Continue reading Brexit: Joint statement by the First Ministers of Scotland and Wales
Tag: devolution
Mundell: Devolution After Brexit
A speech by the Secretary of State for Scotland, the Rt Hon David Mundell MP, marking the 20th anniversary of the Scotland Act 1998:
Ladies and gentlemen.
On August 7, 1885, the Conservative Prime Minister Lord Salisbury wrote to the Duke of Richmond to offer him the newly-created post of Scottish Secretary. He said the work ‘is not heavy’ but warned that expectations were high.
He went on to suggest ‘the effulgence of two dukedoms and the best salmon river in Scotland’ would go a long way to meeting those expectations.
Thankfully, the qualifications for the job have changed since then.
I can boast neither a splendid dukedom nor a salmon river. I can, however, attest that expectations remain high. So perhaps not everything has changed.
This year marks 20 years since devolution and the establishment of the Scottish Parliament.
I believe this is a good moment to take stock.
It is a good moment to consider what Scotland’s expectations are today, from a system which gives us two parliaments and two governments.
I don’t intend to provide a detailed chronology of devolution, and certainly not a history of the office of Secretary of State for Scotland.
The key developments over the past 20 years are familiar to us.
A referendum in 1997, the Act in 1998 and a parliament up and running barely six months later.
A further Scotland Act in 2012 gave Holyrood the power to set a Scottish rate of income tax, replace Stamp Duty and borrow more money.
And in 2016 an even more wide-ranging Scotland Act was passed, creating significant new income tax powers and transferring responsibility for a large swathe of welfare provision.
So rather than dwell on the detail, I want to consider how devolution works, how it can be strengthened as we leave the EU, and how relations between our two governments must adapt and develop in future.
But first, let me declare an interest.
I am a passionate supporter of devolution. I was proud to be elected as an MSP in that first intake in May 1999.
As an MP and, by then, a minister in the Scotland Office, I played my part in delivering the 2012 Act. As Secretary of State for Scotland, it was an immense privilege to take the 2016 Act through Parliament.
Two decades on from the first Scotland Act, Holyrood has become one of the most powerful devolved parliaments in the world. Power and accountability are better balanced than ever before. And, to borrow a word bandied more frequently by my political opponents, devolution has a stronger mandate than ever before.
The vote in 1997 was re-affirmed by our decision in 2014 to remain part of the UK. And in the 2017 general election there was overwhelming support for devolutionist parties:
… Support for a strong Scottish Parliament within the UK.
… Where the UK’s strengths – our internal market, our global reach – are Scotland’s strengths.
… Where decisions affecting only Scotland are taken at Holyrood by MSPs…
… But where decisions affecting the whole UK are taken at Westminster by MPs, including, of course, 59 MPs from Scotland.
Devolution is about striking a balance and I believe the balance now achieved is a good one.
Today, the fiercest debates at Holyrood are about tax decisions; about how to raise money as much as how to spend it. That accountability has to be a good thing.
I do not support the Scottish Government’s decisions on income tax, making Scotland the most highly taxed part of the UK. I’m not impressed by the idea of taxing people £500 to park at work.
But I support Holyrood’s power to make these choices, the accountability it brings and the debate it provokes.
And as the Scottish Government begins to use new welfare powers in the years ahead I look forward to the debate at Holyrood focusing on the difficult decisions that will entail.
That, then, is my starting point.
Devolution has proved itself flexible and responsive – a ‘process not an event’ as Donald Dewar said back in 1999. After 20 years I believe the settlement is strong. And I believe the principles that lie behind it are more widely accepted than ever.
I reject completely the argument put forward by opponents of devolution that it has been crushed by Brexit:
That the settlement has been undermined by the return of powers from Brussels.
Even, that Holyrood has been victim of a pernicious ‘power grab’.
Let me tackle these myths head on.
They rest on two misunderstandings – about the 1998 Scotland Act itself and about one of the early conventions that supports it, the Sewel Convention, which says the UK Parliament will not normally pass legislation in a devolved area without the consent of the Scottish Parliament.
Firstly, it has been claimed that devolution is broken because the UK’s EU Withdrawal Act 2018 was passed despite legislative consent being withheld by the Scottish Parliament.
