Standardised Packaging (Tobacco Products)

Debate between Mark Lazarowicz and Ann McKechin

Wednesday 21st January 2015 Commons Chamber

[Ann McKechin]

I am grateful to the right hon. Gentleman for his support tonight. This matter should, I hope, elicit cross-party support, because the health of our young people is a key issue that all of us should be deeply concerned about.

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

I am grateful to my hon. Friend for making a powerful speech tonight. May I take her back to an earlier point at the beginning of her speech and highlight the fact that if this measure is not introduced by the Government soon, it will be delayed until probably after the summer, as a result of which, indirectly, thousands of lives will be lost?

[Ann McKechin]

Yes. As I have said before, half those who take up smoking will not be able to stop, and we know that every week hundreds of teenagers across the UK take up the smoking habit. So every week that we delay has a direct health impact in our local communities.

The Minister’s own review, the Chantler review, concluded when it reported in early April last year that branded packaging plays an important role in encouraging young people to smoke and in consolidating the habit, irrespective of the intentions of the tobacco industry and that the body of evidence showed that plain packaging is very likely to lead to a modest but important reduction over time on the take-up and prevalence of smoking. The Minister is already on the public record as accepting that standardised packaging is

“very likely to have a positive impact on public health”—[Official Report, 3 April 2014; Vol. 578, c. 1018.]

and as wanting to proceed as swiftly as possible. I have no reason to doubt her intentions, but time is running out.

The Prime Minister must allow Parliament to vote on plain packaging regulations before the election. He must heed the advice of health professionals, 4,000 of whom signed an open letter to The Guardian demanding urgent action, and ignore the protestations of his Australian spin doctor Lynton Crosby, whose tobacco industry links are said to have scuppered the push for plain packaging in 2012 when the Government pushed the issue into the long grass. Too many people are needlessly dying prematurely because of smoking and too many young people are still being hooked.

UK Constituent Parts (EU)

Debate between Mark Lazarowicz and Ann McKechin

Wednesday 21st November 2012 Westminster Hall

[Ann McKechin]

My hon. Friend raises a good point. It is understandable, given the financial and economic crisis that the EU has suffered over the past five years, that it would take a precautionary approach on any banking issue and financial regulation particularly. The Scottish Government’s proposals are untested. They have never been used by another EU member in the way proposed, and we have no idea how they would work, because we have received no details in response to the many questions that the Scottish Government have been asked. Apparently, we must wait until autumn 2013 for the revelation, apparently in tomes. The questions should be asked now if we want a proper analysis and expert opinion not only in our own country, but throughout the EU. We need that information now.

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

As far as I know, Croatia does not have a particularly large international banking presence—I hope that I am not being unjust—but Scotland is still the headquarters not just of some UK banks, but of international banks. Does that not emphasise that in any new treaty, if Scotland were to become independent, the EU would be keen to ensure that proper regulatory arrangements were in place for the Scottish banking sector?

[Ann McKechin]

My hon. Friend has spent much of his time campaigning on financial services, because they are relevant in his constituency. He hits the nail on the head, because we have a significant financial services sector in Scotland. It is the second largest outside the City of London, and has many jobs, not just in banking, but in other financial services, such as equity markets and insurance funds. Many of the people who use those funds and many investors live not in Scotland, but in other parts of the United Kingdom.

There are many questions to be asked about the currency that will be used, and the regulations. We can take it as certain that the EU will take a precautionary approach, and will ask for those issues to be tested and examined in great detail. As yet, the Scottish Government have not produced a comprehensive document setting out the proposals. At the moment, they seem to think that the rest of the UK will continue to act as the financial regulator, but there is no guarantee that it would be tempted to do so. Why would it take on the risks and responsibility for institutions outwith its borders and over which this Parliament would have no direct control or responsibility? The UK Parliament’s risk would increase.

