Scotland Bill

Iain Stewart Excerpts

Thursday 26th April 2012 Commons Chamber

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

I am grateful for the opportunity to speak on this group. I will speak specifically to Lords amendment 18, but before I do so, Mr Deputy Speaker, I hope it is in order for me, having taken part in all the Bill’s proceedings in the House, to place on the record how much I welcome the progress that has been made, both here and in the Scottish Parliament; I particularly welcome the unanimous approval given by the Scottish Parliament on 18 April. I believe that the Bill as a whole embodies sensible evolutionary progress on devolution. It represents a measured and calm approach, which takes forward at a sensible pace the whole devolutionary process, and it avoids some of the risk and uncertainty that would be involved in more extreme constitutional change that some Opposition parties want.

On Lords amendment 18, the publication of an annual statement of progress on the transfer of fiscal powers is a welcome and sensible move. I do not think we should underestimate the scale of change that will occur when capital borrowing powers are devolved, when income tax powers are devolved, and when stamp duty and the other measures are passed down. A huge sum of money is involved and, as other right hon. and hon. Members have mentioned, it will mean that the Scottish Parliament is responsible for raising more than one third of its spending. When coupled with the actual amount of money involved, the process of disentangling what has been a unitary tax system should not be underestimated.

[John Stevenson (Carlisle) (Con)]

Does my hon. Friend agree that producing such a report will bring greater openness and transparency to the financial affairs of the Scottish Parliament, and that it will also allow greater scrutiny of issues relating to the Barnett formula?

[Iain Stewart]

My hon. Friend makes a very important point, as the essence of the Bill is that it creates additional transparency and provides for democratic scrutiny of the decisions made by the Scottish Parliament. That is important not only in Scotland, but in England. I am sure that constituents write to him to complain about some of what they see as the largesse given to Scotland. Some of what is reported to us is not accurate—the media tend to whip up a storm about the bounty that is provided to Scotland. Some of what is said may be true, but greater transparency will be healthy for democracy and it will remove some of the myths from the debate. I think that this measure will be good for the Scottish Parliament, for devolution and for the Union.

[Pete Wishart]

I am listening to the hon. Gentleman with keen interest and I very much approve of the tone of his remarks. Will he ensure that when nonsensical claims are made about Scotland having this “largesse”, as he describes it, he will deal with them all in the same way as he just has?

[Iain Stewart]

I am grateful to the hon. Gentleman for that intervention. I always try to be reasonable and measured in my comments. These issues are important and I have long argued—I will not repeat the arguments that I have made in other debates, as I think you would quickly rule me out of order, Madam Deputy Speaker—that there is a great deal of confusion about the fiscal relationship between Scotland and the rest of the United Kingdom. I think that this measure will give extra clarity. Some of the claims are justified; others are not. I shall not be tempted down the path of identifying which are and which are not, but, as my hon. Friend the Member for Carlisle (John Stevenson) says, it is important to have that scrutiny so that we can keep tabs on this very complex change. The last thing our economy needs in these difficult economic times is additional uncertainty about changes that are being rushed through that might provide uncertain trading conditions for companies. The proposed process is measured, calm and sensible.

I am glad that some of the other demands for fiscal transfers have been resisted at this stage. We have talked about corporation tax and I will not re-enter that debate. The demands made by the Scottish National party initially included the transfer of excise duties, but even they now realise the complexity that that would involve, thanks to the fact that such an august body as the Scotch Whisky Association—a very fine body—pointed out that different alcohol duties north and south of the border would require the introduction of some sort of tax border policing to ensure that there was no abuse of the system. I am glad that that demand has been dropped.

As my hon. Friend says, the additional transparency will be good for our constituents. The publication of the annual reports will also be helpful in relation to another sensible change that has been made during the progress of this Bill, which is the proposed adjustment to the annual block grant. Initially, I think there was to be a one-off assessment of what change should be made to the block grant as a result of the fiscal changes. That has now been amended to be an annual assessment of what I think is known as the Holtham approach, which has been considered for funding for the Welsh Assembly. Having that annual check on a very complex and dynamic fiscal situation will be sensible. I recall that similar changes were made to the calculation of the Barnett formula in the 1990s when the initial formula, which had been set in stone since it was first introduced in the late 1970s, had resulted in some disparities and anomalies as a result of changing population levels. That has since been adjusted to an annual change.

