Public Finances: Scotland

Greg Hands Excerpts

Wednesday 3rd February 2016 Commons Chamber

[Stewart Hosie]

As the arguments are complicated, it is so much easier simply to quote in full from the 15 January issue of the new Labour leadership’s favourite newspaper, the Morning Star:

“Labour MP Diane Abbott accused her party’s leaders yesterday of doing working people a ‘great disservice’ by backing Tory plans for permanent austerity.”

The hon. Gentleman keeps getting it wrong.

The key thing is that Scotland’s budget has been cut and will continue to be cut by this Government, which makes the achievements of the Scottish Government all the more remarkable. That makes it all the more important not simply that we get any old fiscal agreement, but that we get it right. We must ensure that the Smith commission principle of “no detriment” is adhered to and that we do not embed unfairness in the system, so that we are not subject to possible additional cuts of about £350 million a year. We need to avoid that outcome so that we can continue to do good things and build on the progress we have seen in health spending, which is up to £12.3 billion this year and will be £13 billion next year, and in education.

[The Chief Secretary to the Treasury (Greg Hands)]

May I bring the hon. Gentleman back to the fiscal framework? I am interested in the amendment that he has tabled, because it seems to quote from the Smith commission—particularly paragraph 95(3) on no detriment, which states that

“the Scottish and UK Governments’ budgets should be no larger or smaller simply as a result of the initial transfer of tax and/or spending powers”.

The amendment carefully deletes some important parts of the Smith agreement. It states that

“Scotland would be no worse or better off simply as a result of the transfer of additional powers”.

Why has he deleted the word “initial”, which is very important in respect of the transfer of powers, and any reference to fairness to the UK taxpayer?

[Stewart Hosie]

For the sake of brevity. Let me be very clear that the negotiations that are under way are founded on a number of principles, including no detriment as a result of the devolution of further powers initially and no detriment as a result of the policy decisions of the UK Government or Scottish Government post-devolution. I would have thought that the Chief Secretary might have known that.

The whole point of getting this right is to avoid a potential cut of an additional £3.5 billion over a decade, so that the Scottish Government can continue their good work. We do not want those additional cuts to be made, because they would weaken our ability to internationalise the economy; hinder our support for businesses seeking to innovate and to do research and development; suck vital resources out of our plans to invest in education and infrastructure; and undermine all the work being done by the Scottish Government to deliver the fall in unemployment and the highest employment rates in the UK.

We understand the trajectory that Scotland’s public finances will take if the wrong block grant adjustment is chosen. As I say, it will perhaps mean the loss of £3.5 billion over a decade.

--- Later in debate ---

[The Chief Secretary to the Treasury (Greg Hands)]

This Government are united in their belief in a successful and prosperous Scotland—a Scotland that is strengthened through being part of the United Kingdom and whose presence makes the United Kingdom itself stronger. It is clear to us that the Scottish people should have greater control over their affairs and that the Government in Edinburgh should be more accountable. The referendum of 2014 was a defining moment in Scotland’s history. The Scottish people’s voice was clear: they wanted to make Britain stronger and not to break Britain up. It is now right that we should deliver a fair and lasting settlement that works for Scotland and for the UK as a whole. The UK Government are committed to delivering the Smith agreement, which, let us remind ourselves, was agreed by all five parties in Scotland, including Labour and the Scottish National party. That commitment has driven every step of our work.

[James Berry (Kingston and Surbiton) (Con)]

What assessment has the Chief Secretary to the Treasury made of Labour’s recently announced plans to put up income tax in Scotland? What impact does he think that would have on the Scottish economy?

[Greg Hands]

I was amazed by Labour’s announcement in the Scottish Parliament yesterday about wanting to increase income tax. I think it would be a disaster for the Scottish economy and for the people of Scotland, so I wholly agree with my hon. Friend.

The Smith agreement was clear: the Scottish Government should bear the economic responsibility for their decisions; or, as the Scottish Deputy First Minister has put it:

“If we take on a responsibility and make a success of it, we should bear the fruit of that; if we get it wrong, we must bear the consequences”.

I want to make three main points. Why are we doing this taxpayer devolution? The answer is to give Scotland one of the most powerful and accountable devolved Parliaments in the world. The stress there must be on the word “accountable”. Since 2010, the amount of taxes raised in Scotland and spent by the Scottish Government will have increased from around 10% to around 20% under the Scotland Act 2012, and to 40% under these proposals. These measures would also allow the Scottish Government the opportunity to grow their economy, to use new devolved powers and to see the fruits of their efforts.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

The Chief Secretary to the Treasury is right to say that accountability is at the heart of this matter. That is why we must have a deal, and if we do not get one, we in this House and those in the Scottish Parliament need to be told the reason why. Without a deal, the people of Scotland face the prospect of going to the polls in May not knowing exactly what powers will be given to the Parliament.

[Greg Hands]

I thank the right hon. Gentleman for that intervention, which leads me nicely on to the fact that the UK Government are absolutely committed to getting a deal. I announced earlier today, before the Scottish Affairs Committee, that I will be going to Edinburgh on Monday to continue the negotiations. I am hopeful that we will get—

[Mike Weir (Angus) (SNP)]

claimed to move the closure (Standing Order No. 36).

Question put forthwith, That the Question be now put.

Question agreed to.

