Devolution (Scotland Referendum)

Angus Brendan MacNeil Excerpts

Tuesday 14th October 2014 Commons Chamber

[Mr Hague]

My hon. Friend is right to make that point as Chair of the Procedure Committee. I certainly give him that guarantee.

As my right hon. Friend the Secretary of State for Scotland set out yesterday, it is vital that we unite Scotland within a United Kingdom. The cross-party process being undertaken by Lord Smith of Kelvin is the first step in finding the common ground that will create something that is better and fairer for Scotland and that cements its place in our family of nations.

I want to say at the beginning that we must not only meet the vows that were made to Scotland, but deliver a balanced settlement that is better and fairer for England, Wales and Northern Ireland. That is why, in addition to the cross-party process being undertaken by Lord Smith of Kelvin, the Prime Minister has asked me to chair a Cabinet Committee to look at the devolution—

[Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

Will the right hon. Gentleman give way?

[Mr Hague]

I have not even had a chance to respond to the hon. Member for Moray (Angus Robertson) yet, so I will do that before giving way.

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[Mr Hague]

That is, indeed, one solution that could be adopted. I will come to the alternative solutions in a moment.

Let me finish what I was saying on Scotland. As my right hon. Friend the Secretary of State for Scotland said in his statement, the three main pro-UK parties made a vow that will be delivered whatever the outcome of the election next year and whatever deliberations we have about England. I know that it suits the Scottish National party to pretend that it has already been betrayed somehow, but the proposals for Scotland are not tied to our deliberations on other parts of the United Kingdom in the sense that they are conditional on them. It is right to consider those things together, but there was a vow. The British Government—this Administration and past Administrations—have delivered on devolution commitments in the past and will do so again.

[Mr MacNeil]

rose—

[Mr Hague]

I will give way in one moment.

This Government delivered the Scotland Act 2012 and introduced the Wales Bill that is being debated in the House of Lords. We believe passionately in the United Kingdom. We recognise the benefits that it brings to all its citizens. We will deliver on the commitments that were made to the people of Scotland. I hope that the hon. Gentleman will confirm that the SNP will stop pretending that we are not seeking to deliver on those commitments.

[Mr MacNeil]

I am grateful to the right hon. Gentleman for giving way eventually. If the vow swayed 6% of the Scottish people, it served its narrow political purpose at the time. It was an unconditional vow that became conditional as the hangover set in. Why was the Prime Minister not straight with the Scottish people about the vow before the referendum? Where is the Prime Minister this afternoon?

[Mr Hague]

I assure the hon. Gentleman that the vow is unconditional. I think that I can also speak for the official Opposition on that. It was an unconditional vow from the Leader of the Opposition, the Deputy Prime Minister and the Prime Minister. The Scottish nationalists should stop pretending that people are reneging on the commitment when they are not.

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[Mr Hague]

This debate is about the whole of the United Kingdom after the referendum in Scotland. Within 10 minutes or so I shall conclude my remarks so that others have the—

[Mr MacNeil (Na h-Eileanan an Iar)]

On a point of order, Mr Speaker.

[Mr Speaker]

I hope it is a point of order.

[Mr MacNeil]

The annunciator reads, “Devolution (Scotland Referendum)”, but at the moment we are debating English votes for English laws. Why are we not having a debate about the subject set out on the annunciator?

[Mr Speaker]

I can observe the annunciator just as well as the hon. Gentleman. I simply advise him that the title of the debate is, “Devolution following the Scotland referendum”. The debate is about devolution. Nothing disorderly has happened. The Leader of the House is entirely in order—[Interruption.] No amount of hand gesturing, waving and excessive excitability on the part of the hon. Gentleman will change the fact that the debate is perfectly in order.

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[Sadiq Khan]

I will give way to the Select Committee Chair in a moment. I want to make some progress first.

My Front-Bench colleagues have already announced ambitious plans that will be implemented should Labour form the next Government. My right hon. Friend the Member for Leeds Central (Hilary Benn) has unveiled a new English deal in which the equivalent of £30 billion of spending would be transferred from Whitehall to city and county regions. My noble Friend Lord Adonis has outlined the way in which a future Labour Government will give local areas and city regions more powers over economic growth, transport and skills. There are other examples. In the context of my own brief, justice, I have announced plans to give local authorities more control over youth justice. They are closer to the issues, and the structure of incentives to cut crime and reoffending works much better on that scale.

[Mr MacNeil]

Will the right hon. Gentleman give way?

[Sadiq Khan]

I have been hearing heckling and chattering behind my left shoulder for the last five minutes. The Scottish nationalists are claiming that every sentence I utter is relevant to the points that they wish to make. Let us now see whether that is really the case. I give way to the hon. Member for Na h-Eileanan an Iar (Mr MacNeil).

[Mr MacNeil]

rose—

[Mr Speaker]

Order. Before the hon. Gentleman intervenes, let me remind him that he embarked on an apprenticeship to become a statesman. That apprenticeship still has a considerable distance to travel. I simply appeal to his more public-spirited instincts, and advise him now to assume the posture of a statesman.

