Parliamentary Buildings (Restoration and Renewal) Bill

Debate between John Redwood and Angus Brendan MacNeil

3rd reading: House of Commons & Report stage: House of Commons
Wednesday 19th June 2019 Commons Chamber

[John Redwood]

Of course, when the works need to move on to parts of the Palace that MPs use more often and more directly, alternative arrangements will need to be made. However, I do not think that means that all MPs need to move out of the old Palace for a long period of time, when it has been shown that bits of work can be done around the historic Palace without everybody having to decamp.

[Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

The right hon. Gentleman is being kind in giving way. To support my hon. Friend the Member for Airdrie and Shotts (Neil Gray), in my 14 years in this Parliament, I do not think I have been in the Elizabeth Tower once. I think that strengthens the argument that has just been made from the Scottish National party’s Front Bench.

[John Redwood]

I do not think it does at all, because I have also pointed out that there are a lot of roofing works going on. The hon. Gentleman is using the parts of the building that are being reroofed without being interrupted in his work. Again, I pay tribute to those who are carrying out the works without the need for fundamental change.

If we want value for money, we need to ensure that before any full plans are adopted, the Delivery Authority has done a proper job of analysing the options.

I also make a more fundamental point about our democracy. I know that there are many Members here who do not want to restore a proper independent democracy in Britain and are doing their best to ignore the wishes of the British people, as expressed in the referendum. It would be doubly ironic if they not only had their way on that, but said that we cannot use the historic Palace in the way that was intended for a long period. That would be a symbol that the public’s wish—

Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Bill

Debate between John Redwood and Angus Brendan MacNeil

3rd reading: House of Commons & Report stage: House of Commons
Tuesday 15th May 2018 Commons Chamber

[John Redwood]

indicated dissent.

[Angus Brendan MacNeil]

The right hon. Gentleman shakes his head—one principle for England, and another for Scotland.

[Pete Wishart]

My hon. Friend hits the nail right on the head. In this wonderful institution—the quasi-English Parliament—it seems to be all right for English Members to demand that they get their way and that they determine their legislation. But I remember the Scotland Bill 2015, as the right hon. Member for Wokingham (John Redwood) will too. I remember something like 97% of all Scottish Members of Parliament tabling amendments to that Bill, only for them to be overwhelmingly and comprehensively rejected because of the Government majority. It seems to be all right for English Members to get their own Parliament when it comes to these things, but when we have our say on important reserved issues in this House, it is completely and utterly ignored.

Exiting the EU: Sectoral Impact Assessments

Debate between John Redwood and Angus Brendan MacNeil

Wednesday 1st November 2017 Commons Chamber

[Wera Hobhouse]

rose—

[Angus Brendan MacNeil]

rose—

[John Redwood]

We can have a system of authorised economic operators, developing the existing system, and it will be quite easy to speed the lorries through, and if we still have to impose tariffs because there is no agreement, we will be able to do that electronically, without there being a lorry jam.

European Union (Notification of Withdrawal) Bill

Debate between John Redwood and Angus Brendan MacNeil

3rd reading: House of Commons & Committee: 3rd sitting: House of Commons & Report stage: House of Commons
Wednesday 8th February 2017 Commons Chamber

[John Redwood]

That is a very powerful point. I could add others. It is a great pity that it does not mention the opportunity to have a decent fishing policy. It certainly does not talk about having a sensible immigration policy. The Opposition still do not understand that we have to remove the jurisdiction of the European Court of Justice if this Parliament is to be free to have a fishing policy that helps to restore the fishing grounds of Scotland and England, and to have a policy that makes sensible provision for people of skills, talent and interest to come into our country, but that ensures that we can have some limit on the numbers.

[Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

I heard the right hon. Gentleman’s wish list at the beginning of his speech. Has he grasped the fact that that wish list is actually encapsulated in two words: single market?

[John Redwood]

No, it clearly is not. The hon. Gentleman has not been listening to what I have been saying. The whole point about the single market is that it does not allow us to have a sensible fishing policy or a sensible borders policy, which are two notable omissions from the list, which, fortunately, were not absent from the White Paper or from the Government’s thinking.

European Union (Approvals) Bill [Lords]

Debate between John Redwood and Angus Brendan MacNeil

Tuesday 3rd November 2015 Commons Chamber

[John Redwood]

That is a debate for another day. We are not here to debate the relative powers of the different parts of the United Kingdom. At present, the member of the European Union is the United Kingdom, and we are in the United Kingdom’s Parliament. It is part of my case that we have precious few powers left to make major changes in relation to things that really matter on the continent. I want to explore, briefly, what we can do to engage with the problems of mass unemployment and the huge migrations of people who are unhappy with their lot in other European Union countries, and what we can do about the austerity policies that are so deep and vicious in parts of the European Union, having been visited on countries such as Greece, Spain and Portugal by the European Union and the euro itself.

[Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

I hope that the right hon. Gentleman will forgive me for taking him back to the beginning of his speech, when he said that he would like this Parliament to vote down something from the European Union, or at least try to do so. Had he anything specific in mind, or was he just looking for a genuine fight with the European Union? I ask that question, quite openly, for the purpose of illustration.

[John Redwood]

The illustration that I was using was that there are now large areas in which this Parliament is not allowed to vote against something that the European Union is doing—because it has been pre-agreed, because we have been out-voted, because it is a consequence of a treaty that some previous Government signed years ago, or because it is the result of a decision by the European Court of Justice. Do Opposition Members not see that we are losing our democracy? We are losing our right to disagree with European decisions in this place, and we are losing our right to assert our wish to do things differently. I do not want to choose any one particular thing, but I could name at least 100 things which come from the European Union that I wish were better and different, because I think that they get in the way of prosperity, better wages and a better lifestyle for my constituents and others in my country.

That, however, is not the point. The question that we are debating today is whether, by means of the minor set of improvements contained in the Bill, we can have any impact on the hugely important issues of the breakdown of employment, the denial of opportunity to half the young people in large swathes of the south of our continent, and the effect that the euro scheme is having on people’s prosperity and life prospects. I find it extraordinary that an Opposition who are—sometimes rightly—full of passion on behalf of anyone in Britain who does not have enough income, cannot bring themselves to say a single word for the tens of millions of people on our continent who are being very badly affected by this dreadful scheme. They should think about all those young people who are out of work. How would they like to represent constituencies in which young people knew that they had only a one in two chance of getting a job?

[John Redwood]

She did indeed, but she was not my heroine. I have great admiration for the late former Prime Minister, and I gave her a great deal of advice. Part of my advice was that she should not surrender those powers under the Single European Act, for the very reason that the right hon. Gentleman has correctly identified. Unfortunately, although she accepted a lot of my advice, she did not accept my advice on two very important matters: majority voting in the European Union, and the poll tax or community charge. However, I do not think we have time to explore the question of what would have been better outcomes in the case of those two issues.

I just hope that our Ministers, if they insist on whitewashing this through, as no doubt they will—no doubt they will have the votes to do so—will also ensure that this body does something useful for a change. As my hon. Friend the Member for Daventry (Chris Heaton-Harris) has already demonstrated, it is obvious that although they can range very widely, and can lobby and discuss a number of fundamental issues that matter to people throughout the European Union but especially in the euro area, they have been unsuccessful to date. Clearly this “social committee” has not been a voice against austerity policies in Greece, Portugal or Spain that has had any resonance. Clearly it has not been a voice for more employment. Clearly it has not been a voice for dealing with the problem that a great many southern countries are locked in a currency union with Germany at the wrong exchange rate, which has put them into poverty and unemployment.

[Mr MacNeil]

The right hon. Gentleman is making a fantastic speech as a Greek nationalist against the evils of a Union Parliament that is holding all the powers to itself, and, indeed, against anti-austerity. I do not want to castigate or to pigeonhole him, but we are seeing great progress in the debate. If the European Union is achieving one thing, perhaps it is achieving that.

[John Redwood]

If the hon. Gentleman was interested in my views and had read any of them, he would know that I have consistently over the years wanted more work, better paid work, people to own shares, and people to own homes. I believe in prosperity, not austerity, as I regularly try to remind him. I want that for our continent, but we are not going to get it for our continent under the system we have today—I am beginning to stray a little wide of the detail of this Bill.

In summary, I urge our Ministers to make sure of two things: first, that there genuinely is no extra cost to British taxpayers because so far this body has achieved nothing and is part of the problem, not of the answer; secondly, that, if they can, they start putting on the agenda of Europe the scandal of unemployment, the scourge of austerity, and the dreadful mess the euro is making of the economies to the south, because they are our friends and potential market, but I do not want them to be our country.

Scotland Bill

Debate between John Redwood and Angus Brendan MacNeil

Tuesday 30th June 2015 Commons Chamber

[Mr MacNeil]

I am sure the right hon. Gentleman is not suggesting that there is an in-line benefits system across Europe. The real problem is austerity. The Greeks were told five years ago that, if they followed austerity measures, their problems would end, but their problems have not ended. They have become worse, because austerity makes things worse. It is nothing to do with welfare; it is to do with austerity.

[John Redwood]

I think that welfare has quite a lot to do with austerity, and I think that we agree. I think that the policies that have been forced on Greece have been too austere. It is quite wrong to make the Greeks cut public spending when they cannot expand their money supply, expand credit or expand the private sector to create the jobs that they clearly need to create in order to make some success out of the cuts imposed on the public sector.

When, after 2010, we conducted policy as a coalition to bring about recovery in Britain—including Scotland—it worked very well, and it was private sector led. We were able to do that because we had a full range of powers over interest rates, money creation, credit and banking, which a nation that has joined a currency union does not have. That is the Greek tragedy. The Greeks are able to carry out only the public sector part of the EU fix, which is the bit that is austere. They are not able to carry out the private sector-led recovery.