Given the gridlock of other membership requests, and that other EU states are much less relaxed about national referendums for secession, there is every risk that the application and negotiations could drag on with consequent risks and uncertainty to our economy and particularly our financial services. I would be interested to hear today the Foreign Office’s perspective on such a scenario. Will the Minister confirm what the legal standing of a separate Scotland would be with the World Trade Organisation if at the point of secession it was not a member of the EU? Have the Scottish Government ever asked his Department for information about that? Has there been any formal dialogue with the EU Commission on the proposal for another EU member’s central bank to be Scotland’s bank of last resort?

We have discovered in the last few weeks that the truth can be difficult to admit, but surely anyone who believes that a country’s citizens should be able to make the right choices also believes that they should be provided with full answers to those tricky questions, because they will not go away.

Scottish Separation

Debate between Mark Lazarowicz and Ann McKechin

Tuesday 10th July 2012 Westminster Hall

[Ann McKechin (Glasgow North) (Lab)]

Does my hon. Friend agree that it is very strange that the First Minister came down to London about a month ago to address the Institute of Directors and intimated to it, but not to the Scottish Parliament, that he intended to align income tax rates, after separation, with those in the rest of the UK? We must ask—why bother?

[Mark Lazarowicz]

Indeed. That takes us to a point that I intended to deal with later but will deal with now. We are referring, with respect, to the arguments advanced by the hon. Member for Banff and Buchan, who is from the SNP. She seemed to be arguing at one point that Scotland would have a different approach to taxation and redistribution policy, suggesting, presumably, that it would be a higher-tax, higher-spending type of country. On the other hand, the First Minister is saying, as my hon. Friend the Member for Glasgow North (Ann McKechin) pointed out, that income tax in an independent Scotland would be the same as in the rest of the UK. Of course, for the past six years, the SNP Government could have used the existing powers, if they had wanted to, to increase tax in Scotland and increase public spending, but they have not. The SNP is apparently in favour of a lower corporation tax rate in Scotland, yet it tells us that it would maintain the free movement of labour, services and capital throughout the UK. If that is the case, it is difficult to visualise Scotland having a separate corporation tax rate.

The issue of sterling has been—

Rail Services from and to Scotland

Debate between Mark Lazarowicz and Ann McKechin

Tuesday 20th December 2011 Westminster Hall

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

Thank you very much, Mr Hollobone. It is a pleasure to see you in the Chair today. I take this opportunity to extend the compliments of the season to you and other Members, and to members of our staff in the room today.

I am very glad to have this opportunity to raise a number of issues concerning rail services in Scotland. For the most part, rail services within Scotland are a devolved responsibility of the Scottish Government, and I certainly do not wish—and would not be allowed by you, Chair—to deal with matters under that devolved responsibility. However, there are some important aspects of rail in Scotland for which policy or legislation is made at UK level, and I wish to raise those today.

The first issue is the future of cross-border rail services, and perhaps today is a very appropriate time to raise it, given that over the Christmas and new year period many passengers will be using the services to visit family and friends both north and south of the border. At present, the cross-border services fall under the franchise arrangements controlled by the Department for Transport, with its responsibility for services throughout Great Britain. However, those arrangements are now under threat, as a result of proposals put forward by the Scottish Government’s transport agency, Transport Scotland. As part of options for the future of rail services in Scotland, Transport Scotland is

“considering whether services north of Edinburgh should be provided by the Scottish franchisee, with Edinburgh becoming an interchange hub for cross-border services in the east of the country. In this scenario cross-border services would terminate at Edinburgh Waverley, with onward connections being provided by ScotRail.”

As a result of the cross-border services stopping at Edinburgh and Glasgow, there would be no through trains from England to destinations further north, such as Perth, Dundee, Aberdeen and Inverness to name just a few. For that to happen, I understand that the Scottish Government would have to get the agreement of the UK Government to change the franchise arrangements, so today I want to raise my concerns about that possibility, in the hope that the Minister of State will listen to Members and will herself express reservations about the proposal. I also express my concerns today in the hope that Transport Scotland and the Scottish Government will listen.

At present, there are seven trains a day from England to destinations north of Edinburgh and Glasgow—plus the sleeper services, about which I will speak later—which provide through links, not just on the east coast line to London but on the west coast line to the English midlands and the south and south-west of England. Seven trains does not sound like many, but that is perhaps 2,000 plus seats a day, and is equal to perhaps 20 planes or 500 cars. I, and many others in Scotland, and indeed in England, believe that if the proposals result in the termination of cross-border services at Edinburgh and Glasgow, they are a serious mistake.

