Oral Answers to Questions

Debate between David Mundell and Seema Malhotra

Wednesday 25th April 2018 Commons Chamber

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

Two thirds of the UK’s jobs in financial and professional services are outside London and many are in Scotland. Reuters estimates that 5,000 jobs in financial services might move because of Brexit. What advice has the Secretary of State been given about how this could affect jobs in Scotland?

[David Mundell]

The hon. Lady is right. It is very important that everyone is clear that financial services are not just in the City of London but are hugely important in Scotland and the other constituent parts of the UK. That is why we are fighting for a good deal from the EU on financial services.

Oral Answers to Questions

Debate between David Mundell and Seema Malhotra

Wednesday 15th July 2015 Commons Chamber

[David Mundell]

I certainly think I know better than the Liberal Democrats, who have been complicit in covering Scotland with wind farm developments. It is clear that ours is a popular policy among communities right across Scotland who do not want to see our landscape covered with unnecessary wind farm developments. I stand behind our policy.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

4. What recent discussions he has had with Ministers of the Scottish Government on progress on implementing the Scottish rate of income tax.

[The Secretary of State for Scotland (David Mundell)]

The UK and Scottish Governments continue to work closely with each other on the implementation of the Scottish rate of income tax. The question now is how the Scottish Government will use the new power when it comes into effect in April 2016.

[Seema Malhotra]

Transferring control of income tax to Scotland requires Her Majesty’s Revenue and Customs to identify who Scottish taxpayers are, but over the last year we have seen an increase in the risk rating by HMRC in terms of its ability to identify those taxpayers. Has that risk increased or decreased recently?

[David Mundell]

I can tell the House that the UK Government and the Scottish Government work closely together on this issue. Despite the bluster that we often see here, the reality is that the UK and Scottish Governments are working closely on many important issues for the people of Scotland. I am absolutely confident that the Scottish rate of income tax will be capable of being introduced next April. HMRC has done the necessary work; what we need now is to hear from the SNP what it intends to do with those tax powers.

Scotland Bill

Debate between David Mundell and Seema Malhotra

Monday 8th June 2015 Commons Chamber

[David Mundell]

The hon. Gentleman’s timing is impeccable, because I was just coming on to the so-called fiscal framework that underpins the transfer of tax and welfare powers to Holyrood. Alongside the Barnett formula, the framework will deliver a fair and lasting financial settlement for Scotland and the rest of the UK. The framework will provide the Scottish Government with the means by which they can determine a mix of taxation and spending specific to Scotland, but which fits with the UK Government’s overall fiscal plan.

This means that Scotland will continue to benefit from the pooling of risks and resources across the whole of the UK, but the Scottish Government will soon be responsible for raising substantial amounts of its revenue through taxation. As a result, it will be more accountable to the Scottish Parliament and to the Scottish people. The Scottish Government will in future be responsible for more than 50% of their funding. Changes in the Scottish Government’s funding will therefore be increasingly determined by changes to Scottish taxation.

The detail of the Scottish fiscal framework will be agreed between the UK Government and the Scottish Government on the basis set out in the Smith agreement. Discussions on the framework have already begun with the aim of reaching an agreement alongside the passing of the Scotland Bill. My right hon. Friend the Chancellor of the Exchequer has met the Scottish Government Deputy First Minister, John Swinney, today. This timetable demonstrates the Government’s determination to make quick progress on the fiscal framework.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

Will the Secretary of State clarify whether the final say on social security levels will rest with the Scottish Parliament?

[David Mundell]

The Scottish Parliament will have the capacity to top up welfare benefits. It could be said that it would have the final say on the level of benefit. UK benefits will obviously be determined in this House, but the Scottish Parliament will have the opportunity to top them up, as is clearly set out in the Bill.