Time to scrap the Scotland Bill

Flawed and unloved, the Calman Commission's proposals don't meet the aspirations of Scots for greate

When Wendy Alexander, former leader of the Labour Party in Scotland and sister of shadow foreign secretary Douglas, announced the creation of the Calman Commission in 2008, the hope among Unionists was that it would help wrestle back control of the constitutional agenda from the insurgent SNP. Led by Sir Kenneth Calman, a retired Chief Medical Officer, the Commission was charged with the task of reviewing the powers of the Scottish Parliament and developing proposals to improve its funding system. Specifically, it was asked to look at ways to replace to the current method -- an annual block grant -- with a structure designed to encourage greater "fiscal responsibility" by Holyrood. The Calman report was published in 2009 and the bulk of its recommendations were adopted by the Brown government, which placed them into the Scotland Bill.

However, as a number of leading Scottish economists have repeatedly warned, those recommendations -- and thus the Scotland Bill itself -- are fundamentally defective. For instance, were Holyrood to use the income tax powers the Bill grants to cut rates with the aim of stimulating growth, the UK -- as opposed to the Scottish -- government would enjoy the greater benefit of any consequent increase in economic activity. This is because the UK Exchequer would continue to collect tax at the full rate while the Scottish government would only collect it at its reduced rate.

Another problem is that the Scottish budget would be determined by a UK Treasury forecast of how much revenue any given rate of income tax would generate in one year. This forecast could well be inaccurate, yet the only way any shortfall could be covered would be for the Scottish Parliament to have borrowing powers which far outstrip those that the Bill provides.

But it isn't just that the legislation is littered with technical failings. Due in part to the SNP's landslide victory in May, public opinion in Scotland -- followed closely by previously sceptical sections of the Scottish political class -- has migrated onto more radical constitutional territory.

Almost every poll conducted over the last six months suggests a majority of Scots back much greater fiscal autonomy than Westminster is currently offering. According to surveys by the BBC and TNS-BMRB, most Scots want to see Holyrood raise the revenues it spends and send a portion back to London to cover Scotland's share of UK central services including, notably, defence and foreign affairs. This would require a massive re-balancing of powers between London and Edinburgh, dwarfing Calman's timid reforms.

With the exception of the Tories, Scotland's main opposition parties also seem to have moved on. Over the last few weeks a slew of senior Scottish Labour figures -- including the influential backbench MSP Malcolm Chisholm, former First Minister Henry McLeish and Lord George Foulkes -- have all expressed support for one variation of devolution max or another. Even Douglas Alexander, who directed Labour's hugely effective anti-independence campaign during the first devolved Scottish elections in 1999, has said he is "open-minded" about enhanced powers for Holyrood.

Meanwhile, Willie Rennie, the new leader of the Scottish Liberal Democrats, has established a Home Rule Commission under the chairmanship of Menzies Campbell to flesh out a more distinctive constitutional position for his party. Given the Lib Dems' traditional commitment to a federal United Kingdom, it is hard to imagine it will recommend anything short of a wholesale reworking of the present devolution settlement.

In retrospect, the Calman Commission was really nothing more than a Unionist spasm -- a defensive, knee-jerk response to the SNP's 2007 electoral victory. With the independence referendum just a few short years away, those who hope to preserve the Union will have to think more carefully about how they might better meet the aspirations of Scots for greater self-government. The momentum of the nationalists is clearly not going to be slowed by empty, ill-judged legislative gestures.

James Maxwell is a Scottish political journalist. He is based between Scotland and London.

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PMQs review: Jeremy Corbyn prompts Tory outrage as he blames Grenfell Tower fire on austerity

To Conservative cries of "shame on you!", the Labour leader warned that "we all pay a price in public safety" for spending cuts.

A fortnight after the Grenfell Tower fire erupted, the tragedy continues to cast a shadow over British politics. Rather than probing Theresa May on the DUP deal, Jeremy Corbyn asked a series of forensic questions on the incident, in which at least 79 people are confirmed to have died.

In the first PMQs of the new parliament, May revealed that the number of buildings that had failed fire safety tests had risen to 120 (a 100 per cent failure rate) and that the cladding used on Grenfell Tower was "non-compliant" with building regulations (Corbyn had asked whether it was "legal").

After several factual questions, the Labour leader rose to his political argument. To cries of "shame on you!" from Tory MPs, he warned that local authority cuts of 40 per cent meant "we all pay a price in public safety". Corbyn added: “What the tragedy of Grenfell Tower has exposed is the disastrous effects of austerity. The disregard for working-class communities, the terrible consequences of deregulation and cutting corners." Corbyn noted that 11,000 firefighters had been cut and that the public sector pay cap (which Labour has tabled a Queen's Speech amendment against) was hindering recruitment. "This disaster must be a wake-up call," he concluded.

But May, who fared better than many expected, had a ready retort. "The cladding of tower blocks did not start under this government, it did not start under the previous coalition governments, the cladding of tower blocks began under the Blair government," she said. “In 2005 it was a Labour government that introduced the regulatory reform fire safety order which changed the requirements to inspect a building on fire safety from the local fire authority to a 'responsible person'." In this regard, however, Corbyn's lack of frontbench experience is a virtue – no action by the last Labour government can be pinned on him. 

Whether or not the Conservatives accept the link between Grenfell and austerity, their reluctance to defend continued cuts shows an awareness of how politically vulnerable they have become (No10 has announced that the public sector pay cap is under review).

Though Tory MP Philip Davies accused May of having an "aversion" to policies "that might be popular with the public" (he demanded the abolition of the 0.7 per cent foreign aid target), there was little dissent from the backbenches – reflecting the new consensus that the Prime Minister is safe (in the absence of an attractive alternative).

And May, whose jokes sometimes fall painfully flat, was able to accuse Corbyn of saying "one thing to the many and another thing to the few" in reference to his alleged Trident comments to Glastonbury festival founder Michael Eavis. But the Labour leader, no longer looking fearfully over his shoulder, displayed his increased authority today. Though the Conservatives may jeer him, the lingering fear in Tory minds is that they and the country are on divergent paths. 

George Eaton is political editor of the New Statesman.

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