Scotland Bill

Debate between David Mundell and Andrew Gwynne

Monday 8th June 2015 Commons Chamber

[David Mundell]

No; let me make a little progress.

The devolution of income tax on earnings and the assignment of VAT revenues, when taken together with the devolution of air passenger duty and the powers under the 2012 Act, mean that the Scottish Parliament will have important decisions to make. The Scottish Parliament is now responsible for raising about only 10% of what it spends, but under the Bill Holyrood will be responsible for raising more than 50% of what it spends. It will truly be one of the most powerful devolved legislatures in the world.

[Andrew Gwynne (Denton and Reddish) (Lab)]

May I take the Secretary of State back to the comments made by my hon. Friend the Member for Blaydon (Mr Anderson) and the hon. Member for North Antrim (Ian Paisley) on the impact of changes on the rest of the United Kingdom? Air passenger duty is a case in point. Regional airports in the north of England will undoubtedly feel the impact of any changes to air passenger duty in Scotland. Is that not yet another reason why, as we proceed with devolution arrangements, we need to have a proper constitutional convention so that all measures can be considered across the whole of the United Kingdom?

[David Mundell]

I have made my views on a constitutional convention known. Other hon. Members have raised the issue of air passenger duty. The Treasury has established a group to look at the impact any changes to air passenger duty in Scotland could have on airports in England.

On welfare policy, there will also be a highly significant transfer of responsibility. While the social security reservation remains in place, part 3 of the Bill means that the Scottish Government will be responsible for welfare, which last year accounted for around £2.5 billion of spending in Scotland. The Scottish Parliament will be able to make provision for a number of types of social security benefit, discretionary payments and employment support. The Bill also contains provision to transfer executive competence to Scottish Ministers to allow them to vary certain aspects of universal credit. It will give the Scottish Parliament more responsibility for benefits paid to carers, disabled people, those who are ill, those who require help with winter fuel costs, funeral payments and maternity payments. As a result of the Bill, when people most require help the Scottish Government will be able to tailor that help to particularly Scottish circumstances.