[Mr MacNeil]

Thank you, Mr Speaker. Your words of guidance are for ever precious.

The right hon. Gentleman has referred to the Westminster elites. Well, we did see them in Scotland before the “vow”, but we need to ask where they are today. The Conservatives would not tell us where the Prime Minister was; can the right hon. Gentleman tell us where the Leader of the Opposition is this afternoon?

[Sadiq Khan]

All that I can say is, “Was that really worth it?” The hon. Gentleman has been a royal pain for the last 10 minutes.

In London we have a Mayor and an assembly, but we are ambitious to do more. The city still has too little control over its own destiny. Only 7% of all taxes raised from Londoners and London businesses are spent by the different levels of London government, whereas the figure is nearly 50% in New York. Labour has committed itself to devolving significant public service funding and responsibility to London’s government, as well as more fiscal autonomy. All that has added importance given the agreement among the leaders of the three main parties on a further package of devolution for Scotland.

Yesterday, the Secretary of State for Scotland published a Command Paper three weeks early. The Leader of the Opposition, the Prime Minister and the Deputy Prime Minister have made a commitment to strengthening and empowering the Scottish Parliament. The Labour party will take part in the process under the leadership of Lord Smith of Kelvin, in a spirit of partnership and co-operation with the other parties. Every commitment that we have made must be honoured.

We accept that the devolution settlement has also thrown up anomalies in Westminster, and the question of how to ensure that there is an “English voice” in our legislative process is definitely one of them. That is why it is right for us to examine greater powers for English Members of Parliament to scrutinise legislation. However, on many levels and on many occasions, Parliament faces a situation that is similar to the West Lothian question. We have asymmetric devolution, both within the nations and between them. Let us take the London situation. As a London Member of Parliament, I can vote on transport issues in Yorkshire and in other parts of England, yet English MPs, even Yorkshiremen, cannot vote on transport issues in London as they are the responsibility of the Mayor. In a non-federal system such as ours, that is going to happen.

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[Michael Moore (Berwickshire, Roxburgh and Selkirk) (LD)]

We in Scotland have just enjoyed the most amazing democratic moment. It is estimated that 97% of the population registered to take part in the referendum; there was a record turnout of 85%; and for the first time in a major election in the United Kingdom 16 and 17-year-olds participated and—dare I say it—excelled themselves in doing so in the build-up and in the referendum itself. At the conclusion, we have a clear outcome: Scotland has voted to stay in the United Kingdom, which I very much welcome.

However, we would be foolish not to recognise that Scotland and the whole of the United Kingdom have changed in recent times. More than 100 years of debate about ‘home rule’ and independence swirled around the decision we in Scotland took a month ago, but wider issues were in the mix as well. A generation of aggressive globalisation and the whirlwind of the financial crisis have raised questions, too, about how we are governed. In Hawick or Dundee, Alkrington or, indeed, Clacton, people are asking whether the political structures and system of governance are right for them, their family or their community, and for rather a lot of people the answer is a resounding no.

It is clear to me that people in Scotland support devolution and want more of it. There is a lot of talk about the “settled will” of the people of Scotland, but determining what that is depends on one’s perspective.

[Mr MacNeil]

rose—

[Michael Moore]

Paragraph 30 of the Edinburgh agreement—in which I had the privilege to be involved—was clear about respecting the outcome, and I welcome the fact that the Scottish Government have done that and said the right things about the process going forward.

[Mr MacNeil]

rose—

[Michael Moore]

I respect the fact that the hon. Gentleman who is trying to intervene and his colleagues will continue to argue for independence—that is their right and I am sure they will do that with their traditional energy, which they brought to the referendum campaign and have already brought to this afternoon’s debate. Some, of course, seem to wish to challenge the result, and occasionally we might think we had lost the referendum in Scotland and we had voted for independence, but we should not denigrate the spirit of what has gone on and the importance of what we have been involved in for these past few years, and we must make sure we now respond to the democratic will of the Scottish people.

[Mr MacNeil]

I thank the right hon. Gentleman for giving way, and it is good to hear him praise the referendum, in such great contrast to the criticisms of the referendum we often heard at the Dispatch Box two or three years ago. It has turned out to be a very energising event in Scotland. On the vow, the right hon. Gentleman’s party leader signed that vow, but where is his party leader this afternoon? Why are he, the Prime Minister and the Leader of the Opposition not in this Chamber? Why are they not here? They went to Scotland to sign a vow, but they are not here today.

[Michael Moore]

I know that SNP Members are the source of many conspiracy theories, but this is a pretty lame one. I hope the hon. Gentleman will relax a bit and perhaps wait for the chance to advance his own argument. May I take issue with a point he made in his preamble, too? This Parliament respected the victory of the SNP in the Scottish Parliament in 2011. The constitution is very firmly reserved to the Houses of Parliament, yet, recognising the will of the Scottish people in the Scottish elections, we took measures to devolve the power to hold the referendum to Edinburgh—something that was done peacefully and straightforwardly—and, rather than object, obstruct or get in the way of the referendum, we were active and positive participants in it. I shall come to the question of the vow in a moment.

