Strengthening the Union Debate

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Department: Cabinet Office

Strengthening the Union

Ian Murray Excerpts
Monday 23rd July 2018

(5 years, 9 months ago)

Commons Chamber
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Chloe Smith Portrait Chloe Smith
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That is precisely my point. When we see what we can do as a larger economy—when we see how we can attract the finest and the best across the UK economy —we also see that we are in a position to put that back into public services, including the NHS and many other services that are admired around the world, and which work together to make everyone’s lives better. That is true throughout the Union.

Ian Murray Portrait Ian Murray (Edinburgh South) (Lab)
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Will the Minister give way?

Chloe Smith Portrait Chloe Smith
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I must make a few more moments of progress. We have a full debate ahead of us on the strengths of the Union.

Let me say something about the shared economy and the strong internal market, which is one of our biggest strengths, and which is important for all our prosperity. The UK internal market is, of course, the vital first market of the UK. As one of the largest economies in the world, we buy and sell among our nations, and that creates wealth and jobs for every part of the UK.

As we leave the EU, we must protect the benefits of the UK domestic market. We are a world leader in financial services, defence technology, car production, food and drink, digital technology, energy, music, films and television, and all parts of the UK have their role to play in those world-leading industries. Scotland’s exports to the rest of the UK are worth four times more than those to the EU, and 56% of Northern Ireland’s external sales are to the rest of the UK. We as a Government are committed to strengthening these links between the economies of our nations. For example, between England and Wales we are abolishing the Severn bridge tolls and investing in cross-border railway links such as the Halton curve. Let us not forget how many people cross our internal borders every day as part of normal life. As the Prime Minister pointed out during her speech in Northern Ireland on Friday, our Union is rooted in both our history and our collective achievements, but it is our future together that is our greatest strength.

Ian Murray Portrait Ian Murray
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Will the Minister give way?

Chloe Smith Portrait Chloe Smith
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Yes, I will now.

Ian Murray Portrait Ian Murray
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I am very grateful to the Minister—and may I compliment her on her rather fine Sean Connery impression earlier in her speech?

The Minister has just reeled off a list of service industries in this country, which, of course, are not covered by the Chequers agreement. What analysis has her Department conducted of how much the UK’s GDP will be reduced as a result of that agreement?

Chloe Smith Portrait Chloe Smith
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I do not think the hon. Gentleman can have been listening when I included, for example, car production and food and drink in my list, but the point is that the Chequers agreement seeks to secure the best deal for the whole UK economy, together. That covers both goods and services in different ways—in ways that will complement our strengths—but it also returns us to the key point about the whole UK economy, together.

Let me now say something about the industrial strategy. It is a vital part of the plan set out by the Prime Minister to drive growth across the whole UK, and to create more highly skilled, highly paid jobs and opportunities. It is intended to address the long-term structural challenges that can hold British businesses back, while building on the country’s strengths. New sector deals and investment and research and development will support the industries of the future where the UK has the potential to lead the world, from electric vehicles to biotech and quantum technologies.

It is important that we continue to look to the future. As was announced earlier this month, a £2.5 million grant has been awarded for a spaceport site in Sutherland, on the north coast of Scotland. That the first ever satellite launch from the UK could be from Scottish soil highlights our commitment to investing in all parts of the UK, and there are other launch sites too, such as those planned in Cornwall, Glasgow and Snowdonia, which will also be boosted by a new £2 million development fund. The UK is set to build on its world-leading expertise in aerospace with the development of these spaceports.

On the city and growth deals, we are supporting clusters of cultural and economic strength concentrated in places throughout the UK, and we want to see city and growth deals across the four nations to ensure that prosperity is shared across the UK. We have already seen important investments in a number of deals such as Cardiff, Glasgow and Swansea, as well as investment in other important cultural work such as the V&A in Dundee. Further deals are being developed. We have recently announced the Stirling and Clackmannanshire city region deal, and negotiations have been opened on the north Wales growth deal and with the Belfast city region partners. These deals make a vital contribution to local economies and, as I have said, provide jobs and growth across the UK. There is more, of course. In Cardiff, we have invested in the development of a compound semiconductor industry cluster, and in Aberdeen we opened the oil and gas technology centre with an investment of £180 million, which will unlock the full potential of the North sea and anchor the supply chain in north-east Scotland.

