European Union (Notification of Withdrawal) Bill
Debate between Angus Brendan MacNeil and Edward Leigh(7 years, 2 months ago)
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Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)
Will the hon. Gentleman give way?
Sir Edward Leigh
Of course I will give way to my friend, the Chair of the International Trade Committee.
Mr MacNeil
My friend talks about opportunities for globalisation through Brexit, but for globalisation to occur, somebody needs to reciprocate. Who will be the major reciprocators of the change of attitude that has emerged in the UK in the past six to eight months?
Sir Edward Leigh
I accept that there will be trials along the way, but what is the harm in trying to lead by example? What is the harm of believing in true internationalism and international free trade, and leading the world in it? That is all we are asking.
A free trade deal can be concluded so quickly. We have harmonised our laws for 40 years. It is only politics that prevents our European friends from concluding a free trade deal with us. I say to the right hon. Member for Doncaster Central, in all sincerity, that we do not want to create a bargain basement economy in which we lessen workers’ rights. On the contrary, such is the strength of our economy, innovation and industries that surely we can enshrine a gold standard protecting our workers as well as our fields, forest, rivers and seas. There is nothing, apart from politics, to stop our European friends rapidly sorting out a free trade deal in goods and services. There has never been so easy a free trade deal.
I appeal to my French cousins—not figurative ones, but literal ones—living in Provence and Paris. We want to strengthen our links, not dissolve them, in an amity of nations. On the way, we have to ensure that we enshrine security, control of borders and all those things but, for the positive and international reasons I have given, many Members of Parliament will be proud to vote for this tomorrow evening.
Scotland Bill
Debate between Angus Brendan MacNeil and Edward Leigh(8 years, 10 months ago)
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Sir Edward Leigh (Gainsborough) (Con)
I should like to speak to new clause 55. The explanatory statement tells us:
“This new Clause would remove from the list of reserved matters in the 1998 Act (and so transfer to the Scottish Parliament) all social security schemes, including National Insurance and housing benefit, as well as child support, occupational and personal pensions and war pensions.”
These are complex matters, as I said yesterday, and I have tabled this probing amendment to elicit from those on the Government Front Bench their thoughts on this vital matter.
I shall start by making a controversial statement. I believe that, by dribbling out powers—that is not my own phrase, but one given to me by one of my Scottish friends; I still have one or two left—we are giving the Scottish National party a crowbar with which to blast the Union apart. This Parliament is giving the SNP just enough purchase on that crowbar by giving it just enough powers to feed a sense of grievance. If we were to give the Scottish Parliament full responsibility for social security, it would be difficult for it to feed on that grievance. It would have to be a responsible Parliament and take responsible decisions, and I am confident that it would do so.
My amendment would place all social security within Scotland, including pensions, in the hands of the Scottish Parliament. Scotland has a more ageing population than the UK as a whole, and immigration there is much lower—I never understand why, but apparently it is—so Scotland will need a needs-based formula to protect the pensions of Scottish people. That is precisely the argument I have been using in these debates. A needs-based formula that buttressed a Scottish Parliament with full fiscal autonomy would sustain the Union. I would therefore replace the Barnett formula with such a needs-based formula to protect the pensions of Scotland’s ageing population. That is where I am coming from.
We are not very far into this Parliament, yet already I feel that I might be wearying my colleagues by making the same point over and again. However, it is an important point to make. There are not a huge number of my colleagues present in the Chamber today, but I recall from reading my history books that during the debates on what was to become the Government of India Act 1935, the House of Commons debated the Bill day after day. In those debates, people such as Brendan Bracken, Harold Macmillan and Winston Churchill made the point over and again that dribbling out powers to India would destroy the connection between India and the United Kingdom. Very few people listened to them. I do not claim to be in the same league as them, but I believe that this debate is extremely important. It is important to understand that we could destroy the Union by not getting this right, and we must debate that contention.