The aspirations of the people of Scotland have been expressed in many different ways over many years. We have seen a cycle of devolution in which people have argued their case and set out their ideas for new powers, followed by a moment in which people came together and found common ground. Those proposals were then put to the people, to determine and implement more powers.

The vow was important. It underlined what had been happening in Scotland for some time. It was not new; people did not suddenly come up with stuff that had not previously been put forward. The commission that my right hon. and learned Friend the Member for North East Fife (Sir Menzies Campbell) led on behalf of the Liberal Democrats in Scotland had looked at this issue and reported in 2012. The findings were updated in 2013. The Strathclyde commission, on behalf of the Conservatives, reported last year. The Labour commission reported earlier this year. The party leaders in Scotland came together to pledge more powers earlier this summer. There has been a clear programme, and a commitment from all the UK parties throughout the referendum campaign to give more powers to the Scottish Parliament.

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[Mr Brown]

It is whether one talks sense in this House that matters.

I believe—I am happy for the Leader of the House to confirm this—that there is a basic truth that this restriction on one group of MPs from voting on central issues such as Budget tax decisions ignores, and that is that we cannot have one United Kingdom if we have two separate classes of Members of Parliament. We cannot have representatives elected by the people who are half-in and half-out of the law-making process. The gospel according to Mark in the New Testament, which was quoted by Abraham Lincoln, says:

“A house divided against itself cannot stand...and a kingdom divided against itself is brought to desolation”.

That is the truth of what the Conservative party is now doing.

This diminished status for Scotland would also have to apply to Wales, which also wants income tax powers. It would possibly apply to Northern Ireland and then—the Leader of the House did not rule this out when asked about it—it would have to apply to London. It would then have to be applied to the House of Lords to create two classes of representation. A Government who one day owed their authority to all Members of the House would the next day owe their authority to just some Members of the House. They cannot be servant to two masters, owing their authority and legitimacy to one set of votes one day by one group of people and another set of votes another day by another group of people.

[Mr MacNeil]

Is the right hon. Gentleman telling this House that he signed up to a vow without knowing the details of it?

[Mr Brown]

I signed up to a vow that I will keep. It was the Prime Minister, on the day after the referendum, who qualified the promise. We would be better off in this House if we had some humility from Members of the Scottish National party, who in their own constituencies found that 55% to 60% voted no and not yes.

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[Sir Oliver Heald]

I would not accept that.

The political parties have now promised even more powers to Scotland on a tight timetable. It is very encouraging that the document that was promised by the end of the month has come out three weeks early and that we seem to be making the sort of progress that we all would have hoped for with the so-called vow.

[Mr MacNeil]

Will the hon. and learned Gentleman give way?

[Sir Oliver Heald]

No, not at the moment.

Devolution for England is not an arcane topic—it is a demand of the people. The same constituents who wrote to me very strongly in favour of the Union and Better Together are also writing to me saying, for example:

“We are very encouraged by David Cameron’s determination to put right the inequalities of the…UK.”

Another constituent says:

“English votes on English affairs has the advantage that it is the simplest and cheapest solution”.

Another says:

“The unfair treatment of England must be rectified.”

Yet another says:

“I am not a…Conservative voter, so this is not a Party political view, but it is about time the English were given some self respect…The Labour Party will not like this but the present situation regarding Scottish MPs voting for English issues cannot continue. What’s sauce for the goose has got to be sauce for the gander.”

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[Iain Stewart (Milton Keynes South) (Con)]

I welcome the opportunity to participate in this important debate. I speak as someone born and raised in Scotland who has spent the majority of his adult life in England and who now represents an English seat and defines himself as British and a Unionist. I am therefore well placed to understand the passion and sentiment on both sides of the border. I wish to put forward some ideas about how to move forward and cement the Union for a new generation.

My first issue, much debated this afternoon, is English votes for English laws. The view that the best answer to the West Lothian question is to stop asking it will no longer do. I genuinely fear for the long-term health of the Union if the English dimension is not addressed—and quickly. We have had endless commissions’ reports on the possible solution; now is the time to take action. Even before the Scottish referendum debate, there was evidence of considerable demand in England for that to take place. The research for the McKay commission found that just 21% of people in England support the current system, and there was majority support for some form of English votes on English laws.

[Mr MacNeil]

Does the hon. Gentleman think that English votes for English laws is enough for England? As we heard from the previous speaker from the north of England, it is important to give meaningful decentralisation to what is a very centralised state to enable a better and more productive economy. Sadly, we could not help the north of England given that Scotland did not gain independence, but if Westminster was prepared to transfer the iron grip, we might see some much needed economic changes in the north of England. Would the hon. Gentleman support steps towards that?

[Iain Stewart]

The hon. Gentleman has tee’d up neatly another section of my speech, so if he bides his time, I will come to that very point.

