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Wednesday Volume 622 1 March 2017 No. 117 HOUSE OF COMMONS OFFICIAL REPORT PARLIAMENTARY DEBATES (HANSARD) Wednesday 1 March 2017 © Parliamentary Copyright House of Commons 2017 This publication may be reproduced under the terms of the Open Parliament licence, which is published at www.parliament.uk/site-information/copyright/. 277 1 MARCH 2017 278 deliver that and it is for them to choose how they use House of Commons them, but they do have to account for their use to the people of Scotland. Wednesday 1 March 2017 Simon Hoare: Does my hon. Friend share my confusion that the Scottish Government prefer the narrative of The House met at half-past Eleven o’clock whinge, whine and waffle to using the powers that this Parliament has given them to prove their competence in running the country? PRAYERS Jane Ellison: As I am sure many hon. Members also know, I am very aware from many of my conversations [MR SPEAKER in the Chair] with businesses—particularly those thinking about their plans for the future, especially since the referendum last BUSINESS BEFORE QUESTIONS year—that they often see competitiveness through the prism of tax and that they want to know the Government MIDDLE LEVEL BILL (BY ORDER) are entirely focused on creating the conditions in which Second Reading opposed and deferred until Wednesday businesses can grow and thrive. I really think that all of 8 March (Standing Order No. 20). us need to focus on pursuing our plans to make our respective countries very competitive. In Scotland, the Government have to understand that the decisions they take about using their powers are part of such a package Oral Answers to Questions for businesses. Kirsty Blackman (Aberdeen North) (SNP): The Tories at Westminster are facing rebellion on their Back Benches SCOTLAND on business rates. What advice are they taking from the Government in Scotland, who have listened to local businesses and put on a cap of 12.5% for businesses in The Secretary of State was asked— the hospitality sector and particularly those in Aberdeen Taxation Powers that have been hard hit by the oil price? Jane Ellison: I think that is just an attempt to make a 1. Edward Argar (Charnwood) (Con): What recent political bragging point. My right hon. Friends the discussions he has had with the Scottish Government Chancellor of the Exchequer and the Secretary of State on taxation powers. [908898] for Communities and Local Government have made it quite clear that they will have more to say about that. 11. Simon Hoare (North Dorset) (Con): What recent They are listening carefully to the concerns of particularly discussions he has had with the Scottish Government the smallest businesses and of those hardest hit by on taxation powers. [908908] business rates in England. The Financial Secretary to the Treasury (Jane Ellison): Callum McCaig (Aberdeen South) (SNP): Will the The Chief Secretary to the Treasury attended a Joint Minister explain to me how, simultaneously, the Scottish Exchequer Committee with the Scottish Government’s Government can, first, be not using the taxation powers Cabinet Secretary for Finance and Constitution in they have, and secondly, be the highest taxed part of the November. They discussed the ongoing work between country, particularly when neither of those statements both Governments to implement these and other powers. is in fact true? There are, of course, regular and ongoing discussions between officials from both Governments. Jane Ellison: It is for the Scottish Government to account to the Scottish people for their plans. These Edward Argar: Does my hon. Friend agree that these points might be interesting ones to bring to Westminster taxation powers, coupled with other powers that have and knock about in this Chamber, but real people are been devolved to Holyrood, make it one of the most looking at the impact of those plans on their family powerful devolved Parliaments in the world? Does she income and the Scottish Government will have to account also agree that, quite rightly, they make the Scottish to them for those plans. It is far more than just a Government accountable for their actions in respect of debating point. taxation, and that the Scottish Government are responsible for making Scotland the most highly taxed part of the 13. [908910] Andrew Bridgen (North West Leicestershire) United Kingdom? (Con): Does the Minister agree that the Scottish Government’s decision to make Scotland the most Jane Ellison: My hon. Friend makes a very good highly taxed part of the United Kingdom will reduce point. The new devolution settlement does indeed deliver the country’s competitiveness and ultimately make one of the most powerful and accountable devolved Scotland a less attractive place in which to live, work or Parliaments in the world, and the people of Scotland do business? will look to their Government to use those tax powers wisely to make Scotland as