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Scotland Bill

This group of amendments is a result of agreement between the UK and Scottish Governments on the legislative consent motion passed last week by the Scottish Parliament, giving its assent to the transfer of powers prospectively made by the Bill. Lords amendment 2 would remove clause 7, which creates new arrangements for the partial suspension of a Bill passed by the Scottish Parliament, subject to a reference made by the Advocate-General for Scotland, the Attorney-General or the Lord Advocate to the Supreme Court under section 33 of the Scotland Act 1998. The Scottish Government said that that could delay the overall implementation of affected Bills, and have thus invited this House to consider the merits of the existing arrangements. We consider that the existing judicial processes have worked sufficiently well in ensuring that the Scottish Parliament legislates within its powers, and that any incompatibilities found to arise by the Supreme Court in Bills pre-Assent or Acts post-Assent can be dealt with by amending legislation at Holyrood. We are therefore minded to accept the amendment. Lords amendment 5 would remove clause 12, which re-reserves to the UK Parliament certain aspects of insolvency law in Scotland—on the winding-up of companies, the effect on diligence, prior transactions and the insolvency of social landlords. Personal insolvency and receiverships remain entirely devolved to Holyrood, and administrations and company voluntary agreements remain a responsibility of this Parliament as they affect Scotland. Lords amendment 26 would remove schedule 2, which makes the consequential changes to insolvency law required if clause 12 remains part of the Bill. Lords amendment 6 would remove clause 13, which re-reserves the regulation of the medical professions in Scotland to the UK Parliament. On Lords amendments 5 and 6, we note that the Scottish Parliament indicates in its legislative consent motion that it will aim to make regulation in both matters in a way that is consistent with regulation across the United Kingdom. Given that commitment, we see no reason to oppose either amendment. Lords amendment 17 would remove clause 27, which permits Ministers in the UK Government to make a single order in relation to the implementation of international obligations applicable across the United Kingdom, whether they extend into devolved competences or not. A similar approach already exists in relation to EU obligations. The Scottish Government have made commitments on the continued implementation of non-EU international obligations. Given that, and given also the power of direction available to the UK Government in such matters under section 58 of the 1998 Act, we would not oppose Lords amendment 17. Lords amendment 18 would add, after clause 37, a significant new clause creating a new obligation on both the UK and Scottish Governments to make an annual report to their respective Parliaments on the progress made toward implementing the new tax and borrowing powers devolved to the Scottish Parliament by the Bill. We are aware that the Office for Budget Responsibility has already begun to make estimates of Scottish revenues from the tax responsibilities to be devolved, and has published, alongside its economic and fiscal outlook, estimates for this fiscal year and each successive year. In particular, it estimates revenues from the prospective Scottish rate of income tax at £4.4 billion this financial year, rising to £5.6 billion by 2016-17; revenues from stamp duty land tax at £328 million this financial year, rising to £536 million by 2016-17; and revenues from landfill tax at £123 million this financial year, rising to £157 million by 2016-17.