Welfare Reform and Work Bill

Debate between Baroness Laing of Elderslie and David Mundell

Tuesday 23rd February 2016 Commons Chamber

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

On a point of order, Madam Deputy Speaker. May I confirm that this afternoon the United Kingdom and Scottish Governments have reached agreement on the fiscal framework? This is the arrangement that underpins the significant new powers being delivered to the Scottish Parliament by the Scotland Bill, which is currently being considered in the other place. I believe that this agreement will allow the Bill to proceed through this Parliament, and I hope very much to receive a legislative consent motion from the Scottish Parliament. I intend to make a full statement to the House tomorrow, and I will this evening appear by video link before the Scottish Parliament’s Devolution (Further Powers) Committee, but I wanted to use this opportunity to draw the House’s attention to the fact that this significant agreement has been concluded. It will allow the Scottish Parliament, after the forthcoming Scottish elections, to take on the significant new powers in tax and welfare that will make it one of the most powerful and accountable devolved Parliaments in the world. I am sure that the whole House will welcome the fact that this agreement has been concluded.

[Madam Deputy Speaker (Mrs Eleanor Laing)]

I am grateful to the right hon. Gentleman for his point of order. The House will note that he will make a statement to the House tomorrow, which will be the opportunity for the House to discuss this matter, but he was absolutely right to bring this information to the House as soon as he was able to do so.

Scotland Bill

Debate between Baroness Laing of Elderslie and David Mundell

Monday 9th November 2015 Commons Chamber

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

I beg to move, That the clause be read a Second time.

[Madam Deputy Speaker (Mrs Eleanor Laing)]

With this it will be convenient to discuss the following:

Government new clause 13—Functions exercisable within devolved competence: elections.

New clause 1—Independent Commission on Full Fiscal Autonomy—

‘(1) The Secretary of State shall appoint a commission of between four and eleven members to conduct an analysis of the impact of Full Fiscal Autonomy on the Scottish economy, labour market and public finances and to report by 31 March 2016.

(2) No member of the House of Commons, the House of Lords, or the Scottish Parliament may be a member of the commission.

(3) No employee of the Scottish Government or of any government Department or agency anywhere in the United Kingdom may be a member of the commission.

(4) The Secretary of State shall, in consultation and with the agreement of Scottish Ministers, appoint as members of the commission only persons who appear to the Secretary of State to hold a relevant qualification or to have relevant experience.

(5) The Secretary of State shall not appoint as a member of the commission any person who is a member of a political party.

(6) Before appointing any member of the commission, the Secretary of State must consult—

(a) The Chair of any select committee appointed by the House of Commons to consider Scottish Affairs, and

(b) The Chair of any select committee appointed by the House of Commons to examine the expenditure, administration and policy of Her Majesty’s Treasury and its associated public bodies.

(7) The Secretary of State may by regulations issue the commission with terms of reference and guidelines for the commission’s working methods, including an outline definition of the policy of full fiscal autonomy for the commission to analyse.

(8) The Secretary of State must lay copies of the report of the commission before both Houses of Parliament, and must transmit a copy of the report of the commission to the Presiding Officer of the Scottish Parliament.

(9) Regulations under this section must be made by statutory instrument, subject to annulment in pursuance of a resolution of either House of Parliament.”

The new Clause provides for the establishment of an independent commission to investigate the impact of FFA.

New clause 4—Review of operation of Gift Aid in Scotland—

The Treasury must lay before the House of Commons a review of the operation of Gift Aid in Scotland within a year of Part 2 of this Act coming into force.”

This self-explanatory New Clause would require a review of the operation of Gift Aid in Scotland.

New clause 6—Local Discretionary Taxation—

Individual local authorities in Scotland shall have the discretion to raise additional income by levying a tax, in addition to Council Tax and Non-Domestic Rates, on either residents, occupiers, property owners or visitors in the local authority or within a discrete area of the local authority providing local people consent.”

The power will enable local authorities to introduce tax(es) without the need to seek approval from Scottish Government, with the rates and reliefs being determined locally and the local authority being both granted powers to ensure that those on which the tax is levied have a legal obligation to pay and the local authority having the discretion to determine how the additional revenue is expended.