Mr MacNeil
It is interesting to hear the hon. Gentleman talk about the angst over the connection with India that was palpable in the Chamber during those debates. Does he agree that the angst—admittedly, there is not much on the Labour and Tory Benches today, given how few of their Members are here—that will be created by the Government’s voting against the wishes of the 95% of Scottish MPs who want to achieve x, y and z in the Scotland Bill will go away some day, when the powers go out from this place? At that time, English Members will need to worry only about matters that relate to England, rather than about those that relate to Scotland.
Sir Edward Leigh
I think we have to act responsibly and to remember that, unfortunately, only three Unionist MPs are left in Scotland. The SNP has won a notable victory in Scotland and needs to be listened to—we do not always have to agree, but we have to listen. Ultimately, I am as passionate a Unionist as anybody on these Benches, but I believe that there is a better route to maintaining the Union. If we dribble out these powers, we are making a grave mistake.
Let me deal with the point that if we have a single currency system we must have a common welfare system. That is a perfectly respectable point and I completely understand it. It was made by my hon. Friend the Member for North East Somerset (Mr Rees-Mogg) in the debates two weeks ago and has been made extremely well by my right hon. Friend the Member for Wokingham (John Redwood). I understand where they are coming from, and we are all very much aware of the Greek situation, but I would argue that the comparison is misplaced: the difference between Germany and Greece is infinitely greater than that between England and Scotland. In the United States, full fiscal autonomy for the states works because there is a common English language and full mobility of labour. When there are disparities in wealth, labour moves around the United States in a very vigorous way that is difficult to achieve in the European Union.
The comparison of Scotland and England with the Netherlands and Germany is much more apposite. We have a common language, a common border and very similar systems, albeit separate legal systems—although they are based on many of the same traditions. Members can understand the point that I am making. Of course, if the Scottish Parliament was to act completely irresponsibly and take control of its social security and just spend, spend, spend, the thing would break apart; I agree that the currency union would become unsustainable. But surely as parliamentarians, with confidence in our own Parliament and elected representatives, we should have the same confidence in our fellow countrymen and ladies who will be running the Scottish Parliament. I personally believe that if we gave them full responsibility, they would have to act responsibly if they wished to be re-elected.
Scotland Bill
Debate between Angus Brendan MacNeil and Edward Leigh(8 years, 10 months ago)
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Sir Edward Leigh (Gainsborough) (Con)
New clause 3, which stands in my name, would deliver full fiscal autonomy, real home rule and a Scottish Parliament in control of everything save defence and foreign affairs. I am only a Back Bencher and I do not have the assistance of Government officials, so if the new clause is defective in technical detail, I apologise. If it were voted for tonight, however, it would establish a clear principle and a way forward.
The contention is clear: the new clause would deliver full fiscal autonomy. The Scottish Parliament would have full freedom to raise all taxes as it liked. It would not be restricted to fiddling around with bands; it would control all thresholds and all VAT dividends, and it would have full freedom to spend that money as it liked. That is what real Parliaments do, and that is why they are responsible.
The Scottish Parliament is constructed in a manner that is inherently conducive to the culture of grievance, and that would still be true even if the Smith commission proposals were adopted. The Scottish Parliament will raise only 50% of what it spends. Worse, under the 30-year-old, discredited Barnett formula, which even its conceiver condemned towards the end of his life, Scotland’s block grant will be based not on needs but on English levels of spending. No matter which tartan is chosen to clad the Scottish purse, the purse strings will still be controlled by England. That, I believe, has to change.
Following reports by the Office for Budget Responsibility and the Institute for Fiscal Studies, it has been said that Scotland faces a £7 billion black hole. Presumably, however, the SNP wanted independence in the next year. We cannot have an independent Parliament that does not have full fiscal autonomy, so let us have a real, informed debate about the figures.
Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)
When the hon. Gentleman uses the term black hole, does he mean a deficit? When people talk about the UK’s deficit, they say “deficit”. When they talk about Scotland’s deficit, they say “black hole”. Why the use of pejorative language?
Sir Edward Leigh
It can be referred to as a deficit. We have listened to the Institute for Fiscal Studies and the Office for Budget Responsibility, so now let us have an informed debate.
