Scotland Bill

Debate between Edward Leigh and Stewart Malcolm McDonald

Monday 15th June 2015 Commons Chamber

[Sir Edward Leigh]

I am afraid we are getting into the historic arguments of who is to blame: is it the UK Government? The Scottish Government face a fundamental problem, in that spending is 20% higher but tax revenues are, inevitably, lower. That is a fundamental problem that SNP Members have to—[Interruption.] Well, I have lost them there—fair enough.

We can have that debate, but let us not get too bogged down on that. They want independence; they can have it—[Interruption]—full fiscal autonomy.

The fact is that the SNP’s capture of all but three of the Scottish seats is an even greater victory than Sinn Féin’s in Ireland in the 1918 general election. Then the Unionists managed to secure 22 of the 105 Irish seats. We have to listen: this is actually a very serious issue.

[Stewart McDonald (Glasgow South) (SNP)]

rose—

[Sir Edward Leigh]

I will make a bit more progress, because I want to get to my hon. Friend the Member for North East Somerset (Mr Rees-Mogg). He has been very patient, and I will get to him eventually.

Like then, everything is different now. What will happen if Smith stays? Can we sustain a permanent settlement that prevents Scotland from setting the initial threshold for income tax or from changing universal credit? What will happen when the Scottish Conservative party promises in its election manifesto to cut taxation? How credible will that be if it affects the block grant available from the United Kingdom? All these issues have to be discussed.

Under the Smith proposals, universal credit will remain a reserved matter. Holyrood will be able to vary the frequency of payments and the way it is paid, while the power to vary the remaining elements of universal credit remain reserved, but I would ask why. I have read the Smith commission. Why?

--- Later in debate ---

[Sir Edward Leigh]

Again, that is a very fair point. I do not mind having conventions, but we, as politicians, have to decide what we want. We should decide the principles and then, once we have decided, by all means employ distinguished people such as Lord Smith, accountants, tax lawyers and so on to work out how it is done, but let us not just push this into the long grass and have a convention of the great and good lasting for years with wall to wall lawyers. Let us, in this House, decide what we want.

This is an historic opportunity to cut through the negativity of the £7 billion black hole doomsayers. Give Scotland control of its oil revenues and taxes and let it decide its own priorities on encouraging exploration and how to tax it as the oil runs out. Then we will be one Union, based on solidarity and need. The UK subsidises Northern Ireland to preserve peace. Why should we not, on the basis of need, subsidise Scotland? I am very happy with that. Are we not brothers and sisters in this Union? Should we not help each other, if needed? Our principles should not be the politics of fear, but the statesmanship of hope.

New clause 3 delivers what I think Scotland wants: power to run her own affairs, but with the consolation of knowing that there is a secure foundation stone against catastrophic shocks, such as those in 1929 and 2008. I wish for there to be solidarity on pension liability and national debt, and for it to be shared. We should not be saying “This is your bit of debt.” We should say that it is our debt. To ensure peace and security, we should share a single defence and foreign policy; not a division based on the auld alliance of the times before James I and VI rode south, but the Union that has given us 400 years of shared identity and prosperity. Those who want slowly to leak this power and that function are setting a trajectory, however slowly, towards independence.

[Stewart McDonald]

There is one part of the hon. Gentleman’s amendment, which he may well be coming on to, that did strike me as slightly curious: the part on keeping treason reserved. Is there a modern day William Wallace or Mary Queen of Scots in our midst that means he sees the need to keep that power reserved?

[Sir Edward Leigh]

I took advice from the Clerks. All right, I will surrender treason if they want, particularly to the right hon. Member for Gordon (Alex Salmond). [Laughter.]

The Smith commission itself admits:

“A challenge facing both Parliaments is the relatively weak understanding of the current devolution settlement.”

What a glorious understatement!

“This is not surprising”—

its report further concedes—

“given what is a complex balance of powers.”

A complex balance of powers has been created and I do not think there is a single Member of Parliament who actually understands what is going to happen under Smith. We need to move to a more federal arrangement whereby the four nations have broadly equal powers. Scotland, Wales and Northern Ireland should have devolved legislatures, with the English MPs at Westminster deciding the same for England, then acting as a pan-European Parliament alongside MPs elected from the devolved countries as well.

The Prime Minister promised Scotland

“the strongest devolved Government anywhere in the world”

and the Scottish people rejected full independence. I suspect that they want full home rule. But will those who have argued for full fiscal autonomy now vote for it, or will they vote for further delay or deeper fudge? Will they go on blaming the United Kingdom Government for what goes wrong, or have the courage to grasp what they say they want? Full fiscal autonomy is inevitable.