Has Holyrood become Scotland’s biggest council?

THINK TANK AND FORMER COUNCIL CHIEF EXECUTIVES JOIN FORCES

  • Reform Scotland and the Mercat Group collaborate on ideas for local decentralisation
  • Former local authority chiefs ask: “Has Holyrood become Scotland’s biggest Council?”

Reform Scotland, the non-partisan think tank, and The Mercat Group, an informal network of former chief executives of Scottish local authorities with over 220 years of public service between them, including 70 years as chief executives, are today announcing a collaboration.

Jointly, Reform Scotland and The Mercat Group will advocate for decentralisation of power from the Scottish Parliament to local authorities, along the lines originally envisaged by the architects of the devolution project.

The collaboration begins today with an article – Parliament or Council?: 25 years of evidence – written on behalf of the Mercat Group by Bill Howat, former Chief Executive of Comhairle Nan Eilean Siar, in which he states that “any reasonable, rational review of that evidence could only conclude that it has not been a success in terms of devolving power beyond Edinburgh”.

Bill Howat, former Chief Executive of Comhairle Nan Eilean Siar said: “Any reasonable, rational review of that evidence could only conclude that it has not been a success in terms of devolving power beyond Edinburgh. In fact, all the evidence points to growing centralisation of power in Holyrood. That is not good for local democracy, nor does it seem like good governance.

“There is now a need to revisit and reset the way all public services in Scotland are organised, delivered and financed. We should create a Scottish Civic Convention to take forward the public conversation necessary to conduct such a review.

“There may be other options but the central aim should be to develop a transition plan to ensure decisions on the delivery of all public services are taken at the lowest local level consistent with democratic and financial accountability.

“Scottish local government is in danger of becoming the delivery arm of the Scottish Government; indeed some would argue we have already reached that position. We might fairly ask: has Holyrood become Scotland’s biggest council?”

Chris Deerin, Director of Reform Scotland, said: “At a quarter-century old, now is the time to re-examine those areas of devolution which have not delivered as we all hoped they would. Local government is one of these. 

“Other countries enjoy the benefits of properly empowered local government, fulfilling most of the day-to-day operational roles upon which people depend, with central government adopting a more strategic outlook.

“In Scotland, we are failing to realise the potential of local freedom and diversity. Decentralisation is long overdue, and we are delighted to be teaming up with the Mercat Group to generate the ideas needed to make it happen.”

Bill Howat’s blog – Parliament or Council?: 25 years of evidence can be read here

Angela Rayner to ‘kickstart new devolution revolution’

Deputy Prime Minister Angela Rayner will pledge to transfer more powers out of Westminster

Deputy Prime Minister Angela Rayner will today (Tuesday 16 July) pledge to kickstart a new devolution revolution to transfer more powers out of Westminster and into the hands of local people.

In her first letter to local leaders, Rayner will urge regions without devolved power to “partner with the government to deliver the most ambitious programme of devolution this country has ever seen”.

She will invite local leaders in devolution deserts – those with local knowledge and skin in the game – to work together to take on powers in areas like transport, adult education and skills, housing and planning, and employment support. These new agreements will mean local leaders can make decisions that benefit their communities better, while boosting economic growth and opportunity.

Devolution is central to the government’s mission to boost economic growth, but only around half of the people in England currently benefit from these arrangements. The letter from the Deputy Prime Minister makes clear that the government’s door is open to areas who want to take on devolution for the first time, with the government committed to encouraging more local authorities to come together and take on new powers.  

In the letter, Deputy Prime Minister Angela Rayner said: ‘For too long, Westminster government has tightly gripped control and held back opportunities and potential for towns, cities, and villages across the country.

‘Last week, with the Prime Minister, I had the pleasure of meeting the metro Mayors in England. We discussed how to have a proper, grown up conversations around economic growth, and how to deliver that through better housing, skills, and jobs for local people. 