There are three intellectually coherent answers to the West Lothian question. Two of those—ending the devolution arrangement and voting for Scottish independence—are not on the table. The third option is a federal United Kingdom. Although that is intellectually coherent, I do not believe that it is workable. First, there is no public appetite to elect another tier of politicians, be that a separately elected English Parliament or English regional assemblies. Secondly, England does not divide neatly into regions. Where does my Milton Keynes South constituency lie, for example? Technically, we are part of the south-east, but from our demographic and economic ties, we have more in common with the east of England or the east midlands. Neither would a federation be viable if one of its constituent parts—England, which represents 84% of the population and economy—overwhelmingly dominated the other three parts of the federation.

To address the point raised by the hon. Member for Na h-Eileanan an Iar (Mr MacNeil)—I hope he notes my good pronunciation—there is a debate about further decentralisation within England and within Scotland, but that is a separate point from what happens here in this House. [Interruption.] It is a separate debate. There is, however, the issue of growing English demand for a say in its own affairs.

[Mr MacNeil]

The hon. Gentleman is kind to give way a second time, and I appreciate it. Much of today’s debate has been about this place and the four walls here, but it should not be. It is about the lives and aspirations of people in Easterhouse—[Interruption]—and, indeed, in East Anglia, as well as in places all over Scotland, which had great hopes at the front of the referendum, yet those hopes were damned. Managing things around this Chamber is a big mistake. I urge the hon. Gentleman to think about the good of the people in England outwith this Chamber, not the good of the people of England within it.

[Iain Stewart]

The hon. Gentleman misses my point. I am not saying that that is not an issue, but what happens here is also an issue of fairness for English voters. The two are not mutually exclusive and both have to be addressed. I want to see fairness for English voters—for my constituents, in this place—as well as have a sensible debate about further devolution in England. The local authority in my constituency has already had substantial extra powers. I am all for having a sensible discussion about how that can continue, but that should not distract us from what happens in this place.

We will never have a complete practical answer on English votes on English laws, but we must find the most workable and least disruptive option. I would like to put one proposal on the table. It might be termed the double majority arrangement. Many hon. Members from all parts of the House have asked what happens if we start excluding individual Members from voting on specific matters. Under the double majority arrangement, no Member would be excluded from debating or voting on any issue. However, if the matter applies only to England or only to England and Wales, for the measure to pass it must secure a majority of English Members or English and Welsh Members, as well as a majority of the whole House. That is a practical, sensible arrangement that would not disrupt any of our current arrangements, but that would provide an English shield or protection to ensure that measures in England are not voted for by people for whom England did not vote. I fear that doing nothing would be the most corrosive thing for the Union. That is something that I do not wish to see.

In the short time that I have left, I will turn to the financial element of devolution. I support an extension of the tax powers in Holyrood. I think that Holyrood should be responsible for raising a large share of what it spends. That is good for democracy. I am happy to debate the precise mechanism. However, I make one plea. I support the timetable for agreeing the matters in principle, but devolving tax is a complex and administrative matter. Companies will have to shoulder a lot of the burden. I do not want to see our wealth and job creators saddled with an onerous extra regulatory burden that they are not properly involved in designing. My plea is for them to play an important part in the various commissions that will consider this matter, so that the powers are devolved in a workable way that does not impact on business.

My last point—I cannot do it justice in 40 seconds—is about the Barnett formula. I plead with Members on all sides of the debate to ensure that they understand the Barnett formula properly. It is a much maligned and misunderstood formula. The bigger issue is the totality of the fiscal relationship between Scotland and England, and, indeed, within England and Scotland. We have never had a comprehensive, uncontroversial analysis of public spending and tax receipts in this country. Please can we have that before the debate on Barnett and related matters continues?

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[Mr Andrew Lansley (South Cambridgeshire) (Con)]

Thank you, Madam Deputy Speaker. I will try to be as brief as I can.

I am very pleased to follow the right hon. Member for Belfast North (Mr Dodds). I think many of us on both sides of the House can agree that it was very important to all of us that the people of Scotland voted as they did to support the Union. That did not mean that there should be symmetry across the country and it certainly did not mean that they were voting in any sense to undermine the Union by stages. On the contrary, we can strengthen the Union, be true to the positive vote secured in the Scottish referendum and, at the same time, give people what I know they are looking for in Scotland and elsewhere across the United Kingdom: a sense of greater control and accountability for the decisions made in their name and by their elected representatives.

I want to put on the record that it is absolutely vital that, recognising and welcoming the vote of the people of Scotland, we should deliver on the commitments that were made to them. We will deliver on those commitments, for example, those in the vow. That is not conditional and should be done within the agreed timetable. We should bring those measures forward and ensure that we live up to that.