New clause 7—Local authority’s power of general competence—

‘(1) A local authority has power to do anything that individuals generally may do.

(2) Subsection (1) applies to things that an individual may do even though they are in nature, extent or otherwise—

(a) unlike anything the authority may do apart from subsection (1), or

(b) unlike anything that other public bodies may do.

(3) In this section “individual” means an individual with full capacity.

(4) Where subsection (1) confers power on the authority to do something, it confers power to do it in any way whatever, including—

(a) power to do it anywhere in the United Kingdom or elsewhere,

(b) power to do it for a commercial purpose or otherwise for a charge, or without charge, and

(c) power to do it for, or otherwise than for, the benefit of the authority, its area or persons resident or present in its area.

(5) The generality of the power conferred by subsection (1) (“the general power”) is not limited by the existence of any other power of the authority which (to any extent) overlaps the general power.

(6) Any such other power is not limited by the existence of the general power.”

This new Clause seeks to introduce a general power of competence for Scottish local authorities, putting it beyond doubt that they may do anything that is not expressly prohibited by law. It seeks to go further than the power of wellbeing already afforded to Scottish local authorities. The proposals seek to give councils the capacity to do anything that an individual can do. Therefore, this would not enable a local authority to introduce a tax or wage war, but it would ensure that local government has the ability to use the power of general competence in the most sensible and constructive way for the benefit of the people and communities whom they serve.

New clause 8—Competences of local government in Scotland—

‘(1) The First Minister must, after consultation with representatives from local government in Scotland, publish a list of competences of local government in Scotland.

(2) After the list has been published, the First Minister may not publish any amended list of competences of local government in Scotland without first obtaining approval of the revised list consent from—

(a) the Scottish Parliament, with two-thirds of its membership voting in favour of the amended list, and

(b) the Convention of Scottish Local Authorities.”

This new clause entrenches the independence of local government in Scotland from interference by national government in Scotland.

New clause 9—Subsidiarity—

That subsidiarity as defined by the Maastricht Treaty 1992 Article 5(3) shall apply to the functions of national and local government in Scotland.”

This extends protection of Scottish Local Government’s independence by protecting its subsidiarity behind a European Treaty applicable to the United Kingdom.

New clause 11—Scottish block grant—

The Secretary of State must lay before the House of Commons before the end of the first month of each financial year a full record, including minutes of meetings and correspondence at Ministerial level, of discussions between the Secretary of State, the Treasury and Scottish Ministers relating to the non-budget expenditure to be voted by Parliament authorising the payment of grants to the Scottish Consolidated Fund for that financial year.”

The purpose of this new clause is to ensure transparency and accountability of the process leading to the annual settlement between the Treasury and Scottish Ministers of the block grant to the Scottish Consolidated Fund.

New clause 35—Consent of the Scottish Parliament to certain Westminster Acts—

‘(1) In section 28 of the Scotland Act 1998 (Acts of the Scottish Parliament), at the end add—

“(8) But the Parliament of the United Kingdom must not pass Acts applying to Scotland that make provision about a devolved matter without the consent of the Scottish Parliament.

(9) A provision is about a devolved matter if the provision—

(a) applies to Scotland and does not relate to reserved matters,

(b) modifies the legislative competence of the Scottish Parliament, or

(c) modifies the functions of any member of the Scottish Government.

(10) In subsection (8), “Acts” includes any Act, whether a public general Act, a local and personal Act or a private Act.”

(2) After section 28 of the Scotland Act 1998 insert—

“28A Duty to consult the Scottish Government on Bills applying to Scotland

(1) A Minister of the Crown shall consult Scottish Ministers before introducing any Bill into the Parliament of the United Kingdom for an Act of that Parliament that would make provision applying to Scotland.

(2) Where the Bill is for an Act making provision that would require the consent of the Scottish Parliament by virtue of section 28(8), the requirement to consult under subsection (1) includes a requirement that a Minister of the Crown give the Scottish Ministers a copy of the provisions of the Bill that apply to Scotland no later than—

(a) 21 days before the proposed date of introduction, or

(b) such later date as the Scottish Ministers may agree.”

