Scottish Independence and the Scottish Economy Debate

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Department: Scotland Office

Scottish Independence and the Scottish Economy

Toby Perkins Excerpts
Wednesday 2nd November 2022

(1 year, 6 months ago)

Commons Chamber
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Ian Blackford Portrait Ian Blackford
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My hon. Friend is quite correct. When we look around the world, we see small countries thriving. Small countries tend to do better than larger ones. There are no economies of scale for large countries, and it is Westminster, the UK, that is holding Scotland back.

Let me return to the economic situation we face today: the pound is still down against the dollar and euro, mortgage rates are at their highest since the financial crash, and inflation is still at a 40-year high. History shows that those in the Tory party always act fast to rid themselves of their own political problems, but they always fail to take responsibility for the crises they create. They are failing to take responsibility for the cost of living crisis they created and the failing UK state they have presided over for the past 12 years.

It would be wrong to believe that the events causing deep damage over the last few weeks are somewhat isolated incidents. It does not take a genius to know that the timeline for every bit of turmoil in this place over the last few years stems from one place and one place only: the utter disaster of Brexit. Six years on, it has been a disaster by every significant measure. Brexit broke Britain.

Only yesterday, Scotland’s The Herald newspaper revealed that the value of Scottish exports has dropped by more than 13% in two years, costing £2.2 billion, with Brexit entirely to blame. That is what Brexit has done to the Scottish economy and Scottish trade. That has been the impact of what the Tories have brought to us. However, faced with these Brexit facts, it is a disgrace that Westminster’s only response is to say one of two things: “Suck it up,” or, “Shut up.” I assure the Brexit fanatics that we intend to do neither.

The reality of Brexit is biting everywhere. Last week I visited the Nevis Bakery in my constituency. The owner, Archie Paterson, explained to me that they currently employ 30 people, and that they could easily double that tomorrow, expanding their production line, expanding their premises and growing the local economy. But just one thing is stopping them, and it is Brexit. Brexit means they have no access to labour. The balance of workers used to be 80% EU skilled bakers, and that has declined to only 20%. They cannot get the staff, so they cannot expand. It is the same story for businesses across the highlands and right across Scotland: denied economic opportunity; denied the opportunity to grow our economy; denied the opportunity to prosper and deliver the taxation receipts. All that has been delivered by the Brexit Scotland never voted for.

Toby Perkins Portrait Mr Toby Perkins (Chesterfield) (Lab)
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I agree with much of what the right hon. Gentleman is saying about the incompetence of the Conservative Government. On Brexit, however, an important fact is being missed. During the referendum, when many of us fought very hard to make sure the UK stayed within the EU, the Scottish National party spent just £91,000 on its campaign—13% of what it could have spent. It spent less on that campaign than on a Shetland by-election. It spent less than 7% of what it spent on trying to take Scotland out of the UK. Will he take this opportunity to apologise to everyone who voted remain for the fact that the SNP went missing from the pitch during that campaign?

Ian Blackford Portrait Ian Blackford
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My goodness, Mr Speaker, I hate to point out to the hon. Gentleman that 62% of those who voted in Scotland voted to stay in the European Union. I am proud to say that my right hon. and hon. Friends and I were up and down Scotland during the Brexit campaign, leading the people of Scotland and making the case for Scotland to stay in Europe.

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Lindsay Hoyle Portrait Mr Speaker
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Do you want to go out early for a cup of tea? Because you are on my speaking list. Let me deal with it. Mr Bonnar, I need no help, thank you. If somebody said that, I expect them to withdraw it, because we do not use that term in this Chamber.

Toby Perkins Portrait Mr Perkins
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Further to that point of order, Mr Speaker. I certainly withdraw any implication that the right hon. Gentleman is a liar. I did not say he was a liar, but I did say that what he said was untrue. I withdraw that out of respect to you, Mr Speaker.

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Alister Jack Portrait Mr Jack
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I will make some progress.

Those papers have provoked scorn from respected economic experts, and even from high-profile independence campaigners. One prominent nationalist—Mr Deputy Speaker, I apologise in advance for the unparliamentary language—referred to the recent economy paper as “utter pish”. The kindest thing I could do is move on without further mention of those publications, so I will.