It was claimed that the Sewel Convention was breached or, if it hadn’t been breached, it was not fit for purpose and must be changed.
Lord Sewel himself answered the first point, judging clearly that the Convention was adhered to.
And the Scottish Government’s own Brexit minister said “these are not normal times”.
In fact, the Sewel Convention remains an essential element in the devolution settlement.
The UK Government continues to seek legislative consent for Bills that interact with devolution.
We work with the Scottish Government clause by clause in an effort to reach agreement.
I was pleased the Scottish Government agreed to recommend consent for our Healthcare (International Arrangements) Bill – legislation which will allow the UK Government to continue to fund healthcare for Scots who have retired to or are working in the EU.
I hope consent for other Brexit-related Bills will also be forthcoming – despite the Scottish Government’s stated position to oppose them.
As things stand, the EU Withdrawal Act is the only piece of legislation in 20 years to be passed at Westminster after consent was withheld at Holyrood.
I believe that is a sign of Sewel’s success and not its failure.
The second myth is that of the ‘power grab’.
Now, to listen to the rhetoric coming from some of my political opponents, you could be forgiven for thinking that Holyrood is being stripped of a whole raft of powers it currently exercises. It is complete fantasy; an invented grievance.
The reality is that more than 100 powers previously exercised in Brussels will transfer to Edinburgh.
These will transfer directly to the Scottish Parliament on the day we leave the EU.
Some powers will be exercised within new UK-wide frameworks, where the UK Government and devolved administrations agree to do so.
They are in areas such as animal health and welfare, food labelling, and chemical and pesticide regulations. Areas where the UK Government and the devolved administrations have already agreed it makes sense to take a UK approach.
Progress towards establishing these arrangements between the UK and Scottish Governments has been good, as our latest report to Parliament on the issue makes absolutely clear.
To characterise this process as a ‘power grab’ is nonsense. Holyrood is losing none of its existing powers and is gaining significant new powers as a result of Brexit.
What these myths amount to is an attempt to undermine devolution – to sweep away the ’98 settlement – by people who do not support devolution because they want independence. We should not be surprised by that.
We should remain deeply suspicious when opponents of devolution try to present themselves as its champions and protectors.
Now, to be clear, I’m not arguing devolution is perfect or that it should be frozen in time. Devolution’s adaptability is a strength and will remain so in future.
The 2016 powers are already having a positive effect at Holyrood and Brexit will bring further responsibility.
It will also raise fresh questions about intergovernmental relations – how our governments work together.
As we leave the EU, I believe these questions – more so than powers – will become pressing.
In the years ahead, our two governments – and the devolved administrations elsewhere in the UK – will need to work more closely than ever before.
We will need to manage our new UK regulatory frameworks. We will need structures that work – that respect devolution and encourage collaboration.
I’m pleased to say that work on this is underway.
Last year a Joint Ministerial Committee, chaired by the Prime Minister and attended by the First Minister, agreed to commission a review of intergovernmental relations. I’m confident this work can point the way to improved joint working. Not least because we have a lot to build upon.
Sometimes, Scottish Government ministers claim that relations between the UK and Scottish governments are at their lowest ebb. This is simply not true.
(In my experience, they were at their rockiest in 2014, as the Scottish Government’s former Permanent Secretary, Sir Peter Housden, confirmed.)
To date there have been 16 meetings of the JMC (EN), a ministerial forum specially created to shape our approach to leaving the EU, with meetings scheduled monthly. This is a crucial mechanism by which we engage with the DAs. The set of principles that will guide the development of UK frameworks were forged in the JMC (EN).
Behind the scenes, officials from the two governments are working well together on Brexit-related legislation and Brexit preparations on a daily basis.
Earlier this year, the Prime Minister took the decision to invite the First Ministers of Scotland and Wales to attend meetings of a key new cabinet sub-committee co-ordinating Brexit preparations.
In addition, our review of intergovernmental relations will look at the principles which should underpin our working relationships; at the machinery of devolution – whether we need new forums or new JMC bodies; and at how we should resolve disputes in future.
It is very much a live issue.
I’m pleased that Westminster’s Scottish Affairs Committee at Westminster are conducting their own inquiry into intergovernmental relations:
…even if, so far at least, it seems to have focused on calls for the role Secretary of State for Scotland to be abolished.
