(9 years, 10 months ago)
Commons ChamberI have a petition to present to the House—signed by 120,000 people in Scotland, yes voters and no voters in the referendum alike—which shows that people are determined that the vow made by all the three main party leaders on the Tuesday before the referendum is kept. It was organised by 38 Degrees, whom I congratulate on its initiative. Its preamble regrets, and indeed opposes, the Prime Minister’s attempt on the day after the referendum to amend the vow on Scotland’s future, and asks him to keep to his original vow free of any new conditions.
Today’s debate becomes even more relevant after what the Leader of the House—I am pleased that he is with us in the Chamber—said on Tuesday when he made it clear that he intends to move ahead with what he called English votes for English laws. In my brief speech, I want to show that that would in effect reduce the rights of Scottish representatives at Westminster. I am grateful to the Secretary of State, who is also with us, for replying to the debate.
Today, I want to look at where we can agree, rather than where we disagree, to see whether it is possible to move beyond an agreement simply on the timetable to one on the powers of the Scottish Parliament, and whether there is a will on all sides of the House to resolve issues of English as well as Scottish, Welsh and Northern Ireland representation and rights. In an attempt to be constructive, I will put forward five suggestions that might help to avoid what must never be allowed to become a constitutional impasse in this House and this country.
First, I believe that we can all agree on 16 new powers for the Scottish Parliament, which range from devolution of attendance allowance and housing benefit, which have been agreed by all parties, to the conduct of elections. There are areas where we would have to ask the Conservatives to accept Labour and Liberal Democrat proposals, covering the entrenchment of the Scottish Parliament in the constitution and new powers over the Work programme, the Crown Estate, the rail franchise, borrowing for infrastructure, and Executive authority for UK health and safety, equalities and employment law. There are also areas where I would ask Labour and the Liberal Democrats to accept Conservative proposals—those for a fiscal commission and for an annual statement for taxpayers on how and where the Scottish Parliament’s money is spent. Given what each party has said in its submissions and afterwards, I believe that there is scope for agreement on every one of these new powers. I hope that the Secretary of State will say that he also believes that that can happen.
Secondly, on tax, the three remaining powers out of the 16 relate to income tax, fairness in taxation and VAT. There is general agreement that we should devolve, first, a wider power to set an income tax rate in Scotland, and secondly, a power to set top rates of tax too. I suggest, however—I will explain why in a minute—that we should reject the 100% devolution of income tax. We should instead agree to retain income tax as a shared tax across the United Kingdom, with 75% of it devolved to the Scottish Parliament, alongside the devolution of 50% of VAT revenues. That will ensure that the test of accountability is met, with the Scottish Parliament being responsible for raising the majority—54%—of its spending in 2016, the year in which the proposals would be implemented.
Thirdly, and I would like to think that we can all agree on this, the status of Scotland, Wales or Northern Ireland in this House should not be downgraded. As was recognised by the Strathclyde commission—I want the Leader of the House to read that report from his party—in contradiction to statements subsequently made by the Prime Minister and the Leader of the House, Scottish MPs, like Welsh and Northern Ireland MPs, should continue to vote on all issues that come to the Floor of the House of Commons. This is what the Conservative party said in evidence before the referendum:
“In our view, it is important that any sense be resisted that MPs for Scottish, Welsh or Northern Irish constituencies somehow perform any lesser a function than MPs representing seats in England. The establishment of stable constitutional arrangements for the future of the UK must address this. It would be unfortunate if the feeling were to gain ground that there were two classes of MP. Even under a scheme of enhanced devolution, such as we have proposed in this report, MPs for Scottish constituencies will continue to have significant responsibility for safeguarding the interests of those whom they represent.”
It was therefore not the intention of the Conservative party before the referendum to withdraw Scottish Members of Parliament from voting on tax laws or other laws within the UK. That, and not the current position that the Prime Minister expresses, should be our guide in resolving these issues.
I have always said that we should be prepared to consider a change in Committee procedures on England-only Bills, under which English MPs would form the Committee that debates them. However, we should insist —I will explain why later—that when any Bill comes to the Floor of the House on Report or on Second or Third Reading, the whole House and nothing but the whole House is able to vote.
My fourth proposal is that we should agree that the case exists for far-reaching changes in our constitution. That requires a public debate, which could take the form of a convention that engages all the regions and nations, and civic society. The Secretary of State will be able to answer for this, but I believe that the Liberal Democrats agree with the Labour party on that course.
Finally, we should all agree that we must focus not simply on the constitution, but on the issues that were raised in the referendum by the citizens of Scotland, not just in respect of the powers of the Scottish and UK Parliaments, but in respect of what we do with those powers. How we can create better jobs and a better national health service, and how we can wage a war against poverty as part of our commitment to social justice—those are the policy issues that were raised in the referendum and we should give our attention to them immediately.
The constitutional crisis that is in the making—for that is what it is—has to be addressed. I am pleased that the Leader of the House is listening. The crisis arises from the statement that was made by the Prime Minister the morning after the referendum, when he promised English votes for English laws. In practice, the proposal turns out not to be any new English rights of representation, but a reduction in Scottish rights of representation in this House of Commons. That issue was clearly material to the referendum. It is the failure to tell people of the proposed change in Scottish representation before the vote that has fuelled the demonstrations, petitions and allegations of bad faith, betrayal and breach of promise that have dominated too much of the Scottish political debate since the referendum.
