Scotland Bill — House of Commons, 2015-06-08
Topic: Macroeconomics
Ian Murray (Labour, Centre-left): I certainly hope that the hon. Member for Edinburgh East (Tommy Sheppard) becomes a seasoned practitioner very quickly, because he might have forgotten that I went through the general election campaign as well. At hustings all over the Edinburgh South constituency, the SNP candidate was consistently asked his position on full fiscal autonomy and, as I have just said, the answer was that the SNP would vote for full fiscal autonomy in this Parliament. This is a legislative opportunity to bring that manifesto commitment forward and if we do not see it, people will rightly ask why We are promoting the additional powers on welfare because more devolution can protect the most vulnerable in Scotland from the worst of the Conservative Government. The major new powers coming to Scotland give us the chance to do things differently so that never again can a Government impose things such as the bedroom tax on Scotland’s most vulnerable We will also seek to strengthen the Bill in other areas. I shall not give an exhaustive list. This might be a Scotland Bill, but it has implications for other parts of the UK so we will look for a UK-wide constitutional convention as part of it. Equalities are a significant part of it and we shall look to strengthen the relevant clauses to improve on gender equality in Scotland. Lord Smith heavily underlined the importance of improving relationships between the Scottish and UK Governments to provide greater scrutiny of Scottish Ministers and the need to devolve powers from the Scottish Parliament, so we shall seek amendments in that regard. The Bill offers an opportunity to deal with outstanding issues with employment tribunals and the permanence of the Scottish Parliament. Let me re-emphasise that we will ensure that Smith is delivered in full, to the letter, in both substance and clauses We must be vigilant as the Bill makes progress through the House, as the worst case scenario for Scotland would be an SNP asking for its top manifesto priority of full fiscal autonomy and a majority Conservative Government delivering it for them. There will be common ground on amending the Bill, and we will work together to achieve that, but I will defend Scotland night and day from the plan to cut Scotland off from UK-wide taxation and spending with full fiscal autonomy. Some people may not recognise the policy, because the SNP does not really want to talk about it now that the general election is over. First it was full fiscal autonomy; then it was full fiscal retention. It was adapted to full fiscal responsibility, and yesterday on Sky the hon. Member for Moray called it full fiscal manoeuvre. Indeed, this lunchtime, the hon. Member for Dundee East (Stewart Hosie) confirmed that the SNP may amend the Bill to demand full fiscal autonomy. The picture is not clear, and Scots deserve an answer on this fundamental broken promise in their manifesto The SNP is uncomfortable with the name, because it is uncomfortable with the policy. It knows that the consequences of such a policy would be severe for Scotland. It is a source of great shame that it simply is not honest about it, and it has five days on the Floor of the House to explain it. Recent analysis by the impartial experts at the Institute for Fiscal Studies showed that by the end of the debacle the black hole in Scotland’s finances could be as much as £10 billion, which would mean spending cuts or tax rises to fill the gap. That is over and above the cuts already imposed by this Government. That means austerity max I will not shirk from holding the Government in Scotland to account for their policies at the Dispatch Box regardless of how much SNP Members chunter. If there was no pooling and sharing of resources across the UK, there would be no secure extra spending coming north—extra spending that has built the schools and hospitals that educate our children and care for our grandparents. It would mean an end to the UK pensions system at a time when the proportion of pensioners in Scotland is set rapidly to outgrow the proportion of people in work, paying the taxes that fund the pensions system. It would mean an end to the UK welfare state—the idea that if someone has paid into the UK system they get at least the same basic minimum back regardless of where they live. In short, it would mean an end to the social solidarity that makes Britain what it is today. That is not a left of centre or even a progressive case. It is a recipe for disaster.