I want to make it clear, by the way, that I am not in favour of cutting Scotland loose. I am in favour of United Kingdom solidarity, and I am in favour of a new grant mechanism, if the need for one is proven. My aim is not to trap the SNP, call its bluff or reveal its timidity. I genuinely want to give the Scots what they want: the freedom to run their own affairs and not to blame others if things go wrong, but all within the buttresses and safety of the United Kingdom. I am a fervent Unionist.
Sir Edward Leigh
My personal view, for what it is worth, is that if we are to create a sustainable Union we must, in effect, create full fiscal autonomy for Northern Ireland, for Wales, for Scotland and, ultimately, for England. This almost imperial Parliament would remain determining the support mechanisms to ensure safety. So, yes, in that sense I am a federalist.
Barnett is a gift to those who want to break up the Union. It is also incredibly expensive for the English, with £1,680 more a year spending per head in Scotland than in England because Scottish spending is inextricably linked to English spending. When that is cut, SNP Members quite understandably—I do not blame them for this; they are good politicians—can cry foul, as they did last week, and say, “The Scots people didn’t vote for austerity but it’s being imposed on us.” They can vote on every education and health measure, and say, “What you spend in England on health and education is going to determine what we spend.” We then get a crazy situation whereby if some taxes in Scotland are raised the grant will go down. This simply does not work. It is not a recipe for preserving the Union or for a sustainable future.
Mr MacNeil
The hon. Gentleman mentions the Barnett figures. He will of course point out, for completeness, that Barnett is only about two thirds of total spending. For further completeness, he will also point out, I am sure, that the Barnett figures for London and Northern Ireland are higher than those for Scotland.
Sir Edward Leigh
I do not want to get into a sterile debate about whether London subsidises Scotland or vice versa; I simply want to be fair and open. I am happy for Scotland to have all its oil. It can determine its oil policy and its level of taxation, and as the oil revenues decline, if they do decline, I am happy for the United Kingdom Government to step in and increase its grant.
Sir Edward Leigh
I hear what the hon. Gentleman says and nobody is suggesting that, even if my new clause 3 were passed tonight, full fiscal autonomy would start immediately. Of course there has to be a discussion and, inevitably, if oil revenues are declining, there has to be some sort of support mechanism from the United Kingdom Government. I say to SNP Members that they can have this new clause. Parliament is a democratic Assembly. I do not want to overplay my importance—I suspect the Whips might ensure that my new clause is defeated—but this is an historic opportunity to give full home rule to, and to establish that principle for, Scotland, which is what the Scottish people want.
Sir Edward Leigh
The hon. Gentleman is now going to tell the Committee that he supports my new clause.
Mr MacNeil
We seem to be very happy with the hon. Gentleman’s new clause at the moment, but he talks about support mechanisms as though they are unique to Scotland. Will he concede that the UK has itself been reliant on support mechanisms since 2001 and that it has not raised the taxes to match its expenditure since then?
Sir Edward Leigh
I am afraid we are getting into the historic arguments of who is to blame: is it the UK Government? The Scottish Government face a fundamental problem, in that spending is 20% higher but tax revenues are, inevitably, lower. That is a fundamental problem that SNP Members have to—[Interruption.] Well, I have lost them there—fair enough.
We can have that debate, but let us not get too bogged down on that. They want independence; they can have it—[Interruption]—full fiscal autonomy.
The fact is that the SNP’s capture of all but three of the Scottish seats is an even greater victory than Sinn Féin’s in Ireland in the 1918 general election. Then the Unionists managed to secure 22 of the 105 Irish seats. We have to listen: this is actually a very serious issue.
Recall of MPs Bill
Debate between Angus Brendan MacNeil and Edward Leigh(9 years, 6 months ago)
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Mr MacNeil
What I think the hon. Gentleman has been describing over a period of centuries has been the evolution of politics and the evolution of democracy right on to the granting of universal suffrage. I would argue that what the hon. Member for Richmond Park (Zac Goldsmith) is suggesting and wants us to move towards is the next extension in that evolution of democracy that started those 300 or 400 years ago.