I want to work with more places to help them use these enhanced powers and role – because I want to drive growth in every part of the country. For any area considering it, now is the time to take the plunge and speak to us about how we can work with you to transform your regions.’

Greater Manchester, one of the places where devolution has existed for the longest and powers are deepest, has been one of the UK’s fastest growing areas over the last 20 years and is forecast to grow by more than the national average in coming years. 

This has been driven by powers allowing the Greater Manchester Mayor to encourage investment into the city, boost skills, and work towards an integrated transport system.

In other parts of the country, Mayors have played a crucial role in attracting new investment – with major manufacturers such as Boeing and McLaren bringing new jobs to South Yorkshire, while West Yorkshire is now home to the UK’s fastest growing digital industry outside London.

OECD research suggests that if the autonomy of UK cities was to increase to the same level as Helsinki, then productivity would increase significantly.

Agreeing new devolution deals will mark a monumental shift of power away from Westminster into communities – giving those with skin in the game the power to make the best decisions for their people and make a difference to their lives.

The letter comes ahead of the King’s Speech on 17 July 2024, which will build on the momentum of the government’s first week, by setting out how it will make a difference to the lives of working people. 

Focus on the future as Holyrood sets out its plans to mark 25 years

Reflecting on 25 years of the Scottish Parliament as well as a focus on the future will be the central themes of plans announced today to mark the Parliament’s institutions’ quarter century. 

The Scottish Parliament plans include a year-long programme of engagement designed to involve people throughout Scotland in a conversation that both reflects on devolution and considers how we can shape the Parliament in future.  

A special event will take place on Saturday 29 June at the Scottish Parliament which people across Scotland will be invited to join. Further details  will be announced in the coming weeks.

The Presiding Officer will also visit regions all over Scotland, meeting people from all walks of life to hear their views and ideas for the future. These activities, together with other events to be announced, will enable communities up and down the country to help shape the Parliament of the future.

The Presiding Officer, the Rt Hon Alison Johnstone MSP said: “This year we will reflect on the Parliament’s record and the significant political events during 25 years of devolution.  While that reflection is welcome, I also want the Parliament’s focus to be firmly on the future.

“I want to use this milestone as an opportunity to engage people all over country about their aspirations for their Parliament.

“I want to continue to build on and strengthen that relationship between people and Parliament and modernise Holyrood to ensure it meets Scotland’s needs for the coming years.”

Further details for our 25th anniversary will be announced throughout the year.

A special 25th anniversary themed Festival of Politics will take place in the Scottish Parliament in August.

The 25th anniversary year will also explore several themes from the Citizen Participation and Public Petitions Committee’s report on public participation.

This work identified a gap in our activities around making the Parliament visible in and engaged with local communities.

‘A dark day for devolution’?

SETBACK FOR SCOTLAND’S GENDER REFORM PLANS

JUDGES have ruled that the UK Government’s block of Scottish gender legislation was LEGAL.

The Holyrood parliament passed legislation to make it easier for people to change their sex last year, but the UK Government blocked the law, arguing that Scotland’s gender law would impact on equality laws across all countries of the UK

The Scottish Government challenged Westminster’s action through the courts, but yesterday The Court of Session in Edinburgh upheld the UK Government’s decision.

The Scottish Government is studying the detail of the judgement and has yet to make an official statement, but First Minister said the Supreme Court judgement marks ‘a dark day for democracy’.

Scottish Secretary Alister Jack takes a different view, of course.

The Secretary of State for Scotland, Rt Hon Alister Jack MP said: “I welcome the Court’s judgment, which upholds my decision to prevent the Scottish Government’s gender recognition legislation from becoming law.

“I was clear that this legislation would have had adverse effects on the operation of the law as it applies to reserved matters, including on important Great Britain-wide equality protections. 

“Following this latest Court defeat for the Scottish Government, their ministers need to stop wasting taxpayers’ money pursuing needless legal action and focus on the real issues which matter to people in Scotland – such as growing the economy and cutting waiting lists.”

