Business of the House

Lord Beith Excerpts

Wednesday 14th December 2011 Commons Chamber

[Mr Heath]

For the convenience of the House, it may be helpful if I say that it is not my intention later to move motion 7. There are two reasons for that: first, there is a deficiency in the printed version of the motion on the Order Paper; also, not moving it will allow further discussions with the Chair of the Liaison Committee and others on the consequences of the changes that we are proposing.

[Sir Alan Beith (Berwick-upon-Tweed) (LD)]

I welcome my hon. Friend’s willingness to use this unexpected interlude to ensure that, at the end of the day, Select Committees can be confident that they will have the opportunity to debate and report on the abolition of public bodies before such matters come to the Floor of the House or a Delegated Legislation Committee.

[Mr Heath]

I am grateful to my right hon. Friend, with whom I have been in correspondence on these matters. I am keen to ensure that we have a system that fits the needs of the House in dealing with such important issues.

The first motion and the other four motions that we are debating with it arise from three considerations. First, they arise from the need to adapt the House’s procedures to spring-to-spring Sessions. Secondly, they arise from the alignment project, which was initiated by the last Administration and has been taken forward by this Government. Thirdly, it is proposed to take this opportunity to undertake some minor tidying-up of the relevant Standing Orders. Some of the changes before the House are quite technical, not to say rather long. The House will be pleased to know that I do not intend to go through them individually; rather, I shall explain their purposes. The provisions are explained in detail in an explanatory memorandum that has been placed in the Vote Office.

On 13 September last year, my right hon. Friend the Leader of the House announced the Government’s intention to move the usual date of Prorogation and state opening from November to the spring, to create a fixed-term Parliament of five equal, 12-month Sessions. That decision has some consequences for financial business. The first motion before us today would adapt the House’s existing procedures for carry-over to enable the Finance Bill to be carried over from one Session to the next. The House has already passed legislation, in last year’s Finance Bill, to ensure that resolutions under the Provisional Collection of Taxes Act 1968 have continued legal effect from one Session to the next. The motion makes matching provision in the House’s procedures. My right hon. Friend consulted the Procedure Committee on the proposal in February. The Chair replied on 9 March indicating that the Committee was content with the proposal.

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[Mr Greg Knight (East Yorkshire) (Con)]

The hon. Member for Nottingham East (Chris Leslie) referred to what he described as a “queue” of Members waiting to speak, and went on to express his concerns about the proposals. I think he is seeing shadows on the wall in both respects. It seems to me that if the Government were to abuse the process that they are asking us to approve—having put the matter to the Procedure Committee on the basis on which they have put it to the House today—Members in all parts of the House would seek to hold them to account. The Government have made clear that these are changes of process to accommodate occasions on which the House does not prorogue at the normal time, and I therefore think that the hon. Gentleman’s concerns are misplaced.

The Leader of the House initially wrote to the Procedure Committee on 8 February this year asking whether the Committee was content for the Government to develop proposals to set aside the principle of sessionality in respect of supply procedure, and to provide for the carry-over of Finance Bills from one session to the next. The Committee subsequently engaged in a detailed discussion about a number of issues relating to the proposed procedure, following which we decided that we were content with it and with the Government’s reasons for proposing it..

If the House prorogues in April or May, as the Government propose, proceedings on supply will be interrupted. At present the supply cycle begins with the provisional authorisation of expenditure in November, with legislative authorisation being given in the summer. The Votes on Account are presented in November, and the House is asked to approve 45% of Government spending to cover the period between the beginning of the next financial year in April and the passing of the Appropriation Act in the summer. The principle of sessionality meant that expenditure approved in the Votes on Account had to be appropriated before prorogation.

The problem could, of course, be overcome by means of an Appropriation Act passed in the spring, as happens before a general election, but that was not considered to be an ideal solution. It would mean that the main estimate each year would contain details of only 55% of Government expenditure, the remaining 45% having already been appropriated after the Votes on Account. A further disadvantage of that approach would be that the Votes on Account contain less detail than the main estimates, and 45% of the total of public expenditure would therefore be appropriated on the basis of less detailed spending plans. It might be considered unfortunate if, at the same time as the beginning of the alignment project, a separate change meant that the main estimate only ever included 55% of the expenditure for which parliamentary approval was needed. The Government instead propose that the resolutions on which the Appropriation Act is founded should not fall at the end of a Session but should be time-limited. The Procedure Committee, on a cross-party basis, thought this was quite a reasonable way to proceed.

With a Budget in March or April, the Finance Bill, brought in on resolutions following the Budget, will not have completed its passage before the House prorogues in April or May and will have to be carried over to the new Session. It is also necessary for the Provisional Collection of Taxes Act 1968 to be amended, because under it, the Budget resolutions cease to have effect when the House prorogues.

