United Kingdom Internal Market Bill

Marco Longhi Excerpts

Report stage & 3rd reading & 3rd reading: House of Commons & Report stage: House of Commons
Tuesday 29th September 2020 Commons Chamber

[Alan Brown]

It is a kind of pleasure to follow the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie). He strikes a conciliatory tone and he sounds reasonable, but the bottom line is that he talks complete tosh. Nobody in the SNP is arguing against preserving the UK internal market, but this Bill does not preserve the internal market; it actually undermines Scotland’s position, because it means we can be forced to accept conditions imposed on us by Westminster. It undermines devolution for the very same reason.

The hon. Gentleman says that the Bill allows the UK Government to spend more money in Scotland. That is bypassing the devolution settlement. There is nothing to stop the UK Government working with the Scottish Government at the moment to give the Scottish Government more money to spend on infrastructure and to discuss with them our needs in Scotland.

The hon. Gentleman supports a Prime Minister who in the past has said:

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

A Prime Minister who wanted the Barnett formula scrapped. A Prime Minister who said:

“I do think it is pretty monstrous that you have free care for the elderly in Scotland and no tuition fees…when you still get considerable subsidies from the rest of the UK”.

Where is the respect for devolution and for the Scottish Government making their own policy decisions in Scotland? It is non-existent.

As we have heard, clause 46 is the biggest power grab ever, allowing the UK Government to impose spending decisions on Scotland, bypassing the elected Government of Scotland. We have heard that it will be additional money, but where is the proof? This allows the Tory Government to cut the Scottish block grant and then spend that money for its own political gain, pretending that it is top-up money when it is not. It is a con trick.

The first sentence of clause 46 includes the provision:

“A Minister of the Crown may….provide financial assistance to any person”.

Given the Tory track record—as we have heard, they have awarded a ferry contract to a company with no ferries, awarded PPE contracts to their cronies and outsourced the track and trace scheme, for example—how can we trust their spending judgments and their integrity to spend money in Scotland, supposedly for our benefit?

Scotland previously relied on EU structural funds to help to plug shortfalls from Westminster, and now we are supposed to trust the UK prosperity fund, which sits in the Department of English communities and local government, managed by a Secretary of State who ploughed the English towns fund money into Tory marginal seats and who made an unlawful planning decision to save a Tory donor millions of pounds. There is no way we can trust him to look after the needs of Scotland. We cannot trust the Tory Government with clause 46 and, to rub salt in the wounds, clause 47 allows returns and punitive interest to be applied to any spending that comes through clause 46.

Clause 48 allows Westminster to decide what is and is not allowed with state aid. Let us look at farming, for example. The Scottish Government may wish to pay headage figures for lamb and beef production, but the UK Government could overrule that if they do not support English farmers in the same way. If we get to the stage where the free marketeers have their way and UK Government state subsidy is eliminated for certain sectors, by default, the Scottish sectors will also have their rug pulled from under them because of state aid rules. How does that respect devolution? When it comes to farming, the UK Government have form, previously having stolen the common agricultural policy convergence uplift money from the EU.

We know the risk of imports of chlorinated chicken and hormone-injected beef. However, Argentinian beef could come in and undercut the market. Genetically modified crops could be imposed in Scotland. We have more robust climate change targets that could now be overruled by Westminster. The Government might impose this Bill on the Scottish Parliament against its will, but they are going to lose the independence argument.

[Marco Longhi (Dudley North) (Con)]

I rise to speak in support of the Government’s Bill and their amendments. This Bill exposes an inherent weakness in the withdrawal agreement—namely, that while the EU and UK Government must use best endeavours and act in good faith to reach an agreement, it does not spell out a clear course of action if either or both of those criteria are not met. We all know that the EU has become accustomed to a United Kingdom that repeatedly comes back to the table asking for an extension, and maybe this is why the EU’s format of negotiation is a sequencing one, meaning that it agrees to move forward only once an agreement has been reached on a previous matter. This has the effect of incurring huge delays, and the EU’s unwillingness to multitask must have a purpose—namely, continuous delays desirable to the EU and damaging to the UK’s prospects of a good deal.