Transport and connectivity are also crucial themes. As we support clusters of growth across the Union we must be connected geographically through our transport and infrastructure links. The expansion of Heathrow will help with this, creating hundreds of additional flights per week from London to the nations and regions across the UK, with new routes emerging to support our economic co-operation. As well as the importance of being connected geographically, the Government recognise that world-class digital connectivity is essential for the modern world; it is essential to people at work and at home and we are committed to improving that across the UK. We are investing over £1 billion to stimulate the market to build the next generation of infrastructure that the UK needs for the future through both the national productivity investment fund and the digital infrastructure investment fund.

Turning to international benefits, the strength in our unity of nations is demonstrated by our common voice on the international stage. We use our seat at the top international organisations to protect the interests of all parts of the UK, to influence issues that matter to people in the UK, and to make the world a better place. When we faced an attack on our citizens, we worked with countries around the world to respond. We use our influence to pursue issues that matter to people across the UK: leading the way on international aid, leading global action to tackle landmines, stopping the trade in ivory, and combating modern slavery. People across the UK can be proud of the role we can play because we are together in our international approach.

That international standing is also vital to the security of our country. Our UK defence expertise and excellence is joined up across the UK and has been built up across decades, from new radar stations in Shetland and Cornwall, to Scottish-built aircraft carriers based in Portsmouth, fast jet response aircraft in Lossiemouth and Lincolnshire, the SAS in Hereford, GCHQ in Cheltenham and the Royal Marines commandos in Arbroath. This is one very large UK defence network protecting us all at home and abroad. And we are spending across the country to be able to keep the whole UK safe. In the last financial year the Ministry of Defence spent £1.6 billion with Scottish industry and commerce, while a recent review found that defence invests £945 million in Welsh industry. The spectacular fly-past we saw only last month as part of the Royal Air Force’s 100th anniversary celebrations reminds us of the work of all our armed forces, who are drawn from, and based across, the whole of the United Kingdom. We saw the same at last month’s Armed Forces Day in Llandudno; it was a proud display of Wales’s military association, while the Edinburgh Tattoo demonstrates Scotland’s strong relationship with the military.

I am also proud that the UK Government recently announced that we will reimburse thousands of military personnel who would otherwise be negatively affected by the devolved Government’s income tax increases in Scotland. This protects nearly three quarters of all armed forces personnel liable for Scottish income tax and will help with recruitment and retention for our important armed forces.

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Tommy Sheppard Portrait Tommy Sheppard
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If the hon. Gentleman bears with me, I am coming to that. I was in 1955 just there, but let me jump to the 1960s.

In the 1960s, things change and two things come together. [Interruption.] Conservative Members might want to listen and learn. The first thing is that this country —Great Britain—begins a process of rapid decolonisation. It is a new world. Suddenly, rather than the notion of an independent Scotland being something that looks backward romantically to history, it actually becomes something that can embrace what is happening in the contemporary here and now, with the emergence of new nation states throughout the world. The second thing that happens is that those who argue for Scottish independence understand and focus on the need to achieve electoral change at the ballot box, and the thing that kicks off a period of half a century of change is Winnie Ewing’s election in November 1967.

Then we have a process of half a century of dissent being manifest electorally, at the ballot box, and the state responding to that at every step of the way. The Kilbrandon report is established in response to the events of 1967. It takes forever to come up with its proposals, but it does so in 1973, suggesting elected assemblies for Wales and Scotland. In 1974, we have the election of 11 SNP MPs, which terrifies the then incoming Labour Government.

Ian Murray Portrait Ian Murray
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Will the hon. Gentleman give way?

Tommy Sheppard Portrait Tommy Sheppard
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I am happy to give way, although I may be getting to the hon. Gentleman’s point in a minute.

Ian Murray Portrait Ian Murray
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The hon. Gentleman is a fine speaker in this Chamber, but I am not quite so sure that he can read my mind. Maybe he can.

Those 11 SNP MPs elected in 1974 voted with the Conservatives in 1979 to bring in 18 years of Conservative government that decimated Scotland. Will the hon. Gentleman get on to that point?

Tommy Sheppard Portrait Tommy Sheppard
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I was coming to exactly that point, as it happens.