Of course, we are not here to talk about Greece; we are here to talk about our currency union. However, I wanted to make that point because, whereas Greece is having to move away from a position in which it shared only currency and is now discovering that it needs to share a great many other policies with the European Union in order to achieve success, in Scotland things are going in the opposite direction.

We have a currency union—a perfectly good currency union, which is supported on all sides. I believe that Members of the SNP are great fans of the currency union and do not wish Scotland to have an independent currency, but they need to consider this: if they do not want proper independence in the sense of having their own currency, and if the currency is to work in the way in which it has worked in the past, there will have to be some basic standards of welfare that are common across the country, and there will have to be agreed systems of transferring money from rich areas to poor ones. There are rich towns and cities in both Scotland and in England. The rule of our system is that those in areas of high income or relative success pay more tax, and those in, say, towns or counties with a lot of poverty benefit from big transfers.

[Mr MacNeil]

I almost feel sorry for interrupting the right hon. Gentleman when he is advancing a good argument for the redistribution of wealth through taxation, and has also admitted that austerity is not a good idea. However, I think that the mention of Greece is erroneous. If we are talking about an optimal currency zone, a better parallel would be Germany and the Netherlands. The independence that those countries have from each other is welcomed by SNP Members. I hope that the right hon. Gentleman will go a little further than the enlightened remarks that he has made so far, and will agree with us that Scotland and England should be as independent from each other as Germany and the Netherlands.

[John Redwood]

I am not prepared to go that far. I think that there can be problems in the euro currency zone between Germany and the Netherlands, because they do not have the full range of common policies that they may need. At present, it appears that the Dutch and German economies are sufficiently synchronised for the arrangement not to cause problems in the Netherlands, but that is clearly not true of Portugal, Spain, Ireland or Greece. The fact that there are more countries that it does not fit than countries that it does fit implies that there is something wrong with the fundamental architecture of the euro. That is why I am anxious for us to bear it in mind, when we are debating the issue of how much welfare discretion there should be, that a common welfare system is normally one of the characteristics of successful currency unions.

Yes, I do believe in redistribution. We all believe in redistribution. We believe that, in a civilised country such as ours, we should tax the rich more and give money to those who need support. We have arguments about how much the amounts should be and about the conditions, but we all believe in transfers, and we all believe that the balance must be right.

When I asked the hon. Member for Banff and Buchan to say how much more an enlightened Scottish Government would like to give, by means of welfare payments, to tackle immediate problems of low income or poverty, she was not able to tell me. That was a pity, because I took it that her intention, and the purpose of the amendments, was to give the Scottish Executive power to increase benefit levels in comparison with the levels, or the range, of benefits currently on offer in the Union. I did not think that SNP Members were seeking these powers in order to be meaner than the Union Government are proposing to be, and I see them consenting to that. I feel that this debate would be richer and fuller if they shared with us the amount of extra money that they would like to spend.

[John Redwood]

That brings us back to an important and interesting question. At what point does the transfer of power become destabilising for the currency union and the common transfers that make up our common country? That, surely, is one of the issues that were examined in the referendum, when a majority of Scottish people felt that they wanted to remain in the United Kingdom and in the currency union. Having read and listened to what was said by those who were actively involved in the debate, I suspect that the currency union was rather central to the securing of that vote, and that it was when the parties of the Union said that Scotland should leave the currency as well as the UK, if that was the wish of the Scottish people, that the majority voted to stay in the Union.

[Mr MacNeil]

I should be fascinated to know the size of the changes in welfare spending that the right hon. Gentleman would find destabilising. The hon. Member for Gainsborough (Sir Edward Leigh) said yesterday:

“the Scottish Parliament spends £37 billion and raises £30 billion”.—[Official Report, 29 June 2015; Vol. 597, c. 1234.]

He described that as “quite responsible”. He also said that the UK raised staggeringly more—£648 billion, an amount that is about 20 times greater—but, of course, the UK also spent a great deal more, with a black hole of £732 billion. Given those figures, and given the difference between the sizes of the states of Scotland and the UK, in terms of both spending and raising powers, just what type of changes does the right hon. Gentleman think would have to hit welfare before it began to destabilise the Union? I suggest that it would be necessary to make a millionaire of each and every unemployed person before that point was reached.

[John Redwood]

I do not think that it would be necessary to go that far. At present, there is clearly a disproportion between the size of Scotland and that of the rest of the United Kingdom, and, as the hon. Gentleman’s budget figures show, a lot more money is collected elsewhere than in Scotland. That, however, is not the point at issue. [Interruption.] I am not asserting anything; I am just asking a question. We are engaging in a crucial debate on how much welfare power should go to Scotland. I am one of those who agree that some welfare power should go to Scotland in accordance with Smith, but we have to ask how far it goes, and what the consequences might be.