I am very clear that we will tackle the challenges we face more effectively as one United Kingdom. Much to the frustration of the SNP, the Scottish Government’s own Government Expenditure and Revenue Scotland figures demonstrate the benefit to people in Scotland of being part of the United Kingdom. As I mentioned earlier, people in Scotland benefit from a Union dividend worth more than £2,000 a year for each man, woman and child.

Toby Perkins Portrait Mr Perkins
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I agree with the right hon. Member for Ross, Skye and Lochaber (Ian Blackford) that in 2014 the pound was at 1.64 against the dollar and that now, because of this Government, it has crashed. However, what does it say to the Secretary of State that even with that, the Scottish independence campaign seeks to reassure the markets by saying it will not go for the Scottish pound, but stick with this crashing economy? What does that say about its confidence in the Scottish pound?

Alister Jack Portrait Mr Jack
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I would add to the hon. Gentleman’s remarks by saying that as a country shadowing the pound it will not be the lender of last resort—it will have no lender of last resort. It is utterly irresponsible.

As one United Kingdom, we are able to draw on our great shared institutions such as the NHS. We are better able to respond to the nationwide challenges on the cost of living, just as we did in overcoming the pandemic when we offered the covid vaccine to everyone in the UK. The energy price guarantee will save a typical household in Great Britain around £700 this winter. I believe that our collective strength as a family of nations means we are much better able to tackle the big problems.

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Ian Murray Portrait Ian Murray
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That position is surely not in the best interests of Scotland—but I hear someone shout, from a sedentary position, “Got it in one.” So SNP Members want to create a border with our biggest trading partner, and to create a currency border with what they say will become their biggest trading partner, and Scotland will be sitting with a separate currency, a different currency, outwith both. What they are doing—and this is key to the whole argument—is cherry-picking EU rules, which sounds more like Farage “cakeism” than a credible proposition for any country. They want to take all the good things but none of the bad, and they have no way of squaring that circle.

Toby Perkins Portrait Mr Perkins
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My hon. Friend is making a magnificent case. [Laughter.] SNP Members may well laugh. They appear to be so much more in touch with the view of the Scottish people, or so they tell us. Perhaps they can explain why only one of the last 19 opinion polls on Scottish independence showed the people of Scotland to be in favour of independence. The points that my hon. Friend is making demonstrate the reason: the inoperable difficulties of Scottish independence. That is why the people of Scotland not only voted against independence in 2014, but continue, in response to opinion polls, to say that they want to remain a part of the UK.

Ian Murray Portrait Ian Murray
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My hon. Friend is right. SNP Members always cite opinion polls when they are in their favour, but they never cite them when they are not in their favour.

What I would say, in all sincerity, to those who support independence in Scotland is “Look at the proposition that is in front of you.” The best way to resolve this is not to take Scotland out of the UK and do Brexit on stilts—Scexit, if you like—but to vote Labour, deliver a UK Labour Government, and allow us to prove that Britain is a place that Scotland would want to be a part of.

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Pete Wishart Portrait Pete Wishart
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I am so grateful to the hon. Gentleman for raising the EU because of what I am going to say now. I suspect I will not get the same range of agreement around the House with this particular assertion: the only way for Scotland to be a member of the European Union is for it to become an independent nation. Do we all agree with that? [Interruption.] I am hearing a couple of noes, mainly again from the Liberal Democrats; I have to say that I am very disappointed with them. I thought I would have had a more encouraging response from them.

Toby Perkins Portrait Mr Perkins
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I do not know whether at some point the hon. Gentleman is going to touch on the motion that we are actually debating. His theories about interesting questions, which I would be happy to discuss with him in the Strangers bar, are not relevant to the debate we are having.

In the motion, his party describes Britain as a “failing state”. Without defining “failing” or “successful”, he now asks us all to say whether an independent Scotland would be successful. If Britain is failing and Scotland is going to be successful, why is it his proposition that Scotland should keep the pound, given that he claims it is failing?

