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22 Jan 2015

Has the UK ‘watered down’ Scotland’s devolution proposals?

David Cameron hails legislation to deliver new powers for Scotland as “built to last, securing our united future.” But is it what Scotland was hoping for? Channel 4 takes a look.

The prime minister was speaking as draft clauses that will form the basis of new laws were published by the UK government.

Mr Cameron, who is visiting Scotland today, together with the other main Westminster leaders, had pledged to deliver new powers to Holyrood if Scots rejected independence in last year’s referendum.

While the Scottish government has mostly welcomed the proposals, some say they do not go far enough.

Read Gary Gibbon's blog: At breakneck speed a new UK takes shape

In November, the Smith Commission announced that Scotland would get the right to set its own income tax levels – not including adjusting the tax threshold – and some powers over welfare benefits as well.

So has Westminster taken the Smith report on board?

Elections and democracy

According to the Smith report, UK legislation will state that the Scottish parliament and Scottish government are permanent institutions. The Scottish parliament will also have all powers in relation to elections to its own parliament as well as local government elections in Scotland – but not in relation to Westminster or European elections. The Sewel Convention, in which Scottish parliament consents to Westminster making law in devolved areas, will be put on a statutory footing.

Do the new guidelines agree: Yes

The statement that “There shall be a Scottish Parliament” set out in the original 1998 Act is retained and it is recognised that a Scottish Parliament and a Scottish Government are permanent parts of the United Kingdom’s constitutional arrangements.

Read more: SNP MPs would vote on English matters - Sturgeon

According to the government’s report published today, the UK parliament and government have adhered to the Sewel Convention since the start of devolution, and so the clause will not change, but it will be placed on a statutory footing.

Holyrood has been granted a greater role in setting its own internal arrangements and those of the Scottish government, as well as full legislative and executive powers in relation to elections.

Taxes

The Scottish parliament has asked to have the power to set the rates of income tax and the thresholds at which these are paid for the non-savings and non-dividend income of Scottish taxpayers. The receipts raised in Scotland by the first 10 percentage points of the standard rate of value added tax (VAT) will be assigned to the Scottish government’s budget.

Do the new guidelines agree: Mostly

From 2016 to 2017, the rate of income tax paid by Scottish taxpayers will be calculated by reducing the basic, higher and additional rates of income tax by 10 pence in the pound and adding a new Scottish rate set by the Scottish parliament. This means that Holyrood will be able to introduce new rates and bands of income tax above the UK personal allowance.

In terms of VAT, the UK government proposes to go slightly further and additionally assign the first 2.5 percentage points of the revenue attributable to Scotland from the 5 per cent reduced rate.

Crown Estate

Responsibility for the management of the Crown Estate’s economic assets and revenues generated in Scotland was expected to be transferred to Holyrood. After this transfer, responsibility for the assets would be further devolved to local authority areas such as Orkney, Shetland or Na h-Eilean Siar.

Do the new guidelines agree: Almost

New powers will be given to the Scottish government by a transfer scheme, which would handover in a single transfer the Crown Estate Commissioners’ functions of managing wholly-owned Scottish assets currently forming part of the estate. However, the Crown Estate would be allowed to further invest in Scotland, and management of those properties would remain a “reserved matter”.

Consumer

In terms of consumer protection, advocacy and advice is to be devolved to the Scottish parliament.

Do the new guidelines agree: Yes

The Scottish parliament will have the capacity to implement their own Scottish model of consumer advocacy and advice, tailored to the needs and expectations of a Scottish consumer market.

Welfare

The Scottish parliament also sought to gain administrative powers to change the frequency of Universal Credit payments as well as devolution of benefits for carers, disabled people and those who are ill. These include: Attendance Allowance, Carer’s Allowance, Disability Living Allowance (DLA), Personal Independence Payment (PIP), Industrial Injuries Disablement Allowance and Severe Disablement Allowance.

Read more: FactCheck Scotland: what happens next?

It has also called for the devolution of benefits currently comprising of the Regulated Social Fund such as Cold Weather Payment, Funeral Payment, Sure Start Maternity Grant and Winter Fuel Payment.

Under the reforms, the Scottish parliament would also have new powers to create new benefits which could potentially replace the existing aids. Discretionary Housing Payments can be made in any area of welfare without the need to obtain prior permission from the DWP.

Do the new guidelines agree: Almost

The new reforms will give Scottish ministers the power to make alternative payment arrangements in relation to Universal Credit, enabling them to alter the frequency.

However, according to a clause, Scottish minister may not make regulations to this unless they have consulted the Secretary of State about the practicability of implementing the regulations, and he or she has agreed to such change. Scotland’s first minister, Nicola Sturgeon, said that this clause was an “effective veto”, and therefore ‘bedroom’ tax could not be challenged.