Is the sequencing approach to negotiating a demonstration of using best endeavours or negotiating in good faith? I submit that it is not. It is now clear to most objective observers that the EU’s current interpretation of the Northern Ireland protocol is to use it as a lever in the negotiations. How is that a demonstration of negotiating in good faith? This Bill will ensure that Northern Ireland remains part of the UK’s customs territory and that Northern Ireland businesses retain unfettered access to GB markets. I must, however, place on record that more needs to be done in relation to Northern Ireland, having heard very powerful and compelling speeches from Unionist colleagues today and previously.

We know that the withdrawal agreement provided for the Joint Committee to set out heads of terms of a future deal, but the prospect of there being a timely and full agreement now appears unlikely. Why does the EU fail to agree at the Joint Committee on a single exemption from controls and tariffs for any goods flowing between GB and Northern Ireland? Is that behaviour consistent with best endeavours and good faith? Again, I submit that it is not. Why is it failing to agree exemptions at the Joint Committee on food checks for food moving between GB and Northern Ireland when we have been a member of the EU for 40 years and set standards ourselves? However, more fundamentally, what country and what Government in their right mind would devolve such fundamental sovereign powers to a foreign entity so that it would have the right to decide whether we can move our own food around our own Union of nations, as we have done for centuries? If we do not deliver this Bill, the EU will also have jurisdiction over how state aid decisions are made, for example on bail-outs related to covid or any future crisis.

For all those reasons, the Bill is about the delivery of Brexit and about sovereignty. It puts into law the ability for the Government to take action if a deal is not agreed. It delivers on an instruction that the good people of Dudley, and across our Union, gave this place not only in the 2016 referendum but at the last general election. We should, and must, press on with this.

[Tracy Brabin (Batley and Spen) (Lab/Co-op)]

The debates have been robust and challenging, and I have learned so much about Scottish politics. It has been a pleasure to listen to the sibling rivalry across the House. I have learned a great deal—thank you.

This evening we will be asked to vote on a Bill that moves us towards a situation in which the Government will break their own international treaty obligations. That will make negotiating future deals even harder, at a time when the Government should be focusing on tackling covid rather than reopening Brexit battles. However, I am encouraged by the number of amendments and new clauses in the names of my right hon. Friend the Member for Doncaster North (Edward Miliband) and my hon. Friends the Members for Manchester Central (Lucy Powell) and for Sheffield Central (Paul Blomfield), and all those who have worked tirelessly to try to improve the Bill.

New clause 3 would place on the Government a duty to consult, monitor, report on and review parts of the Bill, including the shared prosperity fund. That is incredibly important to my constituency, which is in desperate need of levelling-up opportunities. My constituents have grown weary of glitzy marketing campaigns such as the northern powerhouse or social mobility, which have failed to deliver meaningful and widespread opportunities for them and their families. New clause 3 would militate against the shared prosperity fund going the same way, because Ministers would have to return to the House to update hon. Members. That report would allow us to examine whether the internal market will deliver desperately needed opportunities across our country. Let us not forget that the Centre for Cities called the UK

“the most geographically unequal developed economy in the world”.

The new clause would also require oversight of any cynical attempt to use the shared prosperity fund as a reward for Conservative MPs in red wall seats.

There is an urgent need to bring new jobs and development out of the south-east and into communities that have talent, people, and enthusiasm but are in need of opportunities. If we are to spread growth around the country in a consistent way, the power to do that must be in the hands of local leaders. By the time the Government report back, we should not still be debating whether the Bill strips devolved authorities of power and undermines the Union. Instead, we should be talking about how it places opportunity in the hands of local representatives—the very people who work in those communities, and know them far better than centralised Whitehall Departments ever could.

The shared prosperity fund replaces the EU structural fund, which many parts of our country benefited from. In Yorkshire and Humber, that fund was about €796 million. Currently, when drawing down resources from that fund, priorities for support funding need to be set locally and delivered by those engaged in the projects locally. The Government should deliver the fund by building on that principle of engagement, and by empowering our devolved Administrations, local authorities and elected mayors. The Government must trust our regional leaders to do what is right for their communities.

The Bill is about Britain’s reputation and position in the world. It is also about how we serve our communities better and ensure that our prosperity is shared properly across our country, on the basis of what would have been received had the referendum result been different.

A number of new clauses and amendments would improve the Bill, and I will be supporting them fully today.