Secretary of State for Scotland
Following the 2010 general election and the coalition government formed between the Conservative party and the Liberal Democrats, Moore was appointed Secretary of State for Scotland on 29 May 2010, a move that followed the promotion of fellow Scottish MP Danny Alexander to Chief Secretary to the Treasury.
Shortly after becoming Secretary of State for Scotland, he appeared on the BBC's Question Time programme, where he was challenged by an audience member who felt concerned that he would be made homeless by the government's new housing policies. In response Moore said "the horrible truth is that across the country everyone is going to have to make a contribution to getting the country right", before going on to explain that measures taken in the emergency budget were there to help the lowest paid. The audience member challenged Moore on the response and told him to "get a grip". In the same programme, Moore said that fellow Cabinet member Michael Gove had made a major mistake in his announcement about the scrapping of the school rebuilding programme but said that the Education Secretary had apologised with "grace" for it. In September 2010 when compiling their list of the 50 most influential Liberal Democrats Moore was named by the Daily Telegraph as the 13th most influential. Describing him within the context of the role he occupied as a "safe pair of hands in a job where the definition of success is being able to keep out of trouble"
As part of the British government's 2010 Comprehensive Spending Review (CSR) due to be announced on 20 October, Moore lent his support to Defence Secretary Liam Fox in cabinet discussions to retain funding for two aircraft carriers which would be constructed in yards around Britain, including in Glasgow and Rosyth in Scotland. The project, costing £5.2 billion was thought to be under threat following the spending review which many believed could result in a 20% cut in the Ministry of Defence budget. He also provided backing for the upkeep of RAF bases in Kinloss and Lossiemouth which it was estimated were worth 6000 jobs to the Moray economy after campaigners had feared that the bases may be closed as a result of the budget cuts. On visiting the bases Moore said: "What I am determined to do is ensure we make the best possible case for the bases." but added that he could make "no guarantees" about the future of the bases. On 9 October 2010 it was announced that Moore had been appointed to the Government's Public Expenditure Committee or "Star Chamber" following the settlement of his own departmental budget. He joined other cabinet ministers on the committee who had also agreed their own budgets and would help deliberate over the budgets of departments prior to the spending review announcement.
On 19 October 2010 David Cameron announced the results of the government's review of defence spending just one day before the announcement of the spending review. The review contained disappointing news for RAF Kinloss as it was announced that government orders for Nimrod MRA4 surveillance aircraft would be cancelled. The cancellation of the project meant that the base would need to close with the future of RAF Lossiemouth also becoming uncertain with Michael Moore saying that the decision on its future still needed to be decided. Just a day later on 20 October 2010, the chancellor George Osborne announced the CSR. For Scotland this meant a budget cut of 4.6% or £1.3bn in cash terms. Moore claimed that Scotland had been given a "fair deal in tough times" although this was attacked by opponents in the SNP and Labour parties. He added that "spending on frontline public services will be reduced by less than in England, Wales or Northern Ireland" and said: "if we don't address that £155bn deficit now, Scots will end up paying longer and more".
Speaking at the time Moore accepted that the issue of tuition fees was a "very difficult issue" for his party and said that his party "wished" that they had entered government with a budget that would have allowed the abolition of fees. He added: "but we are part of a coalition government, grappling with a record peacetime deficit inherited from Labour." Moore claimed that without the changes, universities would be "starved of the money they need to provide quality education". Because the issue of university funding is an area devolved to the Scottish parliament he added that Scottish students choosing to study north of the border would be unaffected by the vote and Scottish students would continue to pay no fees at all.
On 22 December, the Daily Telegraph published a recording of Michael Moore obtained by two journalists posing as constituents during one of his weekly constituency surgeries. The audio recording, obtained 24 hours after the vote in the House of Commons heard Moore express unease over the policy saying "Tuition fees ... [are] the biggest, ugliest, most horrific thing in all of this". Speaking of the pledge he signed he expressed remorse, saying: "I signed a pledge that promised not to do this. I've just done the worst crime a politician can commit, the reason most folk distrust us as a breed. I've had to break a pledge and very, very publicly." He continued that the vote on tuition fees was "deeply damaging to my party, to me individually and lots of others" but said: "what we've all had to weigh up is the greater sense of what the Coalition is about." The journalists also recorded Moore speaking about the relationship between Conservatives and Liberal Democrats within the coalition. Moore expressed some unease between the two parties saying "Are you watching what they are doing and what they are saying on the back benches of the Conservative Party? They are spitting blood." Naming some Conservative backbenchers allegedly uneasy with the coalition he said "They are mostly marginalised. David Davis and people like Julian Lewis hate us with a passion and I can't say it's unreciprocated."
On 30 November 2010 Moore announced plans for the Scottish Parliament to receive new tax and borrowing powers. The proposals, outlined in the Scotland Bill were based on the recommendations of the Calman Commission which looked at how to improve devolution in Scotland. The bill provided the Scottish Parliament with borrowing powers for the first time as well as providing opportunity for Holyrood to set a "Scottish Income Tax" rate each year from 2015. Should the proposals go through, the Scottish Parliament would be responsible for raising approximately 35% of the revenue it spends with the remainder being funded by the United Kingdom block grant. In addition to tax and borrowing, the Scotland Bill announced measures to transfer areas such as setting the drink drive limit and national speed limits in Scotland. Speaking about the bill Moore said: "This Bill is the culmination of work by three Scottish political parties, numerous impartial experts, two successive UK Governments and the two Parliaments in London and Edinburgh." He said that future Scottish Governments would have more accountability for the financial decisions they make and said that the bill addressed a number of "major issues and takes the settlement forward in a powerful and positive way."