Pete Wishart Portrait Pete Wishart
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I will say a couple of things gently to the hon. Gentleman, who, for all his noise and bluster in the Chamber, I actually respect. Look—this debate is about Scottish independence; I do not know whether the hon. Gentleman missed that.

Toby Perkins Portrait Mr Perkins
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rose—

Pete Wishart Portrait Pete Wishart
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I will come to the hon. Gentleman’s other points, which are important, but I am keen to say this: I wanted to find agreement across the House. I thought I was making a bit of progress, but it is disappearing a little. I will try once again, to see whether I can do it.

All I want is for everybody to agree that the only way for Scotland to be a member of the European Union is by becoming independent. We know that because all the other parties are parties of Brexit now—they all want to make Brexit work. I do not know how they will do that. I do not even know whether it is possible to make Brexit work; it is almost designed not to work. It is not any sort of economic strategy but an ideological mission. But they want to make it work, so we are left in a situation where the only way—I do not see how this can be uncontroversial—to make Scotland a member of the European Union is for it to be an independent nation. We know that the Scottish people want that because that is what they voted for. We are talking about democracy: the overwhelming majority of Scottish people voted to remain in the European Union, and every single poll since then has shown that they want to rejoin the European Union.

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Toby Perkins Portrait Mr Toby Perkins (Chesterfield) (Lab)
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I am pleased that the Scottish National party has decided to bring this debate to the Chamber. It is important that the case for an independent Scotland is re-examined. The points made by my hon. Friend the Member for Edinburgh South (Ian Murray) will have been heard loudly both in Scotland and across the United Kingdom.

This is a matter of great interest to my constituents in Chesterfield. It is a fact that people across England feel very passionately and strongly that the United Kingdom is better together, and that the success of Scotland and the success of England is assured by our being together in the United Kingdom. We gratefully remember the many contributions made by Scots to the United Kingdom in a whole variety of different ways. The successful Union we have had over hundreds of years has led to Britain being the successful country that it is.

It was precisely because it matters to me and my constituents that, during 2014, I went up to Scotland and spent a considerable amount of time campaigning in the independence referendum, speaking to people in an array of constituencies.

Angus Brendan MacNeil Portrait Angus Brendan MacNeil
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I hear the hon. Gentleman’s confession that he went up to Scotland for the 2014 referendum. Did he, on any doorsteps in Scotland, say to the people that voting to stay in the UK would guarantee their place in the European Union, or was he a Brexiteer by that point?

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Toby Perkins Portrait Mr Perkins
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Clearly, I went up there to make the case for Scotland to remain in the United Kingdom. I absolutely recognised that that was a choice for the people of Scotland, but it was a choice that was going to affect England. The fact that we were to have a referendum on our relationship with the EU was already known in 2014, because the Conservative party had already committed to that and the people of Scotland voted to remain on that basis. Clearly, I was hopeful that the people of Britain would vote to stay in the European Union. In fact, I only wish that the hon. Gentleman’s party had put the same effort into that referendum as the Labour party. If it had, we might have seen a different outcome.

None Portrait Several hon. Members rose—
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Toby Perkins Portrait Mr Perkins
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A number of people want to intervene. I will accept interventions, but I will not accept one from the hon. Member for East Renfrewshire (Kirsten Oswald), because she misrepresented me previously. She said that I had said that I had apologised for the Government’s record. I have not; I have done the opposite. [Interruption.] I will check the record very carefully. She misrepresented me and if she wants to correct the record I will let her, but if she does not want to correct the record I will hear from the right hon. Member for Dundee East (Stewart Hosie).

Stewart Hosie Portrait Stewart Hosie (Dundee East) (SNP)
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The hon. Gentleman is perfectly entitled to make the case he is making, but given that in Scotland we voted to stay in the European Union and given that in his constituency 34,000 voted to leave and only 22,900 voted to remain, would it not have been better, instead of wasting his time in Scotland, if he had done his job in Chesterfield, instead of having that act of economic self-harm that is Brexit?

