Scotland’s strong relationship with the military.

I am also proud that the UK Government recently announced that we will reimburse thousands of military personnel who would otherwise be negatively affected by the devolved Government’s income tax increases in Scotland. This protects nearly three quarters of all armed forces personnel liable for Scottish income tax and will help with recruitment and retention for our important armed forces.

[Douglas Ross (Moray) (Con)]

May I take this opportunity to congratulate the Minister on the ninth anniversary of her election to this place? Perhaps that is why the whisky and the cake were getting muddled up in her mouth—maybe she has been celebrating early. On the point about the UK Government mitigating the “nat tax” in Scotland, does she agree that it was important for my constituents at RAF Lossiemouth and at Kinloss barracks that the UK Government did something to address the fact that the Scottish National party has made Scotland the highest taxed part of the United Kingdom, which was having a negative impact on recruitment and retention for our armed forces in Scotland?

[Chloe Smith]

Yes, that is exactly why the UK Government took those steps, and we are proud to have done so.

[Stewart Malcolm McDonald (Glasgow South) (SNP)]

A freedom of information request has just shown today that the Ministry of Defence is not paying 220 people the living wage in Scotland. Why?

[Chloe Smith]

I confess that I am not in possession of that information, and I am not in a position to give the hon. Gentleman the answer to that question right now. I wonder whether the Under-Secretary of State for Defence, my hon. Friend the Member for Pudsey (Stuart Andrew), might be able to assist with that a little later in the debate.

I want to move on to the importance of devolution, which is a matter of interest to us all. Our powerful devolved Governments and Parliaments are important elements of our Union’s strength. The Union is best maintained by giving the different nations of the UK the ability to pursue their own domestic policies while protecting and preserving the benefits of being part of that bigger UK family of nations. The UK Government respect devolution as an exercise in better governance and as a way to bring the delivery of services closer to the people who need them, while making use of the benefits of scale across our four nations. Since 1998, the Government have transferred powers to ensure that they sit where they can most effectively be delivered, and the Scotland Act 2016 transferred a wide range of powers to the Scottish Government and the Scottish Parliament. The Wales Act 2017 has delivered clarity for Welsh devolution and accountability for the Welsh Government, meeting the commitments that we made in the St David’s day agreement. Devolution in real terms makes a difference to people’s lives across the UK.

Northern Ireland makes a major contribution to the Union, and also derives great benefits from it. The principle of sharing the economic and political strengths of the Union continues to serve the interests of the people of Northern Ireland, and we are working each day to ensure that that remains so. The principles that define Northern Ireland’s place as an integral part of the United Kingdom are of course enshrined in the Belfast agreement and its successor agreements.

[Sammy Wilson]

Northern Ireland suffered from 40 years of terrorism at the hands of those who wished to overturn the democratic wishes of the people of Northern Ireland. Will the Minister accept that one of the benefits of the Union was that the people of Northern Ireland did not have to stand alone against that terrorist threat but were able to bring to bear all the powers of the security arrangements that were available in the United Kingdom in order to defeat terrorism? Was not that an important benefit of the Union?

[Chloe Smith]

Yes, I think that is right. The right hon. Gentleman also reminds us of the importance of the principle of consent that is there in the Belfast agreement—namely, that the UK Government govern for the benefit of all communities in Northern Ireland on the principle of consent.

[Jim Shannon (Strangford) (DUP)]

I am sure the Minister recognises the contribution of the people in uniform in Northern Ireland. Conscription was never needed, because people volunteered, and Northern Ireland has the biggest levels of recruitment across the whole of the United Kingdom of Great Britain and Northern Ireland. We have the largest number of recruits to the Territorial Army reserves of anywhere in the United Kingdom of Great Britain and Northern Ireland. This is a sure example of our contribution to the greater nation in uniform, whether in the Army, the Royal Navy or the Royal Air Force.

[Chloe Smith]

I join the hon. Gentleman and everyone in the House in paying tribute to those who serve this country in uniform. We should never forget them.

Let me return to my point about the Belfast agreement, which was reached 20 years ago and was a landmark moment in the history of our islands. The UK Government’s priority is to ensure that it remains as relevant today as it should be, and to restore the devolved institutions at Stormont. All efforts are being made in the hope that an accommodation can be reached and an Executive formed, so that Northern Ireland Ministers can take key decisions. Successive UK and Irish Governments, together with all the parties in Northern Ireland, worked tirelessly to bring about the historic achievement of peace. Let us continue that work.

As hon. Members will know, EU exit will result in a further significant increase in the decision-making powers of the devolved Administrations.