Conservative Members should understand that the Conservative plans for the constitution do not end there. Under the proposal to devolve all income tax to the Scottish Parliament, Scottish MPs would be removed not just from ordinary law-making on English matters, but from the most decisive votes that a Parliament can have—votes on income tax rates and, thus, on passing the Budget. With Wales on the point of demanding income tax powers and Northern Ireland seeking corporation tax powers, we could find, at a stroke, that Scottish, Welsh and Northern Irish MPs are excluded from the right to vote in Westminster on Budget and key tax decisions. In the end, that might extend to London, which is also seeking its own powers of taxation.
The proposal to devolve 100% of income tax and then to exclude Scottish MPs from voting on income tax is, in my view, both anti-Scottish and anti-British. It is anti-Scottish because it would exclude Scots from voting on key matters and make them second-class citizens in the House. It is anti-British because it would abandon income tax as a shared tax and because it threatens to end the whole system of pooling and sharing resources across the United Kingdom that underpins the unity of the United Kingdom. It looks like a Trojan horse for fiscal autonomy, which would split the Union and enable the SNP to get through the back door what it cannot get through the front door in a vote of the Scottish people.
England makes up 84% of the Union. Scotland makes up 8%, Wales 5% and Northern Ireland 3%. When that is translated into Members of Parliament, the 533 English Members can outvote the 117 parliamentarians from the rest of the UK at any time and routinely if they choose. The English predominance is so great that every generation has had to balance the power of the majority to impose its will with some protection for the interests of the minority nations.
America, Australia, Spain, Switzerland, Mexico, Brazil, Germany and many other countries, through their constitutions, have found ways to manage the gross inequalities in the sizes of their regions, provinces or nations. The provisions that those countries make for minority states or regions show that a blanket uniformity of provision, such as English votes for English laws simply mimicking Scottish votes for Scottish laws, does not ensure fairness of treatment.
The House knows from our debate on Tuesday that in America, the smallest state of just half a million people has the same number of Senators as the largest state of 38 million people. Tasmania, the smallest state in Australia with 700,000 people, has the same Senate representation—12—as New South Wales, which has 7 million people. This is true of the Spanish Senate, the Swiss Council of States, the South African National Council of Provinces, and the Brazilian, Nigerian and Mexican Senates. In Germany, the state of North Rhine-Westphalia—in a constitution written by the UK—has about 30 times the population of the state of Bremen, but only double the number of Bundesrat seats. We are not unique. Countries have to make special arrangements that recognise the position of minority nations or regions, and ensure that uniformity of provision is not the means to ensure equality and fairness of treatment.
(9 years, 10 months ago)
Commons ChamberIn thanking the Leader of the House, the shadow Justice Secretary and the right hon. Member for Berwickshire, Roxburgh and Selkirk (Michael Moore) for introducing this debate, may I join all three of them in congratulating all those Conservatives, Liberals, Labour supporters, all those in England, Wales and Northern Ireland, as well as those in Scotland, who were part—
The hon. and learned Member for North East Hertfordshire (Sir Oliver Heald) has not been listening to what I have said. I have been talking about the need to balance recognition of majority rule with sensitivity towards the minorities. What he is saying would apply to the United States of America, Australia and all the countries I have mentioned, where he would deprive the minorities of the power to influence decisions in their Parliaments.
A minute’s consideration of the Conservative party’s proposition, on which the Leader of the House has refused to answer, will show that the only sensible way forward is to devolve some but not all income tax and not to exclude Scots, or any representatives of minority nations in the United Kingdom, from voting at Westminster on issues such as taxation.
I gave way once to a Scottish National party Member, and that was quite enough.
It has long been said that the British constitution does not work in theory but works in practice. Make the change proposed by the Conservative party—to devolve income tax to the Scottish Parliament in full and then deprive Scottish MPs of the right to vote on the Budget—and the constitution will not work in practice either. Nations can collapse by accident, even when a majority wants them to survive, and unions can disintegrate because of mistakes that are made.
I am more encouraged than Government Members and Ministers are by the reaction of people in England and the rest of the United Kingdom to the Scottish referendum. While the myth is perpetuated that Scotland and England are on completely different planets, that one is communitarian and egalitarian and the other is individualistic and libertarian, I find that no four nations in the world have managed what we in the United Kingdom have managed to do: to pool and share our resources together. That is the essence of the modern Union: to guarantee everyone in these islands, irrespective of nationality, the same equal rights to help when they are sick, disabled, elderly, vulnerable or unemployed.
A United Kingdom that was united in name only could not survive for long. What I see is reinforced by what we have seen and what we have studied in our history books: the United Kingdom in two world wars, coming together in a shared sacrifice, suffering together; that we Scottish, English, Welsh and Northern Irish are prepared to help each other and come to each others’ aid, to recognise the differences in each other and to be tolerant of what at times might seem like excesses or eccentricities in others. If we can avoid making the kind of mistakes that the Leader of the House is now making, if we can rise above narrow partisan interests and put country before party, and if we can remain statesmanlike in seeking unity, as the siren voices from the SNP try to wreak discord, then Britain can still be the Great Britain that we want it to be.