(3) The requirement in subsection (2) does not apply if—

(a) the Scottish Ministers so agree, or

(b) there are exceptional circumstances justifying failure to comply with the requirement.

(4) The reference in subsection (1) to an Act of Parliament is a reference to any Act whether a public general Act, a local and personal Act or a private Act.”

This new clause would ensure that the UK Parliament can only legislate in devolved areas with the consent of the Scottish Parliament. It puts the Sewel Convention onto a statutory footing, as agreed by the Smith Commission.

New clause 36—Scottish independence referendum

‘(1) Paragraph 5A in Part 1 of Schedule 5 to the Scotland Act 1998 (general reservations) is amended as follows.

(2) In sub-paragraph (1), leave out “if the following requirements are met”.

(3) Leave out sub-paragraphs (2) to (4).”

This New Cause would permit the Scottish Parliament to decide whether and when to hold a referendum on Scottish independence.

Government amendment 34.

This amendment leaves out Clause 1, which is replaced by New Clause 12.

Amendment 195, page 1, clause 1, leave out lines 7 and 8 and insert—

‘(1A) The Scottish Parliament is a permanent part of the United Kingdom’s constitution.

(1B) Subsection (1) or (1A) may be repealed only if—

(a) the Scottish Parliament has consented to the proposed repeal, and

(b) a referendum has been held in Scotland on the proposed repeal and a majority of those voting at the referendum have consented to it.”

This amendment is to ensure that the Scottish Parliament can only be abolished with the consent of the Scottish Parliament and the Scottish people after a referendum.

Amendment 5, page 1, line 7, leave out “recognised as”.

Amendment 196, page 1, leave out lines 12 and 13 and insert—

‘(1A) The Scottish Government is a permanent part of the United Kingdom’s constitution.

(1B) Subsection (1) or (1A) may be repealed only if—

(a) the Scottish Parliament has consented to the proposed repeal, and

(b) a referendum has been held in Scotland on the proposed repeal and a majority of those voting at the referendum have consented to it.”

This amendment is to ensure that the Scottish Parliament can only be abolished with the consent of the Scottish Parliament and the Scottish people after a referendum.

Amendment 6, page 1, line 12, leave out “recognised as”.

Amendment 197, page 2, line 1, leave out clause 2

This amendment signals intent to oppose ‘Clause stand part’ with respect to Clause 2 and to move New Clause (Consent of the Scottish Parliament to certain Westminster Acts) to take its place.

Amendment 7, page 2, line 6, clause 2, leave out “normally”.

Amendment 8, page 2, line 6, after “legislate”, insert “(a)”.

Amendment 9, page 2, line 6, after “matters”, insert “and

(b) to alter the legislative competence of the Scottish Parliament or the executive competence of the Scottish Government”

Amendment 198, page 2, line 7, clause 3, leave out “Section B3 of”.

Government amendments 35 to 46.

Amendment 199, page 11, line 18, clause 10, leave out “the decision whether to pass or reject it” and insert “the motion that the Bill be passed is debated”.

Amendments 199 to 203 to Clause 10 aim to clarify matters around references to the Supreme Court, in particular where the Scottish Parliament resolve to reconsider the Bill.

Government amendment 47.

Amendment 10, page 11, line 28, at end insert—

“() the period between general elections specified in section 2(2)”

Government amendment 48.

Amendment 200, page 11, line 38, after “unless”, insert “it is passed without division, or”.

Government amendments 49 to 53.

Amendment 201, page 12, line 16, at end insert—

‘(2A) He shall not make a reference by virtue of paragraph (a) of subsection (2) if the Parliament resolves that it wishes to reconsider the Bill.

(2B) He shall not make a reference by virtue of paragraph (b) of subsection (2) if—

(a) the Bill was passed without a division, or

(b) the Bill was passed on a division and the number of members voting in favour of it was at least two thirds of the total number of seats for members of the Parliament.”

This amendment establishes that a Bill passed by consensus in the Scottish Parliament (i.e. without a division) automatically meets the super-majority requirement and ensures that a Presiding Officer’s statement is not required if the super-majority requirements are not triggered.

Government amendments 54 to 57.

