Devolution and Growth across Britain

Steve McCabe Excerpts

Wednesday 3rd June 2015 Commons Chamber

[Sajid Javid]

I remind the hon. Gentleman that although the Scottish National party did remarkably well in the election—and I congratulate it—still almost half the Scottish people did not vote for it, and there are all sorts of voices across Scotland that need to be represented in this Chamber.

Once the Smith commission agreement is in place, the Scottish Parliament will have additional powers on income tax and air passenger duty. All told, more than half the money spent by the Scottish Government will be raised in Holyrood. This package is an historic one for Scotland, which will soon possess arguably the strongest devolved Government anywhere in the world, empowered to build on the progress made over the past five years. Yet Scotland will retain the huge benefits of remaining part of a strong United Kingdom: the economic benefits; the social benefits; the defence benefits: and many more besides.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

As we have seen with revenue issues on the Irish border, the decision to give control of air passenger duty to the Scottish Parliament, which I well understand, could have massive implications for regional airports in England. What protections will the Secretary of State build in to protect the jobs and the economies involved?

[Sajid Javid]

The hon. Gentleman makes an important point, and we need to consider such issues carefully. However, the decision to devolve air passenger duty has been made.

I note that the Opposition Benches have adopted an entirely new look since the last Parliament. The SNP enjoyed unprecedented success, and I congratulate it on earning the trust of so many Scottish voters. However, the SNP should enjoy this honeymoon period, because the hard work is about to begin.

I turn to Wales. We will deliver a clearer, stronger and fairer devolution settlement, implementing in full the St David’s day agreement, led by my right hon. Friend the Secretary of State for Wales. The Wales Bill will make devolution clearer by introducing a reserved powers model, which is the system already in place for Scotland. It will make Welsh devolution stronger by devolving more powers to Cardiff, especially those covering energy, transport and the environment. We will also agree the precise level of a funding floor for Wales, and the mechanism to deliver it. That will be done with a clear expectation that the Welsh Government will call a referendum on income tax powers.

Northern Ireland does not fall within the scope of this debate as defined by the party opposite. However, we will take forward legislation to give effect to the Stormont House agreement and we look forward to working with colleagues in Belfast to make the devolution agenda benefit all the people of Northern Ireland, including, of course, Northern Ireland’s First Minister, to whom I wish a full and speedy recovery.