English Votes for English Laws — House of Commons, 2015-07-15
Topic: Macroeconomics
Christopher Stephen Grayling (Conservative, Centre-right): I am cognisant of the hon. Lady’s point. She would not expect me to announce the business in advance, but I take note of what she says. I can assure her that we will have a sensible process, and of course I will be available to hear comments from Members while the House is sitting and when it returns The other point raised with me, apart from the question of timetabling, was Members’ ability to vote on legislation that might have implications for the block grant, the so-called Barnett consequentials. There has been some discussion about how the House makes decisions on the block grant and how the Barnett consequentials work. This House approves the Government’s spending requirements each year through the estimates process, and we did that last night. The Government publish our spending plans, broken down by Department. The cash grants to the devolved consolidated funds that in turn fund the spending of the devolved Administrations are included in the relevant estimate: Scotland Office, Wales Office or Northern Ireland Office. Some of the individual departmental estimates are debated each year. The choice of these debates is a matter for the House through the Liaison Committee The decisions on the estimates are given statutory effect in a Bill each summer. The whole House will continue to vote on these supply and appropriation Bills. Through those means, decisions on the block grant funding to the devolved Administrations are taken. The block grant total each year is based upon a number of factors, including the calculation of Barnett consequentials, or the impact of individual spending decisions in different parts of the UK There are no readily calculable Barnett consequentials arising from individual Bills, because there is no direct relationship between any one piece of legislation and the overall block grant, even when the Bill results in extra spending or savings. An education Bill for England does not change the Department for Education’s budget outside the estimates process The two processes are separate. Decisions relating to departmental spending, including the block grant and the outcome reported to the House, are taken first in spending reviews and then in the annual estimates process. It is up to Departments to operate within the limits of the Budget allocation agreed. Any costs associated with legislation they take through Parliament must be borne within a Department’s overall budget We have listened to Members’ concerns and I understand the need to clarify the position relating to expenditure, so I want to be crystal clear. In order to assist today’s debate, I have republished the changes we propose to make to the Standing Orders of this House, with some small but important clarifications. They make it absolutely plain that Members from across the entire House—all Members—will approve departmental spending, which, as I have said, sets out the levels of spending for the devolved Administrations, reflecting Barnett consequentials. All MPs will vote on the legislation that confirms those decisions In addition, we have clarified that where legislation involves an increase in a Department’s expenditure, as voted on by the whole House in the estimates process, all MPs will continue to vote on that specific decision. All aspects of public spending will continue to be voted on by the whole House.