Lucy Powell Portrait Lucy Powell
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It would be really nice if the Government used the powers that they already have, let alone those that it will soon acquire, to invest once and for all in British industry and British manufacturing. I am afraid that the Conservative Government do not have a great record when it comes to supporting our industrial heartlands, and that is plain for everyone to see.

I hope the Government will take on board the amendments from the other place, especially those in the name of Lord Hope and Lord Stevenson,  which have received clear support on each occasion.

In normal times it would be Christmas party season—I am sure we will debate that again at some point—but the Government’s hokey-cokey on the Bill really needs to end. We had part 5 in; now we have part 5 out. We were told the Bill would create a thriving internal market that would strengthen the Union and keep Scotland in, yet the reality is that it could lead to Scotland being out—something that Members on both sides of the House do not want to happen. The Government have been shaking it all about with the legislative games they have been playing in respect of the Bill, and I am not sure that has been good for anybody. I really hope that we can now see the end to some of these shenanigans.

On the amendments, I will not rehearse the arguments: we have heard them put eloquently by their lordships and Members of this House on previous occasions. [Interruption.] Sorry, did somebody want to intervene? Or is the hon. and learned Member for Edinburgh South West (Joanna Cherry) just trying to sledge me from behind? Just the usual.

Joanna Cherry Portrait Joanna Cherry (Edinburgh South West) (SNP)
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Will the hon. Lady give way?

Lucy Powell Portrait Lucy Powell
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Yes, I will give way, if the hon. and learned Lady has something she wants to say.

Joanna Cherry Portrait Joanna Cherry
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I have got something useful to say: why did the Labour party abstain on the amendment in the House of Lords that would have re-reserved state aid? Devolution is Labour’s baby—it was the late Donald Dewar who devolved state aid—so why did her party abstain on that? I think the people of Scotland would like an answer.

Lucy Powell Portrait Lucy Powell
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We have worked incredibly hard to maintain the devolution settlement through the Bill; that is not something that the hon. and learned Lady’s party want to do. The SNP wants to use measures in the Bill to break up the Union and seek independence in Scotland. That is not something that we agree with. We have tabled amendments and voted on them to ensure that the devolution settlement in this country is respected, and I hope that the Government will continue to talk to us about that.

We welcome the Government concessions so far and are hopeful that with some more good will we can get some more recognition of common frameworks in the Bill in these late stages of ping-pong. The Lords amendments to strengthen the common-frameworks approach and fair access to the market are good ones that we will vote to uphold today. I am grateful to Ministers and Lords colleagues, especially Lord Hope and others, for their continued engagement on this issue, because there is a lot of agreement between us. Ministers are rightly proud of the common frameworks process, which has brought about a number of areas of agreement on standards and market access because it involves the Government working with the devolved Administrations. It is an approach that both Front-Bench teams agree on.

We also agree—unlike the SNP—that the UK Parliament should be the ultimate arbiter of the internal market, and we agree that no one nation should be able to frustrate that process, that all must act in good faith before the UK Parliament intervenes, and that safeguards should be in place to make sure that that is the case. It really feels to me like the Government could move further on this issue, because there is a huge amount of common ground. We need to see in the Bill a recognition of the common frameworks process and the devolution settlement that it represents, which is why I hope and expect that in returning the Bill to the other place today, the Government will introduce some final amendments along those lines. If they do so, they could receive broad support. It did not need to take quite so many iterations and pleas from both Houses, had the Government not taken such a hostile, blunderbuss approach with the Bill in the first place.

--- Later in debate ---
Alan Brown Portrait Alan Brown
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The Lords have tried to improve the Bill, but it has been subject to only minor improvements. I wish that, during ping-pong, the Lords had done double insistence and brought down the whole rotten Bill. That is what is really needed—for it to go away and be brought back in a completely different form.

It is no wonder that the Government have been so pig-headed about rejecting these amendments. As we have heard, last night in the Lords, Labour—the self-styled party of devolution—gave up the key fundamentals and principles of devolution. It gave up on direct spending and on state aid, which drives a coach and horses through the whole devolution settlement. It gives Westminster carte blanche to do what it wants in Scotland and Wales, where there is a Welsh Labour Government. Labour has given up on its own Government in Wales.

When summing up in last night’s debate, Lord Thomas said that the one thing he was holding on to was the thought of

“the catastrophic result for our union if the Government did not adhere to the principles that have been explained”.—[Official Report, House of Lords, 14 December 2020; Vol. 808, c. 1480.]

Basically, he hopes that the Tory Government will do the right thing. If not, that will bring down his precious Union. It seems that Labour is now relying on this right-wing Tory Government to do the right thing with the precious Union—good luck there.

On Lords amendment 1F, the Government have already refused to adhere to the common frameworks principle and enshrine that in the Bill as a way for the devolved nations to co-operate. The amendment massively waters down that principle, but it would prevent divergence on harmonised rules that have been agreed through the common frameworks. Why do the Government want to reject that? If there is agreement between the nations, and common frameworks with agreed rules and regulations, why do the Government reject that that is something to be protected? That tells us everything we need to know about what they think of devolution.