The Labour Wilson-Callaghan Government then introduce the Scotland Act 1978, although it takes them four years to get that Act through, for some unknown reason. We then have the referendum of 1979, in which the people of Scotland vote to set up a Scottish Parliament. But that is frustrated because of an amendment to the legislation by a Labour Member of Parliament that requires 40% of the total electorate to vote in favour, otherwise the decision will not pass.

The Labour Administration, in the midst of economic chaos in the spring of 1979, had the opportunity to go ahead and legislate with the will of the Scottish people expressed at the ballot box, but they declined to do so. Given that the Administration were on their last legs, the SNP MPs decided to withhold confidence from them. In retrospect, I would have done exactly the same thing. SNP MPs did not vote to usher in 18 years of—

Ian Murray Portrait Ian Murray
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Will the hon. Gentleman give way?

Tommy Sheppard Portrait Tommy Sheppard
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I fear I need to crack on.

Ian Murray Portrait Ian Murray
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That’s fine—crack on.

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Ian Murray Portrait Ian Murray (Edinburgh South) (Lab)
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It is a great pleasure to follow the hon. Member for Filton and Bradley Stoke (Jack Lopresti). I congratulate him on his eight years on the Northern Ireland Affairs Committee. As we would say on this side of the House, he has done his time down the salt mine. I am not sure what he is going to do next.

I am rather perplexed that the Government have called this debate in their own time on the second to last day before the summer recess, but it is welcome indeed, for a number of reasons. It is an opportunity to put the positive case for the Union and to expose for what they are the political games played in the Chamber in the last few months. I have the utmost respect for my constituency neighbour, the hon. Member for Edinburgh East (Tommy Sheppard), the SNP spokesperson, and for his oratory—he is well-known for it locally as well—but I am completely astonished that he could stand up in the Chamber in 2018 and say that, if there were a vote in the House to bring down a Labour Government that ushered in 18 years of Conservative Government, he would do exactly the same again. It is an astonishing thing for an SNP politician to admit.

Ian Murray Portrait Ian Murray
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I am happy to give way if the hon. Gentleman wants to clarify the comment, but we have it on the record.

Tommy Sheppard Portrait Tommy Sheppard
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To clarify the record, that is not what I said. I said that, in retrospect, had I been there at that time, I would have made the same decision. That is not the same as saying I would vote to do it today.

Ian Murray Portrait Ian Murray
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The hon. Gentleman also said that the SNP in 1979 withheld consent. It did not withhold consent; it voted with the Conservative Opposition to give the Opposition a one-vote majority, which brought down the Labour Government and ushered in 18 years of Conservative rule.

As my hon. Friend the Member for Kirkcaldy and Cowdenbeath (Lesley Laird) rightly said from the Front Bench, we are here because we are currently stuck with two nationalist Governments, one here in London and one at Holyrood in Edinburgh. She was also right to quote John Smith, who lived in my constituency and was the best Prime Minister this country never had. He did say—I am happy to quote it again for the record—that we had two parties sawing away at the legs that supported the Union. He said that then, but it is actually more relevant today.

Let me tell the House why we have two parties sawing away at the legs of the Union, and let me start with the Conservative party. I have made the contention today, and will make it tonight, that the Conservative party is as big a threat to the Union, whether it be Wales, Ireland or Scotland, as any nationalist party in Wales, Ireland or Scotland, and let me say why. The Conservatives bet the farm on an EU referendum and had the arrogance to think they could win it, but they lost it, having put no plans in place for what would happen beyond that.

In 2014, on the steps of Downing Street, the very same person who gambled the farm, the former Prime Minister, David Cameron, as the sun was rising over London, and before all the votes in the independence referendum had even been counted, declared his intention to introduce English votes for English laws, a completely unnecessary procedure in this House that has failed miserably. In that regard, I agree wholeheartedly with the hon. Member for Perth and North Perthshire (Pete Wishart), who has railed against EVEL for many years, despite having supported it previously. That kind of thing goes straight to the heart of how the Conservative party is undermining the Union.

