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Devolution – The
Next Stage
December 2005
Introduction
This paper sets out UNISON Scotland’s current
policy position on the next stage of devolution in light
of the stated intention of most political parties to review
their policy in the run up to the 2007 elections. It is
an initial position recognising that the debate will develop
members’ views.
Context
The Scotland Act 1998 established the powers
of the Scottish Parliament and Executive. Essentially
it can act in any area that is not reserved to Westminster
(see Annex 1). The UK Parliament also continues to legislate
on devolved issues with the agreement of the Scottish
Parliament through the Sewel Convention. The Scottish
Parliament Procedures Committee has recently recommended
some procedural changes to Sewel motions to improve parliamentary
scrutiny.
There have already been significant new
areas of devolution since the Scotland Act most notably
aspects of rail and energy policy. These are in effect
voluntarily devolved by UK Ministers and have not involved
any amendment to the Scotland Act. Any substantive further
devolution would require an amendment to the Scotland
Act.
As 2007 will be the third term of the Scottish
Parliament the political parties are considering new devolved
powers from Westminster. The Scottish Labour Party has
asked the Scottish Policy Forum to hold a special session
on this issue and is likely to report to a future Scottish
Party Conference. Other parties are also considering this
issue. The SNP, SSP and Greens will continue to promote
independence whilst taking every opportunity to extend
the functions of the Scottish Parliament.
General Approach
UNISON Scotland remains committed to the
principle of devolution. We campaigned for and support
a Scottish Parliament where policies for health, education,
transport, environment and key aspects of economic development
are formulated where they should be – in Scotland, by
representatives elected in Scotland. We do not support
federalism or independence. We believe Scotland is better
off and stronger in Britain, worse off and weaker apart.
The general principle at the time of devolution
was that reserved matters should be limited to those matters
necessary to maintain the integrity of the UK. Whilst
this remains a factor it should not be only test. The
key principle should be subsidiarity, the idea
that matters should be handled by the smallest (or, the
lowest) competent authority. This principle also applies
to the Scottish Parliament in its dealings with local
government because decisions should be taken as closely
as possible to the citizen.
Powers should only be reserved to Westminster
when:
- Necessary because actions of the Scottish Parliament
alone will not achieve the objectives of the action
or;
- The action brings added value over and above what
could be achieved by the Scottish Parliament alone.
New Powers
As we approach the third elections to the
Scottish Parliament UNISON Scotland believes the time
is right for a detailed review of the balance of powers
between Holyrood and Westminster. Whilst we believe that
the broad thrust of powers is right, experience has demonstrated
that the settlement would benefit from further devolution
of powers in some areas. Devolution is rightly a process
not an event.
The case for each possible power is complex
with a range of arguments for and against. In some areas
partial devolution may be appropriate, in others full
devolution of powers that are currently shared. For this
reason we favour the establishment of Commission to review
the current balance of powers. As with the Scottish Constitutional
Convention the aim should be to achieve the greatest possible
consensus.
UNISON Scotland’s initial position on key
areas is as follows:
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Power
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Considerations
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Devolve?
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Fiscal Autonomy
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Most Scottish Executive revenue
at present comes through a block grant from Westminster
allocated in accordance with the Barnett Formula.
That formula is itself ‘squeezing’ revenue in
Scotland and may need replacing in future. Fiscal
autonomy could take several different forms but
all involve revenues raised in Scotland going
direct to the Parliament/Executive together with
additional taxation powers over and above the
existing power to vary the basic rate of income
tax +/- 3p. It is argued that responsibility for
raising income (not just spending it) is essential
for genuine democratic accountability. This is
an important consideration, however, for UNISON
we would need to be convinced that fiscal autonomy
would deliver similar or greater revenues to finance
public services and provide certainty over levels
of spending.
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Probably not at present but keep policy under
review.
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Equal Opportunities
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The substantive legislative provisions
of the Equal Pay Act, SDA, RRA and DDA are reserved.
The Scottish Parliament’s powers are largely restricted
to promoting equality. We believe that Scotland’s
demographics are different to England and that
we have different equality concerns (e.g. sectarianism).
There is a precedent in that N.Ireland has had
different equality legislation from the rest of
the UK and Scotland will shortly have its own
Human Rights Commission.
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Yes
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Energy
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This is a shared area of responsibility
at present. Generation and nuclear regulation
are reserved. Planning, aspects of energy efficiency
and renewable energy are devolved. This can lead
to some confusion over roles. Scotland’s energy
industry is structured differently to the rest
of the UK and we have concerns over discriminatory
arrangements by UK regulators. There is a UK market
for energy and European Directives which would
require common approaches. However, a Scottish
Energy Strategy may be easier to achieve if energy
was devolved.
