Scotland Bill

Debate between David Mundell and Steve McCabe

Monday 15th June 2015 Commons Chamber

[David Mundell]

I can confirm that the Scottish National party signed up to the Smith commission agreement, this Government are committed to delivering the Smith commission agreement, and the hon. Gentleman will therefore get what he is looking for in respect of the Smith commission agreement. There is not a shadow of a doubt about that.

Full fiscal autonomy would mean the end of Scotland pooling resources and sharing risks with the rest of the United Kingdom, and an end to Scotland being part of the UK’s hugely successful single market, which generates jobs, growth and prosperity. To all intents and purposes, the fiscal union between Scotland and the United Kingdom would end entirely, and the lesson of the eurozone is that it is extremely difficult to have a successful currency union without fiscal union.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

I understand the Secretary of State’s desire to protect the Scottish people, but whether or not there is a £10 billion shortfall, if this is what the people of Scotland and the bulk of their representatives want, then why do not the rest of us, in the interests of the rest of the UK that we represent, let them have it, provided that we have a guarantee that we will not have to bail them out?

[David Mundell]

I do not accept the hon. Gentleman’s argument. A £10 billion shortfall in spending in Scotland would affect every school, every hospital, and every family by £5,000. I am not going to countenance that, and I am not going to support any amendments that would promote it.

We have had a lengthy discussion on full fiscal autonomy.

Scotland Bill

Debate between David Mundell and Steve McCabe

Monday 8th June 2015 Commons Chamber

[David Mundell]

The hon. Gentleman will be aware that since the coming into existence of the Scottish Parliament, the UK Parliament has legislated in devolved areas only with the agreement of the Scottish Parliament, under the Sewel convention, and that the Bill will put that convention on a statutory footing.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

On income tax, what will happen if someone is resident in Scotland but works over the border for an English company? If the income tax rates are different, will that not add to the compliance costs for that business? Who will compensate that small business in England for the additional compliance costs of the income tax variation?

[David Mundell]

That point was debated in full during the passage of the Scotland Act 2012, which introduced the Scottish income tax rate. In simple terms, for the hon. Gentleman’s purposes, it will be done by way of a tax code generally containing the letter S, allowing businesses to operate the PAYE system as they would normally do and without additional expense. There is a designation of “Scottish taxpayer” that is dependent on residence—and, as a point of fact for new colleagues, all Scottish MPs are resident in Scotland for Scottish tax purposes.

Finally, the Scottish Parliament will find itself largely responsible for how it runs itself, how it is elected and the people who can vote to elect it. I am pleased to confirm that we have already agreed to a request from the Presiding Officer to take action to ensure that the 2020 UK general election date and the Holyrood election date do not clash.

It is clear that a significant range of powers will be devolved to the Scottish Parliament and that the onus is now on the Scottish Government to be clear with the electorate about how they will use them.