Debate on the Address

Debate between David Davis and Lord Bruce of Bennachie

Wednesday 4th June 2014 Commons Chamber

[Sir Malcolm Bruce]

What I said was that had there not been a coalition delivering stability in Government, there would have been a run on the pound, or it is likely that there would have been a run on the pound, and there would have been a sharp rise in interest rates—and as the only coalition possibility was the one that actually happened, yes, I am saying that had we not entered the coalition, that would have been a real risk.

There is also a presumption that, a short time after the 2010 election, there would have been, or might have been, a second election, which might have produced a similarly indecisive result because the economy had been seen to deteriorate even more, but which, in some people’s opinion, would have produced a Conservative majority Government. I can only say that if that had happened, we should have heard a very different Queen’s Speech from the one that was delivered today. For instance, I do not believe that the Government would have delivered the raising of the tax threshold to £10,000 this year, and the further increase to £10,500 next year. That was not in the Conservative manifesto, and the Prime Minister said that it could not be done, but it has been done, because we were there fighting for it. It has been popular, and of course Conservatives want to be associated with it, but it was and is our policy. It will cut income tax for 24 million people by £800 annually from next year, and it has taken 2 million people out of tax altogether.

If there had been a Conservative majority, we would certainly not have introduced the latest round of the most radical reforms of our state and private pension arrangements since the days of Lloyd George, who, as some Members may recall, was a Liberal. Our pensions Minister, my hon. Friend the Member for Thornbury and Yate (Steve Webb), has secured a legacy as a great reformer. He is probably the best informed, best qualified pensions Minister that the country has ever had, and I believe that the measures he has introduced will serve as the foundation for both public and private sector pensions for decades to come.

Those two measures in themselves represent huge and positive reforms that have happened only because Liberal Democrats have been in government, but Liberal Democrat Ministers have also been the driving force behind the growth of apprenticeships, and we are on target to achieve 2 million by the end of the current Parliament. Liberal Democrats, led by the Deputy Prime Minister, have secured extra child care support, free school meals for every infant, and targeted support for disadvantaged pupils. Those measures have made a significant difference to families and others living in deprived circumstances, and are having, or beginning to have, a qualitative effect on the outcome of education.

Liberal Democrats have led the way towards a reform of the electricity market which, unlike the measures proposed by the Opposition, would keep the lights on, keep bills down and promote green energy. Liberal Democrat Ministers have secured a commitment to zero-carbon homes and to international agreement on climate change. Numerous other Liberal Democrat measures pepper the Queen’s Speech, including restrictions on plastic bags, support for garden cities, protection for pub landlords, a definition of child cruelty through a Cinderella clause, tough powers to tackle female genital mutilation, and legislation for the recall of Members of Parliament. None of those measures would have been in the Queen’s Speech if Liberal Democrats had not been in the coalition.

There are other parts of the speech which I warmly welcome, too. As I represent a constituency in the north-east of Scotland, I welcome the fact that maximising North sea resources is committed to in the Queen’s Speech, as is implementing the proposals of the Wood review, which the Government—indeed, the Liberal Democrat Energy Secretary—commissioned and which was supported by the Prime Minister. This will be achieved first through co-ordination between the Government and industry and also by maintaining a tax regime that encourages development. I hope the Government can simplify the tax regime over time, because it is becoming complicated. That is serving to unlock investment but it is also making it very difficult for businesses to assess that against international comparators. We also need to stimulate exploration, which is essential for future development.

I should say in passing that the industry has a concern. It will support this co-operation between Government and industry to maximise returns and to co-ordinate the use of infrastructure, but the regulator that is required to achieve that could be costly and it believes that if there is shared co-operation the costs should be shared, not imposed entirely on the industry. However, this calculation has, in the end, to be made: whatever is done has to enable the industry to make the investment that will ensure we get the maximum returns in the long run.

I also welcome the implementing of new financial powers for the Scottish Parliament. It is the essential next step in devolution. The right hon. Member for Wokingham (Mr Redwood) has left the Chamber, but he was right to say that if—or when, as I believe—Scotland votes to stay in the United Kingdom, the further transfer of powers to Scotland and what is happening in Wales and Northern Ireland will lead to a demand for devolution within England. I recognise that that is a matter for English MPs, but I personally think it would be a welcome development, leading to decentralisation and more localism.

This is the reality in Scotland: the coalition Government had to tackle the recession and the hole in the finances and had to take all the tough decisions, whereas all the Scottish Government had to do was spend the block grant, but they have done that while hurling abuse at all the difficult measures which, frankly, any Government would have to take, and while having no responsibility for those decisions. Giving the Scottish Parliament the responsibility to raise its own revenue and not just spend the block grant will increase transparency and accountability.

[Mr David Davis (Haltemprice and Howden) (Con)]

Does my right hon. Friend agree that had we given the Scottish Parliament those powers of full control in raising and spending revenue at the time of the 1998 Scotland Act—this point was made back then—we would have reduced the demand for independence?

[Sir Malcolm Bruce]

I do agree. I would not say “full” in this context, because in a quasi-federal system each tier in Government needs to have access to its own tax base, but I agree that if the Scottish Parliament could have accessed most of its own revenue and resources, that would, indeed, have been the case. I think it would also have led to a more adult debate in Scotland about how priorities are determined. It is very easy for MPs in the Scottish Parliament to attack the difficult decisions involved in dealing with the deficit, as they have no responsibility for making those decisions.