It has been said many times, but it is worth repeating. The Prime Minister has said:

“A pound spent in Croydon is of far more value to the country than a pound spent in Strathclyde.”

Who is kidding who if we think that this Tory Government, under that Prime Minister, are suddenly going to spend lots of money in Scotland and Wales for our benefit? It is a joke and it undermines their whole attitude to devolution.

On state aid and Lords amendment 8M, why do the Government want to reject protection of environmental standards and of public health? Why should those things be excluded from the simple protection of state aid? Again, that tells us all we need to know about what they think of devolution. What Lord Thomas says is going to happen: the Union will end.

Joanna Cherry Portrait Joanna Cherry
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I support the Lords amendments because they seek to protect the devolved settlements and also policy divergence across the United Kingdom. Lord Hope’s amendment attempts to salvage the common frameworks process and to prevent this UK Government from giving themselves the power to override policy divergence in devolved areas. As Lord Hope himself said:

“It was because of devolution that the common frameworks process, and the opportunity for policy divergence, was instituted with the encouragement of the UK Government in the first place. Their support for that process must involve support for policy divergence too.”—[Official Report, House of Lords, 14 December 2020; Vol. 808, c. 1446.]

He is quite right. Lord Stevenson’s amendment exempts environmental standards and public health from market access principles. In so doing, it also seeks to protect policy divergence. As Baroness Bennett pointed out in the Lords, the smaller nations of the United Kingdom have often led the way on environmental policy divergence and it would be a shame if that was to stop.

I am speaking with a sense of weariness and inevitability because we have all been here before and we all know what is going to happen today. We know that these amendments will be defeated by a Tory majority that does not represent the political reality on the ground in Scotland, or indeed Wales. Once more, the Minister will get to his feet and mouth meaningless platitudes about speaking to the devolved Administrations. Scotland did not vote for Brexit. Scotland did vote for devolution. It is anti-democratic that Brexit is being used to undermine devolution, and it is happening in breach of all the promises that were made to no voters in 2014, including the infamous vow, which included a promise from all three parties that the Scottish Parliament, as well as getting extensive new powers, would have the final say on spending in all devolved matters.

It is therefore a really sad state of affairs that the official Opposition could not field a single Back Bencher to speak up for devolution today. I know that they only have one hon. Member in Scotland, but they are not always averse to putting forward MPs from other parts of these islands to opine on Scottish affairs. Their no-show here today is not surprising, though, given that their colleagues in the Lords sat on their hands yesterday with regard to amendments seeking to keep state aid a devolved matter and Lord Thomas’s amendment challenging the Government’s clauses on direct spending in devolved areas. This is happening in direct breach of the vow that the then leader of the Labour party signed. But Labour does not care. It is happy to wheel out Gordon Brown to talk about federalism when independence is riding high, but when it comes to defending the existing devolved settlement, it is missing in action. This is a shameful state of affairs, and it falls to the SNP to defend devolution. We are doomed to fail, but that will simply further reinforce the case for independence.

Stephen Flynn Portrait Stephen Flynn (Aberdeen South) (SNP)
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I have to start by expressing my deepest sympathies to the shadow Minister, the hon. Member for Manchester Central (Lucy Powell), who has had to come to the House to try to defend the completely and utterly indefensible. [Interruption.] She says that she does not need my sympathy—well, she is getting it anyway. The reality is that the Labour party has once again turned its back on voters in Scotland. Last night Labour had the opportunity to stand up for the Scottish Parliament, to stand up for devolution and to block direct spending by this UK Government on devolved matters, and it sat on its hands. That is why there is a not a single Labour Back Bencher here in the Chamber this afternoon.

But my sympathies do not stop there: they also extend to the Minister himself. He talks about business certainty—business certainty! Four and a half years after the Brexit vote, after three Prime Ministers and two general elections, it is 17 days to the end of the transition period and the Minister could not name, in any way, shape or form, what the trade status of the United Kingdom is going to be. I pity them all. This is why the people of Scotland will choose a different path in the very near future.

Let us look at the Bill as it stands in a little more detail. It remains—it utterly remains—a blatant attack on devolution. For me, that is extremely frustrating, because, like my hon. Friend the Member for Glasgow East (David Linden), I am young enough to have lived almost entirely under the Scottish Parliament. I do not remember a time when there was not a Scottish Parliament. It has been a positive, progressive force for Scotland that we are proud of. I am not going to come to this Chamber and let a party that has not won an election in Scotland since the 1950s dictate to the Scottish Parliament as to what will happen. It is a complete and utter shambles, and the Government should be utterly ashamed of that.

To finish, something that has been asked a lot in this Chamber—I have heard the shadow Scotland Office Minister say it as well—is, “Name a single power that is being grabbed. Name a single one”, but this is much bigger than that; this is a blatant, all-out attack on devolution itself. It seeks to undermine the very premise of devolution. To prove that very fact, The Press and Journal just four days ago said:

“The Secretary of State has been very clear he wants to deal direct with local authorities”—

not just going beyond the Scottish Parliament or the Convention of Scottish Local Authorities, but going straight to the local authorities themselves. That is absurd and a blatant attack on devolution, and we will not stand for it.