The option suggests that there would be an “interchange hub” at Edinburgh, but that is not a good idea. Edinburgh Waverley, as anyone who uses it will know, is a large station with about 20 platforms at the last count, and one could well imagine passengers, particularly the more frail, taking at least 15 minutes to change trains, allowing for time to go through the ticket barriers of the different operators. There is also considerable building and renovation work going on, which is likely to cause extra disruption for years to come. For passengers travelling long distances, who are more likely to have more luggage, having to change trains in Edinburgh would be extremely inconvenient and add to journey times.

[Ann McKechin (Glasgow North) (Lab)]

I congratulate my hon. Friend on raising this important topic. Does he not agree that, given that 26% of the Scottish economy is based in the Aberdeen area, as a result of the oil and gas industry, it would be incredibly short-sighted in terms of not only general social traffic but economic traffic to stop cross-border trains going up to Aberdeen and beyond?

[Mark Lazarowicz]

Absolutely. As a regular user of east coast trains, sometimes using the services that go through to Aberdeen, I know that they are very well used. I have had feedback from the business community in Edinburgh, speaking not just for Edinburgh but more widely, about the potentially very damaging consequences for Scotland’s economic interests, because of the effect both on business travel and on the wider travel services between important parts of the Scottish and UK economies.

Another feature of Transport Scotland’s proposals that concerns me is the suggestion that having all journeys in Scotland north of the central belt run by one operator—ScotRail—would in some way be an advantage because it would remove other operators. I am not sure that it would be an advantage, because apart from the difficultly of having to change trains, passengers travelling north of Edinburgh would not have the option of using alternative operators if they so wished. Having said that, it is interesting that these Transport Scotland proposals seem to some extent to contradict others it puts forward in the same document. Elsewhere, it suggests that the Scottish franchise could be broken up into two or three franchisees, including one that would run the “economic” day services, presumably the profit-making ones, and another that would run the social services, presumably the loss-making ones. In my view, that would be a retrograde step, but it is probably not an issue to be discussed at length today.

[Mark Lazarowicz]

That is a genuine concern. I obviously do not know the detailed financial arrangements inside ScotRail and its franchise, but there is currently some cost subsidy between the different sections of the route, and we could well see a situation in which the economic franchise took all the good routes, with the profits going to the shareholders or the Scottish Government, and the social services suffered, as very much the poor relations. That would certainly be a consequence if that line was followed by Transport Scotland. To be fair, it is only an option, and I do not want to misrepresent it as the preferred option.

The outcome of the changes to cross-border services is pretty clear. Instead of having one through ticket on one through train, passengers could have to change services, wait sometimes in the cold—Edinburgh Waverley is not the warmest station in the world, I regret to say—and have the hassle of negotiating various pricing deals offered by different rail companies as they change trains. More passengers would therefore stop using rail. They would fly or add to traffic on already busy roads, and some tourists might not come at all. They would certainly be less likely to travel north of the central belt to areas where tourism is so important to the local economy. The proposals would not only affect passengers on long-distance cross-border services; there would also be a loss of choice for passengers from places such as Edinburgh to destinations further north, including Dundee and Inverness on the east coast services, and, dare I say it, there would be a loss of competition as well.

The operational arguments for maintaining cross-border services seem overwhelming, and the benefits to passengers are certainly clear. I am concerned that it appears that one of the motivations for the proposed termination of cross-border services at Edinburgh and Glasgow is what can only be described as a narrow financial interest. I quote again from the Transport Scotland report:

“The provision of these services, whilst providing additional capacity, also takes potential passengers and revenue from ScotRail services, and thereby affects the levels of subsidy required from the Scottish Government.”

The first priority should not be whether a few pounds, euros or even Scottish dollars should be saved for the Scottish Government; it should be the needs of passengers. I hope that the Scottish Government and Transport Scotland will recognise that, and the other concerns that I am raising. I urge Transport Scotland and the Scottish Government to keep our cross-border services, and I hope that the UK Department for Transport will make those views known to the Scottish Government.