As you can imagine, I am looking forward to presenting an alternative perspective when I give evidence in due course.
I actually believe the Office of the Secretary of State for Scotland will become more, not less, important, as we enter the post-Brexit devolution world and a more complex era of intergovernmental relations.
The role of promoting the work of the UK Government in Scotland, and giving voice to Scottish concerns around the Cabinet table, will be more critical than ever.
The reasons for that are clear.
Just as Holyrood will need to adapt to the wealth of new powers at its disposal, so the UK Government will have to consider its changing role in the new landscape:
…The UK Government must and will remain prominent in Scotland.
…The UK Government must and will remain central to Scotland’s story.
We must continually re-affirm our support for devolution and demonstrate our contribution to the lives of those represented by our MPs.
Failure to do so would be a failure to deliver on the result of two referendums – the 1997 vote in favour of a Scottish Parliament and 2014 decision to reject independence.
When our opponents try to talk the UK down we should remind them of the things Scots value:
…The pooling and sharing of resources which support our public services;
…The finest armed forces in the world. Including a Royal Navy filling the Clyde’s order book until 2030.
…Pensions they can rely upon.
…A record on international aid that any country in the world should be proud of.
The list goes on.
But the UK Government can and should be doing even more.
In an important speech in Glasgow, the Prime Minister called a halt to what she described as a process of ‘devolve and forget’.
…The idea that because health, say, or education, or culture in Scotland are devolved to the Scottish Government, the UK Government no longer cares about them.
The Prime Minister was very clear. As Prime Minister for the whole of the UK, she said the educational attainment of 10-year-olds in Dundee was as important to her as that of their peers in Doncaster.
Predictably, this was deliberately misinterpreted in some quarters as another kind of power grab. It was nothing of sort. It was an appeal for more collaboration, for better joint working, for learning from each other. In other words, for more effective devolution.
I believe she was right to assert the UK Government’s interest in all parts of people’s lives in Scotland.
And I believe now is the time to build on that. We are already seeing this happen in the UK Government’s £1billion-plus Growth Deal programme in Scotland.
UK investment is mostly spent in the reserved sphere, on things like research and development. But not exclusively so. Cultural projects, such as Edinburgh’s exciting new concert hall development or Stirling’s national tartan centre, will also benefit from UK Government investment.
There are already examples of areas where devolved policy areas interact with reserved matters – in foreign trade, for example – where the Scottish Government’s agency Scottish Development International works alongside the UK Government’s Department for International Trade.
Or, in overseas aid, where Scottish Government support for projects in Malawi augments the UK effort.
Going forward, I want to see Scotland’s two governments working closely together for the benefit of people in Scotland.
The UK Shared Prosperity Fund – which will fill the space left by EU structural funds post-Brexit – should provide an opportunity for both governments to collaborate on transformational projects across Scotland, from the Borders to the Highlands and Islands.
Scotland would be ill-served if one government could not add to the work being done by another. The time is right for this. Scots expect their two governments to work together and politicians on all sides accept the need to work together.
Twenty years on, devolution is indeed the settled will of the people of Scotland.
The settlement has proved itself adaptable and is strong.
Our system of two governments and two parliaments has held up to scrutiny – endorsed by one and then a second referendum.
The people who claim Brexit has broken devolution are the people who WANT Brexit to break devolution, who see Brexit not in terms of securing the right deal for Scotland but as an opportunity to tear Scotland out of the UK. A position, of course, that has been rejected by not one but two referendums.
I do not believe Brexit will damage devolution.
I want it to strengthen devolution, and I believe that can and will happen.
Leaving the EU will bring new powers to Holyrood and new responsibilities to the Scottish Government.
But the UK Government is also being challenged to adapt to the new, post-Brexit era of devolution.
I’m confident we WILL meet the challenge:
That we WILL foster a relationship of mutual respect between Westminster and Holyrood.
That we WILL find ourselves using new ways to improve the daily lives of those we serve.
We’ll do it because, like the majority of Scots, we believe in devolution. And we have a duty to deliver all that it offers for Scotland.
Mundell: “Devolution is working well”
The UK Government today handed over the last of the powers which the Scotland Act 2016 transfers to the Scottish Parliament.
