English Votes for English Laws

Lord Haskel Excerpts

Thursday 16th July 2015 Lords Chamber

[Lord Haskel (Lab)]

My Lords, I share the concern of the noble Lord, Lord Forsyth, about the effect that EVEL will have on the Barnett formula.

Let me explain, and I am most grateful to John Kay for pointing this out. If English MPs decide that English schools will receive an additional service paid for by an additional charge on English taxpayers, this rise will be reflected in the Barnett formula, irrespective of whether Scottish MPs want this additional service or not. That is how the formula works on devolved matters. Equally, if English MPs decide to cut a service, this, too, will be reflected in the Barnett formula, and if Scottish MPs want to maintain that service they will have to find the money from elsewhere. This is because the Barnett formula is based on United Kingdom-wide expenditure throughout the country.

I understand that when this was raised in the devolution discussions it was agreed that it would be settled on the “no detriment” principle. This means that compensation would be agreed on the basis of mutual good will. Bearing in mind the debate yesterday in the House of Commons, and the Scottish nationalists’ attitude towards the Government’s proposals on fox hunting, are the Government confident that this good will exists? If not what will they do? Will they leave the Barnett formula alone? Will they rewrite it? Will they go in for hypothecation? In the absence of good will, any of those would be very difficult. This is just one more example of the difficulties that we have over these territorial matters. They are best settled with a constitution or a proper Bill that goes through both Houses.