Smith Commission
The Smith Commission was announced by Prime Minister David Cameron on 19 September 2014 in the wake of the Scottish independence referendum and arguably in particular 'The Vow' made by the three main British party leaders two days prior to the referendum.[1] Lord Smith of Kelvin was given the task 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".[2] Ten representatives were nominated by the political parties with elected members in the Scottish Parliament; the Commission started its discussions on 22 October.[3]
Membership
The five political parties with representation in the Scottish Parliament were each invited to nominate two representatives to the Commission. Those nominated were:
- Maggie Chapman (Scottish Green Party)[4]
- Linda Fabiani (Scottish National Party)[4]
- Annabel Goldie (Scottish Conservative and Unionist Party)[5]
- Iain Gray (Scottish Labour Party)[4]
- Patrick Harvie (Scottish Green Party)[4]
- Gregg McClymont (Scottish Labour Party)[3]
- Michael Moore (Scottish Liberal Democrats)[5]
- Tavish Scott (Scottish Liberal Democrats)[5]
- John Swinney (Scottish National Party)[4]
- Adam Tomkins (Scottish Conservative and Unionist Party)[5]
Written submissions
The commission invited submissions from individuals and organisations before a deadline of 31 October.[6] Approximately 14,000 emails and letters were received from the public, with a further 250 contributions from groups.[6]
The Conservatives, Labour and Liberal Democrats, who had all supported a no vote in the referendum, each submitted proposals which were similar to the findings of commissions they had each established before the referendum.[7] The SNP and Scottish Greens, who had supported a yes vote, called for what was described by BBC News as "devo max".[7]
The Scottish Trades Union Congress called for the full devolution of income tax, many welfare benefits and a different immigration policy.[8] The Institute of Chartered Accountants of Scotland pointed to the possible risks and additional administration costs caused by having different tax systems and rates.[9]
Three Scottish airports (Edinburgh, Glasgow and Aberdeen) proposed that Air Passenger Duty (APD) should be devolved, with a view to it being abolished in Scotland.[10] The airports cited the restrictive effect on tourism of APD, which raised about £200 million in revenue during the 2013/14 fiscal year.[10] WWF Scotland opposed the devolution of APD in its submission, citing the growth in carbon emissions from air travel.[11] The Scottish Government previously called for the devolution of APD in 2011, when it was devolved to Northern Ireland.[12] This action had been taken in anticipation of a similar tax being abolished in the Republic of Ireland.[12]
The Smith Report
The report highlights three main Heads of Agreement. These are;
Pillar 1: Providing for a durable but responsive constitutional settlement for the governance of Scotland Pillar 2: Delivering prosperity, a healthy economy, jobs, and social justice Pillar 3: Strengthening the financial responsibility of the Scottish Parliament
The following list are the issues discussed within the Heads of Agreement:
- Welfare – excluding pensions
- VAT relief for charities
- Crown Estate
- Energy
- Asylum support
- Remaining powers over transport
- Charity regulation
- Employability
- Equality law
- Consumer protection
- Employment law
- Misuse of Drugs Act
- Scottish elections and democracy
- Tax[13]
Recommendations
On 27 November 2014 the commission published its recommendations. These are to be debated in the UK Parliament before and put forward as draft legislative proposals in January 2015. A bill is expected to be brought forward after the United Kingdom general election, 2015, which is to be held on 7 May 2015.[14]
The recommendations include:[15]
- The Scottish parliament to have complete power to set income tax rates and bands.
- The Scottish parliament to receive a proportion of the VAT raised in Scotland, amounting to the first 10 percentage points of the standard rate (so with the current standard VAT rate of 20%, Scotland would receive 50% of the receipts). However, the Scottish parliament cannot influence the UK’s overall VAT rate.
- The Scottish Parliament to have increased borrowing powers to support capital investment and ensure budgetary stability. These powers are to be agreed with the UK government.
- UK legislation to state that the Scottish parliament and Scottish government are permanent institutions. The parliament will also be given powers to legislate over how it is elected and run.
- The Scottish parliament to have power to extend the vote to 16- and 17-year-olds, allowing them to vote in the Scottish Parliament general election, 2016.
- The Scottish parliament to have control over a number of benefits including Disability Living Allowance, Personal Independence Payment, winter fuel payments and the housing elements of Universal Credit, including the under-occupancy charge (popularly known as the bedroom tax).
- The Scottish parliament to have new powers to make discretionary payments in any area of welfare without the need to obtain prior permission from the Department for Work and Pensions.
- The Scottish parliament to have all powers of support for unemployed people through employment programmes, mainly delivered at present through the Work Programme.
- The Scottish parliament to have control over air passenger duty charged on passengers flying from Scottish airports.
- Responsibility for the management of the Crown Estate’s economic assets in Scotland, including the Crown Estate's seabed and mineral and fishing rights, and the revenue generated from these assets, to be transferred to the Scottish parliament.
- The licensing of onshore oil and gas extraction underlying Scotland to be devolved to the Scottish parliament.