Scottish Secretary David Mundell welcomed the significant landmark which means Holyrood can now legislate in every area where the Scotland Act 2016 has given it power to do so – reinforcing its standing as ‘one of the most powerful devolved parliaments in the world’. Continue reading Mundell: “Devolution is working well”
Brexit demands devolution rethink, says Westminster Committee
Westminster’s Public Administration and Constitutional Affairs Committee (PACAC) today publishes its report Devolution and Exiting the EU: Reconciling Differences and Building Strong Relationships, and sets out how the UK government must re-think devolution in the UK as the UK leaves the EU. Continue reading Brexit demands devolution rethink, says Westminster Committee
Jeane Freeman to speak at LIFT event
Scotland’s new social security sytem: what does it mean to you?
Scotland’s Minister for Social Security Jeane Freeman MSP and Judith Robertson, Chair of the Scottish Human Rights Commission, are to address an event in Muirhouse Millennium Community Centre on 15th May. Continue reading Jeane Freeman to speak at LIFT event
No meeting of minds on Brexit strategy
Prime Minister Theresa May chaired her first Joint Ministerial Committee meeting with devolved administration leaders at 10 Downing Street yesterday – and while Number 10 says the talks were constructive, Scotland’s First Minister said the session was ‘hugely frustrating’. Continue reading No meeting of minds on Brexit strategy
Money matters: finance ministers meet today
Finance ministers from the three devolved administrations in the UK are holding talks today to discuss the implications of the Brexit vote.
Scottish Government Finance Secretary Derek Mackay will travel to Cardiff to meet with his counterparts from Wales and Northern Ireland, Mark Drakeford and Máirtín Ó Muilleoir.
The ministers will discuss concerns around the impact of the vote on public finances and on future funding streams.
Speaking ahead of the meeting, Mr Mackay said: “I firmly believe that membership of the European Union is in the best interests of Scotland and I am deeply concerned about the impact the Brexit vote could have on Scotland.
“No-one can be clear on the likely impact of Brexit on UK Government finances, and we are already seeing the UK Government suggest changes to future spending plans. It is clear that there are significant issues and challenges ahead.
“In these uncertain times, it is important that the three devolved administrations work closely together and I am determined to continue to explore all options to secure Scotland’s interests and our place in Europe.”
Continue reading Money matters: finance ministers meet today
Referendum anniversary: Time to move on, says PM
‘More Scots voted to keep our kingdom united than have ever voted for any party in any election in Scottish history’ – Prime Minister David Cameron
Speaking one year after the people of Scotland voted to remain part of the United Kingdom, the Prime Minister today said he is focussed on delivering devolution so that the debate can move on from what powers the Scottish Parliament should have, to how they are used to better the lives of the people of Scotland.
He added that the UK government will shortly table an amendment to the Scotland Bill to put beyond doubt that Holyrood is here to stay.
The Prime Minister said:
One year ago Scotland’s majority spoke.
More Scots voted to keep our kingdom united than have ever voted for any party in any election in Scottish history.
They voted decisively for a powerful Scottish Parliament within a strong and secure United Kingdom. We listened.
So let me be crystal clear: Scottish devolution is woven into the very fabric of our United Kingdom.
We will table an amendment to the Scotland Bill so there is absolutely no doubt: Holyrood is here to stay.
Alex Salmond, Nicola Sturgeon and I signed the Edinburgh Agreement which pledged we would all respect the outcome of last year’s momentous vote.
We all agreed – as do the Scottish public – that the independence referendum should be a ‘once in a generation’ or a ‘once in a lifetime’ event.
So now it is time to move on.
Some may want to obsess about separation.
But I am focussed on delivering devolution so that the debate can move on from what powers the Scottish Parliament should have, to how they are used to better the lives of the people of Scotland.
And today, on the anniversary of that historic vote, let me repeat: we are delivering a new, accountable and permanent Scottish Parliament. Holyrood will be one of the most powerful devolved Parliaments in the world.
Scotland’s changing …
2.5 million Scottish households to receive leaflet explaining devolution changes
A leaflet explaining the changes to devolution as the UK Government prepares to transfer powers to Holyrood will begin arriving through letterboxes in Scotland this week.
