(8 years, 9 months ago)
Commons ChamberFor the avoidance of any doubt, I want to point out that although the Scottish Government were aware of that, it does not make it right.
No. Perhaps the Minister will let me finish my point before he starts chuntering. The Scottish Government agreed to that because they had no choice. They are working within the constraints imposed on them by Westminster. I should say—I am moving forward now—that like so many other deals in Scotland, it was imposed by a UK Government who are detached from Scotland and neither understand nor care about Scotland’s public services. I shall leave the matter there.
If you do not like giving fair funding formulae to Scotland, you had your chance last September, when you kicked and screamed to hold on to us. In the light of that decision last September, all we ask for is fairness. We are of course a valued and equal partner—well, let us be so.
The Scottish Police Authority, uniquely and therefore unfairly, is the only police authority in the entire UK—
No, thank you. I want to progress beyond this point.
Uniquely and therefore unfairly, the Scottish Police Authority is the only police authority in the United Kingdom that cannot recover VAT. It is therefore liable for an annual cost of £25 million, which is equivalent to almost the entire forecast savings gap. Importantly, it seems that the Treasury based its decision on the fact that single services will be funded by central Government. However, the Treasury introduced a new section in the Value Added Tax Act 1994 to ensure that central Government-funded academy schools in England could recover VAT. Why is there not the same provision for the Scottish police and Scottish fire and rescue services?