- The Scottish government will have power to allow public sector operators to bid for rail franchises funded and specified by Scottish ministers.
- The block grant from the UK government to Scotland will continue to be determined via the operation of the Barnett formula. New rules to define how it will be adjusted at the point when powers are transferred and thereafter to be agreed by the Scottish and UK governments and put in place prior to the powers coming into force. These rules will ensure that neither the Scottish nor UK governments will lose or gain financially from the act of transferring a power.
- MPs representing constituencies across the whole of the UK to continue to decide the UK’s budget, including income tax.
- The Scottish and UK governments to draw up and agree a memorandum of understanding to ensure that devolution is not detrimental to UK-wide critical national infrastructure in relation to matters such as defence and security, oil and gas and energy.
The commission also considered devolving the power to vary all elements of Universal Credit (rather than just its housing element) but this did not appear in the commission's final recommendations.[16]
Criticism
The Scottish Socialist Party were not invited to be part of the Smith Commission, leaving them the only one of the six political parties that had registered with the Electoral Commission for the referendum campaign that were not able to send a representative.[17]
A House of Commons committee heard evidence that was critical of the timetable set for the Smith Commission.[18] Professor Michael Keating said he believed that the condensed timetable, which called for draft legislation by January 2015, was unrealistic.[18] He warned of the risk that agreement would unravel because there was insufficient time to consider technical issues.[18] Both Professor Keating and Professor Nicola McEwen said this was due to political pressures, with the unionist party leaders having vowed to grant additional powers and a United Kingdom general election due to be held on 7th May 2015.[18]
Reaction
Nicola Sturgeon, Scotland’s first minister, commented "I welcome what is being recommended" but argued that it "doesn’t deliver a modern form of home rule". Claiming that too little power would be devolved to Scotland, she added "I want to have the power in our hands to create a better system to lift people out of poverty, to get our economy growing. That’s the kind of powerhouse parliament I want. Sadly it’s not the one that’s going to be delivered.”[19] Iain Macwhirter, writing in The Herald, argued that the lack of devolution of taxes other than income tax would "lock Scotland in economic decline".[20] Polling in November 2014 indicated that a majority of Scots wanted greater devolution than that recommended by the Smith Commission.[21]
See also
- Scotland Act 2012
- Edinburgh Agreement (2012)
- Constitutional Commission
- National Conversation
- Scottish Consolidated Fund
- Scottish Constitutional Convention
- Constitution for Scotland
- Constitution of the United Kingdom
- Royal Commission on the Constitution (United Kingdom), also referred to as the Kilbrandon Commission
- Scottish independence referendum, 2014
References
- ↑ Daily, Record (27 November 2014). "The Vow Delivered". Daily Record. Retrieved 25 April 2015.
- ↑ "About". The Smith Commission. Retrieved 5 October 2014.
- ↑ 3.0 3.1 "Smith Commission on more powers for Scotland to hold first meeting". BBC News (BBC). 22 October 2014. Retrieved 22 October 2014.
- ↑ 4.0 4.1 4.2 4.3 4.4 "Scottish referendum: Iain Gray to join powers commission". BBC News. 29 September 2014. Retrieved 5 October 2014.
- ↑ 5.0 5.1 5.2 5.3 "Scottish referendum: John Swinney to join Lord Smith commission". BBC News. 25 September 2014. Retrieved 5 October 2014.
- ↑ 6.0 6.1 Smith Commission receives more than 14,000 submissions, BBC News
- ↑ 7.0 7.1 SNP calls for major post-No powers, BBC News
- ↑ Scottish trade unions call for tax, welfare and immigration powers, BBC News
- ↑ Accountancy body warns over new tax powers for Scotland, BBC News
- ↑ 10.0 10.1 Three Scottish airports call for end to Air Passenger Duty, BBC News
- ↑ Charity WWF Scotland defends airport green tax, BBC News
- ↑ 12.0 12.1 Scottish airports disappointed by tax decision, BBC News
- ↑ "Quick guide to Smith Commission Report". SCVO. SCVO. Retrieved 21 April 2015.
- ↑ Ben Riley-Smith (28 November 2014). "Everything you need to know about the Smith Commission". The Telegraph.
- ↑ Haroon Siddique (27 November 2014). "New powers for Scotland: key points from the Smith commission". The Guardian.
- ↑ Andrew Grice (28 November 2014). "Smith Commission: Scottish welfare controls watered down at eleventh hour". The Independent.
- ↑ Freeman, Tom (27 October 2014). "SSP welcomes new members at conference". Holyrood magazine. Retrieved 18 March 2015.
- ↑ 18.0 18.1 18.2 18.3 Smith Commission timetable 'unrealistic', BBC News
- ↑ Libby Brooks (27 November 2014). "Nicola Sturgeon: Smith commission fails to deliver ‘powerhouse parliament’". The Guardian.
- ↑ Iain Macwhirter (30 November 2014). "Power over income tax only will doom Scotland to a downward spiral". Herald Scotland.
- ↑ Tom Gordon (30 November 2014). "Most Scots want more powers than Smith provides". Herald Scotland.
External links
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