The 8-page Scotland’s Changing leaflet (see below) will explain the new powers as well as the benefits people in Scotland retain as part of the UK, including the pound, pensions and passports.
It will be sent to every one of the 2.5 million households across the country.
Find out more about Our United Future
The leaflet clearly explains which powers will be devolved and reserved following the Smith Commission and the earlier Scotland Act 2012. Powers going to the Scottish Parliament include income tax, some elements of welfare and choices over new taxes such as Airport Passenger Duty and Stamp Duty.
The Smith Commission recommended action to raise public awareness of devolution and this is part of the UK Government’s response to that challenge.
Scottish Secretary Alistair Carmichael said:
“Scotland is changing for the better, with new powers coming to the Scottish Parliament.
These powers will have an impact on every person living in Scotland and it is important that we all know what they are and what they mean for us.
From Monday, households across Scotland will receive a leaflet, direct to their door – and that leaflet will spell out the facts.
The Scottish Parliament will soon be given power over the rates of income tax, welfare provision with a starting budget of more than £2.5 billion, and the ability to give the vote to 16 and 17 year olds in Holyrood and local government elections.
Alongside borrowing powers, and continued control over health, education, housing, public transport and so much more, the Scottish Parliament is set to become one of the most powerful devolved parliaments not just in Europe, but in the entire world.
At the same time, Scotland will keep the many benefits which come as part of the UK. We’ll keep our UK pound, our UK passport and our UK pensions. We’ll also continue to benefit from a single jobs market, a single defence system and a single, strong and fast-growing UK economy.
This is good news for Scotland. A united future, built to last.”
Scotland_s_Changing_info_leaflet
Sign up for the Scotland Office’s weekly newsletter
A family divided: Sturgeon urges Cameron to think again
Bedroom tax could only be abolished with consent of the Westminster Government
Draft legislation which will see ‘an unprecedented rise in the powers of the Scottish Parliament’ was published by the UK Government today – but the Scottish Government says an ‘urgent rethink’ is needed if the paper is to deliver all the Smith Commission proposals.
A Command Paper including the 44 draft clauses sets out the new powers which will come to Holyrood following the agreement reached by the Smith Commission last year – the first time all of Scotland’s main political parties have agreed what the next chapter of devolution should look like.
Prime Minister David Cameron said: “In September the people of Scotland came out in record numbers to decide the future of the United Kingdom.
“They voted clearly and decisively to keep our family of nations together. But a ‘no’ vote did not mean ‘no change’.
“The leaders of the other main political parties and I promised extensive new powers for the Scottish Parliament – a vow – with a clear process and timetable. And now, here we have it: new powers for Scotland, built to last, securing our united future.
“I pay tribute to the leadership of Robert Smith for this historic agreement and with all five of Scotland’s main political parties at the table, it was a devolution first.”
The clauses form the final part of the promise made to the people of Scotland on additional devolution and were published ahead of the Burns Night deadline.
As a result, Holyrood will become one of the most powerful devolved parliaments in the world. It will be responsible for more than 60% of Scottish spending while retaining the safety and security of being part of the wider UK.
Examples of Holyrood’s new powers will include new income tax bands, areas of welfare, some employment programmes, further borrowing powers and air passenger duty, as well as receiving a proportion of VAT. Other elements of the agreement include stating in law that the Scottish Parliament and Scottish Government are permanent institutions.
The UK and Scottish Governments have also taken steps to produce a Section 30 order which will allow 16 and 17 years olds to vote in the Scottish Parliament elections in 2016.
The draft clauses will be the subject of debate at both the UK and Scottish Parliaments. The cross-party nature of the agreement means whoever forms the next UK Government after the General Election will turn this draft legislation into law – a new Scotland Act.
Scottish Secretary Alistair Carmichael said: “The UK Government has kept its end of this historic bargain and delivered the next chapter in devolution for Scotland. For the first time, it has backing across the political spectrum with all of Scotland’s main parties committed to the package of new powers for Scotland. That means this is an agreement which is truly built to last.
“It also strikes the right balance of powers for Scotland as part of the UK. That is what the majority of people want to see and these new powers will create a stronger Scotland and a stronger UK. The Scottish Parliament will have a range of new powers in addition to the significant ones for which it already has responsibility.