The Scottish Government is unlikely to take Mr Jack’s advice and has 21 days to decide whether to lodge an appeal.

Judiciary of Scotland Judgment Summary

MP calls for Immigration powers to be devolved to Holyrood

TORIES ‘FAILING’ VULNERABLE UNACCOMPANIED ASYLUM-SEEKING CHILDREN 

Deidre Brock MP will use a House of Commons debate today to call on the UK government to devolve immigration powers to the Scottish Parliament so Scotland can create an asylum system based on fairness and dignity.

Leading a Westminster Hall debate, the Edinburgh North & Leith MP will argue that the Tories are failing to protect vulnerable, unaccompanied children seeking asylum in the UK. 

She will also outline how the Illegal Migration Bill will make the situation even worse for children who have been separated from their parents and how it significantly encroaches on devolved powers.

Commenting, Deidre Brock MP said: “The Tories have utterly failed in their duty to safeguard the wellbeing of vulnerable unaccompanied children seeking safety and refuge in the UK. 

“Hundreds of children have gone missing from Home Office run-hotels, sparking condemnation from the UN that the UK Government is failing in its obligations to prevent the trafficking of children. 

The Illegal Migration Bill will make the situation even worse as the door will be slammed in their faces when they arrive in the UK to seek sanctuary.

“I am proud that Scotland has played its part in welcoming refugees who are desperate to rebuild their lives. However, powers still lie with the UK government and their hostile environment policies. Creating safe and legal routes is the only realistic way to disrupt the business model human traffickers use to exploit already vulnerable people.

“Power over immigration should be devolved to the Scottish Parliament so we can build an immigration system that works for Scotland and an asylum system with compassion and respect.”

After 25 years, what has devolution delivered for workers? Not enough, argues TUC

It’s been 25 years since devolution in the UK started gathering speed, with the first legislative frameworks for devolution in Scotland, Wales and Northern Ireland agreed in 1998 (writes TUC’s ABIGAIL HUNT).

To mark this milestone, we decided to take stock of what devolution has delivered for working people. As a first step, we commissioned Centre for Research in Employment and Work (CREW) academics to research whether and how devolution has raised employment standards. 

In this blog I consider key findings from their new report launched today – and reflect on what needs to happen next. 

Where are we now?

As this helpful primer explains, devolution – the process of transferring power from Westminster to the nations and regions of the UK – has led to a patchwork of deals, with different levels of power and resources conferred on devolved authorities.

Since 1998 successive UK governments have pursued devolution. The pace has picked up in England in recent years, where two ‘trailblazer deals’ expanding powers have just been agreed and several other new devolution deals are underway.

The Labour Party is also looking to expand devolution. The Gordon Brown-led Commission on the UK’s Future wrapped up at the end of 2022 with proposals to ‘create a virtuous circle where spreading power and opportunity more equally throughout the country unlocks the potential for growth and prosperity’.

Since then Lisa Nandy MP, the Shadow Secretary of State for Levelling Up, Housing and Communities, has pledged that under a Labour government, ‘every part of Britain that wants it will be able to access powers over skills, employment support and housing that support their local communities’.

So far, employment rights (collective and individual), health and safety at work and aspects of workplace training in Scotland, Wales and England have been reserved to the UK government, meaning devolved authorities in these areas have no power to legislate around these issues. Labour has endorsed keeping a national labour rights framework, as outlined in its New Deal for Working People.

What has devolution delivered for working people?

A few of things jumped out at me from the CREW report.

First, some devolved authorities have innovated in using the powers available to them to promote good work on their patch. This has seen them raise the bar above the currently weak national employment rights framework, which has seen poor quality, insecure work become a mainstay of the UK labour market in recent years.

For example, the Scottish Government’s Fair Work Convention has cemented a tripartite relationship between unions, government and employers. It has also helped increase the proportion of people earning the Real Living Wage, improved employment security, narrowed gender and ethnicity pay gaps and increased collective bargaining coverage in Scotland.

