Devolved Powers in Scotland

Michael Ellis Excerpts

Tuesday 17th October 2017 Westminster Hall

[The Deputy Leader of the House of Commons (Michael Ellis)]

It is a pleasure to speak under your chairmanship, Mr Hollobone.

I congratulate my hon. Friend the Member for Stirling (Stephen Kerr) on securing this debate, his first in this Chamber. Hearty congratulations are very much in order. The debate has provided an important opportunity for us to reflect on devolution within the United Kingdom and within Scotland, and to look ahead to a stronger Holyrood in the next few years as we exit the European Union.

As my hon. Friend highlighted in his speech, it has been just over 20 years since people in Scotland voted to support the creation of a Scottish Parliament with tax-varying powers on 11 September 1997. In just over a year from now we will celebrate a further anniversary, that of Royal Assent of the Scotland Bill in November 1998. The Scotland Act 1998 established the new Scottish Parliament and set out its powers as a legislature within the United Kingdom. Since the Scottish Parliament first sat in May 1999, it has truly come into its own. Devolution is clearly the right approach for Scotland. It is what the people in Scotland voted for and it ensures that decisions are taken at the right level.

The Scottish Government may choose their own path on key policy decisions. Of course, I cannot say that I agree with everything that the Scottish Governments do or have done since 1999. I do not agree, for example, with the SNP Government’s decision to make Scotland the highest taxed part of the United Kingdom, and I do not agree with how they chose to handle common agricultural policy payments in the past couple of years, but I do agree that it is their right to decide those things for themselves. It is up to the people of Scotland to make their own judgment of their Government in devolved matters.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

Will the Minister give way?

[Michael Ellis]

I am sorry, I do not have the time.

The SNP are failures—Ruth Davidson has the right ideas. Because of devolution, key decisions about Scotland can be taken in Scotland, while Scotland benefits from the pooling of risk and resources that comes from being part of a successful and historic Union. A powerful Scottish Parliament within a strong United Kingdom offers people in Scotland maximum security and opportunity, representing their interests in the world and allowing resources and risks to be shared effectively.

Devolution has also been shown to be flexible and responsive to changing needs and circumstances. Most recently, the Scotland Act 2016 ensured that the Scottish Parliament has a significantly greater say on matters including further taxation powers and welfare support in Scotland. The Scotland Act is now in the process of being implemented, with a number of its new powers already in force and the Scottish Parliament able to legislate and make choices on a range of new policy areas. The Scottish Parliament also has new powers, for example, to top up reserved welfare benefits or to create new benefits in devolved areas, should it decide to do so. Taken together with the existing powers of the Scottish Parliament, the Act creates an even more powerful and accountable Scottish Parliament within a strong United Kingdom.

That is what the people of Scotland voted for. The Scotland Act balances more decisions being taken in Scotland, closer to those they affect, with retaining the strength and security that comes from membership of the larger United Kingdom. The 2016 Act provides the Scottish Parliament with much greater tax-raising powers, which means that, from responsibility for raising around 10% of what it spends today, Holyrood will in future be responsible for raising more than 50% of what it spends. With new powers on welfare, the Scottish Government need to publish details of how they plan to support disabled people in Scotland, for example.

Enough of the grievance culture and the obsession with process; the SNP and the Scottish Government must use their powers to serve the people. The Scottish Parliament has unprecedented flexibilities on income tax—to set income tax rates and thresholds for earned income, including the ability to introduce new tax bands—so it is most unfortunate, and I suspect that many in the Chamber who represent seats in Scotland will be dismayed, that that power is being used to hike income tax on Scots in their constituencies and throughout Scotland. It is vital that the new powers are used to the greatest benefit in Scotland. I have heard much concern this afternoon about that not being the case from those on the Conservative Benches, who are rightly concerned that it is not the case.

[Ross Thomson]

The Minister mentioned income taxes. He is right that the First Minister, in conversation on her programme for government, not only mentioned increased taxes but spoke about her “cast-iron mandate” for independence. Yet she never once mentioned tax increases in her manifestos in 2016 or for the 2017 snap general election. If she is to talk about mandates, there is no mandate for increased taxes.

[Michael Ellis]

It is vital that the new powers are used to the greatest benefit in Scotland. I have heard much concern this afternoon about that not being the case, and I expect that we will see more of this debate in the coming months, as the Scottish Government outline their plans in their budget and beyond.

Of course, the question is not simply one of existing powers and how they are used. We are now engaged in a new discussion about devolution in the United Kingdom, because leaving the European Union gives us the opportunity to determine where powers that will return from Brussels will best sit.

The UK Government have clear objectives in mind. We want the UK after Brexit to work for the whole of the United Kingdom. It is right that we consider the big picture and ensure that our future constitutional arrangements support our new position in the world as we leave the EU. However, let me be clear that where there is no reason to keep a common framework, we will not, and where there is no reason to hold on to powers, we will not. No powers currently exercised by the Scottish Parliament will be taken away from the Scottish Parliament, and the Government expect that leaving the EU will mean more powers for the devolved Administrations. Only the SNP could turn no powers removed and more powers to come into an alleged power grab.

The time for divisive rhetoric is over, on Brexit and elsewhere across public policy. We have opportunities as we leave the EU to shape the UK and Scotland within the UK. We need to take those opportunities and to consider them properly. In doing so, both Governments have to continue to work together, as people in Scotland rightly expect us to do. It was my pleasure to respond to this debate, and I am sure that the debate on devolution will extend beyond the limited time we have had today.

[Stewart Malcolm McDonald]

On a point of order, Mr Hollobone. Will you advise the Chamber on why a departmental Minister did not respond to the debate and instead that was left to the Deputy Leader of the House?