[David Mowat]

As my hon. Friend says, a change has been made at the last moment to what is called the no-detriment principle, which was indeed set out in the Holtham report, produced in July 2010. Does he concede that the majority of the Holtham report focused on a needs-based funding formula, and that we are not implementing that at this time?

[Iain Stewart]

I am grateful to my hon. Friend for that intervention but I do not think that you would be terribly enamoured of me, Madam Deputy Speaker, if I widened the debate into a discussion of the Barnett formula and fiscal matters more generally. My hon. Friend is right, however, that that is not part of the Bill. It is a subject to which I think we will return on another day.

In conclusion, I welcome Lords amendment 18, which would make a sensible change to the Bill. I welcome the Bill as a whole, as it is a sensible change and a sensible evolution of the devolutionary process, and I think that it will be welcomed both north and south of the border.

[Stewart Hosie]

I want to say only a few words about this group of amendments. They are very welcome, particularly the scratching out of some of the re-reservations. We tabled amendments, of course, to remove the re-reservation of insolvency and health professional regulation matters in a previous stage, but the Government rejected them at that point, as did the British Labour party. I am delighted that there is now unanimity that those re-reservations should be removed.

--- Later in debate ---

[Mr Bain]

Lords amendments 12 to 16 would amend clauses 25 and 26 to devolve completely to the Scottish Parliament all aspects in relation to speed limits on all roads in Scotland. They follow the recommendation of the Calman commission and resolve the ambiguities and uncertainties that might have ensued from a partial devolution of the national speed limit for Scotland in respect of certain vehicles or roads.

We are pleased to support the amendments, and I echo the right hon. Gentleman’s thanks to the officials and team in the Scotland Office for piloting this hugely significant Bill on such a relatively smooth course through not just this House, but the other place. It now has the approval of the Scottish Parliament, too—no mean feat. On that basis, we on the Opposition Benches wish the Bill a speedy journey on its passage into law in the coming days.

[Iain Stewart]

I am very happy to support this group of Lords amendments and, indeed, the provisions in the Bill.

I must confess that this is an issue on which I have changed my mind. On Second Reading, I had concerns about creating different speed limits north and south of the border. I did not say so from any great constitutional position; I was very much wearing a “road safety” hat. I serve on the Transport Committee, and road safety is an issue that we take with great seriousness. Indeed, we are conducting an inquiry into it.

Drivers can get lulled into a sense of security on a long journey, and for long-distance drivers in particular, going up the M6 and then the M74, I was concerned that if the speed limit changed suddenly at Longtown or Gretna, depending on which way they were going, it could result in some road safety issues. But as part of the Committee’s inquiry we have been looking at different speed limits in different parts of the country, through managed motorway limits and other road safety measures, and by considering the evidence I have been persuaded that it is not the issue I thought it might be, so I am happy to welcome the changes before us. Rather than having the United Kingdom Government responsible for some speed limits and the Scottish Government responsible for others, it makes sense to group them under the auspices of one Government.

My only additional point, which echoes that of the hon. Member for Edinburgh North and Leith (Mark Lazarowicz), is that if we reach a situation in which there are differing speed limits on either side of the border, we will need proper signage and, through the Highway Code and the driving test, to explain those differences properly so that there is proper education and awareness.

With that small caveat, I am happy to support the Lords amendments, and in the last few seconds before I am cut off in my prime, I too congratulate and thank the officials who put together the Bill.

[Mrs McGuire]

I add my support for the Lords amendment. It makes sense. We have to realise that drivers of all kinds cope with different speed limits, even within one county. This Bill has had a long journey, but there has also been a long journey for those of us who, like you, Madam Deputy Speaker, were here in 1997—