PARLIAMENTARY DEBATE
United Kingdom Internal Market Bill - 16 December 2020 (Commons/Commons Chamber)
Debate Detail
That this House agrees with Lords amendments 8P, 8Q, 8R, 8S, 8T and 8U.
I am delighted to be able to come back to the House today with positive news for business and for our constituents. As I have said before, I am immensely grateful to colleagues across both Houses for their constructive discussions with Government, and I would like to extend my thanks to all colleagues in both Houses for working with the Government to reach agreement on how we can best ensure that the frictionless intra-UK trade we enjoy today can continue into the future, especially as we recover together from covid-19. As we have made clear, this Bill is about protecting businesses and livelihoods—real people and real jobs—and I am pleased that both Houses have worked constructively to do that. I want to again extend my thanks to colleagues on the Opposition Benches in this place, and in the other place in particular, for their engagement.
As I set out to the House yesterday, the Government are committed to the common frameworks programme. We attach enormous value to the fora that they provide for collaborative working with the devolved Administrations. The Government have also been clear that the market access principles will work in tandem with common frameworks. We have been asked to provide as much clarity as possible on our continuing commitment to the programme, and we have thought long and hard about this over recent weeks. It is important that we respect the flexibility, and also the commonality, of common frameworks, paying close attention to the interests of all parts of the UK involved in the common frameworks programme and protecting the voluntary and consensus-driven nature of the programme. Indeed, these aspects are key to the effectiveness of the processes. The Government have listened carefully and reflected on the points put forward in both Houses about putting common frameworks on the face of the Bill, and we have now done so through these Lords amendments.
The Government here are demonstrating their commitment to the programme by, first, placing common frameworks on the face of the Bill, through our amendments yesterday in the other place, and, secondly, clarifying the relationship that we see between agreements made under the common frameworks processes and the internal market principles established by the Bill. Specifically, we are making it clear, through amendments 8P to 8S, that delegated powers under clauses 10 and 17 may be utilised to, among other things, make provision to reflect common framework agreements. In such cases, the Secretary of State would be able to bring to the House a statutory instrument to exclude from market access principles a specific agreed area of divergence. That would follow consensus being reached between the UK Governments and all the relevant parties that that was appropriate, in respect of a specific defined topic within a common framework.
For parts 1 and 2 of the Bill, previous amendments are provided for consent to be sought from the devolved Administrations. If that is not forthcoming within a month, MPs and peers from all parts of the UK will thereafter be able to debate and, if appropriate, agree to the change. We do not currently expect such cases to arise very frequently, but want to be clear that appropriate means are in place to respect them when they do.
The amendments to clauses 10 and 17 are complemented by amendments 8T and 8U. In line with other Government amendments to enhance the overall transparency of the United Kingdom Internal Market Bill and the role of the Office for the Internal Market, these amendments demonstrate our commitment to transparency and evidence building regarding the interaction between the market access principles and the common frameworks programme. As part of the OIM’s five-yearly review into the effectiveness of parts 1 to 3 in supporting a healthy internal market, the OIM will now also address how parts 1 to 3 have affected the operation of agreements under common frameworks, including the effect that those agreements have had on the operation of the internal market. This will ensure proper scrutiny of both regulatory changes and the progress made under common frameworks.
The Government are confident that these amendments provide an appropriate way to ensure that market access principles in the Bill can act to ensure certainty and a seamlessly functioning internal market for all British businesses and citizens. They do this while allowing a degree of agreed flexibility, reflecting different circumstances in particular parts of the UK. In reaching agreement on these amendments and thus agreeing on the final outstanding issues of the Bill, both Houses will be protecting and preserving the United Kingdom’s internal market, which has been the bedrock of our shared prosperity for centuries.
Let me start by thanking Ministers and their officials for the discussions that we have had in recent days about how we can make the best of this bad Bill. Let us be honest: when it first saw the light of day, it was clear for all to see what a terrible Bill this was. It was wrong in seeking to break international law, and it was wrong in disrespecting the devolution settlement and failing to understand the way the UK now works through power sharing. That is why we have been so vociferously opposed to it in this House.
We led the way on that, starting, as you will remember, Madam Deputy Speaker, with my right hon. Friend the Member for Doncaster North (Edward Miliband) taking down every single argument of the Prime Minister, who was here himself on Second Reading. Through the Bill’s many stages in this House, we have been clear in our opposition to some of its serious flaws. It has been a long and difficult process.