Many of the arguments against cutting cross-border services also apply to Transport Scotland’s proposals for sleeper services between Scotland and England. In its report, Transport Scotland suggests that all or at least some services be removed from the requirement to operate under the ScotRail franchise and allowed to operate under a separate franchise. The report gives various suggestions about whether that franchise should be supported financially or run commercially only. It also suggests that only services to and from Edinburgh be franchised, leaving other services to be operated on a commercial basis only. Effectively, that would almost certainly mean that they would not be operated.

Leaving aside the fact that removing sleeper services from the ScotRail franchise, thereby jeopardising their future, would be an extremely odd move at a time when the UK and Scottish Governments are considering financing new sleeper stock, if such a cut were made or sleeper services were totally withdrawn, it would be bad news for passengers, and particularly bad news for the business and tourist sectors. I spoke last week to people from the Edinburgh business sector who expressed concern that a threat to the Edinburgh sleeper service would damage the business and tourism connectivity of Edinburgh and of Scotland as a whole.

I hope that the Minister shares my concern about both those issues, and I hope that her Government will reflect to the Scottish Government the concerns shown by many in Scotland in business, leisure and local communities, as well as workers in the rail industry. I certainly hope that Transport Scotland will think again.

I emphasise that I am not against change in the ScotRail arrangements or anywhere else, but I am against change so damaging to the travelling public. I would like some imagination from both Governments and from the rail industry in general about how existing service patterns might be improved to provide better connections between Scotland and England and better cross-border services, rather than making it more inconvenient to travel across the border. For example, at a time of big increases in rail travel on day services, could we not consider providing more sleeper services in the UK rather than fewer, perhaps reinstating some of the services cut a few years ago, or even overnight services from Scotland and the north of England to the continent of Europe?

On day travel, is it not time to consider how to improve cross-border services rather than cutting them? On my recent visit to Liverpool for the Labour party conference, due to the non-existence of through services, I was reminded again of the number of changes involved and the difficulty of connections from Edinburgh and Glasgow to that major city. There are also other places in England where through services to Scotland are not what they could be. In my view, we should be considering improving the service rather than cutting it in the way proposed by Transport Scotland. I hope that Transport Scotland and the Department for Transport will consider those thoughts for the future, as they will have to work together on the issues due to their cross-border implications.

I have spent some time referring to and criticising some of the proposals for rail services made by Transport Scotland. There are many others on which I have a view, but I will not mention those that are primarily of devolved concern. There are obvious overlaps between both devolved and reserved responsibilities. I know, for example, that people in Scotland are angry at the increase in fares announced for Scotland, as for the rest of the UK, but that is obviously the responsibility of the Scottish Government and Parliament, so I will not go into it in more detail, although I emphasise that views on the issue are extremely strongly held.

I will comment on one area of future policy that concerns both Transport Scotland and the Department for Transport: high-speed rail. Having so far been critical of Transport Scotland’s proposals, I will now be more positive about some of its recent ones. Indeed, I warmly welcome its recent report, “Fast Track Scotland: Making the Case for High Speed Rail Connections with Scotland”. The report was published earlier this month and resulted in numerous conclusions with broad or all-party support. The first is:

“Scotland stands united in support of high-speed rail. It is vital that a high-speed rail network be established across the UK to secure its future competitiveness and economic prosperity”,

as well as the competitiveness and economic prosperity of the entire UK.

The report continues:

“The investment case for high-speed rail is strong, but is stronger when Scotland is included.

Scotland supports a high-speed rail strategy which brings Edinburgh and Glasgow closer to London and the UK’s great cities, and which preserves and enhances aviation links with London’s airports for the north of Scotland.

A new high-speed line must be built to Scotland to realise the fullest economic and environmental benefits for the UK.”

I endorse those comments completely. I believe that high-speed rail is important to improve journey times, for environmental reasons and to improve capacity on the rail network as a whole. Transport Scotland’s report presents a powerful case for connecting Scotland with the high-speed rail network. Equally, the report highlights how a failure to connect high-speed routes to services on other lines could damage Scotland’s interests by placing it and cities in the north of England in a relatively worse position, in terms of journey times and rail capacity, than cities linked to the network.