Question put accordingly, That the amendment be made.

Oral Answers to Questions

Greg Hands Excerpts

Wednesday 4th May 2011 Commons Chamber

[Mr Speaker]

Order. There are far too many private conversations taking place in the Chamber. It is very discourteous, and I am sure that the House wishes to hear Mr Greg Hands.

[Greg Hands (Chelsea and Fulham) (Con)]

Thank you, Mr Speaker. Will the Minister join me in welcoming the report by the Independent Commission on Banking, under Sir John Vickers, and will he remind the House who, in the last Parliament, awarded Sir Fred Goodwin a knighthood for services to banking?

[David Mundell]

My hon. Friend’s interventions at Scottish questions are always welcome. He is quite right to suggest that it was the Labour Government who not only awarded Sir Fred Goodwin his knighthood but involved him in virtually every other initiative that they pursued in Scotland. The Vickers report is to be welcomed in Scotland, as it is elsewhere in the United Kingdom.

--- Later in debate ---

[The Prime Minister]

I do believe it is a moral imperative and I have looked at the OECD report carefully, which does show that things stalled under the previous Government in recent years. What I would say is that despite having had to take difficult decisions in the Budget we did make sure that there has been no increase in child poverty as a result of the Budget. I think it is time, frankly, for a more mature, cross-party debate on how we can make sure that we get people out of poverty rather than just looking at the transfer of money between rich and poor. That is why we are looking at things such as the pupil premium, free nursery education for deprived two-year-olds and making sure that Sure Start is working properly, because it is all those things that will help children out of poverty in a more sustainable way.

[Greg Hands (Chelsea and Fulham) (Con)]

Q14. This week, the three top-rated councils of Hammersmith and Fulham, Kensington and Chelsea and Westminster are discussing extending their combined services to save £35 million a year while still improving front-line services. What can the Prime Minister do to encourage this approach rather than that of Labour-run Hounslow, which is closing day care centres, squeezing parks maintenance and cutting mental health services in a slash-and-burn approach?

[The Prime Minister]

I think this is a very important point and I hope that councils up and down the country will look at it. Three large councils are coming together and saving £35 million because they are sharing back-office services, executive teams and so on. Frankly, if they can do it, as large councils that have big responsibilities, many other councils should be doing it in London and elsewhere. Until we see that happening, I do not think it is realistic to say that it is necessary for councils to cut front-line services.

Oral Answers to Questions

Greg Hands Excerpts

Wednesday 1st December 2010 Commons Chamber

[Michael Moore]

The hon. Gentleman has a distinguished record of following these issues very carefully. He will have made representations, as has the industry. The review was concluded a few weeks ago and will report in due course. As I said in answer to the earlier question, I will continue to discuss these issues with the Treasury.

[Greg Hands (Chelsea and Fulham) (Con)]

7. What assessment he has made of the lessons learned from the 2010 Delhi Commonwealth games which could inform his Department’s contribution to the 2014 Glasgow Commonwealth games.

[The Parliamentary Under-Secretary of State for Scotland (David Mundell)]

The Commonwealth Games Federation is currently leading a formal review of the Delhi games. The Scottish Government and Glasgow 2014 games partners are participating in that review, and will be seeking to identify the key messages to inform planning for the 2014 games. The Scotland Office will do whatever we can to contribute to a successful games in 2014.

[Greg Hands]

The Minister will know that one of Delhi’s troubles was in attracting the top athletes. What will the UK Government do to ensure that the best from across the Commonwealth come to Glasgow in 2014?

[David Mundell]

As the hon. Gentleman will appreciate, most of the responsibilities in respect of the 2014 Commonwealth games are devolved and rest with the organising committee. I have already met the leader of Glasgow city council and assured him that the UK Government will do everything that we can to support a successful games.

Oral Answers to Questions

Greg Hands Excerpts

Wednesday 27th October 2010 Commons Chamber

[David Cairns (Inverclyde) (Lab)]

3. What recent discussions he has had with representatives of the broadcasting industry in Scotland on the Government’s plans for local television networks.

[Greg Hands (Chelsea and Fulham) (Con)]

4. What discussions he has had with the Secretary of State for Culture, Media and Sport on the likely effects in Scotland of the implementation of the Government’s proposals for local television networks.

[The Parliamentary Under-Secretary of State for Scotland (David Mundell)]

Both my right hon. Friend the Secretary of State and I have met broadcasters to discuss a range of issues. We also have regular exchanges on broadcasting with ministerial colleagues.

[David Mundell]

I am aware of the hon. Gentleman’s interest and expertise in broadcasting in Scotland. In answer to his question, I can tell him that an announcement will be made shortly.

[Greg Hands]

Local television is popular, and will make a real difference to communities in Scotland. The Minister will be aware that even the Scottish Government’s own Scottish Broadcasting Commission has concluded that television should remain a reserved matter. Will the Minister undertake to work with his DCMS colleagues to ensure that any framework resulting from the Shott review takes account of Scotland’s specific needs?

[David Mundell]

I agree with my hon. Friend. It was interesting to note that both the broadcasting commission established by the SNP Government and the Calman commission concluded that broadcasting should remain reserved. Nicholas Shott has visited Scotland, and has met various interested parties in the broadcasting sector there. I am sure that Scotland’s particular needs will be taken into account when his final report is issued later this year.