Scotland: Independence

Lord Purvis of Tweed Excerpts

Monday 16th June 2014 Grand Committee

Asked by

[Lord Purvis of Tweed]

To ask Her Majesty’s Government what plans they have for further reform and decentralisation of the United Kingdom in the event of Scotland voting “no” in the independence referendum in September.

[Lord Purvis of Tweed (LD)]

My Lords, I am grateful to noble Lords who have chosen to take part in this debate and to noble Lords across all parties who are taking an interest in what future path the United Kingdom takes in the event of a no vote in the Scottish referendum. It would be a dereliction of duty for me not to refer to the noble Lord, Lord Foulkes of Cumnock, who chairs with me an all-party group on UK reform and further decentralisation. When the noble Lord, Lord Foulkes, and I both served in the Scottish Parliament, we would occasionally spar against each other across the Floor of the Chamber, but on this issue we purr with agreement on the need for a lively debate on what shape the United Kingdom takes in future.

This debate is taking place on an important day in Scottish political history. It is uncommon that political parties from very different backgrounds and philosophies and with competing interests come together on a shared platform. This afternoon, Willie Rennie MSP, Johann Lamont MSP and Ruth Davidson MSP have led their respective parties to a common statement committing them all to delivering powers to strengthen the way the Scottish Parliament operates and to allow the people appropriately to hold MSPs to account for the decisions that they make. Such a commitment is highly significant and guarantees the strengthening of the Scottish Parliament should Scots vote no.

Exactly a decade ago, in June 2004, I published a pamphlet outlining a new model for financing the Scottish Parliament within the UK. In the introduction of a paper on fiscal federalism which I wrote while serving as a member of the Scottish Parliament’s Finance Committee I said that “the concept of fiscal federalism is well suited to a modern, sophisticated and pluralist society like Scotland. It will provide the necessary underpinning to support the move towards an increasingly federal system of governance in the United Kingdom”. A decade on, I continue to hold that view. It is worth noting for noble Lords’ interest that when I published that paper my party was serving in government in Scotland and the SNP had the previous year suffered a major reverse in the Scottish Parliament elections. It was most assuredly not a proposal designed to respond to the calls for independence by a strong SNP.

I have never believed that the question of the powers of the Scottish Parliament is one of tactics or about responding to nationalist arguments. Rather, I have always believed that the question of powers is one of ensuring the right balance of accountability and responsibilities within our union. With the right balance, we ensure that the appropriate sphere of government is best motivated to deliver good and efficient services and is appropriately held to account for the decisions it makes. Without the appropriate balance, it is easy for decisions to be avoided and an accountability gap to be created. I saw this start to develop while I was an MSP, and I see it today. I deliberately cite spheres of government; no longer should we in the United Kingdom be talking about levels of government. Many citizens across our union live with two Parliaments, or a Parliament and an Assembly, and two Governments. It is therefore the sphere of those government relations, and the relationship between them, not the hierarchical level, which is the most appropriate area to define.

The Scottish parties of the current coalition government partners have published proposals that match closely those I put forward in 2004. Coming from different perspectives, they have reached the same conclusions to address this growing imbalance. The post-referendum debate, however, is one that does not affect solely Scotland. For England, Wales and Northern Ireland the existential questioning of the union by many Scots requires us to consider the wider union, and the governance of England, too. This debate is best shaped if we set the terms for what the extent of devolution is, or what I have called the natural destination of devolution. This is the permanent balance of power and responsibility between the nations, beyond which the union does not function.

My party for many years has argued a federalist case, and others are coming to the same conclusions about the need to reach a clear understanding on what this destination of devolution is. The issue for post-referendum Britain, therefore, is how we bring coherence to this in order that the union is not merely a more asymmetrical entity than it is at the moment, without a clear defining of place for the Westminster and Whitehall institutions and the relationship between the nations and within England.

First, there can most definitely be a union that has varying powers in the nations. After all, they entered into the union for different reasons and under differing circumstances, so their continuing presence in it need not be identical. Secondly, the governance of Scotland on domestic—or, as some call them, home rule—affairs, need not be identical to the governance of equivalent areas within England, Wales or Northern Ireland. Indeed, in many respects, there can be a healthy difference in the way in which policy is approached. It is unhealthy if there is difference of accountability and balance of finance.