As I have said, it is in the interests of the UK’s high-speed rail network as a whole that Scotland should be part of the network, because of the benefits that it would bring to the business case for the whole network. Business leaders throughout the UK support Scotland’s inclusion in a high-speed rail link.

[Ann McKechin]

Does my hon. Friend agree that the approach taken by HS2 Action Alliance has been disappointing? It wrote to Members earlier today expressing that an alternative that would save a mere 20 minutes of journey time should be satisfactory. I represent a Glasgow constituency, and he represents an Edinburgh one. Given that the joint economic force of Glasgow and Edinburgh makes them the second largest economy outside London, does he agree that the strength of the case is overwhelming? It is time for those who oppose HS2 to consider properly the economic interests of all parts of the United Kingdom.

[Mark Lazarowicz]

I agree with my hon. Friend. I understand that the exact route of High Speed 2 is being debated, as are issues such as the right route and speed for a line, at what speed trains could run and whether changes could be made to reflect the environment. I accept all those concerns—I am not saying that one should not—but ultimately, it is not just a question of taking 20 minutes off the time to reach Glasgow and Edinburgh. In any configuration, we are talking about major time savings. By definition, those time savings increase the longer the distance travelled, which is why it is so important to the business case of the whole line that Scotland should be included at an early stage in the planning.

Support for Scotland’s inclusion in the high-speed rail link comes from business leaders throughout the UK. The London chamber of commerce and industry says that

“for HS2 to improve the country’s connectivity and infrastructure capacity, it must reach the whole of the UK. Only then will the expected business and transport benefits be enjoyed by the entire country… Consequently, the line should also be planned and thought of in its totality, rather than as independent and isolated sections.”

I absolutely agree.

The Greater Manchester chamber of commerce says:

“Glasgow and Greater Manchester are two of the UK’s largest economies and the third and fourth biggest population centres in the country. Strong economic development within these cities will be essential for countering the economic dominance of London and providing the driver for growth within their respective regions. As such, high-quality links between these centres is essential for developing trade, tourism and expanding the knowledge, opportunities and labour catchment areas for these conurbations… Significantly, though, the benefits of high-speed rail are greater over longer distances, and therefore the time savings between Manchester and Glasgow would be significant enough to help deliver a shift in mode of travel and generate passenger demand on the new rail network.”

That is why I, along with opinion across the political and social spectrums in Scotland and beyond, am extremely concerned by the possibility that serious planning for high-speed rail to Scotland will not even start for many years. If planning for high-speed rail to Scotland is left until later, it could be the 2040s at the earliest before high-speed rail reaches Scotland. Such a long delay after the routes reach the midlands and the north of England would be extremely damaging to the economic interests of Scotland and those parts of the north of England not linked to the route.

To secure the funding to allow high-speed rail to reach Scotland requires choices, and I accept that they may be choices about routes, speeds or the location of sections of routes. Putting together the funding package is still many years off, but I want to emphasise that we do not want to be in a situation where not even the planning has been started. We must ensure that we plan now for Scotland to be part of that high-speed line. Detailed planning of HS2 must be done at this stage, as the report from Transport Scotland and the Scottish Government calls for, and I fully endorse it.

Let me emphasise again that it is in no one’s interest for Scotland to be left at the end of a high-speed line. The Scottish Government have said that they will pay for the Scottish section of such a line. Although their commitment looks a little shaky under closer analysis, I am sure that a future Scottish Government of any political shade would recognise the value contributing to a project of such importance for Scotland. I understand that Scottish Ministers hoped to meet the Minister or her colleagues to discuss the issue. Was any progress made in those discussions? Is there potential for an agreement with the Scottish Government?

I could say much more, and although there is time to do so, it is right to allow the Minister and the Front-Bench spokesman plenty of time to respond to the concerns that I have raised. There are certainly many other rail policy issues at UK level that concern Scotland, including a number of the implications of the McNulty report and some of the proposals in the Transport Scotland report on transferring some of the responsibilities that Network Rail supervises at a British level to a devolved level. They are significant matters, but they are perhaps too technical and lengthy and would require me to divert to another subject at great length.