None Portrait Several hon. Members rose—
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Toby Perkins Portrait Mr Perkins
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May I respond to the point that has just been made? I worked very hard during the Brexit referendum to make a case, but I accept that people across the coalfield voted in a different way. I return to the statistic that I put to the right hon. Gentleman’s leader, the right hon. Member for Ross, Skye and Lochaber (Ian Blackford). The Scottish National party spent a paltry £91,000 on the EU referendum. During the Scottish independence referendum, it spent £1,344,000. The truth is that the people committed to Scottish independence believed that the outcome they got was exactly the one they wanted. They wanted the rest of the UK to vote out while Scotland voted to stay in and that is why they did not lift a finger to get a result. Because of the limp effort it put in, the turnout in the Brexit referendum was lower in Scotland than in any other region or nation of the United Kingdom. That is the reality. The Scottish National party made it very clear to its voters that it was happy with that outcome. It knew there was a likelihood that that outcome would strengthen its case for Scottish independence.

Toby Perkins Portrait Mr Perkins
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If the hon. Lady is willing to withdraw the comment she made, I will give way to her.

Kirsten Oswald Portrait Kirsten Oswald
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I am grateful to the hon. Member. I am somewhat perplexed. I pointed out that his colleagues had made comments that clearly apologised for the UK Government’s economic mismanagement. I do not know why the UK Labour party would support that, but that is its problem, not mine. I absolutely stand by my concerns about the Labour party’s position on Brexit. It is unclear to me why Labour Members are so supportive of Brexit, considering the damage that it has done to Scotland, or why the hon. Gentleman continues to suggest that people such as me, with a 73% remain vote in my constituency, somehow were not marching the streets, as all my colleagues were. Scotland did not want to leave the EU and we want to be back in it. The hon. Gentleman might not like that, but he does not get to misrepresent it.

Toby Perkins Portrait Mr Perkins
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I hear what the hon. Lady says, and I repeat what I said: if the SNP was desperate to stay in the European Union, it had a funny way of showing it. Why is it—[Interruption.] I will respond to the points that have been made. Why is it—let SNP Members answer this—that the SNP spent just 7% of the amount of money on the Brexit referendum that it spent on the Scottish independence referendum? The only conclusion that I can come to is that the SNP did not care nearly as much about that.

I accept that the people of Scotland—the majority of people who voted in that referendum—voted to remain in the EU. However, the turnout in Scotland was also very low and I believe that the SNP’s lack of effort was a major factor.

None Portrait Several hon. Members rose—
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Toby Perkins Portrait Mr Perkins
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I will return to the subject—[Interruption.]

Eleanor Laing Portrait Madam Deputy Speaker (Dame Eleanor Laing)
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Order. I have to protect the hon. Gentleman. He has as much of a right to speak as anyone else. Let us give him a chance.

Toby Perkins Portrait Mr Perkins
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Thank you, Madam Deputy Speaker. During that Scottish referendum, I was in Edinburgh, Cumbernauld, West Dunbartonshire, Airdrie and Falkirk, and I spoke to people about the issues and about how much I hoped that they would choose to stay in the United Kingdom. The people I spoke to on the doorsteps were pleased to debate the subject. Lots of them voted to stay in the UK and lots voted otherwise. Virtually all those constituencies ended up voting overall to stay in the UK, but they recognised that not only was this a matter on which the people of Scotland would decide, but that the matter was of interest to people across the United Kingdom.

The basic assertion that the Scottish National party made—that an independent Scotland would be part of the EU but that it would take the pound and, at some point in future, have a Scottish pound—has been absolutely blown to pieces by my hon. Friend the Member for Edinburgh South. That was clear for everyone to see, and the momentary quiet that descended among those on the SNP Benches when he was making his case spoke volumes.

We have heard from SNP Members—

Kirsty Blackman Portrait Kirsty Blackman
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Will the hon. Member give way?

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Toby Perkins Portrait Mr Perkins
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I will, because I was about to refer to the hon. Lady’s speech, so that is perfect timing.