[Stephen Kerr (Stirling) (Con)]

On the new powers that will come to the Scottish Government in particular, it has never been more important that the UK Government, the Scottish Government and all the devolved Administrations work very closely together. What we have seen over the past year, at least in my estimation, is that there are, at times, chasms that divide the UK Government and the devolved Administrations. The machinery to bring those different Governments together seems to be inadequate. Does the Minister agree? Is that something to which the Government will attend?

[Chloe Smith]

Mr Speaker—[Interruption.] I am sorry, Madam Deputy Speaker. I have clearly had yet more of that whisky—I keep referring to you as “Mr Speaker.”

Madam Deputy Speaker, my hon. Friend makes two important points. First, he says that we need to be able to come together as a single United Kingdom to make sure that our UK internal market continues to function and continues to bring the benefits that are needed across the internal borders of our country. He also looks ahead to my points about how we can relate to each other in the governmental work we need to do to get people those benefits, as new responsibilities transfer to Edinburgh, Cardiff and, once an Executive are formed, Belfast.

Our commitment to bringing powers closer to people can be seen in the major steps already taken to decentralise governance in the UK, creating new combined authorities in seven city regions, headed by elected Mayors, and devolving to them new powers and budgets. There are Mayors, of course, across England—in Greater Manchester, the west midlands, the Liverpool city region, Tees valley, the west of England, Cambridgeshire and Peterborough, and Sheffield city—and they demonstrate how local, visible and innovative leadership can be key to building stronger economies and fairer societies.

English votes for English laws, meanwhile, embeds fairness and balance in Parliament’s law-making process, strengthening England’s voice just as devolution has strengthened the voices of Scotland, Wales and Northern Ireland within our Union. These measures are about accountability, effectiveness and empowering institutions to take action to make things better for the people to whom they are accountable.

[Pete Wishart (Perth and North Perthshire) (SNP)]

The Minister has very conveniently skipped over Brexit. Over the weekend we learned that a no deal Brexit is now likely. For Scotland that could mean conditions akin to a state of emergency, with “Protect and Survive”-type leaflets being given to families and businesses. How does that help to strengthen her Union?

--- Later in debate ---

[Chloe Smith]

It is not my Union but the entire country’s Union. It is something we should be proud of; it is something we should cherish and protect; and it is something we should work together to protect. People in all our constituencies do best from the internal market of the United Kingdom, and it is that which we are seeking to protect and cherish as we leave the European Union and as we go out into the world to seek additional trade.

We are committed to ensuring that our system of devolution, which has progressed over the past few decades, serves to strengthen our Union and that a voice is afforded to each part of the United Kingdom. We have worked with colleagues in the devolved Administrations to strengthen the mechanisms for intergovernmental co-ordination and collaboration.

I chair a new ministerial forum, along with my colleague, the Under-Secretary of State for Exiting the European Union, the hon. Member for Worcester (Mr Walker), with the purpose of providing opportunities for meaningful discussion of the UK’s negotiating position with the EU. My right hon. Friend the Chancellor of the Duchy of Lancaster regularly meets the leaders of the devolved Administrations through the Joint Ministerial Committee on European negotiations.

[Jonathan Edwards]

I am grateful to the Minister for giving way again. There can be no more important document on the current negotiating strategy than the White Paper that was published the week before last. Is it not the case that the Welsh Government had sight of that document only a matter of hours before the British Government gave it to the press?

[Chloe Smith]

I am not going to comment on individual documents here. The forum I chair, and the JMC structure more broadly, operate on a close working principle. We seek to improve it; we seek for it to be better in the future. We have held a number of very effective meetings in the last while—more than perhaps in the recent period just before that—because we recognise the challenge of these times and we want to have that close working and co-operation together.

The governance of the Union is also about learning from each other. Whether it is the UK Government or a devolved Administration that get policy right, we can all share our experiences, note our mistakes and learn our lessons together; as a Union, we can help each other to serve our people. This Government are fiercely proud of our Union. We will continue to defend it and to strengthen it. We believe that the UK has a bright future as an independent nation outside the EU. This Government will work to invest in all parts of the UK, for the benefit of everyone. By working together, we can help to tackle some of the world’s great injustices and ensure a safer world. As the Prime Minister said on Friday, we are:

“A union not just of nations, but of peoples bound by a common purpose, whoever we are and wherever we are from”.

This Government are working towards

“a brighter future for us all, where we put aside past divisions and work as one to meet the challenges and seize the opportunities that lie ahead”.

I look forward to this afternoon’s debate, which I believe will be an insightful discussion on a very important matter.