1Introduction
1.Since 1998 Scotland has had two governments—the Scottish Government in Edinburgh and the UK Government in London. The importance of a healthy and robust relationship between these two governments has been a recurring theme in our work during this Parliament. It has been raised in issues as diverse as the funding of City Deals,1 supporting the oil and gas sector,2 negotiating post-Brexit trade deals3 and deploying broadband infrastructure.4
2.However, the nature of this relationship has changed significantly since the early years of devolution. Initially, the Labour Party was in office on both sides of the border, meaning there was limited policy disagreement. This relationship has become more strained since a different party—with different policy objectives—came to power in 2007. Subsequently, the fundamentally divergent objectives of the SNP–controlled Scottish Government, and the Conservative/Coalition–controlled UK Governments, were fully exposed during the 2014 Scottish independence referendum. More recently, the two governments’ apparently irreconcilable differences on Brexit have further tested the relationship which has, amongst other signs of stress, resulted in political stalemate and the referral to the Supreme Court of the Scottish Government’s UK Withdrawal from the European Union (Legal Continuity) (Scotland) Bill by the UK Government, which disputed whether aspects of the Bill were part of devolved competence.
3.As well as shifting political dynamics, the devolution settlement itself has undergone considerable change. The devolution settlement was initially based on a clear divide between devolved and reserved power, in which each policy was the clear responsibility of either government. However, the 2012 and 2016 Scotland Acts changed this by introducing for the first time “shared” policy areas in relation to taxation and welfare spending, where effective intergovernmental relations have become particularly important.5
4.Despite this, the UK’s intergovernmental machinery and the methods of joint working have remained largely unchanged since the first years of devolution. Many academics and parliamentary committees have observed that recent developments have highlighted the weaknesses in the UK’s intergovernmental machinery.6 There are also new challenges on the horizon as the UK leaves the European Union and its legal systems—a constitutional arrangement upon which the current devolution settlement is predicated. This has raised important questions about how the two governments will work together in the future.
5.The Cabinet Office launched a review of intergovernmental relations in March 2018 with the agreement of the devolved governments. This review is examining whether the “existing intergovernmental structures […are] fit for purpose” in a post-Brexit context.7 The review will cover; the principles underpinning future intergovernmental relations, governance of common frameworks, intergovernmental dispute resolution, intergovernmental machinery, and devolved administration engagement on international matters.8
Our inquiry
6.In light of these developments, and to mark the 20th anniversary of devolution, we decided the time was right to take a fresh look at the relationship between the UK and Scottish Governments. We held five oral evidence sessions hearing from; academics, thinktanks, former senior ministers and officials, and the UK and Scottish Governments. We examined how intergovernmental relations operate in some other countries and heard from academics and current and former officials with knowledge of other systems. We also held an informal discussion with two former senior Scottish Government civil servants to gain some insight into the day to day realities of intergovernmental working. We are grateful to all those who contributed to our inquiry.
7.We begin this Report by examining the broad principles which should underline the relationship between the two governments. We then turn our focus, in turn, to the Joint Ministerial Committee, common frameworks, and Whitehall devolution knowledge and processes. Finally, we end this report by considering the role of the Office for the Secretary of State for Scotland and the role it plays in intergovernmental relations.
1 Scottish Affairs Committee, City Region Deals, one-off evidence session
2 Scottish Affairs Committee, The future of the oil and gas industry, Sixth Report of the Session 2107–19, HC 996
3 Scottish Affairs Committee, Scotland, Trade and Brexit, Seventh Report of the Session 2107–19, HC 903
4 Scottish Affairs Committee, Digital Connectivity in Scotland, Fifth Report of the Session 2107–19, HC 654
5 Scottish Parliament Information Centre, Common UK Frameworks after Brexit, SB 18–09, February 2018
6 Centre on Constitutional Change, Reforming Intergovernmental Relations, October 2018; House of Lords Select Committee on the Constitution, Inter-governmental relations in the United Kingdom, 27 March 2015; Public Administration and Constitutional Affairs Committee, The Future of the Union, Part two: Inter-institutional relations in the UK HC 839, 6 December 2016; Scottish Parliament Finance and Constitution Committee, Interim Report on the EU (Withdrawal) Bill LCM, 9 January 2018; Fourth Report of the House of Lords European Union Committee of Session 2017–19, Brexit: devolution, HL 9, 19 July 2017; House of Commons Public Administration and Constitutional Affairs Committee, Devolution and Exiting the EU: reconciling differences and building strong relationships, Eighth Report of Session 2017–19, HC1485, 31 July 2018
7 UK Government/JMC (P), Minutes: JMC (P): 14 March 2018: No. 10 Downing Street, 14 March 2018
Published: 7 June 2019