What about the continued and unnecessary austerity? It is a political choice to have austerity as a policy central to government, but it has not worked. It has trebled the national debt to nearly £2 trillion and we still have a deficit—the Government promised to wipe it by 2015, but I am not even sure they will wipe it by the projected 2022-23; it may be decades beyond that. Then there was the creation of a hostile environment, not just for migrants coming to contribute to this country, but for anybody in this country who happened to be in the unfortunate circumstances of claiming social security.

Then we have Ministers being dragged to the House by urgent questions to explain why they had to cheat on votes in the House to get policies through last week. I am sorry I was unable to ask a question in the urgent question. I would have asked what the Government would have done had the Opposition broken a pairing deal last week with someone on maternity leave on the Government Benches and won that vote. The Government would be dragging us all back here as quickly as possible to have that vote again.

Stephen Kerr Portrait Stephen Kerr
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On a point of information—perhaps the hon. Gentleman was not here for the urgent question—there have been 66 breaches in pairing arrangements, 52 of which were by Opposition parties, not the Government side.

Ian Murray Portrait Ian Murray
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I was not here for the urgent question, so I cannot clarify those figures, but I can say that in my eight years in the House the Opposition have won three votes, so breaking those pairing arrangements has obviously not affected the operation of Parliament, and I do think it important to maintain the pairing arrangements.

Then we get on to the way the Government have dealt with the Brexit process in terms of devolution. It has not been the Secretary of State for Scotland’s finest hour. I am sure that if we could wind the clock back to April, May or June and have those debates again, the Government would have dealt with it differently. We had promise after promise at the Dispatch Box from the Secretary of State, and all those promises were wiped aside. I intervened on the hon. Member for Stirling (Stephen Kerr) at least nine times, if not more—maybe he can tell us during his contribution—to ask when it was all going to happen, what his objections were and how they were going to resolve those devolution problems, and I am still waiting to hear the answers. I look forward to him telling us when I intervene on him during his speech later.

Then we have a Government in chaos, with resignation after resignation after resignation: the Secretary of State in charge of the negotiations to take us out of the EU, gone; the worst Foreign Secretary in history, gone; and all just a few parliamentary weeks away from having to agree the final EU deal.

Then we have the question of a hard Brexit. Everyone is going, “What’s a hard Brexit? What’s a soft Brexit?” However, when we look at what the Government are doing, we are hurtling towards a no deal Brexit. The Government put together—cobbled together after two years—what they now affectionately call the Chequers agreement. The following week, they undermined that very same agreement by accepting amendments to the Trade Bill and the customs Bill that have driven a horse and coaches—a “corse and hoaches” if you have been drinking the same whisky as the Minister who opened the debate—right through that agreement. Not only did those changes undermine the agreement, but the EU had already ruled out the agreement in its original form. We are heading for a hard or no deal Brexit, and all that is happening in the Government at the moment is that people are trying to fight for the keys to No. 10, rather than for what is in this country’s interests.

Everyone in this House, to a person, will absolutely agree that there should be no hard border between Northern Ireland and the Republic of Ireland. However, the Government have set red lines in the Brexit process that make that completely and utterly unachievable, which undermines the fabric of the United Kingdom. I keep asking Ministers this question, but I cannot get an answer, so it would be interesting to hear an answer from the Scottish Conservative MPs this evening. If the Government can argue, with the red lines that they have set, that they will no longer require any kind of border equipment on the border between Northern Ireland and the Republic of Ireland, if the UK and the Republic of Ireland are in two different trade and customs arrangements, how could they possibly argue, in the event of another independence referendum, that we would require a border between Scotland and England?

Sammy Wilson Portrait Sammy Wilson
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The hon. Gentleman is restating the oft-repeated myth about the border between Northern Ireland and the Irish Republic. I do not know whether he noticed that EU negotiators—Juncker and Barnier—promised the Irish Government this week that there would not have to be any kind of checks at the border between Northern Ireland and the Irish Republic, even in the event of no deal. If there can be no checks with no deal, we can have no checks with any sort of deal.

Ian Murray Portrait Ian Murray
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That is an extraordinary comment. We will see what happens come 29 March 2019 or after the transition period. I just do not think that the right hon. Gentleman can achieve what he wants to achieve with the Government’s current negotiating position.