“That means choices which can reflect distinctive Scottish needs while keeping the safety and security of a wider UK in key areas such as pensions and defence.”
Chief Secretary to the Treasury Danny Alexander said: “”The people of Scotland voted to stay in the UK because we wanted to ensure that we remained part of one of strongest unions the world has ever known. As promised, the UK has today delivered unprecedented new powers for Scotland, which make it one of the most powerful devolved administrations in the OECD, but underpinned by a robust framework that ensures we, the people of Scotland, can continue to contribute to and benefit from the UK’s economic strength.
“The next steps are clear: the Scottish Government and Parliament will soon have these powers, and it needs to ensure that it implements them in a way that works for Scotland, including by looking at further devolution within the country, as recommended by Lord Smith.
“Devolution doesn’t just mean the flow of powers from one Parliament to another. Devolution is about empowering our regions and our communities across Scotland and the UK.”
While the Westminster unionist parties have welcomed the draft legislation the mood at Holyrood is markedly different – the SNP government sees the paper as a ‘significant watering down’ of the Smith Commission proposals.
First Minister Nicola Sturgeon says the UK Government will hold a veto over key devolved powers proposed by the Smith Commission, including the ability to abolish the bedroom tax, under the proposals published today. She said an urgent rethink was required across several of the legislative clauses outlined by the Prime Minister if the new legislation is to deliver on both the letter and the spirit of the Smith Commission proposals.
Ms Sturgeon said aspects of the legislation represented progress but proposals in areas such as welfare, employment support and capital borrowing appeared to be a “significant watering down” of what was promised by the Smith Commission.
The First Minister highlighted three key areas that must be addressed immediately by the UK Government if the legislation is to meet the spirit and the content of the agreement set out by Lord Smith:
- The welfare provisions do not enable the Scottish Parliament to create new benefit entitlements across devolved areas and require the approval of UK ministers for any changes to Universal Credit – including the action needed to end the bedroom tax.
- Proposals for the full devolution of unemployment support fall well short of what was promised, hampering efforts to address joblessness by devolving only a section of the current support network and leaving important levers in the hands of UK ministers.
- Scotland would be tied to the UK’s current austerity fiscal framework, and under the plans set out could see capital borrowing powers replace – and not augment – the existing capital grant.
The First Minister said: “Throughout this process, I have been clear that, despite it falling short of the real home rule powers we need to create jobs and tackle inequality, the Scottish Government would be a constructive participant, working with the UK Government to bring forward what Lord Smith recommended.
“The legislation published today does not represent the views of the Scottish Government, but it does represent some progress. However, too much of what the Prime Minister has set out imposes restrictions on the recommended devolved powers and would hand a veto to UK ministers in key areas.
“For example, the proposals on welfare do not allow us to vary Universal Credit without the permission of the UK Government. That means – under the current proposals – we will not have the independence to take action to abolish the bedroom tax.
“At the same time, the power argued for by stakeholders to create new benefit entitlements in any devolved area has simply not been delivered, while the command paper makes clear that, pending devolution of disability support, the roll-out of personal independence payments and the cut to spending on disability benefits will continue.
“This cannot, under any interpretation, represent the meaningful progress on the devolution of the powers we need to design a social security system that meets Scotland’s needs.
“The support for unemployed people also falls short of what Lord Smith recommended, with the provisions set out today narrowly focused on existing schemes.
“And the paper confirms that the Scottish Government will still have to work within the framework of austerity being imposed by the UK Government. It also suggests that Scotland’s capital grant could be replaced by borrowing powers and not augmented by them as was clearly the intention of the Smith proposals.
“In these crucial areas the clauses set out today appear to be a significant watering down of what was promised by the Smith Commission and need an urgent rethink by the UK Government.”
Ms Sturgeon continued: “We remain committed to this process, despite the difficulties we have experienced in getting information in a timely fashion and we will continue to work with the UK Government and other stakeholders to ensure that the changes are made ahead of the Bill being taken through Westminster.
“Ultimately, however, the decision on whether the Smith proposals go far enough in delivering the powers we need to create prosperity, tackle inequality and protect our public services will be for the people of Scotland to take.”
Clearly, there’s still some serious talking to be done.










