Devolution (Scotland Referendum)

Iain Stewart Excerpts

Tuesday 14th October 2014 Commons Chamber

[Sadiq Khan]

I am astonished that the hon. Gentleman is referring to the £30 billion being devolved from Whitehall to the cities and regions as “scraps”. If he can give examples of just five English-only Bills in the past couple of years that his constituents are not happy about, I will be happy to respond directly to his points.

It was disappointing that, within minutes of the final votes being counted in the Scottish referendum, the Prime Minister was on the steps of Downing street setting out a top-down response to the biggest vote of no confidence in the Westminster elite for a generation. At the moment when we needed a Prime Minister to show some statesmanship, the day after our country voted to stay together, what we got instead was a short-term, partisan fix that had more to do with fighting UKIP than what was in the best interests of the UK.

The Tories used to be a one nation party—it is after all the Conservative and Unionist party—but now it is a party of narrow, sectional interest, desperately chasing UKIP votes. There was no prior consultation with the Deputy Prime Minister, no discussions with the Leader of the Opposition, and no views of the British people were taken. Let me be clear—a Cabinet Sub-Committee, meeting behind closed doors in Westminster, made up of MPs and led by the Leader of the House is not the way to go about this. The country deserves better than Westminster closing ranks. It certainly deserves better than the Executive dictating to the country what the solution should be. The Government have spectacularly failed to address the concerns of millions of people, who are turned off by such a blatant tactical manoeuvre.

[Iain Stewart (Milton Keynes South) (Con)]

The right hon. Gentleman keeps referring to a Westminster stitch-up or a knee-jerk—[Interruption]

[Madam Deputy Speaker (Dame Dawn Primarolo)]

Order. Will the hon. Member for Stourbridge (Margot James) sit back? The hon. Member for Milton Keynes South (Iain Stewart) has the Floor on an intervention, and one conversation is enough from the Floor officially.

[Iain Stewart]

Thank you, Madam Deputy Speaker. The right hon. Gentleman keeps referring to a Westminster stitch-up or a knee-jerk reaction. Will he not accept that the McKay report draws on substantial evidence that the people of England are not satisfied with all MPs voting on English-only legislation and they wish to have some form of English votes on English laws? It is not a knee-jerk reaction; there is a substantial body of evidence to show that that is what the people of England want.

[Sadiq Khan]

I have accepted that there is an issue. I have not said there is not an issue.

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[Mr Brown]

Madam Deputy Speaker, I wanted to congratulate all those who had contributed to the historic and clear decision of the Scottish people to stay part of the United Kingdom. As someone who has had time to reflect—four years, courtesy of the decision of the British people—may I say that I believe there is also common ground on not just the timetable for the delivery of further devolution to Scotland, but the powers themselves? I believe that when the Conservative, Liberal and Labour parties get together to look at the possibility of delivering a stronger Scottish Parliament, they will find that, in addition to moves on powers over housing benefit, attendance allowance and other matters that they have talked about already, it is possible for the Conservatives to accept some of the Liberal proposals and some of the Labour proposals that would strengthen the Scottish Parliament as part of the United Kingdom, without breaking the United Kingdom but while being in line with the wishes of the Scottish people, and without giving an unfair advantage to the Scottish people.

[Iain Stewart]

rose—

[Mr Brown]

I will pursue my argument and then I will give way. It is a bit much for the hon. Gentleman to want to intervene on me before he has heard what I have had to say.

I have to tell the House that the fundamental question is not the one the Leader of the House was trying to raise; the fundamental question affecting the British constitution is not the West Lothian question. That is a symptom of a more fundamental problem. The fundamental question in the British constitution arises because England is 84% of the Union, Scotland is 8%, Wales is 5% and Northern Ireland is 3%, and the reality is that at any point the votes of England could outvote Scotland, Wales and Northern Ireland, individually or collectively. So the real issue is about getting a fair distribution of power that respects not only majority rule—I am sensitive to the needs of England and English votes—but the rights of the minorities, so that we have stability and harmony in the British constitution.