The Bill is now in much better shape than it was. It is far from good, let alone perfect, but it is better. That is thanks to the leadership shown by Labour colleagues in the other place, who built alliances and worked with guile and tenacity to get us to where we are. The Government, by the way, have a majority in the other place; despite that, we managed to inflict a number of Government defeats. As a result, the Government dropped most of part 5, which was the international lawbreaking part of the Bill originally and now upholds the Northern Ireland protocol.
After Labour worked cross-party with colleagues and others to ensure successive Government defeats in the other place, and after several rounds of ping-pong— I have lost count of how many—the Bill has been improved in a number of ways. We have the one-month mechanism for the devolved Administrations’ consent on regulations, the operation of the internal market in the interest of consumers, the consent and involvement of the devolved Administrations on the make-up and operation of the Office for the Internal Market, and the removal and review of the Henry VIII powers.
Today, we welcome the Government’s concessions on common frameworks in response to Lord Hope’s and Lord Stevenson’s amendments. In particular, amendments to clauses 10 and 17 allow for agreements arising from common frameworks to be excluded from the application of market principles. They also include in the Bill a definition of a common framework agreement, something that we have been seeking from the beginning. We also welcome the amendment to clause 31, which provides for the Competition and Markets Authority and the Office for the Internal Market to include in their five-year reporting details of the interaction between market access principles and common framework agreements, and of the impact of common framework agreements on the operation and development of the internal market.
We have fought long and hard to ensure that the Bill does not undermine devolution, because we believe in devolution. These are important safeguards that really do strengthen the Bill.
Common frameworks will allow different nations in the UK to set their own standards in key areas and to agree minimum standards for all. That is why it was so important to us from the start that there was recognition of common frameworks on the face of the Bill. However, it is still far from ideal, and the Government have been dragged kicking and screaming to these issues only because of the pressure we have applied, working tirelessly in the other place. I pay tribute again to Lord Hope, Lord Stevenson and Baroness Hayter for all their work on this.
However, the Government must reflect too. Their starting point could not have got this more wrong. Devolution and power sharing are about finding common ground and agreement, even with those from other democratically elected political parties, such as the nationalist party in Scotland, that we might not agree with. Trying to power- grab and hug powers close does not defeat one’s opponents; it gives them more oxygen and more grievance.
We accept the improvements to date, but we note that they start from a very bad starting point. Some might describe them, as we say up north, as trying to polish a turd.
However, I want to pay tribute to the Public Bill Office. Given the amendments, and the contortions the Public Bill Office has had to absorb in looking at the Reasons Committee’s consideration of these issues and at the question of what insistence on disagreement or agreement is at a particular point in time before it comes from one House to the other and goes back again, this has been an incredible exercise in complexity—so much so that it would be asking an awful lot to expect anybody, including the Minister, to be able to claim that they really understand what it is that has ultimately arrived. I was going to ask him if he would like to explain exactly what all this means. We will only find out in due course.
I was looking at the reasons for disagreeing only yesterday, and they were very clear. One said that the Government disagreed with the Lords over the question of legal certainty and disruption to business. Suddenly, almost at the wave of a magic wand, all of that has completely evaporated into thin air, and we have ended up with this extremely contorted, extremely confusing and ambiguous series of statements. However, at the heart of it, there is one point that I want to put to the Minister. Does he recall the famous Schleswig-Holstein question? Only three people comprehended what was going on, or they had originally, but unfortunately one had forgotten, one had died and the other had gone mad. [Interruption.] I am not going to attribute any one of those to the Minister. However, right at the heart of this, a lot of very complicated drafting has been put in to try to salvage some face. As I read it, the Secretary of State can make these regulations but—this goes to the heart of it—that process would be subject to the affirmative resolution under clause 10(2), which is mirrored in clause 17. It strikes me that there is one fundamental question: can the Minister effectively veto matters that have been discussed and consulted on with the devolved Administration? If the regulations are subject to the affirmative resolution, it seems that may well turn out to be the case. Who knows? I do not know at the moment, and only when the process reaches its conclusion will we know whether the reserved powers in the Scotland Act 1998 will bite. I cannot be sure of that. I have a feeling that this may end up in the courts, and perhaps the situation will be made clearer. We are at the end of the line for this Bill, and I regard the whole thing as being difficult to plot in terms of a clear path to any conclusion.
