Scotland: Devolution

Lord McConnell of Glenscorrodale Excerpts

Wednesday 29th October 2014 Lords Chamber

[Lord McConnell of Glenscorrodale (Lab)]

My Lords, the result of the Scottish referendum was clear enough to resolve the issue of Scotland’s place within the United Kingdom for at least a generation, but it was also close enough to make all of us in positions of responsibility, elected or otherwise, sit up and listen to the message that it sent. Probably the most used phrase in Scotland over recent months has, I suspect, also been used across many of the towns of the north of England and elsewhere in the UK: “They just don’t get it”. That is a telling reminder for us of the disconnect that exists today between the Government, Parliament and the people that they are there to serve. In recent years there have been bonuses paid that appear to have been completely unjustifiable, scandals covered up at the British Broadcasting Corporation, the ongoing scandal over many years of expenses for Members of Parliament, and the “jobs for the boys” culture that appears to exist in and around British institutions. The feeling that they—the metropolitan elite in one form or another—are in it for themselves ran deep in Scotland in August and September. Those voting yes were not all nationalists, but they did all want to kick the establishment and the established order.

[Lord Foulkes of Cumnock]

Does my noble friend not agree that there have been some problems in Holyrood just as much as in Westminster?

[Lord McConnell of Glenscorrodale]

Yes, but I do not think that the issue there in any way reflects the perception in the country, not just in Scotland, of what happens between people in positions of responsibility and in established institutions in London and the metropolitan centre.

It is a matter of real regret for me that the fantastic atmosphere, very similar to that described by my noble friend Lady Royall, that existed in Glasgow and the rest of Scotland in July during the Commonwealth Games dissipated so quickly and turned into such bitterness and bile. It is also a matter of regret for me that it took Dan Snow, Bob Geldof and others to positively express what was good about the United Kingdom and worth keeping, in a way that most of the politicians seemed unable to do. It is a matter of deep regret for me that so many of what I would describe as UK politicians seem unable to see and praise, even from time to time, the good that has happened in the devolved Assemblies and Parliaments since they were created. That resonates with the people because it adds to that perception of being out of touch and at a distance. It is also a matter of regret for me that, in an unnecessary panic, commitments were made about additional powers for the Scottish Parliament that will be a challenge to keep. However, we are where we are, and keep those commitments we must.

I believe very strongly that the Smith commission must drive its work based on the following principles: the principle of subsidiarity, by which decisions should be made at the most local level possible; the principle of mutual respect between the two Parliaments and between the two Governments; and the principle of fiscal responsibility, but also fiscal opportunity for the Scottish Parliament so that it can make decisions that might spark off entrepreneurial activity and other developments in Scotland, in addition to having responsibility for the expenditure that it has made so far and will make in the future. The Smith commission should absolutely commit itself to doing nothing that would damage the UK single market. It should also have firmly in its thoughts the need to redistribute across the UK from rich areas to those that have more needs.

I believe strongly that the unionist parties will need to move their current policy positions. A settlement based on any of the current submissions will not be sufficient to create stability and allow the debate in Scotland to move on to using powers rather than more powers. The final settlement will require somewhere between half and two-thirds of expenditure being the responsibility of the Scottish Parliament through tax-varying or tax-setting powers. I believe that those powers should be not just for income tax; they should be partly income-related, partly business-related and partly sales-related. There must be the power to vary rates of tax up and down but not to assign revenues. If these additional powers are to be devolved to Holyrood, Holyrood itself must reform to ensure that government and decisions there have more accountability, and more checks and balances, than they appear to have at the moment.

With regard to the situation in the UK, coming out of the referendum it is vital that the UK looks at votes for 16 and 17 year-olds. The issue of English consent—not necessarily English votes—for English laws will have to be addressed in due course. Reform of this House, based on more equal representation for the regions of this country, will be essential. Individual matters such as the recall of MPs and the future of the territorial Secretaries of State will need to be addressed. I would have preferred it if these issues had been addressed in a constitutional convention, and I hope that that option might still be on the table.

Finally, I really wish that the Prime Minister, instead of standing on the steps of No. 10 the day after the referendum, had come to Scotland and said thanks. It would have been the right thing to do: to come to Scotland and say to people, “We are grateful that you voted the right way and we will be back. We mean it. We meant it when we said that we would change and improve this relationship, and in future our Ministers, both government and opposition, will come to Scotland and other parts of the kingdom not just when there is a problem and a vote is taking place. We will come all year round and will engage with you, and we will govern for the whole United Kingdom”. If the Government would do that, the whole kingdom would be a happier place.

--- Later in debate ---

[Lord McConnell of Glenscorrodale]

Perhaps the noble Lord would address this point. There is a feeling in Scotland that at least part of that accumulation of support for independence is due to increased confidence. That is partly because Scotland’s performance economically today compared to the rest of the United Kingdom is significantly better than when the Parliament was established. Population decline has been reversed and a number of other improvements in Scottish society have been made. That confidence is perhaps part of the reason why people feel they can take on the additional powers of independence.

[Lord Bew]

I accept the noble Lord’s point, but the same point could be made about Irish nationalism, which also becomes more intense at certain points when there is more self-confidence as a result of good economic performance. Indeed, in the period leading up to Ireland’s break with the United Kingdom, the First World War was a tremendous boon for Irish farmers and most people in Ireland were farmers. So I accept the point.

On the issue of the federalist moment, which so many have conjured up this evening, I have no intellectual objection to it and I understand its appeal, but I just want to express one point of scepticism. In 1910, all the major parties and all the major players had a serious interest in separatism, with Winston Churchill at the heart of it. Why? Because they could see the Irish home rule crisis about to come and they could see the threat of civil war. They could see the danger that the unwritten rules of the British constitution were going to be absolutely torn apart. Federalism was the wonderful, magical way in which all these contradictions could be resolved, everyone could be happily secured in their identity and the Irish could be given the substance of what they wanted. If we could not do it then, when the political class on all sides thought that this was the right way to go, are we likely to be able to do it now, when the pressures are nothing like so great? It may be so, but—this is not a judgment on the concept of federalism; it is a judgment on just what it requires to get people to move in that direction—I am not sure that we are quite there at this point.

The noble Lord, Lord Forsyth, has already made the point about the reduction of MPs in Westminster from the devolved regions being the obvious solution to the West Lothian question. When I met the McKay commission, I made exactly the same point as the noble Lord, Lord Lexden, that this was the approach adopted with respect to Ireland. It is the obvious and logical way of approaching that question. However, we are now in a situation where the McKay commission has decided to go a different way.

I just want to say a couple of words about that commission, because noble Lords are afraid of too speedy a reaction. Sir William McKay, a former Clerk of the House of Commons who deeply respects its traditions, has produced an answer to this difficulty that does not create two fundamentally different classes of MPs, which is the great danger at stake, but allows a greater register of English opinion. If we are in the situation where the West Lothian question will not go away—currently, it is the Conservative Party that is most active on this; in the 1960s, it was the Labour Party, which was furious that a Labour Government with a majority of only five or six had to put up with 12 Ulster Unionist MPs and Labour MPs could not ask questions about what was going on in County Antrim—today it is a different party that finds the West Lothian question hard to endure. However, if we are in a position where we have to act on this matter, a report of this sort may not have the answer but deserves some serious consideration.

Above all, the characteristic of that report, as we might expect from William McKay, is what the union requires to survive: it is dominated by the language of civility. That is the sine qua non for the survival of the UK as we approach these problems.