Scotland: Devolution

Lord Sanderson of Bowden Excerpts

Wednesday 29th October 2014 Lords Chamber

[Lord Sanderson of Bowden (Con)]

My Lords, like my noble friend Lord Steel, I must congratulate my own Scottish Borders on returning the highest no vote in mainland Scotland, but there is no doubt that the referendum has created the most divisions throughout Scotland that I have ever witnessed. It will take a very long time to heal the wounds. Splits in communities were very obvious and in many families there was division. As the noble Lord, Lord Foulkes, said, we were very near the precipice. The situation was not helped by the Scottish Government’s White Paper, parts of which were more akin to an election manifesto, when we were really dealing with the most fundamental constitutional change for our country.

Having succeeded in that no vote, we are now faced with producing proposals for enhancing the many existing powers devolved to Scotland, which in the case of tax raising have never been used since inception. I have with me the report of the commission of my noble friend Lord Strathclyde, published in May, and I am glad to see one of its members, my noble friend Lady Mobarik, here in her place. That report stated:

“The sad fact is that, even after 15 years of devolution, it is still far too easy for Scottish Ministers to blame difficult financial decisions on others. This is both unhealthy for the Union and unattractive for Scotland. Closing the fiscal gap through the means of fiscal devolution would create a more responsible Scottish politics and would help to remove this grievance culture from it”.

This is a major task for the Smith commission, but one of its most important tasks.

The extended tax-raising powers must ensure that MSPs are held responsible for raising, particularly through income tax, the requisite amount of money to cover devolved expenditure. It will also allow other parts of the UK to vote on their tax and spending issues. This is the only way to get a sustainable solution that fits in with the wider responsibilities of the UK Government. It means that MSPs will have to justify to their constituents the taxes necessary for their schemes and, as the report suggests,

“Scottish versions of the Personal Tax Statements should be issued by HMRC, highlighting taxes under the control of the Scottish Parliament”.

I hope that this can be enshrined in legislation.

On other proposals in the Strathclyde commission report, I would ask the commission to make haste slowly in any changes that involve the universal credit arrangements. It is a difficult and complex area and I would not wish the Government to act hastily and repent at leisure.

I do not wish to comment on the West Lothian question, which others have talked with great knowledge about, but I believe that it has to be settled essentially by the other place.

I turn to the final recommendation of the Strathclyde commission report, which is the creation of,

“A Committee of all the Parliaments and Assemblies of the United Kingdom … to consider the developing role of the United Kingdom, its Parliaments and Assemblies and their respective powers, representation and financing”.

Ever since the devolution Bill was debated in this House, I have been worried about the lop-sided arrangement that was brought about as a result. Some said at that time that it was a slippery slope leading to independence. We now know, 15 years later, how near that possibility came.

Nothing less than what Strathclyde proposes should be acceptable, as a lop-sided house inevitably will in time crash to the ground. If we are to keep the United Kingdom united, whether it is a quasi-federal system or whatever, the matter really needs to be addressed. There is a stirring in England for progress to devolve. The great northern cities are uniting under the banner of the City Growth Commission, headed by the very capable Jim O’Neill, whose aim is to galvanise the north and to start by getting its transport arrangements improved, with a lot of help, I hope, from the Treasury. This is all well and good, but consideration needs to be given to all the major changes taking place in all parts of the United Kingdom. The Strathclyde recommendation is quite clear. The wider effects of the pending Scottish changes should not be underestimated by the rest of the UK and its institutions.

But of one thing I am certain. In keeping the United Kingdom united, we must have the ability to choose a Prime Minister coming from any part of the United Kingdom. In the interests of democracy, that is an essential part of any commission’s deliberations.