1 The path to further devolution
1. On 18 September 2014, Scotland held a referendum
on the question "Should Scotland be an independent country?".
55.3% of voters cast their ballot in favour of remaining part
of the United Kingdom. The turnout was a remarkable 84.6%.
2. In the lead up to the referendum the three largest
UK political parties pledged to devolve further powers to the
Scottish Parliament in the event of separation being rejected.[1]
The day after the referendum the Prime Minister invited Lord Smith
of Kelvin to set up a commission to take forward that commitment
and produce specific recommendations for the devolution of further
powers.[2] In this Report
we focus on the recommendations of the Smith Commission, particularly
those on taxation and welfare, and the work of the UK Government
in transposing those recommendations into draft legislation.[3]
The Smith Commission
3. The terms of reference for the Smith Commission
were as follows:
To convene cross-party talks and facilitate an
inclusive engagement process across Scotland to produce, by 30
November 2014, Heads of Agreement with recommendations for further
devolution of powers to the Scottish Parliament. This process
will be informed by a Command Paper, to be published by 31 October
and will result in the publication of draft clauses by 25 January.
The recommendations will deliver more financial, welfare and taxation
powers, strengthening the Scottish Parliament within the United
Kingdom.[4]
The Smith Commission consisted of 11 members; in
addition to Lord Smith each of the five political parties with
seats in the Scottish Parliament nominated two representatives
to take part.[5] The Commission
heard representations from political parties, civic institutions
and members of the public.[6]
The Report of the Smith Commission for further devolution of
powers to the Scottish Parliament (hereafter referred to as
the Smith Agreement)[7]
was published on 27 November 2014. Lord Smith confirmed to us
that "all five parties signed up to every word that is in
that document".[8]
For the political parties to find unanimity from the range of
views with which they entered the process is a significant outcome
and we congratulate them and Lord Smith on their achievement.
4. Amongst the recommendations put forward by the
Smith Commission were proposals for the Scottish Parliament and
Government to be made permanent,[9]
for the Scottish Parliament to have increased powers over taxation
and spending, including the power to set income tax rates and
bands[10] and the ability
to create new benefits in devolved areas and make discretionary
payments in any area of welfare,[11]
and for the voting age in Scottish elections to be extended to
include 16 and 17 year olds.[12]
5. On 22 January 2015, the UK Government published
draft legislative clauses, which make provision for those measures
included in the Smith Agreement which require legislative change.
In the Command Paper accompanying the draft clauses,[13]
the UK Government, as well as providing background information
on the clauses, also discusses those areas of the Smith Agreement
that do not require legislation, most notably the requirement
for a new fiscal framework for Scotland. The new framework must
meet the Smith Agreement's principle of "no detriment",
i.e. that neither Government should suffer financially as a result
of the new settlement. However, while the Command Paper discusses
the implications of such a principle it stops short of offering
a definite answer on this most crucial of issues.
6. The three main UK political parties have committed
to take forward the draft clauses, as part of a new Scotland Bill
after the General Election in May 2015. Such a Bill would make
legal provision to enable the powers proposed by the Smith Commission
to be devolved to the Scottish Parliament to a timetable agreed
by the two Governments. One aspect of the Smith Agreement is being
progressed outside of this timetable via a Section 30 Order. The
legislative power to allow 16 and 17 year olds to vote in future
Scottish Parliament elections
is expected to be transferred from the UK Parliament
to Holyrood in March 2015.[14]
The separate timetable was agreed by both the UK and Scottish
Governments as an exception from the rest of the Smith Agreement,
so that the power could be devolved in time for 16 and 17 year
olds to vote in the 2016 Scottish Parliament elections.
1 During the referendum campaign each of the main UK
parties promised to deliver further powers to Scotland in the
event of a no vote. This culminated in a 'vow', signed by the
Leaders of the Conservative, Labour and Liberal Democrats parties,
which was published on the front page of the Daily Record newspaper
on 15 September 2014. Back
2
HM Government Press Release, Scottish Independence referendum: statement by the Prime Minister,
19 September 2014 Back
3
For analysis of the constitutional elements of the Smith Agreement
see the work of the Political and Constitutional Reform Committee. Back
4
Smith Commission Press Release, Lord Smith of Kelvin announces details of his Commission at the Scottish Parliament,
23 September 2014 Back
5
The SNP was represented by Scottish Finance Secretary John Swinney
MSP and Linda Fabiani MSP. Scottish Labour put forward finance
spokesman Iain Gray MSP and shadow work and pensions minister
Gregg McClymont MP. Former Scottish Conservative leader Annabel
Goldie represented her party, alongside Adam Tomkins, Professor
of Public Law at the University of Glasgow. The Scottish Liberal
Democrats were represented by former Scottish Secretary Michael
Moore MP and former party leader in the Scottish Parliament, Tavish
Scott MSP. The Scottish Green Party's co-leaders, Patrick Harvie
MSP and Edinburgh councillor Maggie Chapman, were their representatives
on the Commission. Back
6
Over a period of five weeks, over 400 submissions were received
from organisations and groups and over 18,000 emails, letters
and signatures on petitions from members of the public (source:
The Smith Commission website www.smith-commission.scot). Back
7
Report of the Smith Commission for further devolution of powers to the Scottish Parliament,
27 November 2014, hereafter referenced as The Smith Agreement. Back
8
Q1 Back
9
The Smith Agreement, para 21 Back
10
The Smith Agreement, para 76 Back
11
The Smith Agreement, para 54 Back
12
The Smith Agreement, para 25 Back
13
HM Government, Scotland in the United Kingdom: an enduring settlement,
Cm 8990, 22 January 2015 Back
14
HM Government News Story, UK Government to fast-track Holyrood votes for 16-17 year olds,
19 January 2015; The draft order will give the Scottish Parliament
the power to legislate to reduce the minimum voting age to 16
at elections to the Scottish Parliament and to Scottish local
government elections. See also HL Deb, 26 February 2015, Col 1766
and the Constitution Committee of the House of Lords Ninth Report
of Session 2014-15, Draft Scotland Act 1998 (Modification of Schedules
4 and 5 and Transfer of Functions to the Scottish Ministers etc.)
Order 2015, HL 119 Back
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