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Yes
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Council Tax Benefit
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Whilst the Council Tax is devolved
this benefit is reserved along with social security
benefits. It is administered separately and is
a key component of our council tax reforms. Without
devolution we may be tied to English council tax
reform plans
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Yes
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Pensions
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Occupational pensions are reserved
but the regulation of public sector pensions is
devolved. Our ability to negotiate over our devolved
pension schemes has certainly been hampered by
the reserved powers. However, pensions (particularly
the state pension) are closely linked to taxation
and benefits.
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No. But consider strengthening
powers over public service pensions.
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Employment
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As the UK is a common market most commercial
and employment law was reserved. UNISON members
generally treat the UK as a single labour market.
Many functions of job centres in promoting employment
(e.g. job centre+) are closely linked to economic
development which is a devolved power.
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No
Partial devolution
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Professional Regulation
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Regulation of most professions
is also reserved on the same UK labour market
basis.
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No
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Firearms
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Recent criminal cases have resulted
in calls for stronger regulation of firearms in
Scotland than appears to have support in England.
Criminal law is devolved.
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Yes
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Drugs
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Control of medicines and misuse
of drugs are reserved whilst other health and
criminal provisions are devolved.
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Probably
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Immigration
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The ‘Fresh Talent’ initiative
has been constrained by UK immigration policy
that arguably is driven by the needs of SE England.
Whilst UK borders remain we could consider separate
immigration controls perhaps with Scottish residence
requirements.
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Partial
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Broadcasting
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The debate over Scottish TV news
(The Scottish Six) has highlighted this reserved
power and we have previously supported devolving
this power.
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Yes
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Others
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Gaming, consumer protection,
health & safety, financial services, fishing,
data protection, film classification, extradition,
insolvency, telecommunications, postal services,
air and road transport are all reserved and have
been raised as potential issues for devolution
in recent years
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No position as yet.
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Annex 1
Devolved and Reserved Powers
Devolution is the delegation of power from
a central government to local bodies. Scotland was granted
devolution by the passing of the Scotland Act in 1998
which means that Scotland has a parliament with ‘devolved’
powers within the United Kingdom. Any powers that remain
with the UK Parliament at Westminster are reserved. Reserved
matters were set out in Schedule 5 of the Scotland Act.
Essentially the powers of the Scottish Parliament are
set out by what it does not have legislative competence
in rather than in what it can do.
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Devolved powers: Matters such as education,
health and prisons, which used to be dealt with by
the Parliament at Westminster , are now decided in
Scotland .
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Reserved powers: Decisions (mostly
about matters with a UK or international impact) are
reserved and dealt with at Westminster
The main devolved areas are:
- Health and social work
- Education and training
- Local government and housing
- Justice and police
- Agriculture, forestry and fisheries
- The environment
- Tourism, sport and heritage
- Economic development and internal transport
The UK Parliament continues to legislate
in reserved areas in accordance with the Sewel Convention.
Under this arrangement the UK Government has adopted a
principle whereby ‘the UK will not normally legislate
in relation to devolved matters in Scotland without the
agreement of the Scottish Parliament.’ The Scottish Parliament
can agree the incorporation of legislative provisions
affecting Scotland in devolved areas by what is called
a ‘Sewel Motion’. This enables the Scottish Parliament
to agree that Westminster should legislate for Scotland
on devolved matters where, for example, it is considered
sensible and appropriate to put in place a single UK wide
regime or where the Parliament supports the proposed legislation
but no Parliamentary time is available at Holyrood because
of separate Scottish priorities.
The statutory framework for devolution set
out in the Scotland Act 1998 is underpinned by the Memorandum
of Understanding and four Overarching Concordats (on International
Relations, the EU, Financial Assistance to Industry and
Statistics between the UK Government and the three devolved
administrations). There are also more detailed bilateral
Concordats between the Scottish Executive and individual
Government Departments. The Concordats are non-legally
binding agreements whose purpose is to facilitate good
relations between the administrations. They are underpinned
by Devolution Guidance Notes (DGNs) published by the Department
for Constitutional Affairs after consultation with the
devolved administrations, and by the Statement and guidance
on Devolution in Practice, which was re-issued by the
Prime Minister and the Leaders of the devolved administrations
in October 2002.
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Scotland's
public service union
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