Across England, some elected devolved authority leaders have set up employment charters or pledges – essentially locally-developed yet voluntary employment standards. Perhaps the best known of these is the Greater Manchester Good Employment Charter established following a 2017 campaign pledge by Metro Mayor Andy Burnham. Members commit to various aspects of good work including improving employment security, flexible work, decent pay, health and wellbeing, and trade union recognition and collective bargaining.

Second, as the Manchester charter clearly shows, political will has been critical to advancing employment standards in devolved authorities. But when good work commitments are linked to individual leaders and not formally ‘baked in’ to devolution deals there is a real risk that change at the top can lead to a roll-back in localised gains.

Third, the formal role of trade unions in devolved structures has been mixed. In Wales, a “Welsh way” of social partnership working has led to development of a new Social Partnership and Public Procurement (Wales) Act. This offers significant potential to cement social partnership in Wales by putting a duty on public bodies to engage with trade unions when they are setting out what they will do to comply with the Well-being of Future Generations (Wales) Act 2016.

Yet this gold-standard approach is far from reality everywhere. For example, recent consultations around the East Midlands Combined County Authority devo deal proposed a role for the private sector in the authority’s governance boards – with no mention of a similar role for trade unions.

What needs to happen next?

Devolution looks set to stay firmly on the political agenda in the years to come. But so far it has not delivered enough for working people.

This needs to change.

Workers and their unions need to be meaningfully engaged in debate and decision-making related to devolution at all levels – from devo deals to devolved authorities’ support for union recognition and collective bargaining in-house and across their area.

The TUC is ramping up effort to make this a reality. Watch this space!

Alister Jack blocks Scotland’s Gender Recognition Bill

Scottish Secretary Alister Jack has made an order under section 35 of the Scotland Act 1998, preventing the Scottish Parliament’s Gender Recognition Reform (Scotland) Bill from proceeding to Royal Assent.

Oral statement by Scottish Secretary Alister Jack to the House of Commons yesterday in relation to the Gender Recognition Reform (Scotland) Bill:

Mr Speaker, today I will make an order under section 35 of the Scotland Act 1998 preventing the Gender Recognition Reform (Scotland) Bill from proceeding to Royal Assent.

This Order will mean the Presiding Officer of the Scottish Parliament will not submit the Bill for Royal Assent.

This Government believes however that transgender people deserve our respect, our support and our understanding.

My decision is centred on the legislation’s consequences for the operation of reserved matters, including equality legislation across Scotland, England and Wales.

The Scottish Government’s Bill would introduce a new process for applying for legal gender recognition in Scotland.

The changes include reducing the minimum age a person can apply for a Gender Recognition Certificate from eighteen to sixteen, and removing the need for a medical diagnosis and evidence of having lived for two years in their acquired gender.

The Bill would amend the Gender Recognition Act 2004, which legislated for a single gender recognition system across the UK and which received a Legislative Consent Motion from the Scottish Parliament.

The approach taken in the Scottish Government’s Gender Recognition Reform Bill was the subject of intense debate in the Scottish Parliament.

A number of significant amendments were tabled right up until the end of the Bill’s passage.

And the Minister for Women and Equalities corresponded with and met with the Cabinet Secretary Shona Robison to discuss the UK Government’s concerns, before the Bill had reached its final stage.

Mr Speaker, I have not taken this decision lightly.

The Government has looked closely at the potential impact of the Bill and I have considered all relevant policy and operational implications, together with the Minister for Women and Equalities.

And it is our assessment that the Bill would have a serious adverse impact, among other things, on the operation of the Equality Act 2010.

Those adverse effects include impacts on the operation of single-sex clubs, associations and schools, and protections such as equal pay.

The Government shares the concerns of many members of the public and civic society groups regarding the potential impact of the Bill on women and girls.

The Bill also risks creating significant complications from having two different gender recognition regimes in the UK and allowing more fraudulent or bad faith applications.

