Scotland: The Report of Lord Smith of Kelvin

10/12/2014

Gabriel Elorriaga Pisarik, MP for Madrid. Member of the Board of Trustees of FAES Foundation.

 

A few days ago, Lord Smith of Kelvin presented the report which had been appointed to him after the historic referendum held on September 18 in Scotland. Just over 52% of the Scottish population voted against independence, but they did so after the commitment to increase the level of self-government of the Scottish Parliament was announced, assumed by the three main UK parties. The report of the Smith Commission aims to respond to that promise and is signed by the five main Scottish parties: nationalists, Labour, Conservative, Liberal Democrats and Greens. Its content should not sound too new to any Spanish reader and, in many respects, it stays far from the powers already assumed by our Autonomous Communities. What has attracted most attention is the transfer of a large regulatory capacity and the assignment of 100% of the revenues from income tax (50% in Spain), which in any case will still be managed by the British tax authorities. 10% of the VAT collected (50% in Spain) will also be assigned to Scotland. The inheritance and gift tax (100% assigned here), hydrocarbons (58% among us), and Social Security contributions have not been devolved. The transfer of the income tax has generated significant debate, especially among Labour ranks, as it is seen as a step that could undermine the political foundations of the UK.

Lord Smith of Kevin, full of good will and a certain naivety, adds some personal recommendations that are not part of the agreement. These recommendations urge to strengthen inter-governmental working between British and Scottish authorities because, during the work of the Commission, mistrust, opacities, and multiple relationship problems were perceived. They also urge the Scottish Parliament to undertake as soon as possible a second decentralisation process, transferring some of the powers to local communities. And finally, he claims that the Scottish Parliament should be well aware of the large volume of responsibilities received and urges the strengthening of oversight and accountability mechanisms to make good use of them. The fact that such sensible suggestions have not been signed by the parties is an indication that tensions continue to be more or less the same. It is also significant that, having just signed the agreement, the First Minister of Scotland, Nicola Sturgeon, described the report as 'disappointing' and recalled that the goal is still the transfer of all powers (except currency, foreign policy and defence) and, in the longer term, complete independence.

Some media (of course!) promptly interpreted the report of the Smith Commission as the arrival of federalism to the UK. Though this is far from being precise, the fact is that the agreement breaks some historical foundations of British constitutionalism, disclosing very significant legal and political difficulties. For example, the validity of the 'Sewel Convention', which allows the British Parliament to continue legislating, under certain conditions, in powers of the Scottish Parliament, is reaffirmed. The exclusive authority of the United Kingdom in Foreign Affairs is also confirmed, but the parties are urged to improve cooperation mechanisms to secure the national position on EU affairs while opening the possibility for Scottish Ministers to occupy the British chair in certain European Councils.

At the same time, the British mayors publicly claim that a similar process should be opened within England and many rekindle the debate on the 'West Lothian Question', which would deprive MPs elected in Scottish constituencies of the right to vote to when issues relating to devolved matters were addressed in the London Parliament (why should the Scots vote regulations only applicable to the English?).

However, the most interesting analysis is the question of the political consequences of the process launched by David Cameron. The growth of Scottish nationalism, clustered around a single party (SNP), is spectacular and is cornering the Labour Party, which could seriously hamper their future ability to articulate majorities in Westminster. The latest polls indicate that more than 50 seats, out of the 59 elected in Scottish constituencies, could fall on the SNP, which exceeds 50% of the vote in the polls. Meanwhile, Labour would lose their main electoral stronghold, with around 20% and just over half a dozen seats, when they have traditionally held two thirds of them. In England, meanwhile, new tensions are arising. 'English votes, for English laws' cries Cameron trying to untangle the constitutional skein, satisfy his voters and limit the influence of nationalist seats in Westminster. As is often the case, the agreement leaves almost everyone dissatisfied and, far from being an end point, it has already become the starting point for the next nationalist onslaught.