Part of the vow was the commitment to the ability of the people of Scotland to make their own decisions on the resources and the organisation of the national health service in Scotland. During the course of the referendum debate, I was astonished to hear Nicola Sturgeon, who was my counterpart in Scotland as Scottish Health Minister, talking about how, in the future, there was a risk to the independence of the NHS in Scotland. There never was when she had any conversations with me. Whenever we worked together we did so voluntarily, for example on standardised packaging for tobacco products. I would never hear her countenance the thought that anything that I said should happen in the NHS in England should necessarily happen as a consequence in Scotland. She retreated to the issue of finance. Frankly, with what we are committed to and will bring forward in terms of further devolution of the power to raise and spend one’s own resources, Scotland will have the absolute right to determine the resources and the organisation of the NHS in Scotland.

As a consequence of all that, in this country we have to recognise—I will not go on about it; I do not have time—further fiscal devolution to the local authorities in this country. I do not think for a minute that we are interested, as the hon. Member for Halifax (Mrs Riordan) suggested, in regional government. I agree with her that we are not interested in an English Parliament. I think that the people of England look to the Westminster Parliament to make their laws, but I think they recognise that raising and spending money locally is a good thing. With accountable elected representatives, we can and should make that happen.

[Mr MacNeil]

Does the right hon. Gentleman support full fiscal autonomy for Scotland? That is the logical solution to his argument, not the partial devolution of taxation which, when we take into the account the Barnett formula arrangements, is merely rearranging the deckchairs.

[Mr Lansley]

We are committed to retaining the Barnett formula. There will be an extension of the ability to raise and spend one’s own resources, not full fiscal autonomy. That has to be an outcome determined by the Smith commission—to see to what extent this can happen—but it seems to me that it is right. As the right hon. Member for Belfast North made perfectly clear, the outcome in each of the countries of the UK will look different because our devolution settlement is asymmetrical.

If there is not an English Parliament or fiscal devolution, a further question arises. Can we have English votes for English taxes? I might not agree with all my colleagues on this point, but I thought that the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown) raised an Aunt Sally and attacked it. There is not a Conservative proposal for English votes on income taxes. I do not think the analogy holds between devolution on income tax in the other countries of the UK and England. For example, Scotland has a Scottish Government with a Scottish Budget accountable to a Scottish Parliament, and it can determine Scottish income tax in that structure of decision making and accountability. We do not have an English Government, an English Parliament or an English Budget; we have a UK Budget, and to support a UK budget we must have UK taxation. We cannot contemplate the separation of English income tax, although we can devolve some taxes inside England, especially to local authorities and city regions.

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[Gregg McClymont (Cumbernauld, Kilsyth and Kirkintilloch East) (Lab)]

It is several hours since the right hon. Member for Berwickshire, Roxburgh and Selkirk (Michael Moore) made his contribution, as an appointee to the Smith commission. As the other Member sitting on the Smith commission, I shall try, in much less time, to make some observations about this process.

As we have heard, some are already attempting to rewrite the history of the referendum. The First Minister said the referendum would decide the issue for a generation, but we now see more clearly by the day that in his mind, and the mind of his colleagues, a generation is not a long time.

[Mr MacNeil]

Will the hon. Gentleman give way?

[Gregg McClymont]

I want to develop my argument.

On 18 September, the Scottish people said yes; they said yes to the continuation of the economic, social and political sharing that constitutes the UK; yes to the continued, undiluted, equal and fair voice that Scotland currently enjoys inside the UK; and yes to further devolution inside the UK, building on the 1999 settlement and the Scotland Act 2012. The task before us in the House, and before the Smith commission, is to take that sovereign and settled will of the Scottish people forward: to sustain that political, economic and social partnership, at the same time as devolving power where it makes sense to do so. It is a clear task, but not a simple one. Clarity, of course, does not necessarily mean simplicity.

It has been very evident today that there is a strong feeling among Government Members that England’s voice must be heard. I hear the sincerity of their view, and I have no doubt that it represents letters, e-mails and phone calls that Government Members are receiving, but I ask them to consider this. I think that the United Kingdom has been a great success over the past 300 years, making all four of its countries prosperous, stable and secure, and often serving as a beacon to the rest of the world. That success, or at least a central part of it, has been based on England’s tolerance of the desires—I will put it more strongly than that: the needs—of the much smaller Celtic nations of this Union. That tolerance has been acknowledged—

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[Julie Elliott]

I could not agree more, and I am going to talk about some of the practicalities we face.

The hon. Member for Gosport (Caroline Dinenage) said she gets letters every day of every week about the question of English votes for English laws. If I have had five in my entire time as a Member of Parliament, that is all I have had, so I think there is a north-south issue here. This is not an issue for the north of England. It never comes up on the doorstep in my constituency and in those around it that I campaign in.

We must look at what has come out of the Scottish referendum in terms of the impact it will have on England and the regions—and it undoubtedly does have an impact. The current situation is unfair and that needs to be addressed, but we need practical solutions to the problems we face. This is not about tearing up the constitution. Only a tiny number of parliamentary votes would be affected by having English votes for English laws, and working out which ones should be and which ones should not would be very complex, but that simply is not the issue; the issue is getting the right redistribution of money to the regions of our country that really need it. We do not need extra bureaucracy, which in my view would break up the Union, or be a step towards that. If we were to go down that path, it would be disastrous for our communities.