Sir Edward Leigh
I know that that is what my hon. Friend the Member for Richmond Park argues and I know that the new hon. Member for Clacton (Douglas Carswell) argues the same—that this place is somehow increasingly irrelevant, part of a Westminster political class or an elite and that we need rather to transfer power into some sort of referendum-based democracy. This, however, is a sort of Poujadist argument, and if we look at history, we find that it has often led to tyranny. Dare I say it, some insurrections that have come from the right—I shall not mention any political party that has been in the news recently—often result in stirring up a feeling in the country that things are really appalling. Then a particular group of people can be picked on—it may be Poles now, it might have been Jews in the last century and might have been Catholics in the 17th century—and popular opinion can be whipped up, followed by an attack on the so-called establishment or on particular MPs for what they are saying.
There is a lot of wisdom in this place. We are a parliamentary democracy; we discuss things among ourselves. That is not an elitist thing to say. We are having a good debate now, and we have heard wonderful speeches from the hon. Member for Swansea West (Geraint Davies), who argued for one point of view, and from the hon. Member for North Durham (Mr Jones), who has argued from a different point of view. We have heard different speeches from my hon. Friends the Members for Mid Bedfordshire and for Richmond Park. We will hear other speeches from the Minister, who might offer us a half-way case. We are discussing the issues in a rational and popular way, but we know that nothing we say here, no vote that we cast and no speech we make can ever be held against us until that awesome day—general election day—arrives, when we are exactly the same as anybody else.
We are not talking about any particular group who can spend vast sums of money—the hon. Member for North Durham reminded us again and again of what happens in the United States—to attack us on a particular issue and try to get rid of us on that basis. We stand with 650 other people. We are equal and the people vote us in or out on the basis of a broad range of policies.
I know that the Government will say that my amendment is not necessary, because it will involve the procedures of the Privileges Committee and all the rest of it. I think, however, that my amendment probably is necessary in this sense. I am grateful to the Minister for saying that he would look on it with a kindly light. We live in a very judgmental age. We have had instances with the hon. Member for Bradford West (George Galloway), who as usual is not in his place. He comes here and rants and says the most outrageous things. We have had cases in the past involving Tam Dalyell, that wonderful man, and Ian Paisley, that equally wonderful man. They were expelled from Parliament.
The hon. Member for Hayes and Harlington (John McDonnell) mentioned one of my own colleagues saying something in the Chamber that was frankly racist. If he had said it outside the House, he might have been taken to court. I do not want to use a cliché, but, although what he said may have been completely wrong, I, like Voltaire, may disagree with or hate what he said, but respect his freedom to say it in this place. If you cannot speak your mind here, knowing that you cannot be held to account, where else in our kingdom can you speak your mind?
What my hon. Friend the Member for Richmond Park is doing is fundamentally very dangerous indeed. It goes against centuries of our history. Is our history so very wrong? Have we not ensured that our country is the only country in Europe that has never been a police state, and has never had a police state imposed on it? Has not the House of Commons, through all those centuries, guarded by these privileges, protected fundamental freedoms? Is that not something to be proud of? For those reasons, I—along with Members in all parts of the House—will vote against my hon. Friend’s amendment. Freedom of speech—allowing Members of Parliament total freedom of expression, with a very few traditional exceptions, such as insulting the sovereign—has always been defended by Parliament.
Sir Edward Leigh
If the hon. Gentleman wants to insult the sovereign, I personally am perfectly happy with that. I do not think that he should be recalled by a group of MPs for insulting the sovereign, or for anything else.
Sir Edward Leigh
All right, I will give way, just to please the hon. Gentleman.
Mr MacNeil
I am listening to what is quite an egalitarian speech. I am a monarchist myself, but I do not like the idea of separating one person from another in this context. The hon. Gentleman himself referred to the monarch coming into the Chamber. I think that the strand of history that we are talking about has featured the elites giving way when they have had to give way, and that is happening again now. The elites are giving way, or they should be giving way.
Sir Edward Leigh
The myth that is being propagated by some Members—not least by the new hon. Member for Clacton, whom I respect in many ways—is that we are an elite. We are not an elite. We have all been elected by people, and we can all be unelected by people.
