Devolution (Scotland Referendum)

David Mowat Excerpts

Tuesday 14th October 2014 Commons Chamber

[Mr Jenkin]

No, I think it was a panic reaction to a late poll. It was something that they were desperate to do. I believe that the very fact that it was a close poll was enough to turn people away from voting yes, because they suddenly realised that their vote might make a difference. Most pollsters would agree that that was the effect of the very close poll.

The vow stated:

“We agree that the UK exists to ensure opportunity and security for all by sharing our resources equitably across all four nations”.

That is fine; I think we would all agree with that. Then, however, it goes on to reaffirm the Barnett formula. There are two things about the Barnett formula, the first of which is that if Scotland is to raise more of its own resources, the formula will become a much less significant component of the allocation of resources. Secondly, the formula actually represents the opposite of

“sharing our resources equitably across all four nations”.

It cements in place an artificial bias in favour of funding in Scotland, which is no doubt why Scottish politicians campaign so vociferously in favour of it.

[David Mowat (Warrington South) (Con)]

Will my hon. Friend give way?

[Mr Jenkin]

I have given way twice already; I do apologise.

The House of Lords produced a very good report in 2009 which concluded

“that the Barnett formula should no longer be used to determine annual increases in the block grant for the United Kingdom’s devolved administrations.”

It stated:

“A new system which allocates resources to the devolved administrations based on an explicit assessment of their relative needs should be introduced.”

The question is: how are we going to get from A to B? Lord Strathclyde has recommended a convocation in which the four component parts of the Union should be represented on equal terms in a single body. The question of the fair allocation of resources among the four parts of the United Kingdom deserves to be discussed in such an impartial forum. This cannot be imposed by the Treasury. It cannot be imposed by a system that we have inherited from a period when there was no devolution and no devolved tax-raising powers at all, so we need a new system. If we are going to learn from this referendum, it would be much more honest if we all agreed that, over time, we will need to move on from the Barnett formula.

Let us deal with the question of what the promises mean. If we ever want evidence of the chaos in the no campaign, we need only see that, even after the referendum, we still have three separate proposals in this Command Paper for what is to be devolved, and an unseemly scrap between the Westminster parties over what should be devolved. I have no doubt that agreement will be reached, and I commend the SNP for being determined to bring its good will to the party in order to get an agreement, because that has to be our objective. However, as part of that agreement, there is now huge awareness across the United Kingdom of English votes on English laws.

--- Later in debate ---

[David Mowat (Warrington South) (Con)]

I will try to limit my remarks to two minutes.

Three years ago I was on the Scottish Affairs Committee and we had some discussions about the nature of the question that should be asked in this referendum. One of the options was to have devo-max as the third option. It is perhaps instructive to think about why at that time we did not think that was right. There were two reasons. First, it was felt that without resolving the West Lothian question, it would not be right. Secondly, it was felt that it would not be easy to define what devo-max was, and if the last five hours have taught us anything, it is that those reservations were clearly correct.

However, we are where we are. The vow has been made, we must meet that commitment and I fully endorse that. We have talked a lot about the West Lothian question, but for my constituents the more important part of the vow is that pertaining to the Barnett formula. The Secretary of State for Scotland answered a question from me yesterday and said the Barnett formula will stay for ever. I am not sure what that means, but at the moment the differential between Scotland and England is £1,623 per head this year. That is about £6,000 for a family of four. The consequence of that is that prescriptions and tuition are free in Scotland. Indeed, even yesterday the NHS in Scotland was able not to go on strike because it was able to fund things that much better. At some point, this issue is going to need to be addressed. By the way, this is not a subsidy to Scotland. I readily acknowledge that, historically, the Barnett formula has been paid for by the proceeds from Scottish oil, although that might not be the case in future. However, this is not a question of subsidy; it is a question of fairness. A number of hon. Members have talked about fairness today, and I put it to the House that the issue needs to be resolved.