If countries have a common work area and a free movement area, and if they share a language, a labour market and a currency, that arrangement can bring benefits when it has settled down, because it is backed by political union. When we start to unpick the political union, we must ask ourselves at what point that unpicking of that union, or the welfare transfer union, will become damaging. A point will be reached when it does become damaging, because one part of the country will be too attractive, or too unattractive, compared with another part. A single currency area as big as the United Kingdom can work only if there are fair systems for raising money from the rich, wherever they may be in that big area, and giving enough to the poor, wherever they may be.

[John Redwood]

I fully understand the arguments against the spare room subsidy, or the bedroom tax. I understand the politics of it only too well. I do not want to go into my private views now, but it is a matter to be settled within the Union Parliament, and by the Government of the Union, under current powers. It does not make good law to say that if there is a particular benefit that people in Scotland do not like very much, that is the one that we should be able to fix. We need to come up with a settlement for a longer-term period which takes account of the principles.

It is for that reason that I am presuming to spend just a few minutes reminding colleagues that very big principles are involved in this instance. We need to secure the right balance, one that enables Scotland to feel that it can make enough of its own decisions to meet the mood of the majority, but falls short of giving it so much power that the Union’s mechanisms for switching money around do not work. I find it very difficult to make decisions on this Bill without knowing what the financial settlement will be, because it will not work unless there is enough money to make it work, or if England does not think that it is fair to them. Scotland may well find that the financial settlement is not fair to them—I am sure our SNP colleagues will not be shy if that is the case—but England has delivered big majorities for me and many of my colleagues, so we have a mandate and a voice and we need to make sure that the financial settlement that emerges is fair to us. The range of powers that Scotland has will have a bearing on that settlement.

[Mr MacNeil]

I thank the right hon. Gentleman for giving way; he is being very kind. On welfare, we already share a common language with a country in the common travel area, namely the Republic of Ireland, where people can get up to €188 per week, with extra payable for those who have children. I am not saying that people are going from Liverpool or the north-east of England to a far more advantageous situation in the Republic of Ireland in the common travel area—which they could do—so I think that the right hon. Gentleman’s fears are misplaced. I would almost suggest that his fears are politically motivated and based on wanting to keep powers in Westminster and a deep psychological need for Westminster to over-control aspects of people’s lives around the current UK.

[John Redwood]

I am afraid that that is a bad example, because it proves my case. Ireland broke from the pound, set up its own currency and then, unfortunately for Ireland, chose the euro, but that was Ireland’s decision and it has had a bumpy ride ever since.

The big difference we need to remind ourselves about for the purposes of this welfare debate is that there is a common currency, so there have to be some limits to the amount of freedom appropriate for welfare benefits. If the SNP wishes to be truly independent and wants an independent currency, I fully understand its position and none of these arguments makes any sense.

I think I have made my point and I hope that Ministers will bear it in mind that it is very difficult to come to a conclusion before we know what the financial settlement will be. It is also very important to remember that there is a common work, language and currency area, which means that there has to be some family resemblance in the benefits that are paid.

European Union Referendum Bill

Debate between John Redwood and Angus Brendan MacNeil

Tuesday 16th June 2015 Commons Chamber

[Mr MacNeil]

I must remind the right hon. Gentleman of what happened in the Scottish referendum. The only difference was the way that it was funded. In the United Kingdom, funds are collected centrally and go to London. If the European Union had the same model, they would be collected centrally and go to Brussels and then given out again. The point is that it is taxpayers’ money. In Scotland, we saw our taxpayers’ money come back to the UK Government and used against one side of the referendum campaign.

[John Redwood]

I quite understand, but I am suggesting something different. I am suggesting that to have a completely fair and independent referendum, there should be much stricter controls over the expenditure of Government money.

[Mr MacNeil]

I am very grateful to the right hon. Gentleman for his revelatory tone and words. He said that he wants a stricter and fairer system, so his commentary on the Scottish referendum is instructive and very welcome.

[John Redwood]

The result in Scotland was pretty conclusive, so the expenditure of Government money was not the crucial thing that made the difference to the result. The result speaks for itself. But we can always learn from past experiences. For my choice, I do not favour the expenditure of public money on interfering in elections and referendums. I am known to be careful with public money anyway, and I would not want the money to be spent on this area. It is for individuals to decide what they wish to do by way of political intervention, and they can make their own decisions. If we let them have more of their own money to spend, they may wish to spend it on interventions in elections. That is how I would rather it was done. In this case, it would be particularly counterproductive for the European Union to spend some of our money, which we send to them, on intervening on one side. It would cause enormous resentments. Indeed, the no campaign might even welcome it as it would be a cause in itself which it would make use of if this became a clear use or abuse of public money.