We in the House of Commons must be prepared to be proud of what we have achieved. We must acknowledge all the appalling errors that we have made over Members’ expenses and a number of other issues; no doubt we have been found wanting in many respects; we are only human beings, and all the rest of it. But the argument that there is a better form of democracy—that some kind of participatory democracy based on referendums and people getting together and collecting petitions is more democratic than debate in this House—is fundamentally flawed. I realise that that may be an unfashionable opinion.
Cost of Living
Debate between Angus Brendan MacNeil and Edward Leigh(11 years, 11 months ago)
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Mr Leigh
I am talking about total taxation, which is the important thing to understand. I know that it is difficult to compare countries. For instance, we often talk about Italy being a basket case in terms of Government borrowing, but private borrowing is very low in Italy. We have to address this problem by considering the total taxation of all output, because that is what is of interest to efficiency and an efficient Government.
As I was saying, big government is accompanied by big waste. I am sure that many hon. Members were shocked, as I was, by a National Audit Office report in January—or rather by a report of reports; I am sure that everybody in this House avidly reads what the NAO says every week. This report was published in January, so it was not an attack on the previous Labour Government; it relates to now and the situation this minute. It is about this apparently hard-hitting, right-wing Government who are cutting left, right and centre, and persecuting the people—that is the charge against the Government; I would not say anything like that, of course. The report suggests that there is waste, at the moment, of more than £31 billion across government. Hon. Members may recall that Philip Green carried out an efficiency review, after which he said:
“You could not be in business if you operated like this. It would be impossible.”
His review identified, among other things, £700 million in saving on the Government telephone bill alone. In the past two Parliaments, the Public Accounts Committee conducted more than 400 hearings on waste. Such hearings are carrying on in this Parliament, as they will in the next Parliament and the Parliament after that. Nobody can tell me that enormous opportunities to cut waste do not remain.
Why is that issue important, given that this is a debate on the cost of living? This is not some anorak issue in which only accountants or economists should be interested. Every taxpayer in this country should be interested in what is going on in government at the moment, because the public sector is funded from the pockets of ordinary people and ordinary firms—many of them small, struggling firms—across Britain. Spending money in such a way means that the public and firms are being hit by a double-whammy, as prices are inflated by wasteful government spending, and firms have less of their own money to invest and families have less to spend. That situation is not fair.
We have mentioned the complexities of the benefits system and discussed child benefit. In addition to a hugely wasteful government system, Britain suffers from a horrendously complex tax system. Our tax code is now the longest in the world. Do a Conservative Government find that satisfactory? Our tax code has recently overtaken India’s in length and has doubled in size since 1997. Our horrendously complex tax system may have allowed the previous Government to keep many of their taxes a secret, but it has led to Britain being ranked 89th in the world, behind Nigeria and Zimbabwe, on the burden of government regulation in a recent World Economic Forum report. That simply is not good enough. I know that my friends on the Treasury Bench are doing their best, but they are not trying hard enough. They have to do better, because ordinary people and ordinary firms are paying for all this.
That complexity is structurally biased against ordinary workers and small businesses, because they lack the resources to investigate all the available loopholes. According to the Centre for Policy Studies, the effective marginal tax rate for some people on low incomes is as high as 96%. We know that, because we have done all these studies; the right hon. Members for Croydon North and for Birkenhead (Mr Field) served with me on the Select Committee on Social Security for many years, and for many years the right hon. Member for Birkenhead has campaigned on the issue of the trap for ordinary people, particularly those at the bottom of the heap, of paying marginal tax rates of 96%. We are crushing our own people, and not just with the waste for which we are responsible in our own spending. We oversee that waste in this House of Commons—we are responsible for it; nobody else out there is responsible. We crush our own people under a hugely wasteful system of government inefficiency and with increasingly complex taxes and benefits.
The rich do not suffer from that. The marginal tax rate for top-rate taxpayers is just 57.8%—the very richest do not even pay that. They do not even pay 57%. With the benefit of having successful and hugely expensive accountants, they are paying 10% or 15%.