We need a system that works and that has the support of our communities and of the people of the United Kingdom, not a quick fix, which is what the Prime Minister came out with in his announcement at 7 o’clock on the morning after the referendum. I was one of those people who spent the whole night watching the results, having travelled back from Scotland the night before, and I was astonished because what he said came from nowhere. It had not been on any agenda I had seen. It had not been discussed anywhere. To be honest, I do not think he grasped the real issue.

[Mr MacNeil]

Will the hon. Lady give way?

[Julie Elliott]

No, I will not give way.

This debate is a result of the Scottish referendum. Whereas I totally support the implementation of what was promised to the Scottish people, we need to look for practical political solutions that deal with the real issues for England and the other parts of the United Kingdom and address the real inequalities. They need addressing and they need addressing now.

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[Mr Syms]

Yes, I certainly think that that is the case, but we must consider the situation north of the border. There is no appetite for regional government in the United Kingdom, but there is an appetite for showing local government more respect, giving it more responsibility and passing it more money. From my experience in local government and in Westminster, I can say that local government is much better at controlling money and decisions than we are here. The country would probably be better governed if we had more confidence in some of our local authorities.

[Mr MacNeil]

I am quite impressed that the hon. Gentleman has allowed logic to overcome his earlier beliefs against independence. He should be genuinely congratulated on that. He has looked at the situation and taken his views further. Is not the next logical step, and the first stepping stone to reducing the tension he has mentioned, full fiscal autonomy for Scotland?

[Mr Syms]

There are of course issues relating to the fact that we are interdependent within the economy. There are firms operating in both places. My hon. Friend the Member for Milton Keynes South (Iain Stewart) made a strong point about burdens on business, but I think that substantial fiscal powers and tax-raising powers should be moved to the Scottish Parliament. Ultimately, that would reduce tensions and effectively make MPs more responsive to their electorate as they would see what they were doing well and what they were doing badly. At the moment, the debate is very much between Edinburgh and Westminster, and that would be the case whoever were in Government. However, the tensions would be higher when there was a right of centre Government at Westminster and a left of centre Government in Holyrood.

On the matter of English votes, I have been very surprised over the past 15 years that the English have not been in revolt and have not been too upset over what is manifestly an unsatisfactory settlement. However, as we see further powers going to the Scottish Parliament and the manifest unfairnesses in this Chamber, people will start to ask very serious questions. It is better that we answer those questions now than let things build up and start creating greater tension. I am not sure whether English votes is the right solution or not, as it is messy, but I certainly think that we need to start the process of looking at how we govern ourselves and how we are fair to England.

It is a fact that if England has 84% of the population, it is going to dominate. That is what happened before Scotland joined the Union. Effectively, England was the elephant next door. The benefit of the United Kingdom was that the other countries had a disproportionate say within the United Kingdom Parliament, which worked very well. That changed in the 1990s, and once it changed the dynamics of the Union changed. We have to be fair to the 84% of people who are in England and I hope that we can reach a solution in which we can live as a happy family, and perhaps a more diverse family. The reality is that the logic of devolution is to give people more fiscal power and let them take that responsibility. The logic of the devolution settlement in the 1990s in Wales and later in Northern Ireland and Scotland is that there is an issue to be addressed and if we do not reverse the situation we will all get very raggy and angry because people will manifestly think that they are being unfairly treated.

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[Mr Reid]

The hon. Gentleman makes an important point, but that is why I believe that Scotland should remain part of the United Kingdom. That gives us security not only in defence terms, but in financial terms. Although the Scottish Parliament should have more tax powers, we still need to be part of the United Kingdom for that security. Later in my speech I will outline which taxes I think are suitable for devolving and which I think should remain at the United Kingdom level.

The referendum saw levels of engagement and enthusiasm for politics never seen before. Now that the will of the Scottish people is known, everybody should accept the outcome and harness all that energy and enthusiasm to work together to build a strong, democratic Scotland within the United Kingdom. We want to harness that enthusiasm so that we can see much more participation in our democracy and much more consultation with people, working with them and devolving powers to a local level.

[Mr MacNeil]

The hon. Gentleman talks of a strong, democratic Scotland. Does he not feel that full fiscal autonomy would deliver that strong Scotland?

[Mr Reid]

I do not think the hon. Gentleman was listening to my reply to the hon. Member for East Antrim (Sammy Wilson) when I said that devolving all tax-raising powers was not the right solution. I will deal with that later when I talk about the taxes that are suitable for devolving and those that are best left at United Kingdom level.

Following the decisive vote in the referendum to stay within the United Kingdom, the Government moved quickly to set up the Smith commission, to convene cross-party talks and an engagement process across Scotland. It is vital that that process delivers significant new powers to the Scottish Parliament within the promised time scale, and I am confident that it will. I am sure that in the coming years we will see further progress on constitutional change for the other nations and regions of the United Kingdom, but further powers for the Scottish Parliament must not be held up while those debates take place in those other nations and regions.