[Iain Stewart]

On that point—

[Mr Brown]

I will give way in a minute, but I want first to develop this argument. Every generation has had to come to terms with how we get that balance right between majority rule and protecting the needs of the minorities that are part of the United Kingdom. Although on 19 September there was contentment and satisfaction, including, I am told, right up to the centre of Buckingham palace and Balmoral—we have that on the highest authority, or perhaps I should say the second highest—the problem then arose with the Prime Minister’s announcement at 7 am on the Friday after the vote. Without telling people beforehand, on a matter that was absolutely material to the vote that people were casting in the Scottish referendum, a new plan was imposed on Scotland. A vow written on the Tuesday was being rewritten on the Friday morning, because although he said the proposed change was in the English constitution, the practical effect of it was in Scottish constitutional affairs: to restrict the voting rights of Scottish Members of Parliament in this House of Commons on an issue, as he said on that morning, as fundamental as taxation.

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[Mr Brown]

I signed up to a vow that I will keep. It was the Prime Minister, on the day after the referendum, who qualified the promise. We would be better off in this House if we had some humility from Members of the Scottish National party, who in their own constituencies found that 55% to 60% voted no and not yes.

[Iain Stewart]

I am very grateful to the right hon. Gentleman. May I thank him for the impassioned defence of the Union that he made in the last few days of the campaign? In that spirit, may I say to him, as someone who was christened by his father and who grew up in the central belt of Scotland during the devolution arguments of the 1980s, that there is a similar growth of demand in England for a say in her own affairs. If that is not addressed quickly, we may endanger the very Union that he and I both want to preserve.

[Mr Brown]

I do not disagree with the hon. Gentleman. I am coming to that and to the proposals that might solve that problem without creating two classes of representation in this House of Commons. The answer has to be that when one part of the Union is 84% and the others are 8%, 5% and 3% respectively, we cannot secure the status of each nation through a blanket uniformity of provision. Indeed the rules needed to protect the minority—I would hope that the Leader of the House who used to be Secretary of State for Wales understands this—are bound to be different from the rules to protect a majority who can always outvote the minority in this House. If that is not recognised by this Government today in this House, it is recognised in America where the rules of the Senate mean that Wyoming—a minority part of the country—with half a million people has two Members of the Senate, as does California with 38 million people. It is also recognised in Australia where Tasmania with 700,000 people and New South Wales with 7 million people have 12 members each in the Senate. It is recognised in the constitutions of Spain, Switzerland, South Africa, Brazil, Nigeria and Mexico.

When we start from a profound imbalance in the numbers of people in a population and from a huge inequality of size, fairness of treatment is not secured by a crude blanket uniformity that requires exactly the same provision for the minorities as the majority. We need to accord some respect to minorities, because the majority can invariably, and always if they want, outvote at any opportunity. The answer is not to say, “no representation without taxation.” The answer is certainly not to say no to Scots paying income tax at a UK level and then no to Scottish representation in this House. The answer must be to say yes to Scottish representation on equal terms here and not to devolve all forms of income tax to the Scottish Parliament. Scots should continue to pay income tax to the UK and to be represented in the UK. We will achieve the same level of accountability and local responsibility for decisions by devolving some but not all of income tax—perhaps 75% of it—and then assigning half of VAT, with the Scottish Parliament then raising the majority of its spending by its taxing decisions.

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[Iain Stewart (Milton Keynes South) (Con)]

I welcome the opportunity to participate in this important debate. I speak as someone born and raised in Scotland who has spent the majority of his adult life in England and who now represents an English seat and defines himself as British and a Unionist. I am therefore well placed to understand the passion and sentiment on both sides of the border. I wish to put forward some ideas about how to move forward and cement the Union for a new generation.

My first issue, much debated this afternoon, is English votes for English laws. The view that the best answer to the West Lothian question is to stop asking it will no longer do. I genuinely fear for the long-term health of the Union if the English dimension is not addressed—and quickly. We have had endless commissions’ reports on the possible solution; now is the time to take action. Even before the Scottish referendum debate, there was evidence of considerable demand in England for that to take place. The research for the McKay commission found that just 21% of people in England support the current system, and there was majority support for some form of English votes on English laws.