The Finance Bill could be introduced in the new Session rather than being carried over, but would therefore not be published until May. Although a draft Finance Bill could be published following the Budget, with the Finance Bill itself being introduced in the new Session, the Government of the day would not thereby have the flexibility to introduce some proceedings on the Bill, such as Second Reading, before the House prorogued. The Procedure Committee therefore concluded that the Government’s proposals for the carry-over of the Finance Bill would not affect the opportunities available to Members to scrutinise the Bill and vote on its provisions, and there would be no impact on the length of the Committee stage, for example.

Given that the Government wish to make the Budget statement in March, it seemed to us—again, there was cross-party agreement—that the carry-over of the Finance Bill is probably the simplest solution to the problem of the House proroguing in the spring, and one that does not interfere with Members’ ability to scrutinise the Bill.

We therefore concluded that these proposals were modest and reasonable, and I hope the House will reach the same conclusion.

[Sir Alan Beith]

rose—

[Thomas Docherty (Dunfermline and West Fife) (Lab)]

rose—

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[Sir Alan Beith (Berwick-upon-Tweed) (LD)]

I am slightly surprised at the sudden growth of opposition to this motion among Labour Members. I wonder whether there is any other aspect of today’s timetabling, or other matters, that may have entered into consideration, but I could be wrong about that.

I want to welcome the action the Government are taking, but before doing so let me say that the hon. Member for Nottingham East (Chris Leslie) made what is in principle an important point: sessional discipline is significant in the way in which the House operates. It brings pressure to bear in circumstances where, otherwise, Government majorities tend to prevail; it causes them to stop and think as a degree of blockage occurs in the Lords at that stage of a Session.

We are talking about Bills—Finance Bills—founded on a Ways and Means resolution for a limited, specific and entirely explainable purpose related to the whole financial timetable of both the House and the Government. I was bemused by the idea of what state a Government trying to carry over a Finance Bill through three Sessions could possibly be in, other than the one envisaged by some Opposition Members in dealing with our current financial circumstances. This is not the debate to go into that, however.

I will deal first with the increase from three to five in the number of estimates days for this Session, which is a long Session. That is welcome, but I must put on the record the Liaison Committee’s request that there be five estimates days in normal Sessions, and our desire that that request be properly considered when we resume Sessions of the normal duration. There has been some Government resistance to that request—wait until we have at least seen more of the impact of the Backbench Business Committee. We have already seen the beneficial impact of that Committee, though, and I see no conflict there at all. Indeed, the Liaison Committee and the Backbench Business Committee are developing good ways of working together to ensure we maximise use of House time as Members want it to be used.

[Mr James Gray (North Wiltshire) (Con)]

Will the right hon. Gentleman give way?

[Mr Robert Syms (Poole) (Con)]

Will the right hon. Gentleman give way?

[Sir Alan Beith]

I have a choice. I will give way first to the hon. Member for North Wiltshire (Mr Gray), then to his hon. Friend.

[Mr Gray]

Does the right hon. Gentleman not agree that the number of estimates days will properly be a question for the House business committee, when it is established, and will he not press the Government to hasten the progress of their plan to do precisely that?

[Sir Alan Beith]

I am an avid and long-standing supporter of the principle of a House business committee. I think you would rule me out of order, Mr Deputy Speaker, were I to stray too far into that subject, but let me say that that is indeed a matter that could be so resolved were that committee in existence. For the moment, however, we must look to the Leader of the House to do such things for us.

[Mr Syms]

It has always seemed strange to me that on estimates days we have before us vast tomes showing where the Government have switched money from one Department or one heading to another, but we tend to debate leisure centres or swimming or something else—nothing to do with money. If this House is serious about money, surely we ought to look at the estimates rather than debate some odd other subject?

[Sir Alan Beith]

Absolutely so, and I have been advocating that for some time.

That brings me to my next point, which is about ensuring that Select Committees, which are the proper place to look at some of the substance of the estimates decisions and the movements of money from one thing to another, have appropriate time to consider such matters—as much time as possible, so that they can conduct meaningful scrutiny. Our discussions with the Treasury and the Leader of the House about that are reflected in the motions, but we will watch carefully to make sure that Select Committees are not expected within ridiculous periods—a few days—to produce considered views on the serious substance of estimates.

To sum up, the two major points that the Liaison Committee will certainly be considering and that we want the Government to consider are that due regard is given to the Committee’s previous recommendation of five estimates days per Session, and that Select Committees have time to consider estimates properly and so assist the House in doing what many right hon. and hon. Members have long felt should be done when we deal with estimates.