Scotland Bill

Debate between John Redwood and Angus Brendan MacNeil

Monday 15th June 2015 Commons Chamber

[John Redwood]

If SNP Members will allow me a little time, I will say things that they will like. I am not trying to make life difficult for them.

This is my analysis. In the referendum the SNP went for something more akin to home rule than what I would regard as full independence, but at that stage the Scottish people said no even to that. They seemed to say yes to the rather larger devolution of powers that the three main Unionist parties were then offering. However, we are now experiencing new circumstances.

Like my hon. Friend the Member for Gainsborough (Sir Edward Leigh), who has tabled a very interesting amendment, I think that this Parliament must listen to the new voice of the Scottish people. It is clear that there has been a shift of opinion towards more home rule than the Unionist parties were offering at the time of the referendum. That is why we are here today, listening very carefully to what the SNP has to say, and that is why I think it extremely important for us to have this debate on full fiscal independence, or fiscal autonomy. It would be one way for our Parliament to respond when the Scottish people have said, “We do not want to be completely independent as a separate country, but we want much more self-government—or home rule—than was envisaged by the Unionist parties at the time of the referendum, because we can see that that was not very popular.”

The Unionist parties collectively did rather badly in Scotland come the general election. [Interruption.] Well, between them, they received just under half the vote, while the Scottish nationalist party received just over half the vote. Because the Unionist vote was split, practically no Unionist Members of Parliament were elected, but it is still the case that Scottish opinion is fairly evenly balanced. The Scottish nationalists did not get 70% or 80% of the vote. If they had done, then, as far as I am concerned, they would really be in a position to tell us the answer, but, as judged by the vote, they speak for only about half the Scottish people. However, as representatives, they speak for practically all the Scottish people because they have most of the Members in this place.

I am listening very carefully and will want to hear more about what SNP Members want, but I am also very conscious that, in parallel with this exercise on powers as set out in this Bill, in some way far more important negotiations are already under way on what the new financial settlement will be, and those are not yet being reported to this House. That is crucial not just to the SNP and its representation of the Scottish people, but to the people of England. I find the more home rule that is on offer and the more we hear the Scottish voice, the more I have to be an advocate not of the Union, but of England, because someone needs to speak for England and to say that the consequences of much enhanced Scottish devolution, and some fiscal devolution as well, are serious for England. England needs to be in the discussion just as Scotland does, as this is our joint country and a major change in its arrangements will have a fundamental impact on England.

While I am very attracted to the idea of my hon. Friend the Member for Gainsborough that it would be a shrewd move to, for once, get ahead of the Scottish appetite for home rule and on this occasion to grant full fiscal devolution, we need to ask how feasible that is and what the consequences will be for Scotland and England. If Scotland wishes to be part of common welfare and pension guarantees, some limitation is already imposed on the spending side of full fiscal devolution. We have to think about the position of England if cross-guarantees are being offered for some part of that welfare package. If we are going to proceed in the way the Government currently plan and the way the negotiations are currently being undertaken—as I understand it, there is an attempt to find a way of adjusting the block grant for Scotland to take into account the new Scottish responsibilities, as some items of spending will have to be added in as a result of the devolution of new functions, and there will be a reduction in the block grant to take account of those taxes that are now Scotland’s to fix and collect—therein lies an immediate problem.

[Mr MacNeil]

Would not an easier solution be for Scotland to collect its own tax, as Catalonia does, and then pay into the centre, rather than the centre paying out? The taxes should be raised by the Government of the territory paying the taxes and paid into the centre rather than giving them to the centre for it to then pay out. In that way, the centre will have to stop saying it is subsidising people when it returns their own taxes.

[John Redwood]

But if Scotland wisely decides to have lower tax rates to make itself more popular, the Union will be losing out if those lower tax rates collect less money.

[Mr MacNeil]

The right hon. Gentleman should realise that it is not lower taxes that have made the SNP more popular; it is better public services in Scotland—that has given us 50% of the vote versus his party’s 37%.

--- Later in debate ---

[John Redwood]

No, I do not think that we need a constitutional convention, because that would create endless delay and complications. I agree with previous comments that we are here to try to solve this problem for our respective constituents. I spent quite a lot of my time during the election speaking for England and saying that I wanted to ensure that England got a reasonable deal out of this. SNP representatives clearly did the same in relation to Scotland, and we both achieved similar levels of success in attracting lots of votes for what we were saying.

[Mr MacNeil]

The right hon. Gentleman talks about getting good deals for the various parts of the UK, but let us look at the wider British Isles. Does he think that the aggregate GDP of the British Isles would be as high as it is today without the full fiscal autonomy that the Republic of Ireland, the Isle of Man and the United Kingdom all enjoy? If the aggregate GDP of the British Isles is higher for those reasons, does he not agree that it will be higher still when Scotland achieves its full fiscal autonomy?