Amendment 202, page 12, line 23, at end insert—

‘(3A) Subsection (3B) applies where—

(a) a reference has been made in relation to a Bill under this section, and

(b) the reference has not been decided or otherwise disposed of.

(3B) If the Parliament resolves that it wishes to reconsider the Bill—

(a) the Presiding Officer shall notify the Advocate General, the Lord Advocate and the Attorney General of that fact, and

(b) the person who made the reference in relation to the Bill shall request the withdrawal of the reference.”

Amendment 203, page 12, line 25, leave out subsections (11) and (12) and insert—

‘(10A) In subsection (4) after paragraph (a) insert—

(aa) where section 32A(2)(b) applies—

(i) the Supreme Court decides that the Bill or any provision of the Bill relates to a protected subject matter, or

(ii) a reference has been made in relation to the Bill under section 32A and the Parliament subsequently resolves that it wishes to reconsider the Bill.”

(10B) After that subsection insert—

“(4A) Standing orders shall provide for an opportunity for the reconsideration of a Bill after its rejection if (and only if), where section 32A(2)(a) applies—

(a) the Supreme Court decides that the Bill or any provision of the Bill does not relate to a protected subject matter, or

(b) the Parliament resolves that it wishes to reconsider the Bill””.

Government amendments 58 to 60.

Amendment 204, page 13, line 2, clause 11, at end insert—

‘(1A) In paragraph 1 of Part I (The protected provisions, Particular enactments) of Schedule 4 (protection of Scotland Act 1988 from modification), delete “(2)(f) the Human Rights Act 1998””.

This amendment would remove the Human Rights Act 1998 from the list of protected provisions in Schedule 4 of the Scotland Act 1998.

Government amendment 61.

Amendment 205, page 13, line 8, paragraph (a)(ii), leave out “(3)” and insert “(2B)”.

Amendments 205 to 223 to Clause 11 would grant the Scottish Parliament powers to make decisions about all matters relating to the arrangements and operations of the Scottish Parliament and Scottish Government as agreed in the Smith Commission.

Amendment 206, page 13, line 9, paragraph (a)(iii), leave out “11” and insert “12”.

Amendment 207, page 13, line 10, paragraph (a)(iv), leave out “section” to the end and insert “sections 13 to 27,”.

Amendment 208, page 13, line 11, paragraph (a)(v), leave out from “(v)” to the end and insert “section 28(1) to (6),”.

Amendment 209, page 13, line 13, paragraph (a)(vii), leave out “27(1) and (2)” and insert “31”.

Amendment 210, page 13, line 14, paragraph (a)(viii), leave out “28(5)” and insert “32(1) to (3),”.

Government amendments 62 and 63.

Amendment 211, page 13, line 15, paragraph (a)(ix), leave out “(1)(a) and (b) and (2) and (3)”.

Government amendment 64.

Amendment 212, page 13, line 19, paragraph (b)(i), leave out “44(1B)(a) and (b), and (2)” and insert “44(1C), (2) and (4),”.

Government amendment 65.

Amendment 213, page 13, line 20, paragraph (b)(ii), leave out “(3) to (7)” and insert “to 50”.

Amendment 214, page 13, line 21, paragraph (b)(iii), leave out “46(1) to (3)” and insert “51(1), (2) and (4)”.

Government amendment 66.

Amendment 215, page 13, line 22, paragraph (b)(iv), leave out “47(3)(b) to (e)” and insert “52”.

Amendment 216, page 13, line 23, paragraph (b)(v), leave out “48(2) to (4)” and insert “59”.

Amendment 217, page 13, line 24, paragraph (b)(vi), leave out “49(2) and (4)(b) to (e)” and insert “61”.

Government amendment 67.

Amendment 218, page 13, line 25, leave out paragraph (b)(vii).

Government amendment 68.

Amendment 219, page 13, line 26, paragraph (c), leave out “(3)”.

Amendment 220, page 13, line 27, paragraph (d), leave out from “general” to the end of the paragraph, and insert “sections 81 to 85,) sections 91 to 95, and section 97,”.

Government amendment 69.

