My Lords, I rise to speak in support of Amendments 73B and 73C, to which my name is attached. I agree with the noble Baroness, Lady Quin, that the Bill concerns the whole of the United Kingdom and not just Scotland. It has to be considered not just from the perspective of the two Governments—the Scottish Government and the UK Government—but from the perspective of the people living in those parts of the United Kingdom that share a border with Scotland.
Although I support strongly the principles behind the Bill and welcome the proposals to devolve powers, responsibilities and further tax-raising capabilities to Scotland, I am very aware that the level of public spending on Scotland is significantly higher per capita in Scotland than it is in the north of England. To give the figures from the latest year for which they are available, in 2014-15 in the north-east of England the total identifiable expenditure on services per head was £9,347, in the north-west of England it was £9,197, in Yorkshire and the Humber it was £8,660, but in Scotland it was £10,374. These are very different levels of per capita spending, and they need to be explained so that the general public understands the basis for them.
I look forward to seeing and considering the fiscal framework when it is published shortly, which I hope will explain these differences. We will then see what impact any changes will have on the operation of the Barnett formula and how far the Scottish Government will need to use their powers over income tax to pay for better public services, where they decide to have them, than are available in the rest of the UK.
The two amendments, Amendments 73B and 73C, reflect this problem. The UK and Scottish Governments should not proceed by disregarding the impact of the fiscal settlement on the rest of the United Kingdom. I hope that both Governments will understand the need for the whole of the UK to be strengthened, not just one part at the expense of another. In that respect, it is very important, as the noble Baroness, Lady Quin, explained, for there to be a report by both Governments on the actual impact on the areas south of the border. I hope that the Minister will recommend that it should become an annual statement, as it would aid public understanding of the devolution agreement.
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The noble Baroness, Lady Quin, talked about air passenger duty. If the Scottish Government reduced air passenger duty by 50% or 100% to boost Scottish aviation, the impact of such a decision on airports south of the border might be significant. A small outflow of passengers attracted by lower fares in Scotland could cause a movement of carriers. It would be of little help to the connectivity of the north-east of England if passenger duty was not reduced there in line with Scotland. One solution that the Minister may be prepared to consider would be to charge much lower rates of air passenger duty for non-congested airports.
The amendments are intended to provide a positive probing of the issues, and I hope that it may be possible between Committee and Report for us to meet the Minister to talk further if that would help.
Finally, there is one other matter. We need to clarify people’s rights, whichever side of the border they live on, to access public services across the border if that is easier for them. I hope that, during the passage of the Bill, this matter can be clarified.