Commons Financial Privilege

John Bercow Excerpts

Wednesday 28th October 2015 Commons Chamber

[The Leader of the House of Commons (Chris Grayling)]

On Monday, the House of Lords rejected a financial measure that had been approved three times by the elected House of Commons. We are clear that that raises constitutional issues that need to be examined carefully. We need to ensure—[Interruption.]

[Mr Speaker]

Order. I apologise for interrupting the Leader of the House. This is a very serious matter and it would be seemly if colleagues who are leaving the Chamber did so quickly and quietly and if others inclined to conduct private conversations decided to do so outside the Chamber. There is a very important matter being treated of by the Leader of the House in response to the urgent question.

[Chris Grayling]

We need to ensure that we have arrangements in place that protect the ability of elected Governments to secure business that has the support of the elected House.

Yesterday the Government announced that we are in the process of setting up a review to examine how to protect the ability of elected Governments to secure their business in Parliament. The review will consider in particular how to secure the decisive role of the elected House of Commons in relation to its primacy on financial matters and on secondary legislation. The review will be led by Lord Strathclyde, supported by a small panel of experts.

The relationship between the Commons and the Lords is extremely important. When conventions that govern that relationship are put in doubt, it is right that we review that. Clearly, the House will be fully updated when more details of the review have been agreed.

[Chris Bryant]

It is clear that the Government intend to give the House of Lords a kicking, but they should remember, as they fashion this pretend constitutional crisis, that the vast majority of people in this country applauded the Lords on Monday, because the measure was not in the Government’s manifesto. Does the Leader of the House see no irony at all in getting a Member of the House of Lords—and, for that matter, a hereditary peer—to review the financial privilege of the House of Commons? Is this the right person for the task? After all, in 1999, Lord Strathclyde said of the convention that the House of Lords did not strike down statutory instruments:

“I declare this convention dead.”

That same day, he and the Lords voted down two Labour Government statutory instruments. Now he thinks that it is an utter disgrace to do so. Is there one rule for Tory regulations and another for Labour ones? Is he now a convert or frankly just a hypocrite?

[Mr Speaker]

Order. [Interruption.] I am perfectly capable of dealing with these matters. I certainly do not require any sedentary chuntering, however well-intentioned, from hon. Members. Their interventions are superfluous. The shadow Leader of the House should withdraw that term.

[Chris Bryant]

I withdraw that term unreservedly, Mr Speaker; I presume that he is a convert.

Why are there no representatives of other parties or of the House of Commons on the review panel? Would it not be better for this House to conduct its own inquiry into the operation of secondary legislation? Could not the Public Administration and Constitutional Affairs Committee, whose admirable Chairman is in the Chamber now, do the job far better?

Is there not a far simpler means of guaranteeing the financial privilege of the Commons? The Government should stop relying on secondary legislation and introduce properly scrutinised primary legislation as money Bills that are covered by the Parliament Act instead. In all honesty, is it not a disgrace that measures affecting 3.2 million people should be decided in a 90-minute debate with no opportunity for amendment? There is a very simple principle here: money Bills do not receive scrutiny in the Lords, so they get extra time in the House of Commons; secondary legislation does not get much time in the Commons, so it does receive consideration in the Lords.

Does the Leader of the House not realise that the Lords had the power they did on Monday only because the Government tried to sidestep scrutiny by using secondary legislation dependent on the Tax Credits Act 2002, section 66 of which specifies that changes to tax credit rates must be approved by both Houses of Parliament? As things stand, the Government rely on hundreds of Acts that have the same provision. Does the Leader of the House intend to make retrospective amendments to each and every one of those Acts, and will he use the Parliament Act to drive that through?

We have very few checks to Executive power in this country. If we do not protect our constitution, it is not worth the paper it is not written on. There is a real danger that if Parliament as a whole lets the Government of the day dismantle every check and balance, they will no longer be governing by consent—and that really would be a constitutional crisis.

--- Later in debate ---

[Chris Grayling]

My hon. Friend speaks with enormous wisdom and knowledge on these matters. He will not be surprised to remember that history was downplayed in our curriculum under the Labour Government. Parliamentary history does not appear to be top of the knowledge of Members of the other place. My hon. Friend is absolutely right. We have traditions and ways of working in this country that date back decades and centuries. They have been cast away this week entirely inappropriately. It would be a huge mistake for us to allow them to slip away. It is a shame that the Opposition parties appear not to respect them.

[Mr Speaker]

Order. I gently ask the Leader of the House to face the House so that we all get the benefit of his words.

[Alex Salmond (Gordon) (SNP)]

As we all carefully reflect on the 15th-century precedent, could we also carefully reflect on the modern world? A Government elected on 37% of the vote and 14% in Scotland might not be expected to win every single Division in the legislature. Should the Government not accept that their position seems to be based on a sense of entitlement as opposed to an attachment to the democratic ballot box?