Amendment 221, page 13, line 29, paragraph (e), leave out from “supplementary” to end of line 38, and insert—

(i) sections 112, 113 and 115, and Schedule 7 (insofar as those sections and that Schedule apply to any power in this Act of the Scottish Ministers to make subordinate legislation),

(ii) sections 118, 120 and 121,

(iii) section 124 (insofar as that section applies to any power in this Act of the Scottish Ministers to make subordinate legislation),

(iv) section 126(1) and (6) to (8), and

(v) section 127,”.

Amendment 222, page 13, line 40, paragraph (g), leave out “6” and insert “7”.

Amendment 223, page 13, line 42, paragraph (h), leave out “paragraphs 1 to 6 of”.

Amendment 224, page 13, line 43, at end insert—

‘(2A) In paragraph 4 of Part I (The protected provisions, This Act) of Schedule 4 (protection of Scotland Act 1988 from modification), insert new sub-paragraph—

(5A) This paragraph does not apply to amendments to Schedule 5, Part II, Head A, Section 1A insofar as they relate to—

(a) taxes and excise in Scotland,

(b) government borrowing and lending in Scotland, and

(c) control over public expenditure in Scotland.””

This amendment would enable the Scottish Parliament to amend the Scotland Act 1998 to remove the reservation on taxation, borrowing and public expenditure in Scotland, with the effect that the Scottish Parliament could then legislate in these areas to provide for full fiscal autonomy in Scotland.

Amendment 27, page 18, line 21, clause 15, leave out “the amount described in subsection (3)” and insert ‘the whole amount’.

The purpose of this amendment is to allow a sum equivalent to all of the revenue raised by the standard rate of VAT in Scotland to be paid into the Scottish Consolidated Fund.

Amendment 28, page 18, line 26, leave out “the amount described in subsection (4)” and insert ‘the whole amount’.

The purpose of this amendment is to allow a sum equivalent to all of the revenue raised by the standard rate of VAT in Scotland to be paid into the Scottish Consolidated Fund.

Amendment 29, page 18, leave out lines 28 to 39.

The purpose of this and the linked amendments to Clause 15 is to allow a sum equivalent to all of the revenue raised by both standard and reduced rates of VAT in Scotland to be paid into the Scottish Consolidated Fund.

Amendment 30, page 18, line 33, at end insert “Provided that the amount payable is not less than half of the agreed standard rate amount.”

This amendment would ensure that the share of the revenue raised by the standard rate of VAT in Scotland to be paid into the Scottish Consolidated Fund never falls below half the of the revenue raised, even if the standard rate of VAT is cut in the future.

Amendment 31, page 18, line 39, at end insert “Provided that the amount payable is not less than half of the agreed reduced rate amount.”

This amendment would ensure that the share of the revenue raised by the reduced rate of VAT in Scotland to be paid into the Scottish Consolidated Fund never falls below half the of the revenue raised, even if the reduced rate of VAT is cut in the future.

Government amendments 81 and 130 to 132.

[David Mundell]

This is a significant day for Scotland, as we move the public debate about our country’s future from questions of constitutional process and on to the real business of using power to improve people’s lives.

The Government’s amendments, which I would like to outline today, will strengthen the Bill’s provisions and clarify the delivery of the Smith commission agreement. With that done, it will be time for Scotland’s political parties to work together to make the new powers a success for everyone in Scotland. My ministerial colleagues, UK Government officials and I have engaged widely with interested parties and civic Scotland to help people to understand the Bill and to listen to their views. We have discussed the clauses with the Scottish Government and Committees of both the Scottish Parliament and this Parliament, and we have reflected on constructive suggestions of how to improve the drafting of the provisions. A number of technical amendments are proposed to ensure that the Bill devolves the powers intended effectively and efficiently, as well as a range of substantive amendments which prove beyond doubt that the Bill fully delivers the Smith commission agreement. I would like to move a number of Government amendments to part 1 of the Bill. We will discuss important amendments on welfare and other parts of the Bill later today.

Building on discussions on the permanence of the Scottish Parliament in Committee, I am bringing forward new clause 12 and amendment 34. The new clause removes the words “recognised as” and makes it clear beyond question that the Scottish Parliament and the Scottish Government are permanent institutions, and that it would take a vote by the people of Scotland in a referendum to ever abolish them. The amendment puts it beyond doubt that, as the Prime Minister has said,

“Scottish devolution is woven into the very fabric of our United Kingdom.”