[Mr MacNeil]

Does the hon. Gentleman think that English votes for English laws is enough for England? As we heard from the previous speaker from the north of England, it is important to give meaningful decentralisation to what is a very centralised state to enable a better and more productive economy. Sadly, we could not help the north of England given that Scotland did not gain independence, but if Westminster was prepared to transfer the iron grip, we might see some much needed economic changes in the north of England. Would the hon. Gentleman support steps towards that?

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[Iain Stewart]

The hon. Gentleman has tee’d up neatly another section of my speech, so if he bides his time, I will come to that very point.

There are three intellectually coherent answers to the West Lothian question. Two of those—ending the devolution arrangement and voting for Scottish independence—are not on the table. The third option is a federal United Kingdom. Although that is intellectually coherent, I do not believe that it is workable. First, there is no public appetite to elect another tier of politicians, be that a separately elected English Parliament or English regional assemblies. Secondly, England does not divide neatly into regions. Where does my Milton Keynes South constituency lie, for example? Technically, we are part of the south-east, but from our demographic and economic ties, we have more in common with the east of England or the east midlands. Neither would a federation be viable if one of its constituent parts—England, which represents 84% of the population and economy—overwhelmingly dominated the other three parts of the federation.

To address the point raised by the hon. Member for Na h-Eileanan an Iar (Mr MacNeil)—I hope he notes my good pronunciation—there is a debate about further decentralisation within England and within Scotland, but that is a separate point from what happens here in this House. [Interruption.] It is a separate debate. There is, however, the issue of growing English demand for a say in its own affairs.

[Mr MacNeil]

The hon. Gentleman is kind to give way a second time, and I appreciate it. Much of today’s debate has been about this place and the four walls here, but it should not be. It is about the lives and aspirations of people in Easterhouse—[Interruption]—and, indeed, in East Anglia, as well as in places all over Scotland, which had great hopes at the front of the referendum, yet those hopes were damned. Managing things around this Chamber is a big mistake. I urge the hon. Gentleman to think about the good of the people in England outwith this Chamber, not the good of the people of England within it.

[Iain Stewart]

The hon. Gentleman misses my point. I am not saying that that is not an issue, but what happens here is also an issue of fairness for English voters. The two are not mutually exclusive and both have to be addressed. I want to see fairness for English voters—for my constituents, in this place—as well as have a sensible debate about further devolution in England. The local authority in my constituency has already had substantial extra powers. I am all for having a sensible discussion about how that can continue, but that should not distract us from what happens in this place.

We will never have a complete practical answer on English votes on English laws, but we must find the most workable and least disruptive option. I would like to put one proposal on the table. It might be termed the double majority arrangement. Many hon. Members from all parts of the House have asked what happens if we start excluding individual Members from voting on specific matters. Under the double majority arrangement, no Member would be excluded from debating or voting on any issue. However, if the matter applies only to England or only to England and Wales, for the measure to pass it must secure a majority of English Members or English and Welsh Members, as well as a majority of the whole House. That is a practical, sensible arrangement that would not disrupt any of our current arrangements, but that would provide an English shield or protection to ensure that measures in England are not voted for by people for whom England did not vote. I fear that doing nothing would be the most corrosive thing for the Union. That is something that I do not wish to see.

In the short time that I have left, I will turn to the financial element of devolution. I support an extension of the tax powers in Holyrood. I think that Holyrood should be responsible for raising a large share of what it spends. That is good for democracy. I am happy to debate the precise mechanism. However, I make one plea. I support the timetable for agreeing the matters in principle, but devolving tax is a complex and administrative matter. Companies will have to shoulder a lot of the burden. I do not want to see our wealth and job creators saddled with an onerous extra regulatory burden that they are not properly involved in designing. My plea is for them to play an important part in the various commissions that will consider this matter, so that the powers are devolved in a workable way that does not impact on business.

My last point—I cannot do it justice in 40 seconds—is about the Barnett formula. I plead with Members on all sides of the debate to ensure that they understand the Barnett formula properly. It is a much maligned and misunderstood formula. The bigger issue is the totality of the fiscal relationship between Scotland and England, and, indeed, within England and Scotland. We have never had a comprehensive, uncontroversial analysis of public spending and tax receipts in this country. Please can we have that before the debate on Barnett and related matters continues?