Instead of taking this Bill apart, as they should have done, those on the Labour Front Bench spend more of their time talking about the democratically elected Members of Parliament that they have here, who, as I pointed out, are in vastly greater numbers than the one Labour MP from Scotland. They are not listening to Scotland—they never do—and Labour has allowed this aberration to come about in this way by abstaining in the House of Lords.
The amendment does not protect devolution, as I said: the Minister has laid that out clearly today for everybody to hear. Westminster Ministers will still have the right to impose lower food, environmental and other devolved standards on Scotland, regardless of the view of Holyrood. This Bill is the biggest assault on devolution in the history of the Scottish Parliament. It undermines devolved policy making, grabs spending powers, and removes state aid from being a devolved responsibility. The Scottish Parliament and the Welsh Assembly refused to give this Bill consent, and it is outrageous that the UK Government are once again ignoring the wishes of the people of Scotland as well as Wales.
In welcoming the amendment, Professor Aileen McHarg warned:
“There are still significant problems with this Bill: it changes the scope of devolved decision-making; it reserves additional powers to Westminster; it empowers the UK Government to spend in devolved areas that have nothing to do with markets (eg prisons, sport, international student exchanges); and above all—unlike EU law—it has an inherently asymmetrical effect on decision-making for England and for the devolved territories.
This is a Bill which squarely falls within the scope of the Sewel Convention, and the necessity of which is deeply questionable.”
But of course the Government have not listened to that, and Labour has capitulated on it.
The only reason for this Bill as it now stands is to demolish devolution. If the Government take this Bill forward today, as they obviously will, that is what they will be doing. Any pretence thereafter by the Scottish Tory MPs that they respect the democratic rights of the people of Scotland will be blown apart if they support this today. In fact, they have already supported it, because it seems that it will go through. They have done nothing to protect the democratic rights of the Scottish people.
People in Scotland are watching. People in Scotland, when they see the effects of this Bill, will be angry about the fact that their rights are being taken away by these Tory Ministers, aided by their Labour bedfellows. They will be furious about the fact that their rights are being stripped from them. They are listening, they are watching, and they are seeing developments in this place. They are understanding, now, that the only way to protect their Parliament, their rights and their democracy in Scotland is to go forward as an independent nation—and they will be voting for that, I am sure, in due course.
However, I do still have concerns about the Bill, one of which is about the Office for the Internal Market. The Government need to be transparent about what role that office will play in future trade deals. Can foreign investors in a US trade deal use it to undermine the devolved nations? I have asked that question repeatedly. I am also conscious that the legislative value of this Bill might, in practice, be limited, or indeed pretty much non-existent, especially if we reach a trade deal and a standards agreement with the EU. We obviously need more clarity on this, as the hon. Member for Stone (Sir William Cash) said.
Unfortunately, as I pointed out yesterday, these changes, while positive, are too late, because the damage has already been done. The Minister heard the speeches of SNP Members yesterday, but I wonder whether he listened. With this Bill, the Government have been pouring fuel on a fire, as we heard from the hon. Member for Manchester Central (Lucy Powell). I ask the Minister: what has this all been worth? If the Government are committed to the future of the United Kingdom, they need to start acting like it.
I cannot count the number of newspaper articles I have read over the past year reporting a reset in the Government’s approach to the Union, that a new Cabinet Committee has been set up to finally solve the Government’s problem as regards relations with the devolved nations, or that the Prime Minister is going to love-bomb Scotland. I urge the Government: this is not about Committees, or grand new offices in Edinburgh, or bridges or tunnels over or under the Irish sea. Those of my constituents who are uncertain about where they want Scotland’s future to lie will not be convinced by Union Jacks on UK Government infrastructure projects: cack-handed stuff, as the passage of this Bill clearly indicates. What they will be convinced by is a UK Government who treat the devolved nations with respect, maturity and honesty, and who work together with the devolved nations to find consensus, because I do believe that we have too much in common for borders to divide us. Are we in this place capable of that? I like to believe we are, but for too many of my constituents, it has not felt like that over the last few months with this Bill.
So I do urge the Government: compromise and consensus were the reluctant final steps they took with regard to this Bill. In the light of the comments of the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) in relation to the Welsh Government’s statement, let the first steps the Government take in their future relationship with the devolved nations be that compromise and consensus.