Maintaining the sleeper and cross-border services and planning for future and better connectivity are important and concern all Scotland. I hope that the Minister and the Front-Bench spokesman will say something that recognises the importance of those issues, assures us of a way forward and, as I have indicated, sends a clear message from the House to Transport Scotland that some of its proposals would be extremely damaging to transport interests throughout Scotland.

Scotland Bill

Debate between Mark Lazarowicz and Ann McKechin

Tuesday 21st June 2011 Commons Chamber

[Mark Lazarowicz]

No doubt there is a theoretical argument that cutting corporation tax for smaller or new businesses would encourage them to grow and expand, but can my hon. Friend explain how cutting the corporation tax paid by Royal Bank of Scotland by 50% would encourage it to bring more jobs into the Scottish economy? Would it not just add to its already large profits?

[Ann McKechin]

My hon. Friend raises a good point. The Scottish Government are advocating a cut in taxes for banks but not for small businesses that do not pay corporation tax. Many employers in the private sector who employ many people do not pay corporation tax, but income tax. Substantially reducing corporation tax would lead to a large cut in public expenditure or increase the burden on income tax payers.

The Scottish Government already have a considerable number of economic levers. They have decided to cut funding to many Scottish colleges—for example, James Watt college in Greenock faces a cut of £5 million. They have cut regeneration funds in many of the most deprived areas, including a 71% cut in the Inverclyde regeneration fund. The test that the Scots will apply is not how many powers anybody has vis-à-vis someone else but how they use them for Scotland’s benefit. [Interruption.] SNP Members chunter on, but they do not have any intervention to make because these are decisions that they have made and they do not wish to take responsibility for them.

Scotland Bill

Debate between Mark Lazarowicz and Ann McKechin

Monday 14th March 2011 Commons Chamber

[Ann McKechin]

Again, I should like to ask the Exchequer Secretary a couple of technical questions about the implementation of the clause. He has defined in proposed new section 80J(2) the people who will not be liable to pay the tax in question. Perhaps he could clarify for the record that that relates to people acting in their official capacity, and that if they happen to have property in Scotland on a personal basis, they will still be liable for the tax.

Will the Government undertake that they will not appoint the day on which the tax powers will come into effect until the Scottish Government confirm that they have satisfactory legislation in effect? I realise that the proposed implementation date is 2015, and perhaps the Exchequer Secretary could confirm that that is still the Government’s intention. It is important that people with an interest in property have an early indication of when they can expect the tax to be changed.

[Mark Lazarowicz]

I, too, have a couple of questions, and I would be most grateful if the Exchequer Secretary could deal with them. Does he believe that the provisions of the clause mean that the tax will be applied at the same rate throughout Scotland, or will it be possible for different rates to apply to different parts of Scotland? At the moment, for example, there are times when stamp duty land tax is waived for certain areas that require special assistance. Could that still apply?

Will the Scottish Parliament have the ability to delegate the power in clause 28 to local authorities, for example, so that varied rates could be offered? I am aware that that would not normally be permissible, but the Exchequer Secretary will certainly remember the debate about the possibility of a local income tax in Scotland a couple of years ago. There was a suggestion that if the Scottish Parliament introduced such a tax, it would be ultra vires. That was never tested, because of course the legislation never went through. The suggestion was that a local income tax could give local authorities the power to levy income tax through the back door. Similarly, it could be suggested that they be given the power to vary stamp duty land tax if the Scottish Parliament allowed them to do so. I would very much appreciate some guidance on those points.

I do not want to skip ahead to clause 30, but the same question applies to tax on disposals to landfill—will there be a Scottish rate, or could it be varied? Perhaps the Minister could give me the same reply to deal with both clauses.

Scotland Bill

Debate between Mark Lazarowicz and Ann McKechin

Thursday 27th January 2011 Commons Chamber

[Ann McKechin]

I am happy to provide my hon. Friend with that assurance. Unlike some other parties, we are already listening carefully to and speaking with people and bodies in Scotland, as we have done throughout this process, which has already lasted three years.