It is therefore the issue of the coherence of what holds the entity of the union together that is important. For me, it is the rational and well considered decentralisation of power from Westminster and Whitehall, the extent that we reach the right balance of accountability and that it is robust enough to be permanent and stable.

The UK should become a more federal-type kingdom after the referendum, even if it prefers not to describe itself as such. While it will not be a purely federal country— perhaps it will never be, as I have outlined in relation to the way in which the union was formed—it will increasingly have characteristics of how federal countries operate. For example, the permanence of the Scottish Parliament should be enshrined in the constitutional architecture of the whole union. The Scottish Parliament should not be a devolved Parliament of this Parliament, it should be a permanent body in its own right, able to be abolished only should it so desire, or have its powers altered only if it approves. The Scottish Government, elected from its Parliament’s Members, should not have their financial relationship with the Treasury set unilaterally by the Treasury. The relationship between the UK Treasury and Scotland, Wales and Northern Ireland will look much more like that of a federal finance ministry rather than a centralised UK Treasury that can unilaterally alter the state of funding policy across all four nations.

While Scotland is further down a path of reform than Wales—and Northern Ireland, which has its own considerations——the question of the governance of England must continue. There is the need therefore to establish a framework of principles under which UK-wide bodies operate, under which UK Ministers carry out their UK-wide functions, as opposed to their English functions, and under which the institutional arrangements between the Governments of the nations, often called the concordats, are framed. Such a framework of principles would apply also to the many bodies and agencies that currently have a UK-wide remit and touch on areas that are the competence of the nations but which are answerable only to this Parliament.

What does this mean for the users of these services, our former constituents in many respects? Sometimes we think that our esoteric arguments about constitutional theory will be grabbing their attention every single day. I think they would see a greater level of transparency and hold the relevant politicians to account. A Scottish Parliament with spending powers and no taxation powers is a rather artificially benign political institution. Power resides with the people, not the institutions, and we must make it straightforward for them to exercise such power.

Therefore the question today is what path the UK Government and this Parliament take after 18 September and what position the new Administration from 2015 takes, whatever party or parties form it. The Secretary of State for Scotland, my right honourable friend Alistair Carmichael, has announced that he will convene a conference on the new Scotland within 30 days of the referendum in the event of a no vote. This represents an opportunity for the parties who have published their proposals and for those such as the Scottish Trades Union Congress, the Devo Plus group, the IPPR and others who have published their proposals to come together in good time before the UK general election.

On a wider aspect relating to the whole of the union, some have spoken, including my noble friend Lord Maclennan of Rogart about the way the Scottish Constitutional Convention brought political parties and civic Scotland together in the 1980s and 1990s. This is a model worthy of consideration for the whole of the kingdom. There is merit in this. I believe, however, that given where we are today, 15 years on from the establishment of the Parliaments and Assemblies in our nations, we need a mechanism that can allow for open but focused discussion on how Westminster and Whitehall reforms take place.

I therefore propose to the Minister for his consideration the convening of a conference on the new union. Such a conference on the new union should be convened after the UK general election in 2015. It should last no longer than six months, and its objective should be to discuss and agree the principles upon which the UK and its institutions would be reformed in a coherent way for the positive distribution of power, a process already taking place within Scotland.

In conclusion, I leave the Minister with just these thoughts. It should have as its remit the endorsement of the reforms to the Scottish Parliament, that will be being legislated for, and to the National Assembly for Wales. It should also deliver agreement on how the financial relationship between the nations and the UK Government is made more transparent with the protections afforded the nations. The conference on the new union should also agree the parameters of reform to this Parliament’s procedures for the legislation that covers England. It should also put in place the necessary measures to enshrine permanently the existence of our national Parliament and the Assemblies of the nations.

Our union is a remarkable one, but it is being tested. The test is major. There will be a considerable number of people voting in fewer than 100 days to leave this union. I hope they will be in the minority in Scotland. If they are, we must respond. The response must be in a considered, sincere and careful way, but that does not mean it should not be radical. The opportunity for further decentralisation and modernisation of the UK presents itself most clearly. We should see the opportunity presented to us, and we should take it.