[John Redwood]

I start from the point of view of democracy. A democratic state has to have the full range of powers, including fiscal autonomy and its own currency. That is different from asking: what is your state? I would still rather have the United Kingdom as my state, but I have just explained that if it is the will of the Scottish people that the UK is no longer their preferred state, they must leave—of course they must.

[Mr MacNeil]

The right hon. Gentleman is being very kind in enabling our dialogue to continue. I am sure he would acknowledge that the UK functioned between 1603 and 1707, when the Parliaments were independent.

[John Redwood]

Well, it functioned after a fashion, but I would not have wanted to live through that time. The nations were clearly not nearly as rich as they are today. Labour Members sometimes try to pretend that we have gone back to an ancient age, but I am sure that none of them would willingly go back in time and live in that era, because we are obviously so much better off now.

Budget Resolutions and Economic Situation

Debate between John Redwood and Angus Brendan MacNeil

Wednesday 18th March 2015 Commons Chamber

[Mr MacNeil]

The right hon. Gentleman is giving an impression of a growing state, when what is happening in real terms is clear from page 112 of the Red Book—that, as a percentage of GDP, this Chancellor and his party are cutting the state by 13%, which will affect the poorest in society most. That is the legacy of a Tory Government.

[Mr Redwood]

I am giving the cash numbers, which are clearly set out on page 111. If the hon. Gentleman is patient, I will come on to deal with the argument about real terms and the percentage of the economy.

Let us start with cash. The £60 billion increase in the annual spend at the end of the period is a big increase, and if we can keep inflation of costs down, it could provide a real increase. We had these arguments at the beginning of the last Parliament. When I quoted the cash figures, people said it would amount to a real decline, yet we have had a real increase, with the last two years seeing real increases in total general public spending, as I indicated in a recent intervention and as this Red Book makes very clear. If the hon. Member for Na h-Eileanan an Iar (Mr MacNeil) reads it he will see the real increases in general Government current spending over the last couple of years. Those have been affordable and the lower rate of inflation is helping.

If we look at public spending as a percentage of GDP, we see that, yes, it will fall, but that is extremely good news, because it means people will be able to keep more of the money they earn from their productive activities and as the economy is growing we can have better public services.

One of the cruellest myths being put around by the Opposition at the moment is that if we took public spending to 35% of GDP, we would be cutting it to 1930s levels. That is complete nonsense: for most of the 1930s, public spending as a percentage of GDP was well below 35% in any case, but I recently looked at the numbers and found that, in real terms, public spending this year is nine times the level of real public spending in the early 1930s—nine times in real terms.

[Mr Redwood]

To make the point, the Chancellor has said that he will spend a little bit more in the last year of the period so that we reach exactly the percentage of GDP that Labour thought appropriate in 2000. We cannot say that because we are spending the same percentage of GDP we have cut spending or that it is down in real terms. If we have a healthy, growing economy, public spending is well up in real terms, as is the general size of the economy. We should welcome that. What we want is growth in the economy, so that we can have affordable growth in the range and quality of public services. That is exactly what this illustrates. I hope that Labour Members will stop trying to con people into believing that if we ended up with 35% of GDP—1% lower than the Chancellor intends—we would somehow have 1930s levels of public services. It is so absurd that I cannot believe that they even dare to repeat such nonsense day by day.

What we want from this Budget, and what I think it helps to deliver, is more growth. It is great news that we now have such good employment figures, which show record highs. It is good news that unemployment is reducing and good news that youth unemployment in particular is reducing.

What has happened over these five years is quite remarkable if we consider two important background points. The first is the state of the banks inherited in 2010. This House has never really understood or grappled with the magnitude of what happened to the banking system under Labour, or the magnitude of the changes between 2008 and today, particularly with respect to RBS and HBOS. If we had asked most economic forecasters what would happen to the UK economy if we took about £1 trillion of assets off the balance sheets of two leading banks, they would probably have forecast that the economy would crash in a remarkable way. What is fantastic for our country is that after the initial crash over which Labour presided in 2008-09, we have managed to get the economy back to growth while mending the banks and going through the extraordinary shrinking on the banking balance sheets. [Interruption.]

I find it remarkable that Labour Members will not listen to what I am saying. They lived through this dreadful experience and their regulators allowed the banks to over-expand their balance sheets, when many of us were saying that it was going too far. [Interruption.] Indeed, we did. We constantly said that regulation was too lax. I remember writing in the report of the economic policy review undertaken by the Conservative Opposition that, while in some areas there was far too much regulation, the regulation of the things that really mattered—cash and capital—was far too lax, and needed to be tightened. However, the Labour Government and their regulators then made the worse mistake of over-tightening in a hurry, and precipitated a major crash. Labour needs to learn from that. Indeed, we all need to learn from it, because we do not want it to happen again. We need to understand why there was such a big crash in output and in people’s living standards and real incomes, and why it took time, between 2008 and 2013, for growth to resume. The reason was that the banking system was so badly damaged that, obviously, it took time to get it back into shape.