There has been much discussion, both in the Scotland Bill Committee in Holyrood and beyond, of the effect of the proposed devolution of the fiscal powers set out in the Bill to the Scottish Parliament. We urge the Secretary of State to set out and make transparent at the earliest opportunity the precise plans that the Government intend to introduce to ensure operational stability during the transition and the measures he intends to put in place to control the costs incurred during those changes. In particular, it is imperative that the Scotland Office, the Scottish Government and Her Majesty’s Revenue and Customs are in full and frank consultation and that operational systems are put in place to ensure that changes are fully effective so that Scottish taxpayers do not see public moneys wasted during a period of difficult financial constraint. What discussions has the Secretary of State held with HMRC and the Scottish Government on the initial planning required to implement those substantial changes, and will he undertake to report regularly to the House on progress during the preparation period leading up to the next general election?

We also seek clarity on the definition of “Scottish taxpayer”, which experts have already highlighted could lead to a series of what we suspect are unintended anomalies. According to the Institute of Chartered Accountants of Scotland, a worker who spends 101 days in Scotland, 99 days in England and 165 days working overseas, for example, will still be deemed to be a UK resident and a Scottish taxpayer, despite spending less than half the calendar year in Scotland. A person who lives in Scotland but works in England would derive all their income from their activities in England but still be classified as a Scottish taxpayer because that is where they end their day. As the Secretary of State and his No. 2, the Under-Secretary of State, the right hon. Member for Dumfriesshire, Clydesdale and Tweeddale (David Mundell), both represent border constituencies, that issue might be of direct relevance to their constituents. We understand that HMRC currently has no intention of introducing a concession to split the tax fiscal year to deal with the movement of workers across the border. None of those consequences seems particularly sensible, so we urge the Government to look carefully at the definition.

We are disappointed that the Government have not taken the opportunity to tackle the problems caused by the different approaches to the definition of “charitable purposes” and “charity” in the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Act 2006, which applies to England and Wales. They have failed to use this opportunity to introduce measures to reduce the regulatory burdens on UK charities that operate in both Scotland and other parts of the UK —particularly in difficult times when charities are already affected by the spending review cuts and bearing the brunt of the economic downturn. The Bill is the ideal place to address the issue, and to quote the Secretary of State’s right hon. Friend the Prime Minister, “If not now, then when?”

Let me conclude by reminding the House that the Bill is intended to preserve the political and economic union that has benefited both great countries over the past three centuries. The case for fiscal autonomy has disintegrated around the SNP, and its vision for Scotland is small, isolated and weak. Conversely, the Bill is designed to ensure that Scotland’s future in the United Kingdom is strong, enabling the Scottish Parliament to flourish further and to carry on improving the lives of people in Scotland.

[Mark Lazarowicz]

A large number of charities are headquartered in my constituency, and they regret the fact that the opportunity has not been taken to deal with this anomaly. Does my hon. Friend agree that, to allow the point to be dealt with, the Government could well consider tabling amendments in Committee? I myself am a director of a Scottish charity, but it is a local one that is unlikely to be affected by the provisions.

[Ann McKechin]

I am grateful to my hon. Friend. On that point, I agree that it would be helpful if the Government reconsidered their response to that recommendation by the Calman commission, because there is an additional burden on many very good charities that operate not only in Scotland but in other parts of the UK. They face two licensing processes and two sets of regulatory burdens, and, for a Government who always lecture people on reducing the regulatory burden, this is a good opportunity, working with the consensus among charities, to try to alleviate the amount of time they have to spend on paperwork and to increase the amount of time they have to spend on charitable purposes.

We will support the Bill’s Second Reading, not the Scottish National party’s amendment, if it is put to a vote. That does not mean we will not scrutinise the Bill carefully and closely, but, after almost three years of study and engagement with the Scottish public and with experts, and given the express will of the Holyrood Parliament, whose Committees are currently considering the matter in close detail, it is now important to get on with business and to put the Calman commission into legislation.