Kirsty Blackman Portrait Kirsty Blackman
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I am very pleased that the hon. Member has given way. Is he aware that if all the 1 million people in Scotland who voted to leave the EU had voted to remain in the EU—if we had had a remain vote of 100%—we would still have lost the referendum?

Toby Perkins Portrait Mr Perkins
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That is an important point. I could make the same point about the response in Chesterfield. Of course, this was a vote for the entire United Kingdom. However, I want to respond to something else that the hon. Lady said; although I disagree with her conclusions, I thought that she made an excellent speech. On her point about the independence referendum, when I was up in Scotland for that, it was said very clearly by Alex Salmond, and it was very clearly understood by the people of Scotland, that that was a once-in-a-generation referendum. That was said strongly.

The hon. Lady has spoken powerfully about the mandate that the SNP has won by getting Members of Parliament elected to this place. Is she making the case that we should have had another referendum after the 2015 election, another after the 2017 election and yet another after the 2019 election? Every time the SNP has a majority of MPs in Scotland, should we have another referendum? If not, how often should we have these referendums?

We all know that if the 2014 referendum had had a different result and people had voted for independence, there would have been no second referendum. There might have been a 0.1% majority, but it would not have mattered: that would have been enough to say, “We have heard the voice of the people.” But the referendum was lost by more than 10%, and there was an immediate demand for a second one. How often do we have to have these referendums? If the independence campaign wins the next one, does the hon. Lady want the best of three?

Kirsty Blackman Portrait Kirsty Blackman
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I was talking about the different ways in which Scotland has given us a mandate for an independence referendum. When SNP candidates stood for the Scottish Parliament in 2021, the SNP committed explicitly in our manifesto to a referendum on independence. The Scottish people have chosen to have that referendum by voting for independence-supporting parties. If that is not the route for the Scottish people to have an independence referendum, what does the hon. Gentleman think their route to choosing a referendum should be?

Toby Perkins Portrait Mr Perkins
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I notice that the hon. Lady has answered my question with a question. My question was a very specific one: how often will we have this referendum? It is not for me to set the terms of a referendum, but I do think that things would be very different if opinion polls showed that the view of the Scottish people had massively changed since 2014. I could not ignore that, because this is a question for the Scottish people.

When the opinion polls turned in 2020, showing more Scottish people in favour of independence, we heard about them all the time. Everyone was always saying, “Oh, the latest polls say this.” Then I thought to myself, “Everyone seems to have gone a bit quiet about the polls. Why aren’t they mentioning them?” I had a little look on my phone. Of the last 19 opinion polls, including the most recent one paid for by the Alba party, only one showed majority support for independence. Of the last 44 opinion polls, only four have shown a majority for independence. If there had clearly been an overwhelming shift in opinion that had not been reflected, things would be different, but there has not. The truth is that opinion polls suggest that we are broadly in a similar place.

It is a shame that the hon. Lady did not respond to my question. If 2014 was not once in a generation, as the people of Scotland were clearly told at the time, when will be? When will enough be enough?

Toby Perkins Portrait Mr Perkins
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Perhaps the hon. Lady would like to answer that.

Deidre Brock Portrait Deidre Brock
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I am grateful for the opportunity to respond to the hon. Gentleman. Will he accept the words of Ciaran Martin, the former constitution director at the Cabinet Office, who prepared the legal documents for the Edinburgh agreement? He said:

“‘Once in a generation’ was not a legal commitment, believe me…It’s just a slogan.”

Toby Perkins Portrait Mr Perkins
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I accept that it was not a legal commitment. I am not suggesting that it was; I am not saying that there is not a legal right for the UK Government to decide that it is time for another referendum. However, we are talking not about the legal right, but about whether there is an electoral argument for another referendum. The question that I have asked three times now, but that no one has been willing to answer, is when the question will be settled. If losing the referendum in 2014 was not enough, let us say that we have another referendum next year: if SNP Members lose that, when will the next be?

Hannah Bardell Portrait Hannah Bardell (Livingston) (SNP)
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I have some breaking news for the hon. Gentleman: democracy is not a one-time event. As we are talking about timescales, I would be interested to know something. If his party were to win the next general election on a manifesto commitment to have a referendum on taking the UK back into the European Union, would it not be within its rights to hold that referendum?

