Why we need better Budgets

Philip Hammond’s u-turn on proposed changes to National Insurance Contributions was the latest in a growing list of Budget measures to be withdrawn in the face of a parliamentary and media backlash. Jill Rutter and Alice Lilly argue that the exceptionalism of the Budget process makes it vulnerable to poor policy making. They propose a number of possible improvements, including the introduction of a Budget cabinet committee and greater support for parliament in scrutinising tax policy.

On March 8 Chancellor of the Exchequer Philip Hammond stood up to deliver his first – and last – spring Budget. He was in such a relaxed mood that he joked that the last Chancellor to claim a spring Budget was his final one (Norman Lamont) survived only ten weeks after his speech. Within hours, the government was reeling as their backbenchers and the press denounced a change to National Insurance Contributions for the self-employed, a measure that raised the fiscally relatively trivial sum of £400m and had been welcomed by the overwhelming majority of fiscal experts as a sensible minor reform.

The measure survived only a week before Hammond was forced back to the Commons to announce he was dropping the change – for this parliament at least. The Financial Times added the NIC u-turn to the ever-expanding list (£) of Budget rabbits that turned into hand grenades when unleashed – and exploded in the face of their instigator.

So why does the Chancellor, one of the most powerful figures in government, advised by people seen (not least by themselves) as the government’s crack policy troops, keep stepping on political and policy minefields – while finding their room for manoeuvre ever more constrained?

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Taking back control? Initial thoughts on the Great Repeal Bill white paper

In the newly published Great Repeal Bill white paper, the government makes much of the theme ‘taking back control’. But the paper’s content does little to alleviate the fear that it is the executive, not parliament, that will benefit from the Great Repeal Bill process. The Hansard Society’s Ruth Fox has five initial questions raised by the white paper.

1/ When will the parliamentary votes on any Brexit deal be held?

The white paper seems to reveal confusion in the government’s position regarding the timing of the votes that it has promised both chambers of parliament on the Brexit deal. In the Prime Minister’s Lancaster House speech and at the start of the EU (Notification of Withdrawal) Bill second reading debate on 31 January the government said that the votes would be held before the deal ‘comes into force’. By the second day of the bill’s committee stage on 7 February, the government said that it would bring forward a motion to approve the deal ‘before it is concluded’. In the Prime Minister’s statement yesterday and her foreword to the white paper today, she reverted to the original ‘before it comes into force’ position. But paragraph 1.19 of the white paper reintroduces ‘before it is concluded’. This may be carelessness, but the two phrases could mean very different things. Parliament now needs urgently to clarify with the government when exactly in the process it plans to put any final Brexit deal to the vote.

2/ Is the government’s description of the delegated legislation process accurate?

On page 23 of the white paper, the government states that parliamentary procedures allow parliament to scrutinise as many or as few statutory instruments as it sees fit, and notes that parliament can and regularly does both debate and vote on secondary legislation.

What the white paper omits to mention, however, is that secondary legislation subject to the negative scrutiny procedure (the majority of this type of legislation) can only be debated if an MP ‘prays’ against it via an Early Day Motion (EDM). Even then, whether it is debated lies in the hands of the government, not parliament. Paragraph 3.21 states that under the negative procedure members of either chamber can ‘require’ a debate and if necessary a vote. In fact, they can ‘request’ these, but they cannot ‘require’ them. The government controls the parliamentary timetable in the House of Commons, and it must therefore agree to grant the time for any debate. In the last parliamentary session, MPs debated just 3 per cent of the 585 negative instruments laid before them. And although the Leader of the Opposition and his front bench colleagues tabled 12 prayer motions for a debate, just five were granted.

Sometimes the government doesn’t prevent a debate but runs down the clock and builds in delays that minimise the ability of MPs to revoke a regulation. In the last week alone, the opposition had to secure an emergency debate under Standing Order 24 in order to debate the new Personal Independence Payment Regulations. 179 MPs from eight different parties prayed against the SI via an EDM, but the government only scheduled a debate for 19 April, 16 days after the ‘praying against’ period would have expired. This makes revocation difficult. The emergency debate was a means to air the issues before the annulment period came to an end, but it had no force, as there was no substantive vote on the regulations.

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