In the most recent global competitors report by the World Economic Forum, three of the four biggest problems facing UK businesses were identified as tax rates, tax regulations and inefficient Government bureaucracy. Let me set out what I believe we should have in the Government. Apparently we are going to have a reshuffle soon. What we need are Ministers—the Prime Minister has to check on their performance—who are, like a non-executive director on the board of a private company such as Tesco, obsessed not by policy but by efficiency. We have three excellent Ministers sitting on the Front Bench—the Secretary of State for Transport, the Minister of State, Department of Energy and Climate Change, my hon. Friend the Member for Wealden (Charles Hendry) and the Minister of State, Department of Health, my right hon. Friend the Member for Chelmsford (Mr Burns)—as well as our Whip. I am sure they are doing these sorts of things every day, but much more could be done. I hope the Whip is listening to all the kind comments I am making about the Ministers. I sincerely believe that this is one of the most important things the Government could do.
An obvious conclusion to reach, given what I have said, is that the tax system should be simplified. That would reduce costs and simultaneously be likely to increase revenues. As I have argued again and again, this is not necessarily a market-driven, right-wing point of view, because the lower-paid would benefit from it. The natural conclusion of such simplification would be a much flatter rate, or even a flat-rate tax system. Such a system has been successfully introduced in places as diverse as Serbia, Hong Kong and Russia. When I was in Russia recently, I spoke to a young entrepreneur. The flat-rate tax in Russia is 13%. How extraordinary that the former Soviet Union now has a more entrepreneurially based system than we have—a flat-rate tax of 13% in a large economy such as Russia.
There is a precedent for such an approach in this country. When the Thatcher Government more than halved the top tax rate, the proportion of income tax revenue paid by the highest earners rose. As I said in our debates on the Budget, I welcome what the Chancellor of the Exchequer did in cutting the top rate from 50% to 45%; indeed, I think it should be cut from 45% to 40%. Such people do not bury their money in the ground. If they are taxed less, there is more entrepreneurship and more of them stay in this country. They earn more and give more, and less effort is spent on tax evasion and tax avoidance.
As important as tax reform is, the key to Government finance is a reduction in spending. If we spend less, we can tax less—it is that simple. There is nothing inherently good about Government spending, although Ministers from parties on both sides of the House have apparently congratulated themselves on how much they have spent on the health service and education. They congratulate themselves on spending inefficiently what other people earn.
Mr MacNeil
The hon. Gentleman says there is nothing inherently good about Government spending, but good can come from Government spending if it is on assets in order to redevelop capacity in the economy. We could have that rather than the current austerity programme, which is starving the economy.
Mr Leigh
We all accept that the Government can usefully spend on assets. I do not deny that. There is nothing wrong with Government spending, but there is something wrong with wasteful Government spending. In a recent global competitiveness report, Britain was ranked an unbelievable 72nd in the world behind Ethiopia and Tajikistan on the wastefulness of Government spending. That simply is not good enough. If a private company was ranked so low in the pecking order, questions would be asked about the people serving on the board, would they not? We have to try harder and do better. Government money does not come from nowhere. Every pound wasted by Whitehall is a pound that could have been invested by a British company or spent by a British family.
Before I conclude, let me speak about a few other issues, including aspects of the Queen’s Speech which I welcome. The right hon. Member for Croydon North talked about family life. One reason I have supported a marriage tax allowance, which sadly was once again not in the Queen’s Speech, is that it would address precisely the point he was making—the tax disincentive for a parent, usually a woman, to stay at home to look after her children. Nobody pretends that a tax gets people married or keeps people married. It simply deals with the totally unjust situation that a married person, normally a woman, who stays at home and looks after her young children is uniquely attacked by the tax and benefit system. That cannot be right.
I am glad that the high-speed rail line was not in the Queen’s Speech. I will do a deal with my right hon. Friend the Transport Secretary, who will sum up the debate. I will support her high-speed line, which will admittedly cut the journey time between London and Birmingham—no doubt that is all very good and means spending the assets that the hon. Member for Na h-Eileanan an Iar (Mr MacNeil) spoke about—if she will support the building of a third runway at Heathrow airport.