It is appalling too—I have to say this—that the loyal and spineless Opposition betrayed generations of Scottish Labour activists and politicians who fought to establish devolution and battled their own party sometimes, but who learned to work across civic Scotland to deliver it. I think they must not have heard the warnings of Scottish Labour Action that a powerful devolved Administration in Scotland were not a frippery, but an absolutely essential counterpoint to Westminster and Whitehall blindness to issues anywhere outside the south-east of England. I expect nothing better from the Tories, but the Labour party has betrayed its own members and the activists who spent so long on the Calton Hill vigil. This desperate attempt to appeal to Tory values to try to bury the incompetence of the previous leadership might seem a decent old political strategy, but it renders the existence of the Labour party utterly meaningless.
In any case, we finally have a nod to the devolution settlement, even if it has been forced by the House of Lords. In yesterday’s debate, the Minister said this legislation was about devolution, demonstrated that it was about dismantling devolution and failed to answer any of the questions raised during the debate. It seems that Ministers in this UK Government no longer seek to engage in discussion, but instead merely fling pre-written barbs that they clearly think are clever. It is not clear whether they know how to debate and choose not to, or do not actually have command of their brief. Either way, it is unfitting for a Minister and no way to run a Government.
Instead of offering amendments to this elected Chamber yesterday or at any point during the passage of this Bill, the Government arranged their business in the unelected Chamber—somewhere they clearly feel most comfortable, among the privileged and away from the bother of the concerns of the people we represent. Those amendments, I will grant, go a little way towards addressing some of the concerns that have been raised, but I suggest that they were driven more by a desire to mollify cantankerous Lords than by the need to create decent legislation. They are tiny baby steps in the right direction when we needed giant strides, and they leave, as we have already heard, reams of unanswered questions—how disputes between Governments will be resolved, for one, and how consumers can be protected from unthinking and uncaring Prime Ministers, for another.
The amendments will also embed an imbalance in the framework of a post-Brexit UK that will see England’s Government outweigh the other Governments in any negotiation, as the hon. Member for Stone (Sir William Cash) pointed out. He put his finger on the exact nub of this problem. England’s Government will outweigh the other Governments in any negotiation, because it continues to claim overlordship as the supposed Government of the UK. Labour might be interested in looking at that, because it echoes the democratic deficit that drove the creation of the devolved Administrations in the first place.
Scotland faces the same situation as we did in the last quarter of the last century: a UK Government of a hue that we did not vote for and would not support are riding roughshod over the interests of the Scottish people and will ignore them if they can. This Bill will pass today, but the debate will continue, and we have not yet begun to fight.
Despite what the hon. Member for Manchester Central (Lucy Powell) said, Labour did not lead the way on this. Labour gave up on devolution, and it gave up in the other place. Labour did not even back my hon. Friend the Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) in the Reasons Committee. Labour sat on its hands in the vote in that Committee. Lord Stevenson said, “We will not divide the House.” That is giving up. Labour gave up in the Lords.
Let us look at clause 48 and what Labour gave up on. Westminster is now allowed to provide infrastructure at places in the United Kingdom, including infrastructure connected with any of the other purposes mentioned. That infrastructure includes water, which is still publicly owned in Scotland, electricity, gas, telecoms, sewerage—also publicly owned in Scotland—railway facilities and roads or other transport facilities. As the hon. Member for North East Fife (Wendy Chamberlain) said, that paves the way for the glorious Union bridge or Union tunnel that we do not want and do not need, because we can invest better in transport infrastructure ourselves.
There is no doubt that the greatest improvements in Scotland’s infrastructure have come since the introduction of the Scottish Parliament, making decisions for the people of Scotland on behalf of the people of Scotland and representing the people who elected them. [Interruption.] Does the hon. Member for Manchester Central want to intervene? No. As I was saying, the greatest improvements in Scotland’s infrastructure have come since the introduction of the Scottish Parliament. MSPs are answerable to the people who elected them. Unfortunately, we have a right- wing Tory Government whom Scotland did not elect, and now they are free to overrule us. Labour backed down. It does not matter what the hon. Member for Manchester Central said; Labour backed down and gave up.
