Oral Answers to Questions

Mike Weir Excerpts

Wednesday 6th January 2016 Commons Chamber

The Secretary of State was asked—

[Mike Weir (Angus) (SNP)]

1. What recent discussions he has had with the Scottish Government on Scotland’s fiscal framework.

[Marion Fellows (Motherwell and Wishaw) (SNP)]

2. What recent discussions he has had with the Scottish Government on Scotland’s fiscal framework.

--- Later in debate ---

[The Secretary of State for Scotland (David Mundell)]

May I begin by wishing you a very happy new year, Mr Speaker?

In the light of the recent flooding in Scotland, may I pay tribute to all those in the emergency services and in local authorities, and the volunteers, who have dealt with the challenging circumstances? The thoughts of the whole House will be with those whose homes and businesses have been flooded.

The UK and Scottish Governments are discussing the fiscal framework through the Joint Exchequer Committee, and there have been five meetings between the Deputy First Minister and the Chief Secretary to the Treasury to discuss it. The next meeting is due to take place on Friday.

[Mike Weir]

I thank the Secretary of State for his answer and associate myself with what he said about the flooding, which has affected my constituency and those of many of my colleagues. We appreciate the work the emergency services are doing.

The block grant will need to be adjusted to take account of the revenue-raising powers that are being devolved, but, as agreed by the Smith commission, the Scottish Government should not be financially disadvantaged by the transfer of the new powers. What is the Secretary of State’s view of what a fair indexation for the block grant adjustment would be?

[David Mundell]

My understanding is that the Deputy First Minister of Scotland, John Swinney, with whom I had a productive meeting just before Christmas, is conducting the negotiations on behalf of the Scottish Government. At our meeting, Mr Swinney assured me that his objective was exactly the same as that of the United Kingdom Government—a settlement that is fair to Scotland and fair to the whole United Kingdom.