Toby Perkins Portrait Mr Perkins
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That is a great “gotcha”, but my point is that there is a question here: for people in Scotland, when is enough enough? No one has been able to answer that. Let me return to the point that I made a minute ago. If the referendum in 2014 had had a different result, there would not have been a second referendum; that would have been it. The SNP cannot consistently say, “Every time we lose, that is not the end of it, but the one time we win, that is the end of it”, but those are the rules that they want to play to.

None Portrait Several hon. Members rose—
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Toby Perkins Portrait Mr Perkins
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Many of my hon. Friends are waiting to speak, and I want to make sure that they have that opportunity.

I am glad that my hon. Friend the Member for Edinburgh South raised the subject of the SNP’s record on education, because it is a compelling one. For much of my lifetime the Scottish education system has been the envy of us in England, but that is not the case now; in fact, it has gone backwards. It is very noticeable that the SNP seems constantly to want debates about things that are not the responsibility of the Scottish Parliament, but runs away from the subject of its actual record.

The hon. Member for Motherwell and Wishaw (Marion Fellows) suggested that the Scottish people were entitled to money from the UK Government and should not be expected to be grateful, and I entirely agree with her. I recognise that we are in a Union to which we all make contributions. It is the case that more money is spent per head in Scotland than in Chesterfield, as an SNP Member mentioned earlier; it is also the case that Scotland makes contributions to the United Kingdom, to defence through Faslane and through oil receipts, and that there are other respects in which its contribution is significant. That is why I think we are better together. I reject it when people in my constituency say that they resent the fact that Scotland does well out of the UK, and I also reject it when SNP Members suddenly say that they want to isolate oil revenues as if that were the only game in town.

When the people of Scotland voted in that referendum in 2014, they clearly understood that there would be about 60 Scottish MPs in a Parliament of 650. To consistently suggest that somehow this is news to the people of Scotland who voted in that referendum is nonsense. Only once in the last 47 years have people in Chesterfield voted for an MP who was a member of the party represented by the Government. Quite often in their contrary way, they have voted in a different way from the country as a whole. That is how democracy works.

I do think there is a real bit of cakeism among the members of the Scottish National party. The hon. Member for Angus (Dave Doogan) said bairns in Scotland were better off than bairns in Chesterfield and that was all about the Scottish Government, while the hon. Member for Glasgow East (David Linden) said there was a lot of poverty in Scotland and that was the fault of the UK Government. When it is good it is to do with Holyrood and when it is bad it is to do with Westminster, and I do not think that that is either helpful or sensible.

The hon. Member for Perth and North Perthshire (Pete Wishart) posed the question, “Can Scotland be a successful nation?” He refused to define a successful nation, but he told us that every nation that was independent was successful, having signed a motion which said that the UK was failing. It is clear that, in the SNP’s eyes, the UK is failing. Every single country that is independent, in the SNP’s terms, is successful, and we are asked to say whether Scotland would be successful without any description of what that success would look like.

I do not think that those who believe Scotland is better inside the United Kingdom have any less confidence in the people of Scotland, or any less confidence in the contribution of Scotland, the economy of Scotland, the business of Scotland, the geography and geology of Scotland, or the challenges facing Scotland. We recognise all of those just the same, but we also recognise that it is the strengths of Scotland and of the other countries of the United Kingdom that collectively make us as strong as we are.

That is the case that we make, and it cheapens politics for people on the independence side to suggest that they somehow have a greater patriotism than people on this side. I have to say, having watched my hon. Friend the Member for Edinburgh South when Scotland are playing football, that there is no greater Scottish patriot than him—and no more deluded Scottish football fan than him either. People on all sides in Scotland are passionate about Scotland and proud of being Scottish, but many of them also believe that Scotland’s contribution to the United Kingdom and to being part of one of the major nations of the world should continue. I am glad that this debate has taken place and I thank my hon. Friend the Member for Edinburgh South for the compelling case that he has made today. I look forward to listening to the other contributions.

None Portrait Several hon. Members rose—
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