The Government is today publishing a full Statement of Reasons, alongside the order, which will set in full the adverse effects the Government is  concerned about (see below Ed.).

Mr Speaker, I would like to address the claims put forward by those who would seek to politicise this decision and claim that this is some kind of “constitutional outrage” and you can hear them Mr Speaker, you can hear them.

The section 35 power was included in the Scotland Act, which established the Scottish Parliament.

This the first time the power has been exercised and I acknowledge that this is a significant decision.

The powers in Section 35 of the Scotland Act  are not new, and this Government has not created them.  They have existed as long as devolution itself.

And we should be clear that the power was included in the Act by the architects of devolution for a reason. Donald Dewar himself noted that the power struck an “important balance”.

The section 35 power provides a sensible measure to ensure that devolved legislation does not have adverse impacts on reserved matters, including on equalities legislation such as the Equality Act 2010.

This is not about preventing the Scottish Parliament from legislating on devolved matters but about ensuring that we do not have legal frameworks in one part of the UK which have adverse effects on reserved matters.

And we should be clear that this is absolutely not about the UK Government being able to veto Scottish Parliament legislation whenever it chooses, as some have implied.

The power can only be exercised on specific grounds – and the fact that this is the first time it has been necessary to exercise the power in almost twenty-five years of devolution emphasises that it is not a power to be used lightly.

In the instance of the Gender Recognition Reform (Scotland) Bill, I have concluded that the bill would have serious, adverse effects on the operation of the Equality Act 2010.

As I set out in my correspondence with the First Minister yesterday, I would prefer not to be in this situation.

The UK Government does all we can to respect the devolution settlement and to resolve disputes.

It is open to the Scottish Government to bring back an amended Bill for reconsideration in the Scottish Parliament.

So to conclude, Mr Speaker, I have set out to the Scottish Government that should they choose to do so, I hope we can work together to find a constructive way forward that both respects devolution and the operation of UK Parliament legislation.

And I commend this statement to the House.

Scotland’s First Minister Nicola Sturgeon told the BBC that the Scottish government will seek a judicial review of the Westminster government’s decision at the Court of Session in Edinburgh.

There’s every possibility that this constitutional wrangle will end up in the UK’s Supreme Court.

UK mini-budget a “huge gamble on health of economy”

SWINNEY SEEKS URGENT MEETING WITH CHANCELLOR

Deputy First Minister John Swinney and his counterparts from other devolved governments are seeking an urgent meeting with Chancellor of the Exchequer Kwasi Kwarteng to discuss immediate actions needed to reverse the damaging effects of the UK Government’s tax proposals.

Mr Swinney and the Finance Ministers from Wales and Northern Ireland are highlighting the profound impact of “the largest set of unfunded tax cuts for the rich in over 50 years” warning that it is “a huge gamble on public finances and the health of our economy”.  

In a joint letter to Mr Kwarteng, they warn against being condemned to another decade of austerity and express deep concern over reports that UK Government departments will be asked to make spending cuts to balance the budget, which may have profound consequences for devolved budget settlements already eroded by inflation.

The Ministers also renew calls for the UK Government to provide targeted support for households and businesses, funded through a windfall tax on the energy sector. In addition, they call for Social Security benefits to be increased, and request additional resources for the devolved governments to protect public services and to fund public sector pay settlements.

Read the letter in full here.

UK Government’s Mini-budget measures are “an attack on nature”

Scotland’s Environment Minister Mairi McAllan and Biodiversity Minister Lorna Slater have written to the UK Government urging them to drop the proposals announced in its mini-budget, which they call “an attack on nature…and on the devolution settlement.”

The letter states that these proposals “demonstrate a reckless attitude to legislation that has been developed over many decades and that enshrines vital protections for both nature and people.”

