Constitutional Law

Nigel Evans Excerpts

Tuesday 21st May 2024 Commons Chamber

[Angus Brendan MacNeil]

Further to the point made by the hon. Member for Glasgow North (Patrick Grady) about the shadow Health Secretary pointing out that all roads lead to Westminster, and that the spending constraints and austerity that have been chosen were foisted upon everybody, it is a ridiculous situation, surely, when Scotland’s hands are tied like no other country in Europe. Spain does not decide its priorities for health spending based on what France is spending, so why should Scotland or Wales do similarly? Why also do the Barnett consequentials stem from only one of the nations of the UK? Wales probably has the greatest health needs, but we do not see money for England as a consequence of Welsh needs or Scottish needs. Why does it all stem from the one part? That is something those of the Tory-Labour “Better Together” agenda have never addressed: the imbalance of the UK, with one partner in the lead and the rest having to follow with the choices they make for us.

[Mr Deputy Speaker (Mr Nigel Evans)]

That intervention was longer than many speeches I have given here.

[Tommy Sheppard]

I think I agree with the sentiments expressed by the hon. Gentleman. To come back to the discussion on capital borrowing requirements, the other important point that must surely be made, which reflects what he says about who is responsible, is that there is context. That context is a 16% cut—16.1%, to be exact—in the block grant available for capital funding of public services in Scotland. That is not my figure; it was provided by the House of Commons Library in an analysis done on figures provided by the Treasury. That is the real-terms cut that central Government are making, and it means that the borrowing limits available to the Scottish Government have then to be used to compensate for those cuts and to mitigate their effects.

There has been discussion about how these borrowing limits came about as a result of the Smith commission proposals, but this order is in direct contravention of the spirit of the Smith commission. The proposal from the Smith commission was not that UK capital spending that takes place in Scotland should be devolved to the Scottish Government and the Scottish Government should take control of it. That was not the proposal; I might have considered that and supported that, as somebody who supported full fiscal autonomy for the Scottish Government at the time, but that was not what we were discussing.

The proposal that came from the Smith commission was for a supplemental capacity for the Scottish Government to borrow additional moneys to fund particular projects and public services in Scotland if they had a mandate to do so. It was not meant to compensate for core capital funding. Therefore, as the Scottish Government are now being forced to do that, the cost of UK capital spending in Scotland is being incrementally transferred from the UK Exchequer to the Scottish Government. That, my friends, is a Union dividend in reverse. That is a Union penalty. That is the price we are having to pay for being part of these arrangements.