The Bill allows Westminster to spend not only in Scotland but in Wales, overruling the Welsh Labour Government on health, education, culture, sports facilities, court or prison facilities and housing. We are leading the way in building social housing in Scotland. We ended the right to buy. The Tories obviously still think that the right to buy is a good thing, forcing councils to get rid of their housing stock. How dare Westminster legislate to provide housing in Scotland—we have done very well without your help, thank you very much.
State aid is something else that Labour gave up on. It has been stated clearly that state aid was never a reserved function, and therefore it was devolved to the four nations, so why is Westminster taking it back? Does it think that that sends out a good message?
People are watching. Studies in Scotland have shown time and again that people in Scotland trust the Scottish Parliament to legislate and invest in these matters over Westminster, so why Westminster thinks it can do a better job is beyond me. As my hon. Friend the Member for Inverness, Nairn, Badenoch and Strathspey said, it looks as though independence is the only way that we can protect the powers of the Scottish Parliament. Bring it on.
Originally, Lord Hope’s amendments would have required the Secretary of State to exclude any divergence agreed under the common frameworks process from market access principles; by contrast, the Government’s amendment makes it clear that this is an option open to the Secretary of State, thereby giving the Secretary of State the discretion to ensure that the disapplication of the market access principles would never lead to the emergence of unacceptable trade barriers within the United Kingdom.
The hon. Member for North East Fife (Wendy Chamberlain) talked about the CMA, the OIM and what would happen with international players. The CMA and the OIM have the flexibility to investigate and report on any issues that they choose, but they are not themselves decision makers on market access principles. Throughout the Bill’s passage, we have made sure that both the OIM and the Bill itself will apply rules to each part of the UK—to England, Scotland, Wales and Northern Ireland—equally.
The hon. Member for North East Fife said that when we talk about devolution it is not about Committees, and I totally agree: it is about dialogue, consensus and giving business certainty. This is in stark contrast to what we have seen from the Scottish National party, which walked away from discussions about the internal market in 2019. That is no way to build consensus and to have that dialogue. If the SNP and the Scottish Government want to talk about ending the right to buy and to go with that to the council house-owning residents in their electorate, that is up to them. We are not talking about devolved parts of housing; when we talk about spending or any of these other issues, it is complementary to what the Scottish Government, or indeed the Welsh Senedd or the Northern Ireland Assembly, are doing within their devolved rights.
We heard the hon. Member for Edinburgh North and Leith (Deidre Brock) talk about pre-written barbs, but time and again when we have come back to this place it has just been a rehearsal of the arguments not about the devolution settlement or the Bill itself, but about independence. It has been the same debate time and again, instead of Members involving themselves in the detail of the Bill and giving certainty to business.
I finish by thanking everyone who spoke in the debate, and by once again thanking all hon. and right hon. Members and noble Lords who have engaged with the Bill over the last few weeks. I thank the Public Bill Office for its support of all Members and officials across Government. I pay tribute to the entire ministerial team across both Houses and all Departments, who have worked jointly to deliver the Bill—in particular, Lord Callanan, Lord True and the Minister for the Constitution and Devolution, my hon. Friend the Member for Norwich North (Chloe Smith), and the Minister of State, Northern Ireland Office, my hon. Friend the Member for Worcester (Mr Walker). I also pay tribute to Yasmin Kalhori and the team of the Leader of the House of Lords.
I welcome the contributions and the constructive discussions that we have had in recent days with Opposition Members in both Houses that have got us to this place. We have had some passionate debates on the Bill, because of the importance of the issues. However, the Bill will ensure that UK businesses can trade across the four parts of the UK in a way that helps them to invest and create jobs, just as they have for hundreds of years. I am therefore delighted to ask the House to agree to the amendments, and to complete our scrutiny and consideration of the Bill.
Drew Hendry, Member for Inverness, Nairn, Badenoch and Strathspey, was named by the Deputy Speaker for disregarding the authority of the Chair (Standing Order No. 44).
Motion made, and Question put forthwith (Standing Order No. 44),
That Drew Hendry be suspended from the service of the House.—(David T. C. Davies.)
Question agreed to.
The Deputy Speaker directed Drew Hendry to withdraw from the House, and the Member withdrew accordingly.
Main Question again proposed.
Question put and agreed to.
Resolved,
That this House agrees with Lords amendments 8P, 8Q, 8R, 8S, 8T and 8U.
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