As the Chancellor said himself, there was another reason for our problems. In 2011 there was an extremely unpleasant euro crisis, which had an impact on Britain because we live by foreign trade as well as by our domestic activities. We had to shelter ourselves from the worst of that. We are now in the process of orientating our trade much more strongly towards Asia and the Americas, the growing parts of the world, and away from the European area, which is mired in recession and is still experiencing enormous difficulties. It decided to create a single currency without creating a single country to back it and love it, and is having to live with awful strains and stresses as a result.

As we meet today, this Budget is an important event. It is certainly a very important event politically in the United Kingdom. However, a far more important set of events is taking place on the continent, where hectic negotiations are taking place between Greece, Germany and the rest over whether Greece can stay in the euro. It is not easy to see a happy outcome in either direction from those very pained discussions, but are we not glad that we are not having to live with that awful experience in this country, thanks to some of us who urged very strongly that we should stay out of the euro? [Interruption.]

The hon. Member for Bishop Auckland (Helen Goodman) thinks it is funny that Greece has a youth unemployment rate of 50%, but I do not. I think it is a disgrace. I also do not think it is funny that several countries on the continent have a general unemployment rate of 25%. That is quite unacceptable, and the Labour party would rightly condemn it every day of the week if it were happening here, but it is not happening here because we ran our own economic policy, and we have done a much better job that they did on the continent.

[Mr MacNeil]

Does the right hon. Gentleman accept that most of the problems of the European Central Bank are to do with a fixation on inflation—a fixation that he shares?

[Mr Redwood]

I have no fixation on inflation, but neither do I think that runaway inflation creates prosperity. It is necessary to manage inflation, and to manage growth, and to have an economy that can expand. I am very pleased that this Budget helps to create and preserve the expansion that is now under way in the United Kingdom. I think it is good news that it contains measures to promote more home ownership and saving, and I think it is good news that it contains measures that will help enterprise and business to promote more jobs, because what we want are more jobs and better-paid jobs.

I was pleased to hear the Chancellor say that most jobs now are full time, and that many are highly skilled. That is what the country needs: more skills, more opportunity, and the chance for individuals to train, work and educate themselves well so that they can get better-paid jobs. That is what we all want in the House. It is sometimes suggested that the Conservatives do not want it, and I find that regrettable. We want it as much as anyone else. We want more jobs, better-paid jobs, and more skilled jobs. We know that we have to earn our money, and we want to create opportunities for people to earn theirs.

The Budget contains some sensible judgments on how much the country can afford in increased public spending. I think that £60 billion is a perfectly good judgment of the amount of extra public spending that will be possible by the end of the next Parliament. It also contains a judgment on how we can finally get rid of the deficit and start to cut the debt. I find it a bit odd that Labour has been telling us that too much was cut in this Parliament, and is now saying that the deficit is too high. I have news for Labour. You have to cut if you want to lower a deficit; it does not just magic away. The question is, how do you get that judgment right?

Debate on the Address

Debate between John Redwood and Angus Brendan MacNeil

Wednesday 4th June 2014 Commons Chamber

[Mr Redwood]

That is quite right. The point has been made before. Lower taxes on enterprise and effort are generally a good thing. We want people to keep more of the money they make or earn when they set up businesses or get good or better jobs, and we also want to make sure that the Government do not deter employers from creating more jobs by over-taxing work.

I am pleased that the Gracious Speech refers to the need for more and better roads. In the past 15 years, our road building has fallen well behind what needs to be done to support the economic recovery and to promote industry, commerce and more jobs around the country. I look forward to seeing the detailed proposals.

What I primarily wish to do this afternoon is to speak for England. [Interruption.] I am glad that at least two hon. Members agree with that proposition. We speak too little for England in this House of Commons; yet a majority of us are English Members of Parliament.

[Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

I heartily encourage this movement from the right hon. Gentleman. Let us hope he can do more and more of it post-March 2016, when Scotland becomes independent.

[Mr Redwood]

I will have to disappoint the hon. Gentleman. The Gracious Speech of course invites us to talk about this matter by referring to the possibility of more extensive devolution of powers to Scotland—in the likely event that Scotland votes to stay in the Union, which many of us want to see—and of the extension of powers to Wales. However, the Gracious Speech makes no mention of extending devolved powers to England, and we cannot carry on with lop-sided devolution without considering the business of England.

As many hon. Members will know, I believe in being economical when it comes to public expenditure on the business of politics and government. I do not want a new expensive building and a whole lot of new English MPs down the road, in the way that Scotland has for its Scottish Parliament. This sacred plot has been the site of the English Parliament for many centuries. This Union building is now for the Union Parliament—built for an empire and a great Union—but it could again be the site of the English Parliament under the United Kingdom Parliament. Like me, I am sure that many colleagues who understand the need for value for money for taxpayers would be happy to do both jobs. We would be prepared to come here under your skilful guidance, Mr Speaker, to talk with our Scottish, Welsh and Northern Irish colleagues on all the matters of the Union, and to come here on other occasions to deal with the business of England without their help, guidance and certainly their votes. I think that there would be justice in that.

