Scotland Bill

Patrick Grady Excerpts

Monday 9th November 2015 Commons Chamber

[Wayne David]

I could not agree more. In my book, devolution is not about divorce, separation or schism. It is not about balkanising Britain. It is about establishing a new partnership, so that the people of Britain can work together in a constructive and harmonious way.

[Patrick Grady (Glasgow North) (SNP)]

Will the hon. Gentleman give way?

[Wayne David]

I will, for the third time.

[Patrick Grady]

I may have misheard the hon. Gentleman, but it sounded as if he said that the Scottish Parliament had the power to call a referendum. The Scottish Parliament explicitly does not have the power to call a referendum, which is why we want to give it that power by means of our amendment.

[Wayne David]

What the amendment seeks to do is take away caveats that are essential in defining the partnership and the harmonious discussions that must take place. It is not simply a question of the Scottish Parliament deciding by itself what it wants to do.

--- Later in debate ---

[Dr Whiteford]

I really wish that the shadow Secretary of State had voted against the tax credit proposals when they came before this House on 20 July, because that would have killed them dead. Labour Members did not, however, and that is why we are back where we are. Nicola Sturgeon has made it crystal clear that she intends to bring forward costed, credible plans once the autumn statement has been made.

For low-paid working families, tax credits are an essential source of income. They put food on the table and shoes on the feet of children. They heat homes during winter. By the end of this Parliament, the Government’s proposed tax credit cuts would take £3.2 billion out of the Scottish economy from the pockets of the poorest families. That will undermine economic recovery. The austerity measures already enacted are set to push 100,000 more children in Scotland into poverty by 2020. Under the tax credit measures, 350,000 Scottish youngsters are set to lose out further. No wonder the Tories have abandoned any attempt at measuring child poverty.

There is a broad consensus in Scotland that cutting tax credits is the wrong thing to do. Even the leader of the Tory party in Scotland has called for a rethink and said that it is wrong for low-paid workers to lose out. It is recognised that the proposals will disincentivise work, hit children who are already disadvantaged and punish those in lower paid jobs.

The House of Lords put a proper spanner in the works of the proposals the other week, when it forced the Government back to the drawing board on their tax credit plans. Like millions of families across the UK who are facing uncertainty, we are all in a degree of limbo at the moment. We will have to wait until the autumn statement to learn what the Government intend to bring forward to make their plans more palatable to their own Back Benchers, who seem rather thin on the ground tonight.

We in the SNP have been very consistent in our opposition to tax credit changes. We have made the case at every single opportunity for alternatives to regressive austerity cuts. We will continue to fight tax credits tooth and nail in this House to force the Government into a climbdown. I hope we can rely on the support of other Opposition parties to stand firm, too. Labour abstained on 20 July, when we debated the general principles of the Welfare Reform and Work Bill that ushered in these proposals. The Government’s new clause 34, tabled last Wednesday, represents some progress. I am grateful for that, because it acknowledges that there was a veto and it manages to deal with that to some extent. New clause 34 would partially mitigate the impact of the tax credit cuts, but our new clause 18 is much stronger. It would fully devolve control of our tax credits to the Scottish Parliament, including eligibility thresholds and tapers. Government new clause 34 will give the Scottish Parliament the power to top up benefits. That is fine as far as it goes, but it will be no help whatever to those people who have lost their tax credits entirely as a consequence of the changes. If someone is not in receipt of a benefit, it cannot be topped up.

[Patrick Grady]

Is my hon. Friend aware that in Committee the Secretary of State for Work and Pensions refused to give a guarantee that, if the Scottish Government did top up benefits, especially tax credits, that money would not be taken away as if it was extra earned income?

[Dr Whiteford]

My hon. Friend makes a critical point. We have not had clarity from the Government that they will not means-test the top-ups. I am looking forward to clarification from the Secretary of State for Scotland tonight. [Interruption.] I am glad he is nodding and confirming that that is the case.

About 80,000 families in Scotland are going to lose entitlement altogether under the existing proposals. That is roughly the same number as were affected by the bedroom tax in Scotland. The Scottish Parliament may have the power to create a new benefit, but that seems an inordinately complex way to go about things. It is theoretically possible but, like the bedroom tax mitigation, the money would have to be found from other devolved budgets. It would be an admission from the Government that their proposals have not worked.

As I have said, Nicola Sturgeon has made it absolutely clear that she will bring forward proposals. Labour Members need to be clear tonight: will they back our new clause 18? Will they once again cosy up with the Tories, or will they sit on their hands in the face of crushing austerity cuts coming down the line?

--- Later in debate ---

[Ian Murray]

I echo the Secretary of State in thanking everyone who has been involved in the Bill’s passage, including his officials and the people who have been so supportive to Labour Members. I thank my Parliamentary Private Secretary, my hon. Friend the Member for Stoke-on-Trent North (Ruth Smeeth), and, of course, my hon. Friend the Member for Caerphilly (Wayne David), who has spoken on many parts of the Bill, but I also thank the Clerks in the Public Bill Office, who have been incredibly helpful in putting the Bill together. It has been like wading through treacle at times, but they have always been courteous, and their advice has always been well received.

Let me be absolutely clear at the outset about the Labour party’s position. We fully support the Bill and all that it seeks to achieve. [Interruption.] One would think that SNP Members would just stop for two minutes during the Third Reading debate. When the Conservative Secretary of State spoke, there was complete silence, but when the Labour party speaks, the braying mob starts. That tells us all that we need to know about this place.

With the amendments that have been accepted this evening, the vow has been delivered in full. The Bill delivers on the powers promised and agreed by all parties, including the SNP, in the Smith commission.

In 1998 Donald Dewar said:

“There shall be a Scottish Parliament”—[Official Report, 12 January 1998; Vol. 304, c. 25.],

and it was Labour, with the consent of the Scottish people, that delivered that Parliament. This Bill will make the Scottish Parliament one of the most powerful devolved legislatures in the world. It meets not only the terms of the vow, but the timetable laid out by Gordon Brown last year. We promised a process by the end of October; it was delivered. We promised it would conclude by St Andrew’s day; it was delivered. Draft legislation was promised by January; it was delivered. Second Reading of the Scotland Bill was promised straight after the election, regardless of who won; that was delivered. We promised that, no matter what parties formed the Government after the election, we would deliver a Bill to meet what the Smith commission set out; and thanks to the Secretary of State’s amendments put forward on Monday, that has been delivered. It is absolutely clear that this Bill, as amended, will place at the Scottish Government’s disposal the powers to make Scotland the fairer and more equal country that we all aspire for it to be.

[Patrick Grady]

Will the hon. Gentleman give way?

[Ian Murray]

I am not going to take interventions because I want the SNP opposition spokesman to speak, and if I take interventions he will be talked out.

From the establishment of the Scottish Parliament to the Calman commission to the Scotland Act 2012, Labour has supported more powers for the Scottish Parliament, but we are absolutely clear about what we stand for: we believe in devolution, not separation. That is what the people of Scotland voted for last year, and we respect the sovereign will of the Scottish people. They said they wanted to remain part of the United Kingdom but with a strong Scottish Parliament. They said they wanted to continue to pool and share resources across these islands. They said that they wanted the continued security that being part of a bigger union of nations and family of nations brought.

The Bill provides an historic opportunity for our politics in Scotland to turn from talking about the constitution to talking about the country, and about what we can do to make Scotland the fairest nation on earth, instead of what we cannot. Let’s grasp that opportunity. Let’s build that fairer nation. Let’s give the people across Scotland the politics they deserve. In the words of Donald Dewar, there shall be a powerful Scottish Parliament.