The Scottish Parliament already has a significant range of powers to spend money on delivering public services, but powers are lacking on the other side of the equation—raising money through taxation. That has created a democratic deficit. The Scottish Government heap praise on themselves for the things they choose to spend money on and then blame the United Kingdom for the things they choose not to spend money on. Significant tax-varying powers are necessary so that in future we can have a proper democratic debate on how much to raise through taxes and how much to spend on public services. The Scottish Parliament must be given tax levers enabling it to raise the greater part of its own spending. Taxes on income, wealth and property can suitably be devolved. As well as raising money to spend on public services, these are powerful tools to address inequality in Scotland.

Representing a coastal and island constituency, I believe that devolving the Crown estate, with its control over the foreshore and seabed, is of vital importance. That is one of many areas where devolution must not stop at Holyrood; it must be devolved to a local level within Scotland. I am sure that my right hon. Friend the Secretary of State agrees with that.

On welfare and pensions, there should be a single Britain-wide system of entitlements, supporting free movement and residency across Britain with a common set of living standards and entitlements. However, on top of that common set of entitlements, there should be a power for the Scottish Parliament to top up such benefits. Earlier this afternoon, I served on a Delegated Legislation Committee that devolved power over discretionary housing payments. That is a step in the right direction. The power to top up minimum entitlements should be devolved to the Scottish Parliament for all benefits.

While devolving these powers, it is important to help business by keeping the United Kingdom’s single market and unified system of business regulation. It would not make sense to devolve taxes on spending such as VAT, alcohol and tobacco duties, and business taxation. Corporation tax, for example, is best dealt with at United Kingdom level. If it were devolved, one part of the United Kingdom would cut it, and that would lead to a race to the bottom, with business not paying its fair share of taxes and public spending having to be cut. Issues such as foreign affairs, the currency and defence are also obviously best managed at UK level.

These are exciting times. I have no doubt that significant new powers will be passed to the Scottish Parliament within the promised timetable. The long-held Liberal belief in home rule for Scotland within the United Kingdom is close to being realised.

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[Andrew Percy (Brigg and Goole) (Con)]

I apologise, Mr Deputy Speaker, for being away from the Chamber for a period this afternoon due to Committee commitments, but I have followed the debate with interest. Like so many who have spoken, I was delighted with the result in Scotland and I support everything that has been said about ensuring that the vow is made good. The promise must be kept.

It is interesting to follow the right hon. Member for Southampton, Itchen (Mr Denham). I agree with him in many ways, but his argument for a constitutional convention falls down when we realise that he is a member of a party that now supports—as we all do, in fact—mass devolution of powers to Scotland without any consultation with the rest of the United Kingdom or a constitutional convention. We are told that the powers must be delivered swiftly to ensure that the vow is kept, so I am afraid that that is where the right hon. Gentleman’s argument falls down. If we are going to look at this and to have a constitutional convention, it should cover the whole way in which the United Kingdom is governed.

As an English MP who is proud to be an Englishman and as a Yorkshireman to boot, the only conclusion I can come to is that the Labour party’s attempt to complicate and muddy the waters is in order to maintain a political and electoral advantage over England. I can think of no other reason for it. We have heard how terribly complicated it is to devolve powers to England: “This situation is terribly difficult, but we must get on and deliver mass devolution to Scotland very quickly.” It was not quite so complicated or difficult when we agreed devolution to Scotland, Wales or Northern Ireland, but when it comes to England it seems so terribly complicated. My fear and that of many of my constituents is that this is a deliberate attempt to kick into the long grass a decision about the government of England on a question that I and my constituents know will never be answered.

[Mr MacNeil]

I just want to make it clear that all we are talking about devolving to Scotland are Scotland’s powers, which are those powers pertaining to Scotland that are currently dealt with at Westminster. The current talk about devolution is merely about returning those powers to Scotland. It is nothing more complicated than that.

[Andrew Percy]

It is a devolution of powers that will massively change the relationship between England and Scotland, and between this House and Scotland, so it is a major devolution. I want to share the views of my constituents.

--- Later in debate ---

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

Westminster is a broken system. Essentially, we have three parties that have morphed into one as a result of decades of political triangulation. As The Independent reported over the weekend, tracing paper cannot be put between them.

In England, the response has been increasing support for an insurgent political party, which ironically offers more Westminster, more privatisation, more austerity and more neo-liberalism. In Wales and Scotland, people are increasingly aware that the way to secure a different political direction is not to change the colour of the Government down here in London, but to empower their own national democratic political institutions.

Despite my scepticism, I believe that some progress will be made over new powers for Scotland, although it is quite apparent from today’s debate that there is no joint vision by the Unionist parties, despite the manner in which the vow was presented to the people of Scotland on the eve of the referendum.

