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Scotland Bill

I am grateful to the hon. Gentleman for that intervention. I always try to be reasonable and measured in my comments. These issues are important and I have long argued—I will not repeat the arguments that I have made in other debates, as I think you would quickly rule me out of order, Madam Deputy Speaker—that there is a great deal of confusion about the fiscal relationship between Scotland and the rest of the United Kingdom. I think that this measure will give extra clarity. Some of the claims are justified; others are not. I shall not be tempted down the path of identifying which are and which are not, but, as my hon. Friend the Member for Carlisle (John Stevenson) says, it is important to have that scrutiny so that we can keep tabs on this very complex change. The last thing our economy needs in these difficult economic times is additional uncertainty about changes that are being rushed through that might provide uncertain trading conditions for companies. The proposed process is measured, calm and sensible. I am glad that some of the other demands for fiscal transfers have been resisted at this stage. We have talked about corporation tax and I will not re-enter that debate. The demands made by the Scottish National party initially included the transfer of excise duties, but even they now realise the complexity that that would involve, thanks to the fact that such an august body as the Scotch Whisky Association—a very fine body—pointed out that different alcohol duties north and south of the border would require the introduction of some sort of tax border policing to ensure that there was no abuse of the system. I am glad that that demand has been dropped. As my hon. Friend says, the additional transparency will be good for our constituents. The publication of the annual reports will also be helpful in relation to another sensible change that has been made during the progress of this Bill, which is the proposed adjustment to the annual block grant. Initially, I think there was to be a one-off assessment of what change should be made to the block grant as a result of the fiscal changes. That has now been amended to be an annual assessment of what I think is known as the Holtham approach, which has been considered for funding for the Welsh Assembly. Having that annual check on a very complex and dynamic fiscal situation will be sensible. I recall that similar changes were made to the calculation of the Barnett formula in the 1990s when the initial formula, which had been set in stone since it was first introduced in the late 1970s, had resulted in some disparities and anomalies as a result of changing population levels. That has since been adjusted to an annual change.