The letter reads:

To: 

  • Ranil Jayawardena MP, Secretary of State for Environment, Food and Rural Affairs
  • Rt Hon Mark Spencer MP, Minister of State in the Department for Environment, Food and Rural Affairs

From: 

  • Minister for Environment and Land Reform Màiri McAllan MSP
  • Minister for Green Skills, Circular Economy and Biodiversity Lorna Slater MSP

We write with urgency regarding proposals announced by the Chancellor of the Exchequer on Friday, about which the Scottish Government had very little prior notification. 

These measures, alongside the Retained EU Law (Revocation and Reform) Bill, represent an attack on nature (when we should be demonstrating global leadership in the lead up to the important CoP15 global summit), and on the devolved settlement itself.

We therefore ask that you and your Government drop these damaging proposals, and instead work with us and the other devolved governments, to deliver high environmental standards that rise to the nature emergency and respect devolution.

Your government has given little clarity over how the measures included in the mini-budget will be taken forward, and what the implications of them will be for Scotland. Nor have you engaged with us in advance on these issues. 

However, from the information that has been made available, we share the strong concerns highlighted by nature groups such as the RSPB and the Woodland Trust.  The proposals demonstrate a reckless attitude to legislation that has been developed over many decades and that enshrines vital protections for both nature and people.

Your proposed measures also threaten to undermine our programme of planning reform that is underway in Scotland.  National Planning Framework 4 will signal a turning point for planning in Scotland, and we have been clear that responding to both the global climate emergency and the nature crisis will be central to that.

In addition to the measures set out in the mini-budget, the Retained EU Law (Revocation and Reform) Bill threatens to further undermine standards, as well as the Scottish Government’s powers to protect Scotland’s environment.

As set out in the Cabinet Secretary for Constitution, External Affairs and Culture’s recent letter to the Secretary of State for Business, Energy and Industrial Strategy, the Bill puts at risk the high standards people in Scotland have rightly come to expect from EU membership.

Your government appears to want to row back more than 40 years of protections in a rush to impose a deregulated, race to the bottom on our society and economy.  It is particularly alarming that our environmentally-principled approach of controls on polluting substances, ensuring standards for water and air quality, and providing protection for our natural habitats and wildlife are at risk from this deregulatory programme.

Retained EU Law provides Scotland with a high standard of regulation. As we have repeatedly said, Scottish Ministers will continue to seek alignment with EU standards where possible and in a manner that contributes to maintaining and improving environmental protections. 

As part of this effort, we remain committed to an ambitious programme of enhancing nature protections and delivering nature restoration.  This includes delivering on the vision set out in the recent consultation on our new biodiversity strategy, setting ambitious statutory nature recovery targets, delivering on our vision to be a global leader in sustainable and regenerative agriculture, investing in our natural capital such as through our Nature Restoration Fund, and expanding and improving our national park network.

Finally, as mentioned above, we are particularly concerned that this attack on nature has come at a critical moment as we approach the UN CoP15 biodiversity summit at the end of this year. The Scottish Government is committed to supporting an ambitious global framework to halt and reverse biodiversity decline, but this sudden and fundamental change in position means our views are no longer represented, and has undermined the UK’s ability to have a positive influence on the outcome of the talks.

We strongly urge you to reconsider both the anti-nature measures set out in the mini-budget and the proposed Retained EU Law Bill. Should you proceed regardless of our concerns and those of the public and civil society across the UK, then as a minimum we seek a guarantee that none of these measures will apply in Scotland without specific consent from the Scottish Government. We expect this matter to be considered at the next IMG-EFRA on 24 October.

What are the chances of Truss and Kwarteng thinking again? Absolutely NONE

Meanwhile, the Scottish Government has recruited three eminent economists …

Emergency Budget Review

Leading economists to give expert advice

Members of an expert panel providing advice to the Scottish Government as part of its Emergency Budget Review (EBR) have been confirmed.

Sir Anton Muscatelli, Professor Frances Ruane and Professor Mike Brewer will assess the impact on Scotland of the UK Chancellor’s fiscal approach and held their first meeting with Deputy First Minister John Swinney today.