[Mr MacNeil]

Does my hon. Friend agree that the difference in the strength of the current Welsh Assembly and Scottish Parliament—and indeed the powers promised to Wales and those promised to Scotland—correlates exactly with the strength of the SNP and, unfortunately, with the strength of Plaid Cymru, although it is increasing in Wales at present?

[Jonathan Edwards]

I am grateful for that intervention, and it is a point that I am sure we will make quite clear when it comes to the general election.

I think we can be sure that the new powers for Scotland will fall far shorter than the promised devolution max. That will be a huge disappointment to the 1.6 million people who voted yes, and especially to the hundreds of thousands—if the polls are to believed—who changed their minds at the last minute. In Wales, the growth in the political confidence of the Welsh people continues at breakneck speed. An ICM poll within days of the result in Scotland indicated that the people of my country want far greater political control over their lives. In spring, during the proceedings of the Wales Bill, I warned the UK Government that it would be superseded by events in Scotland— and that is indeed the case.

In the immediate aftermath of the Scottish result, the First Minister of Wales called for home rule all round, although I strongly suspect that his version of home rule is far less ambitious than mine. When asked what powers he wanted, he could come up only with a reserved powers model for our National Assembly. That, although important, is hardly the sort of stuff to get excited about and it is a million miles away from what most people would see as genuine home rule.

In contrast, Plaid Cymru published last month a detailed position paper entitled “Bring our Government Home: Proposals for empowering Wales”. The paper called for the current Wales Bill to include all the recommendations of the Silk commission, rather than the cherry-picking we saw from the UK Government, and, crucially, for a second Wales Bill to mirror the powers that will be made available to Scotland. We have labelled this second Bill a balancing bill, to end the practice of Wales playing catch-up with Scotland.

We are also calling for a radical overhaul of the discredited Barnett formula, which has ill-served my country. This needs to be coupled with increased fiscal powers for the National Assembly—beyond the current Wales Bill. If Scotland is to get 100% income tax powers as recommended by the Tory Strathclyde commission, Wales should have the same powers. Plaid Cymru’s ambition is to improve the Welsh economy so that we can stand on our own two feet as a country. This will not be achieved for as long as we are dependent upon fiscal transfers from London, whereby Welsh taxes are collected by the Treasury and a share is sent back to fund Welsh public services.

--- Later in debate ---

[Mr William Bain (Glasgow North East) (Lab)]

For the past two and a half years, the people of Scotland have been engaged in record numbers in the most existential of debates on where power should lie within a state and in whose interests that power is wielded. In the wake of the referendum outcome, it is right that people in the rest of the United Kingdom should join that discussion. Let me add to the thanks to the record numbers of people in Scotland who voted, debated, campaigned and contributed to a life-changing democratic process for all of us.

I said in this House several months ago that once the heat of the referendum campaign had cooled, the hand of friendship would be extended to those who love Scotland equally, but who believe in a different constitutional path for our country. I echo that call today. We go forward as one people, not as two tribes harbouring grievances and ill will against each other. Now that the sovereign will of the Scottish people has been expressed and we have chosen to build a future together with the peoples of the other three nations in the United Kingdom, we are all bound to make good on the consequences of the vote and to deliver quickly on the agreed timetable for the fiscal and social security powers that will deliver real change in Scotland and reform the governance of these islands for good.

Although I welcome the decisive nature of the referendum result across Scotland, there are clearly fences to be mended in Glasgow, West Dunbartonshire, North Lanarkshire and Dundee for those of us who have supported devolution all our lives. We all have to work harder to listen to, understand and act upon the strong cry for change that Glasgow’s voters expressed—a contempt for establishment power, a desire to abolish poverty and the urge for a more responsive politics. That is why I strongly support the establishment of a constitutional convention for peoples across the United Kingdom to examine how we can extend devolution to the cities, towns and villages of England, and how devolution can be extended down from the Scottish Parliament and the Welsh Assembly into the local authority areas of Scotland and Wales.

We also need to look at how we establish arrangements for a written constitution for the United Kingdom. During the referendum process, I have become increasingly convinced that 16th or 17th-century constitutional arrangements are no longer satisfactory for our 21st-century country. I hope we have a written constitution that reflects that modern approach.

[Mr MacNeil]

Does the hon. Gentleman agree that the powers of the Crown Estate should be transferred from the UK Parliament to the relevant island authorities?

[Mr Bain]

If that proposal is in the submission to the Smith commission, other colleagues and I will look at it. I am pleased that the hon. Gentleman is finally endorsing Scottish Affairs Committee recommendations. We truly are making progress in the debate.

I hope that the written constitution will enshrine the principle that sovereignty comes from the people, not one single political institution, that power is shared between institutions, and that the devolved institutions are a permanent, irreversible part of our constitutional landscape. Power coming from the people and power given back to the people, and Government no longer hoarding power but giving it to cities, towns and communities, should be the guiding principles of a new constitutional settlement. From the crisis of trust in politics can come the birth of new hope. Let us seize this moment and, with the great peoples across this island, revitalise our democracy for good.