The Scottish Conservative leader Ruth Davidson promised during the 2017 snap general election that, if Scottish Conservative MPs were sent to Westminster, they would stand against the Prime Minister’s hard Brexit and deliver what would be in Scotland’s best possible interests—[Hon. Members: “She never said that.”] Well, if she did not say that, perhaps the Scottish Conservative MPs can tell me what she did say. Ruth Davidson stands up day after day, week after week, to rail against her own Government here at Westminster, while the 13 Scottish Conservative MPs loyally traipse into the Lobby to put through the hard Brexit and everything else that is upsetting for Scotland.

Ian Murray Portrait Ian Murray
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I have already given way to the hon. Gentleman, and “one opportunity” means “one opportunity”.

Last week, every single vote in this House on Monday and Tuesday on the customs Bill and the Trade Bill was passed with a majority fewer than the number of Scottish Conservative MPs. If they did what they promised to do, we would be in a much better position. That is why they are undermining the Union.

Let me quickly go on to why the SNP is undermining the Union. It does not want the Union; it wants independence for Scotland. The SNP’s proposals for Scottish independence are now in this growth commission report, which has been fundamentally torn apart by anyone who has ever read it who does not want independence. This morning, the hon. Member for North East Somerset (Mr Rees-Mogg) talked about a no deal Brexit potentially meaning 50 years of austerity in the UK, but the growth commission report promises 25 years of austerity.

Tommy Sheppard Portrait Tommy Sheppard
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Will the hon. Gentleman way?

Ian Murray Portrait Ian Murray
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I cannot, because I need to wrap up. If the model in the growth commission report had been applied over the past decade, Scotland would have had £60 billion less to spend on public services than has been the case. The SNP is therefore proposing austerity-max.

Stewart Malcolm McDonald Portrait Stewart Malcolm McDonald
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Will the hon. Gentleman give way?

Ian Murray Portrait Ian Murray
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I cannot. Madam Deputy Speaker wants me to wrap up and I would not like to upset her.

Ian Murray Portrait Ian Murray
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I am happy to upset the hon. Gentleman, but I am not going to upset Madam Deputy Speaker.

I will wrap things up with a few remarks that point out why the SNP is just as big a threat to the Union as the Conservatives. All the analysis of the Scottish NHS has shown that, even under a Conservative Government who have been putting less and less into the NHS than previous Labour Governments, Barnett consequentials have not been passed to the Scottish NHS through the Scottish Government to the tune of anything between £340 million and £750 million, depending on the measure used.

There are a few things that will strengthen the Union and keep it together. A soft Brexit is one. We need a more transparent Joint Ministerial Committee that works. As the hon. Member for Stirling said in a Westminster Hall debate, Departments should be retagged to state whether they are English or UK Departments. We should have a federal constitution that deals not only with Scotland, Wales and Northern Ireland, but with England, which is too large, with the north-west and the north-east not feeling as well represented as they could be. We need to stop both Governments fighting over the constitution and to start celebrating and developing devolution. I will finish by plagiarising Nye Bevan, who said of the NHS that it will survive while there are people left in politics who will fight for it. Well, the UK will only survive if there are people willing to fight for it, and Scottish Labour always will.

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Alison Thewliss Portrait Alison Thewliss (Glasgow Central) (SNP)
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I am grateful to the Government for giving us this debate, because it has given me the opportunity to wear this skirt, which I had given up wearing after my colleagues reckoned that it was a Unionist skirt and that I should not take it out of the wardrobe anymore. I am very disappointed that the hon. Member for Edinburgh South (Ian Murray) is not here in his suit, so that we could be matching. I have not seen that suit since the referendum campaign—

Ian Murray Portrait Ian Murray
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I am wearing a suit.

Alison Thewliss Portrait Alison Thewliss
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He knows the suit I mean! If we are talking about clothing, the Union is more like a fur coat, nae knickers type of deal. It is funny how far we have come since the independence referendum and the scare stories that we were given. Lord Robertson said that it would have a “cataclysmic” effect on world security —well, look at where the world is now anyway. There was George Osborne and his currency bluff. There was Alistair Darling and his scares about pensions—tell that to the WASPI women who have not received their pension because of the UK Government’s actions, and that includes parties on both sides of this House. We had talk about border posts between Scotland and England and all the scare stories that went along with it—tell that to those in the island of Ireland who now face that real prospect. I have spoken to people who tell me that the border runs through their kitchen. They cannot even get to their cake to eat it because it will be on the other side of the kitchen if the Government have their way.

