United Kingdom Internal Market Bill

Daniel Kawczynski Excerpts

Wednesday 16th September 2020 Commons Chamber

[Ruth Cadbury]

I will not, because time is short, and I have already given way once.

A central plank of our devolution settlement has been the right of devolved areas to set their own priorities, yet the Bill undermines that by giving Ministers the power to provide funding over a wide range of issues, from culture to sport and economic development. Many voters in red wall seats changed their allegiance at the election, and according to the polling, many of them did so because they felt divorced from Westminster and Whitehall. That is true of people in the devolved countries. In Scotland and Northern Ireland, they voted strongly away from this Government and also away from Brexit in the referendum.

These powers will only make people in the UK feel further divorced from decision making that affects their lives, on issues such as culture, sport and economic development. The explanatory notes to the Bill even accept that, saying that these powers

“fall within wholly or partly devolved areas”.

Members need not take my word for it. The Welsh Government have called this Bill

“an attack on democracy and an affront to the people of Wales, Scotland and Northern Ireland, who have voted in favour of devolution on numerous occasions.”

[Daniel Kawczynski (Shrewsbury and Atcham) (Con)]

Will the hon. Member give way?

[Ruth Cadbury]

I will not, because other Members want to speak.

Finally, I want to address state aid. We have witnessed a rather interesting piece of spin from the Government and their supporters. One of the central aims of the Bill—indeed, one of the central reasons why the Government are embarking on breaking international law—is to overrule the provisions on state aid rules that apply in Northern Ireland. Let us not forget that the Government agreed to those provisions in their so-called oven-ready deal.

What is even more concerning is that, while the UK was an EU member, successive Conservative Governments had an almost allergic attitude to state aid. In 2017, France spent almost twice as much as the UK on state aid, and Germany spent a staggering four times as much, so why the sudden focus on state aid? The Conservatives have never been very interested in it, to the detriment of UK businesses, innovation and enterprise. The Government know that, if they have genuine and sincere problems with state aid, that is exactly what the Joint Committee exists for. Once again, we see the Government using a sledgehammer to crack a nut.

Frankly, the buck should stop with the Prime Minister. He knows the damage that this Bill would do to the Union, to the UK’s international reputation and to the rule of law. This Bill sets up confrontation with the EU. Some 40% of our international trade is with EU countries, and it sets up a stand-off with the courts. It is an attack on the rule of law, and it undermines the UK’s commitment to the rules-based international order.

--- Later in debate ---

[Daniel Kawczynski]

Of course, all of us in this House respect the devolution process and Welsh decision-making in Cardiff, but does the hon. Gentleman accept for a moment that, as Cardiff and London increasingly diverge, for border communities such as mine with businesses on both sides of the border there are additional problems and risk as a result of that increasing divergence between our two capitals?

[Gerald Jones]

I thank the hon. Gentleman for his comments, but it is certainly clear to me from comments I have heard from the Government side of the Chamber that lots of people do not understand devolution. Devolution is about giving powers to those devolved nations to make the decisions for themselves, and that is where some Government Members struggle.

In Wales, the Welsh Government have, as we have heard, stated that the Bill is an attack on democracy and an affront to the people of Wales, not to mention Scotland and Northern Ireland, who have voted in favour of devolution on numerous occasions. As we have heard, one of the Conservatives’ long-standing Senedd Members has resigned as shadow Counsel General over the Bill, commenting that:

“The publication today of the Internal Market Bill has done nothing to lessen my anxieties about the dangers facing our 313-year-old Union. Indeed they have been gravely aggravated by the decisions made in the last few days by the Prime Minister.”

That is from a well-respected Member in the Welsh Senedd, and of course we have heard very clear concerns from three former Conservative Prime Ministers and two former Labour ones—in fact from all living Prime Ministers.

One of the foundations of the devolution delivered by the Labour Government for Wales and Scotland in 1997 and developed over the past 20 years has been the right of devolved nations to set their own priorities on key spending areas. The explanatory notes to the Bill state:

“Part 6 grants power to a UK Minister of the Crown to provide funding across…economic development, infrastructure, culture, sporting activities, and international educational and training activities and exchanges.”

Of course, I welcome any additional funding or assistance that would benefit Wales and my constituents. However, it is not for the UK Government to play Father Christmas and pull those pet projects out of the air. Any additional funding should be delivered by devolved Governments in line with what has been developed over the past 20 years, in a strategic way involving local authorities and local stakeholders. If the Government have their way, spending decisions previously made in Edinburgh, Cardiff and Belfast will now be made in London, and that flies in the face of devolution.

The Government argue that this Bill strengthens the Union on the grounds that it will give the UK Government new powers to spend across all four nations, but I believe that it will have exactly the opposite effect. A Government official reportedly told Politico that the spending powers would be used sparingly but demonstrated that the

“devolve and forget approach of the Blair/Brown years”

was over. But this Bill provides a risk that the UK Government will now be able to undermine the spending decisions and policy priorities of devolved Administrations.

It is no accident that we have yet to receive clarity on the UK shared prosperity fund, after almost two years of waiting. The Government stated that the consultation should have been held in 2018 and that Wales would not lose a penny compared with what we have received until now from the UK structural funds. That funding was based on genuine need, not on patronage or favour. It is essential that any funding Wales now receives is allocated in a similar way, involving the Welsh Government and local authorities in Wales in determining and delivering on local priorities.

On Second Reading, I supported the reasoned amendment tabled by my hon. and right hon. Friends declining to give the Bill a Second Reading and I voted against the Bill. I will continue to oppose this Bill until the Prime Minister and the Government reconsider and come up with a way to ensure that the devolved settlement is preserved and the Union is intact.

The Government must negotiate in good faith with the EU and devolved nations, instead of creating division and discord that puts getting a deal at risk. So my message to the Prime Minister is this: please get back around the table and negotiate properly and stop posturing. We do not have time for distractions like this when a deal is on the line. We need leadership from the Prime Minister, not theatrics.