Their advice will enable timely consideration of the implications of the UK Government’s fiscal event as work continues to prioritise the Scottish Government’s budget towards tackling the cost of living crisis. The Deputy First Minister has announced he will report the results of the EBR in the week beginning 24 October.

Mr Swinney said: “The Scottish Government wants to make sure it gets the very best advice and fresh perspectives as Ministers consider the complex and difficult decisions we face while tackling the challenges ahead.

“The radical shift in UK economic policy announced by the Chancellor has already caused significant economic shock.

“For the benefit of the people and businesses of Scotland, many of whom will find themselves paying higher prices as a result, it is vital that we consider the current situation and potential solutions with care.

“The members of the panel all bring robust economic insight and I am grateful to them for giving their time and expertise as we navigate these uncharted economic waters.”

The expert panel members, whose positions are non-remunerated, are:

Sir Anton Muscatelli

Principal of the University of Glasgow. He was knighted in June 2017 for services to higher education.

Formerly principal of Heriot-Watt University, he has been an adviser to the House of Commons Treasury Select Committee on monetary policy since 2007.

He chairs the Scottish Government’s Standing Council on Europe, a non-political group which provides expert advice to Scottish Ministers on protecting Scotland’s relationship with the EU, and he was a member of the Scottish Government’s Council of Economic Advisers between 2015 and 2021 and a member of the Advisory Council for Economic Transformation. 

Professor Frances Ruane

A Research Affiliate at the Economic and Social Research Institute since 2015. She is currently Chair of the National Competitiveness and Productivity Council and in that role represents Ireland on the European Network of National Productivity Boards.

Prof Ruane has previously served as the European Statistical Advisory Committee and the European Statistical Governance Advisory Board .

In addition, she previously served three terms on the Council of Economic Advisers in Scotland. She will provide an external perspective to the panel on issues such as the competitiveness of Scotland’s tax regime.

Professor Mike Brewer – 

Chief Economist and the Deputy Chief Executive of the Resolution Foundation, where he oversees all aspects of the Foundation’s research agenda.

He is a visiting Professor at the Department of Social Policy at the London School of Economics and between 2011 and 2020 was a Professor of Economics at the University of Essex.

He has also worked at the Institute for Fiscal Studies and HM Treasury.  

Fundamental questions about Brexit’s impact on Devolution

There are fundamental questions about how devolution works outside the EU which must be addressed. This warning comes from a new report by Holyrood’s Constitution, Europe, External Affairs and Culture Committee.

In its report, the Committee highlights substantive differences between the views of the UK Government and the Scottish and Welsh Governments regarding future alignment with EU law.

The Committee’s report makes clear that these differences raise fundamental constitutional questions including the extent the UK can accommodate four different regulatory environments within a cohesive internal market, as well as whether the existing institutional mechanisms are sufficient to resolve differences between the four governments within the UK when there are fundamental disagreements regarding alignment with EU law.

The Committee is concerned with how devolution needs to evolve to address these questions.  This includes the operation of the Sewel Convention which the Committee agrees is under strain following Brexit and the extent of UK Ministers’ new delegated powers in devolved areas which the Committee agrees amounts to a significant constitutional change.

The report states there is a need for a much wider public debate about where power lies within the devolution settlement following the UK’s departure from the EU.  This needs to address the extent of regulatory autonomy within the UK internal market.

Committee Convener, Clare Adamson MSP said: ““As a Committee, we have already set out our concerns about the risks for devolved Parliaments as a result of Brexit. But the questions raised in our report make it clear that there are fundamental issues which must be addressed urgently.

“Without wider debate, both in this Parliament and elsewhere, these fundamental questions will go unresolved, and the way devolution works outside of the EU will remain uncertain.”

Deputy Convener, Donald Cameron MSP said: “Our committee is agreed that there is a need for a wide debate on the very serious and complex issues raised in our report.

“However, this debate is not simply one for Governments and Parliaments, but businesses, civic society and the wider public as well in order that we can fully explore the current issues facing not just the Scottish Parliament, but the wider devolution process.”