Devolution in Scotland

Debate between Alistair Carmichael and Chris Kane

Wednesday 22nd October 2025 Commons Chamber

[Chris Kane (Stirling and Strathallan) (Lab)]

When the Scottish Parliament was reconvened in 1999, there was an expectation that devolution would not stop at Holyrood, but would build stronger systems of local government. Donald Dewar put it best in his first speech:

“A Scottish Parliament. Not an end: a means to greater ends.”

We should celebrate Holyrood’s achievements over the past 25 years, but we must also face a truth: devolution has stalled or even gone backwards when it comes to local government. The first phase moved power from London to Edinburgh, but the second phase—transferring power from Holyrood to our local communities—never came. Instead, powers have been stripped away. Business rates, water, further education, police, fire and local enterprise were all once local responsibilities that have now been centralised. The principle of devolution is simple: the best decisions are made closest to the people affected by those decisions, yet in Edinburgh we have a Government run by the Scottish National party, and no one could accuse it of being the Scottish local party.

Before I came here, I was the leader of Stirling council. About 80% of our budget came from a Scottish Government grant, with the rest from council tax, which is the only fiscal lever left to councils. It should be set locally, but for most of the last 18 years the SNP Government have frozen or capped it. Arguments for and against tax rises should be made in town halls, not dictated from Holyrood. For devolution to work there must be respect between different levels of government. I welcome efforts by the UK Government to reset that relationship. I only wish the Scottish Government would show the same respect to local authorities.

Meanwhile, England has raced ahead. Metro mayors and combined authorities are transforming the landscape. We have seen the next step in English devolution in recent weeks and months, with exciting reforms pushing power outwards. By contrast, a tired SNP Government are pulling power inwards through quangos and direction from the centre.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

I agree with what the hon. Gentleman is saying. I was struck by what the Chair of the Scottish Affairs Committee, the hon. Member for Glasgow West (Patricia Ferguson), said about the roots of the Scottish Parliament and the constitutional convention. Those of us who were part of that movement believed that there was a better way for Scotland to be governed, but things have moved on, and now the Parliament is seen as an exercise merely in asserting national identity. Does he agree that if we got back to the Scottish Parliament being about a better delivery of Scottish services for Scottish people, the difficulties that he is identifying would very quickly be solved?

[Chris Kane]

I completely agree—that goes back to what I was saying. Donald Dewar said:

“A Scottish Parliament. Not an end: a means to greater ends.”

If we all remembered to think about the evolution of devolution, and strived to make it as good as it can be, we would all be doing the people of Scotland a service.

The risk of divergence between Scottish devolution and English devolution is stark. Glasgow is the UK’s fourth largest city, yet without a metro mayor or combined authority, it has no mechanism to secure trailblazer deals, as Greater Manchester and the West Midlands have. If Glasgow performed at the level of its peers, Scotland’s GDP could rise by an amount equivalent to our entire oil and gas sector—that is the real prize of real devolution. Scotland’s eight cities, including Stirling, should be able to debate what greater devolution would mean for our economies and communities.

Partnership requires honesty, however. The Verity House agreement promised “no surprises” but within months, Ministers imposed another national council tax freeze without consultation. That is not partnership; it is central direction. If we are serious about devolution, we must be serious about accountability. Audit Scotland and the National Audit Office should deepen collaboration. Joint funding streams must be scrutinised coherently. Public trust depends on transparency.

Devolution was never meant to be a one-off event. The Convention of Scottish Local Authorities has long warned that Scotland is now one of the most centralised countries in Europe. While England powers ahead, our councils are squeezed, our communities feel remote from decision making, and our cities risk falling behind. What Scotland needs is a new phase of devolution: more fiscal autonomy for councils, genuine partnership with national Government, more powers for communities through development trusts, community councils and other bodies, and the option of combined authorities or mayors where local people want them.