I draw the House’s attention to the excellent report by Chartered Institute of Environmental Health on Brexit and food security. It says that there are significant risks to food flow in the United Kingdom, including that the failure to keep food central to the Brexit negotiations could have a catastrophic impact on our food security and for those whose jobs rely on it. It says that UK food resilience is fragile and dependent on “just in time” delivery systems that could quickly grind to a halt if border controls were reimposed. It says that the Government are ambiguous at best on the question of migrant workers and how essential they are to the current working of the UK’s food system and that the current approach is imbalanced, with the specific needs of Wales, Scotland and Northern Ireland, whose economies are highly food-dependent, being repeatedly sidelined. It also criticises the UK Government for their fundamental mistake in aiming only for alignment in farming and manufacturing but not for retail or food service, which are both absolutely huge.

All these concerns fall on deaf ears. These are not scare stories, but legitimate concerns that we never got anywhere close to in the independence debate. The biggest scare story, however, was the prospect of being forced out of the EU. Famously, Better Together tweeted:

“What is process for removing our EU citizenship? Voting yes. #scotdecides”

Scotland decided then, but it is in a very different position now.

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Stephen Kerr Portrait Stephen Kerr
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Well, the British Transport police, as my hon. Friend the Member for Ochil and South Perthshire (Luke Graham) rightly says, is the example that immediately springs to mind.

The delivery of broadband is another example, as I said. We should never have devolved the delivery of broadband to the Scottish Government. They were given the responsibility of delivering broadband in Scotland by Broadband Delivery UK, and the result is mayhem. We are so far behind other parts of the United Kingdom on the delivery of broadband because we allowed the Scottish Government to get involved in the first place. We can see the problems with the situation that has arisen, which makes it unclear who is responsible. Broadband is a good example of this. When anything good happens in Scotland, Scottish Government Ministers will turn up and get their photographs taken, but when anything goes wrong in Scotland, it is suddenly all reserved—they point at us and say, “Oh, it’s reserved; you should deal with it.” These kinds of games go on all the time. It is insidious and makes it all the easier for the nationalists, in that space of confusion, with their ideology of grievance and division, to do just that. We must avoid that by improving our system and machinery of governance.

Now—one minute! [Laughter.] I have one minute. The best bit’s to come. UK Government Departments should be unafraid to fly their colours in Scotland, to proudly hoist the Union flag above their offices every single day of the year, not just on the Queen’s birthday, and to tell the people of Scotland, loudly and proudly, that their United Kingdom Government is serving them. It would show people clearly that Scotland has two Governments and that both are working to deliver vital public services to them, even if they need to work more closely together.

It may seem somewhat controversial, but this debate about the intergovernmental relations in the UK will continue until we address the machinery we need to make the Governments of this country work more closely together. Ironically, I turn to the White Paper on the future relationship between the United Kingdom and the European Union. I got as far as chapter 4, where I read details about how the different Governments, Departments and Parliaments could work together for the benefit of the people. With no small sense of irony, I advise the Government to read chapter 4 on page 84 —many people never got to page 84, I am sure, but I did. It talks about how arrangements could be put in place by which Governments could work together. It is a very interesting chapter. I refer in particular to paragraph 2. The institutional arrangements it proposes are practical and flexible and would create a dialogue and mechanisms for resolving disputes and the accountability and mutual constructive tension necessary for us to get the best government possible for the people of our country.

I will conclude.

Ian Murray Portrait Ian Murray
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Hear, hear!

Stephen Kerr Portrait Stephen Kerr
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I am grateful for the support for that statement, if for nothing else I have said.

It is understandable in Scotland, where the political climate can sometimes be quite poisonous, for people to feel intimidated and harassed, rather than to engage in debate. Much is said and done under the guise of robust debate that falls squarely into the category of bullying, so fear is understandable, but I call upon Her Majesty’s Government not to flinch. They must face up to that culture firmly and fairly. I believe they shall. They should be proud and loud about their activities in Scotland. We should not submit to the bullying and provocations of the nationalists. We should not surrender our country. Under no circumstances would that bring about a flourishing Union that can be a boon to the peoples of this country for generations to come, which is what we need now more than ever before.