Yes, convener. I am delighted to be here and I want to make a very short opening statement.
I very much welcome the opportunity to attend the committee this morning as the UK Government moves forward in implementing in full the all-party Smith commission agreement. It was a manifesto commitment of the UK Government and that is what we are doing at the earliest possible opportunity. I was glad to meet the convener and other members of the committee at one of my first meetings as Secretary of State for Scotland and I want to continue the productive discussions as the bill passes through the House of Commons and the House of Lords.
Throughout the process, I want to ensure that the committee is fully aware of the UK Government’s thinking, and I will be happy to return to the committee as appropriate. The committee’s interim report was thorough and has already contributed to the quality of debate in both Parliaments. I look forward with interest to the outcome of the further engagement work that the committee is carrying out over the summer.
The bill has four days at committee stage on the floor of the House of Commons before our summer recess and I anticipate that the report stage will follow that recess in Westminster. In making the Scotland Bill as effective as possible, I will continue to be constructive and to look for ways to work with members of both Parliaments and to continue working closely with the Deputy First Minister and the Scottish Government. Indeed, I am meeting the Deputy First Minister this afternoon.
I am confident that the bill reflects the Smith commission agreement, as the president of the Law Society of Scotland, among others, has confirmed. There will, of course, be questions of drafting and emphasis that should rightly be debated, and the bill’s continuing passage presents further opportunity for refinement.
I am very pleased, however, that the central purpose of the Smith commission—the greater financial accountability for Holyrood that comes with control of around £11 billion of income tax revenues and £4 billion of VAT—is not in dispute in any way. That is a hugely significant measure and one that I am committed to delivering in statute without delay.
The bill has undergone considerable refinement since the draft clauses were published in January, including confirmation that the Scottish Parliament will be able to set a zero per cent rate of income tax and a new clause to top up reserved benefits. A number of additional clauses have been added to improve the technical operation of the bill’s measures.
Before I answer the committee’s questions, I would like to be clear about the Government’s position on so-called full fiscal autonomy, which has been the subject of amendments that were lodged at the committee stage in the House of Commons. Full fiscal autonomy was not in the Smith commission agreement. An independent analysis shows that it would be bad for Scotland, leaving us with £10 billion less to spend by 2020. The Government will resist changes to the bill that would be bad for Scotland and therefore full fiscal autonomy amendments will not be added.