Scotland Bill — House of Commons, 2015-11-09
Topic: Macroeconomics
Edward Julian Egerton Leigh (Conservative, Centre-right): I wish to speak to new clause 1, which calls for an independent commission on full fiscal autonomy. I have to say to the shadow Secretary of State, who tabled it, that there is a whiff of hypocrisy about this. He may not remember it, but on 15 June, during the Committee stage, I proposed an amendment to achieve immediate full fiscal autonomy. I was supported in the Division Lobby by the Scottish National party and some Conservative colleagues. If Labour Members had voted with us, we could have had full fiscal autonomy that night, but they chose not to do so. I do not know whether they are embarrassed about that—[Interruption.] The shadow Secretary of State is shaking his head and says that he is not embarrassed, but he has now tabled an amendment that would produce another talking shop and another Smith commission on full fiscal autonomy, thus knocking the whole matter into the long grass. Incidentally, he says that no Member of the House of Commons or of the other place should serve on the commission. I do not why that is. He also says: "The Secretary of State shall not appoint as a member of the commission any person who is a member of a political party." That is a process of thinking that suggests that, somehow, politicians should not take decisions and that the fate of nations is decided not by statesmen, but by unelected commissions. The commission will have to meet for many months, but what will it tell us that we do not already know The fact is full fiscal autonomy is a well understood concept; it has the virtue of simplicity. I will not repeat all the arguments I made in its favour on 15 June, but Labour could have had it. I give this prediction: at the next general election, either the Conservative party or the Labour party will promise, in their manifestos, full fiscal autonomy. They will have to do that, because otherwise we will continue to be behind the curve I was criticised by some on the Conservative Benches for being unhelpful on 15 June, but actually I was helping the Conservative and Unionist cause. I showed to some people in Scotland that there were Unionist politicians who value the Union, and who believe in full fiscal autonomy, because it is the best way to stop the gradual slide towards independence. If we have a Scottish Parliament based on the Smith commission, which involves highly complex procedures on tax and many other matters— they have been debated in the past so we do not need to repeat them all here—we are inevitably leading to a sense of grievance The way to solve the grievance is to have full fiscal autonomy immediately. The Scottish Parliament should be held responsible for taxing the people and spending the money. If the SNP controls the Scottish Parliament, it is held responsible by the Scottish people. Furthermore, the arguments for full fiscal autonomy have moved even more in its favour since June following our debate on EVEL What is the objection to EVEL by Scottish Members of Parliament and by the SNP? It is that we have the Barnett formula. They are not allowed to vote on all stages of a Bill. A Bill could change English spending, and in doing so it automatically changes Scottish spending, but Scottish MPs are not allowed to vote on all stages of the Bill If the Scottish Parliament had full fiscal autonomy—if we did away with the Barnett formula—there would be no need for EVEL. The only reserved matters would be foreign affairs and defence, which account for a very small proportion of total spending. The budget of the Foreign and Commonwealth Office is 0.2% of gross national product, that of the Department for International Development is 7%, as we know, and that of the Ministry of Defence is 2%. Sometimes a whole year will pass without there being any legislation on the MOD or the Foreign Office. If the Scottish Parliament had full fiscal autonomy, and therefore the only legislation that affected the Scottish people was to do with foreign affairs and defence, there would be no need for EVEL This whole debate about Barnett and EVEL is in danger of being used by our political opponents. That is not what I want, but they are our political opponents, after all. They oppose the Union. They are entitled to make what arguments they like, and they will use the debate around EVEL to argue against the United Kingdom.