competitive and attractive a Jane Ellison: These are all very important points. It is place as possible in which to do business. We obviously for the Scottish Government to use the powers that have want the Scottish Government to use those powers to been devolved to them and to account to their people 279 Oral Answers 1 MARCH 2017 Oral Answers 280 for using them, but there is no doubt that people look at David Mundell: This Government’s plan is to engage the competitiveness of tax regimes, whether personal or with the Scottish Government and with the other devolved business, and that those regimes are important in the Administrations to discuss those serious issues. It is not key decisions that people make about competitiveness to go out and tell the people of Scotland that the and other things. devolved settlement is being undermined by Brexit, which will lead to the Scottish Parliament exercising Leaving the EU: Trade more powers. I can give the right hon. Gentleman an absolute guarantee that, after the United Kingdom 2. Heidi Allen (South Cambridgeshire) (Con): What leaves the EU, the Scottish Parliament and Scottish assessment he has made of trade opportunities for Ministers will have more powers than they have today. Scotland after the UK leaves the EU. [908899] The Secretary of State for Scotland (David Mundell): Mr David Anderson (Blaydon) (Lab): Before I ask a Following the EU referendum, Scotland Office Ministers question, I take the opportunity to send my condolences have regularly met representatives of Scottish industry to the family of my great comrade, Gerald Kaufman, a and business. What comes out clearly is the appetite to genuine parliamentarian. seize and make a success of the opportunities afforded On 12 October, the Secretary of State stood at the to us by leaving the EU, forging a new role for ourselves Dispatch Box and said in the world to negotiate our own trade agreements and “whatever support is put in place for businesses in the north of be a champion for free trade. England will apply to businesses in Scotland.”—[Official Report, 12 October 2016; Vol. 615, c.287.] Heidi Allen: I am a bit scared to ask my supplementary That was in relation to the deal struck with Nissan. question because I think my Scottish National party Does he stand by that promise? colleagues have had three Weetabix this morning. My question is about exports, of which Scotland has made David Mundell: I associate myself with the hon. a fantastic success, particularly in food and drink. How Gentleman’s comments about Gerald Kaufman. He confident or worried should we be if we come out of was a near neighbour of mine in the previous Parliament Europe that those markets will be damaged, and what and I always found him to be the perfect gentleman. can the Government do to support them? I made it clear in previous answers that the Government’s David Mundell: My hon. Friend is absolutely right to approach will be consistent across the United Kingdom. highlight food and drink as Scotland’s top manufacturing export, accounting for £8.9 billion in 2015. Leaving the Mr Anderson: While some businesses and workers are EU offers us the opportunity to negotiate new trade aware of that welcome reassurance, I have yet to meet deals across the globe and create even more opportunities anybusinesses in Scotland that know about the commitment for Scotland’s world-renowned food and drink. to give them the same deal as was done with Nissan. Why has the Secretary of State not been more public Angus Robertson (Moray) (SNP): Agriculture and about the commitment? Why is it the best kept secret in fisheries are key parts of the Scottish economy and Scotland? Scotland’s export sector. Powers for both are devolved to the Scottish Government. Under the Secretary of David Mundell: I have made it clear to the hon. State’sGovernment’splans, will all decisions on agriculture Gentleman how the UK Government are approaching and fisheries be taken by the Scottish Parliament and the Brexit negotiations and how we are fully engaged the Scottish Government after Brexit? with businesses in Scotland to ensure that we understand their concerns. We can go forward on a basis that will David Mundell: As the right hon. Gentleman knows, ensure that Scotland and the whole United Kingdom the Government have confirmed in the White Paper get the best possible deal from the UK leaving the EU. that all the powers that the Scottish Parliament currently exercises in relation to agriculture, fisheries and all Ms Tasmina Ahmed-Sheikh (Ochil and South Perthshire) other issues will continue. We wish to have a dialogue (SNP): Scotland’s international exports have increased with the Scottish Government, the other devolved by 41% since the Scottish National party Government Administrations and stakeholders about what happens came into office in 2007, which is a fantastic success to powers that are currently held in Brussels and where story for Scotland.