Scotland will also have powers to amend welfare provisions for Attendance Allowance, Carer’s Allowance, Disability Living Allowance (DLA), Personal Independence Payment (PIP) and Industrial Injuries benefits. However, as Westminster is currently in the process of replacing certain benefits such as the Severe Disablement Allowance (SDA) with the Employment and Support Allowance, it will remain reserved to the UK. The Scottish parliament will have the power to create new benefits or payments to replace the SDA altogether with their own provisions.

In terms of the Regulated Social Fund, the Scottish parliament will have the power to create new benefits or other payments to replace the existing benefits should they wish and the autonomy to determine the structure and value of these payments.

While Discretionary Housing Payments will be devolved, it will be subject to certain restrictions that already exist.

Employment

Holyrood would also have all powers over support for unemployed people through the employment programmes currently contracted by the Department for Work and Pensions. It would also have the power to decide how it operates these core employment and support services.

Do the new guidelines agree: Not quite

The Scottish parliament will be granted powers to pass its own laws in regards to making employment schemes to assist those at risk of becoming long-term unemployed, and to help disabled people into work. However, separate Scottish schemes will need to be co-ordinated with the UK-wide system of employment support and both ministers from Westminster and Holyrood would need to work together in the design phase of any new programme.

Energy efficiency and fuel poverty

In relation to energy efficiency and fuel poverty, the Smith commission envisaged that powers to determine how supplier obligations are designed and implemented in Scotland would be devolved. The licensing of onshore oil and gas extraction underlying Scotland, as well as responsibility for mineral access rights for underground onshore extraction of oil and gas will also be devolved to the Scottish parliament.

Do the new guidelines agree: No

Scottish ministers will not be able to impose obligations on gas suppliers in order to promote reductions in carbon emissions unless they have consulted the Secretary of State about the proposal, and he or she has agreed to the order. Similarly, Scottish ministers cannot compel energy firms to promote reductions in home-heating costs with permission from Westminster.

While Scotland will be “empowered” to design and implement supplier obligations, Westminster has reserved control over the fundamental aspects, in order to “operate as part of the single [Great Britain] market” in a bid to prevent “competitive distortions that could disadvantage some customers”.

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The licensing of offshore oil and gas extraction will remain under the UK government’s control, despite allowing Scotland a number of powers including devolving the current licensing regime to “appropriate ministers” in Scotland. This means that ministers in Scotland will be able to set the framework of consideration of planning applications for oil and gas projects onshore, at the same time refuse permission for any activities that could be seen as inappropriate.

They will also be granted powers of licensing, but any considerations such as “royalties” will not be allowed, implying that all decisions regarding the taxation of oil and gas receipts would be under Westminster.

Tribunals

Powers over the management and operation of all reserved tribunals will be devolved other than the Special Immigration Appeals Commission and the Proscribed Organisations Appeals Commission.

Do the new guidelines agree: No

While functions over tribunals will give the Scottish parliament further decision-making powers over rules of procedure, membership, administration, and funding, the over-arching national policy remains reserved to Westminster, so the powers are subject to restraints. The timetable for a specified Scottish tribunal would have to be agreed by both the UK and Scottish governments. The transfer of responsibilities would have to be approved by the Orders in Council. In cases, dealing with social security, criminal injuries and information rights, there would need to be engagement with the judiciary in all Scotland, England and Wales.

Equalities

The powers of the Scottish parliament would include the introduction of gender quotas in respect of public bodies in Scotland.

Do the new guidelines agree: Yes

While gender quotas and the consideration of socio-economic inequality will be devolved to the Scottish parliament, it will not be able to lower the protections found in the Equality Act 2010, as stated in the original report.

Transport

Remaining powers over transport which are not currently devolved, such as controls to allow public sector operators in Scotland to bid for rail franchises, speed limits, road traffic signs as well as the functions of the British Transport Police will be a devolved matter.

Do the new guidelines agree: Mostly

The powers over transport have mostly been granted, but in terms of franchising passenger services, it does not agree to Scottish franchise agreements. Devolved functions will empower the Scottish ministers to procure, let, manage and enforce Scottish franchise agreements with regards to Scotland-only services and certain cross border services, allowing public sector operators to become franchisees in respect of for Scotland-only services.

Railway policing by the British Transport Police in Scotland will be devolved, speed limits for certain vehicles such as ambulances, or during training of drivers, will be reserved for Westminster. Powers to change traffic signs will now be under the “national authority” instead of the UK government.

Asylum

The Smith Report outlined the possibility of different powers being in place in Scotland for asylum seekers to access accommodation, financial support, and advice. It also asked for MSPs being able to represent concerns affecting their constituents to immigration authorities as well as lodge an asylum claim to the Home Office from within Scotland.

Do the new guidelines agree: Not discussed

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