New clause 13 is a technical provision ensuring that, where legislative competence is being transferred to the Scottish Parliament in relation to elections, executive functions are transferred to the Scottish Ministers in relation to that area. This will minimise the need for the Scottish Parliament to make separate textual changes to legislation after commencement of the Bill. Amendments 81 and 130 to 132 are consequential amendments to new clause 13.

Amendments 35 and 61 would devolve to the Scottish Parliament the subject matter of new subsection (2B) of section 2 of the Scotland Act 1998, inserted by clause 5 of the Bill. New subsection (2B) enables Scottish Ministers to make an order specifying an alternative date for a Scottish parliamentary general election, where otherwise the date would fall on the same day as an ordinary general election or a general election to the European Parliament.

Government amendments 36 and 44 to 45 clarify what is meant by “combined elections”. Amendment 36 makes it clear that the reservation of the rules governing campaign expenditure by political parties applies where there are overlapping regulated periods, even if the actual polls take place on different days. Amendments 44 to 46 ensure consistency of language throughout the Bill by amending other provisions in clause 7 concerned with expenditure in connection with elections.

Amendment 131 inserts a reference to clause 3 and has the effect of applying schedule 3 to the Interpretation and Legislative Reform (Scotland) Act 2010 to any functions that are exercisable within devolved competence by virtue of that clause. The new wording included in amendment 37 makes it clear that the Scottish Parliament will be able to give the Electoral Commission powers as well as duties when reporting on the delivery of its functions in relation to elections to the Scottish Parliament.

Minor amendments 38 and 39 ensure that the Scottish Ministers’ powers to make provision on the conduct of Scottish parliamentary elections are in line with the legislative competence of the Scottish Parliament in this area. Amendment 40 is a minor change to align the subordinate legislation-making powers of the Scottish Ministers with the extent of the reservation of the individual electoral registration digital service, which is the Great Britain-wide service used to process online applications and to verify information supplied in applications. It is used to process applications to the registers used for all GB elections, as well as EU parliamentary elections.

Amendments 41 and 42 ensure that the power in clause 5 to specify a new date for an ordinary Scottish parliamentary election works effectively with the Presiding Officer’s existing power to propose to move the date of such a poll. Amendment 43 has the same purpose as the section of the clause it replaces—to enable the Scottish Ministers to exercise, concurrently with the Secretary of State, certain subordinate legislation-making functions relating to the digital service, which otherwise remains reserved. The effect of this is to allow Scottish Ministers to exercise functions and make regulations about the digital service.

Amendments 47 to 60 seek to clarify the rules on super-majority. A number of these are technical and consequential, but I will draw the attention of the House to the three main amendments in this group. Amendment 47 requires that the Presiding Officer must decide whether any provision of a Bill relates to a protected subject matter, rather than assessing the provisions of the Bill more generally. Amendment 50 has the effect that a Bill passed with a simple majority in respect of which the Supreme Court subsequently decides that a simple majority is sufficient must be reconsidered by the Scottish Parliament before being submitted for Royal Assent. It is important that the Scottish Parliament has the opportunity to reconsider the Bill in this scenario as circumstances may have changed since the Bill was first passed.

Amendment 60, partly consequential on a number of other amendments, means that requirements regarding the final stage for a Bill, and for approval of a Bill following reconsideration to be treated as the passing of the Bill, apply regardless of the ground for reconsideration.

Government amendments 62 to 69 deliver new powers to the Scottish Parliament in relation to the arrangements and operation of the Scottish Parliament and Scottish Government, in response to amendments made in Committee and discussions with the Scottish Government. They include powers in relation to the dating of Royal Assent, the form and nature of certain statements by the Presiding Officer, letters patent, appointments to the Scottish Government, the Auditor General for Scotland and the Queen’s Printer for Scotland. These amendments extend the far-reaching powers in the arrangements and operation of the Scottish Parliament and Scottish Government already provided for by clause 11 and address a number of amendments tabled in Committee and by the SNP today.