--- Later in debate ---

[Mr Redwood]

I am grateful to the Prime Minister for his courtesy. He has been courteous to stay as long as he has given that he has such pressing engagements. He illustrates the point that I wish to move on to, which is how much Brussels dominates our proceedings and our government, but I will first complete my Scottish point.

The most likely need that we will face after the Scottish referendum is the need to look at the question of lop-sided devolution. I would be happy to extend more powers to the devolved Scottish Parliament, but I want to be a voice for England and I do not think that we can carry on doing that without England having a settlement as well.

In the less likely event that the Scottish nationalists get their wish and there is a vote for independence, I will be one of the first to congratulate the Scots and help them in any way towards a smooth transition. However, I will want them to be genuinely independent. I will not want us to pretend that there is some kind of special relationship that is rather like a federal system. If people wish to be independent, they should be independent.

In that event, I propose that the House of Commons should immediately pass legislation saying two important things. The first is that the 2015 general election will not apply in Scotland and the current Members of the Westminster Parliament from Scotland should continue for as long as it takes to complete the process of separating the countries. There would be no point in having the expense and nonsense of a general election in a country that was leaving the Union. The second thing, which the hon. Member for Na h-Eileanan an Iar (Mr MacNeil) might like less, is that the Scottish MPs should play no part in any discussions about non-Scottish business in this place and no part in forming the response of the rest of the United Kingdom to their wish to be independent.

[Mr MacNeil]

I am grateful to the right hon. Gentleman for allowing me to intervene again. I agree with him wholeheartedly on that point. In the SNP we have a self-denying ordinance of not taking part on English issues and non-Scottish issues because we believe, and I am sure the right hon. Gentleman is demonstrating this, that England is as good as France and Germany and can run itself amply, without any help at all from the Scots.

[Mr Redwood]

Very good. I shall now move on and speak for the United Kingdom. The hon. Gentleman might find that we are back here together still arguing about these matters after the referendum, but I hope he will accept the verdict of that referendum, as I will do, because we cannot go on arguing about this.

[Mr Redwood]

Indeed. I am a Member of Parliament of the United Kingdom Parliament, and proud to be so. I would like my country to stay together, but I do not want people in it who are not keen to be in it. If a democratic process is gone through and we discover that a part of the United Kingdom wishes to leave, as democrats, we must realise that that is the answer. We cannot keep on pulling up the plant to see where the roots are. I hope the referendum will be a one-off and that it will settle the issue for a considerable time.

[Mr MacNeil]

indicated assent.

[Mr Redwood]

I am glad to see the Scottish nationalists agreeing.

I come on to talk about the United Kingdom and its relationship with the European Union. We have today again witnessed a very important ceremony in this House. That ceremony is designed to remind us all of the battles and struggles of our forebears to ensure that this House of Commons had the power to limit the Crown—had the power to make the authority of government in this country accountable to this House of Commons—and a very moving and important ceremony it is. But we have a new struggle on our hands, equally important though not one, fortunately, for which we will need muskets and musket balls. We will need words, actions and independent thinking.

Our struggle is that this once great and sovereign House of Commons now is not sovereign or great in so many fields because the European Union has powers to instruct, overrule and command. There is a particular case that I would like the Government to consider in this next year in the legislative programme. The case is that of the human rights convention and the list of human rights therein. It was a Labour Government, when signing us up to the treaty of Lisbon, who expressly said in their motion on the treaty and in the Act of Parliament that they put through on the back of it that we were not going to consolidate all of the convention on human rights—that this House and this country would make up its own mind on human rights. That was reflected in the legislation that we passed—an act of sovereign legislative activity to say that we did not want it all dictated from the European Union.

What has now happened under a European Court judgment is that the European convention on human rights is being absorbed into the corpus of European law and will become an instruction on this House, against the wishes of Labour and against the wishes of the rest of us in the House at the time. I think the House should now move an amendment to the European Communities Act 1972 expressly ruling out that grab of power by the European Court of Justice on this issue, reflecting the words of the treaty we signed and reflecting the words of the legislation that this House passed. Unless this House is prepared to do this at some point on some important issue, this House is in no sense sovereign any more. We can claim to be sovereign only because all the powers of the European Union today are technically the result of our passage of the 1972 Act, but if we are never going to amend or revisit that Act, those powers have gone and we are completely under treaty and ECJ law.

Another area that we may need to look at is the promise by Governments of all persuasions that matters relating to taxation and social security would remain national issues, because they involve the money of our taxpayers and the money going to people in our country who most need help. Surely this Parliament should control our taxation, and our expenditure of substantial sums of it on benefits.