The Scottish Challenge
- The Scottish Parliament already has significant powers and now even the Tories are proposing to give them more. Win or loose the referendum the Hollywood Parliament is going to have tax raising powers which may include:
- control over income tax, bands and rates,
- powers over inheritance tax and capital gains tax,
- existing powers over Stamp Duty,
- land fill levy,
- the aggregates levy and air passenger duty
- corporation tax
- New powers to borrow to balance the economic cycle and take long term decisions on investment
- Financial freedoms for local authorities
- Removal of powers for Ministers to over rule local authorities
- Power over council tax and business rates to rest with Local Authorities
- General powers of competence
- Requiring Councils to raise roughly half their money
'The Commission goes further in recommending new rights for local communities to take over services in their areas and to require the co-operation of councils, national government and quangos to do so. The recommendations also offer the opportunity to local communities to establish new burgh councils or other mechanisms if they want to put in place clear local control of services.
The final recommendation entrenches local government as envisaged by the original (Scottish) constitutional convention.
Besides this what is the North being offered?
Well Mark Tavernier's chorus from the Liberator Song book may be the appropriate response. The North is paying a heavy price for John Prescott's incompetence when he brought in the pathetic proposals for Devo Minimums that were rejected by the North East .
What is on offer now is not a lot better. It is based on the current fad for Balkanising the North into warring City States with few real powers. It is the perfect Whitehall solution to decentralisation of power within England-hand over as little as possible, 'nothing you would notice', but behave as if the proposals are truly radical.
Jim Hancock reflected that:....'by contrast the North of England is bought off by City Deals, Combined Authorities, Elected Mayors, Local Enterprise Partnerships and Regional Growth Funds.'. He continues
'Let’s remember that this demand for Scottish independence has been driven since the 1970s by economic grievances, largely centred on North Sea oil. In that it differs from independence movements in Quebec and Catalonia where political and cultural factors are more to the fore.
Then there is the dramatic effect independence would have on British politics. 59 Scottish Labour MPs would be out of Westminster. The party that relies on London, the north and Scotland to form a government would be very lucky ever to see power at Westminster again. The Tories, with their strength in southern England, would be bound to reflect those interests at the expense of the North.
We need to hope for a no vote, but prepare to welcome the headquarters of Scottish based multi nationals relocating in the North after independence rather than London and demand a Council of the North to give northern business and people real strategic and economic power here'
If we are serious about federalism then we need a Council of the North to administer the sort of strategic economic powers that Scotland will achieve post referendum. The present architecture for devolution is simply inadequate.
One key flaw in the proposals that is felt very keenly in vast tracts of the North is simply stated-we do not all live and work in Cities. The systematic way in which the City centric policies are destroying the economic prosperity of market towns, rural areas and even large boroughs within the region should be unacceptable to us
Part of the Federal proposals drawn up by Ming's Commission that I have quoted above is about decentralisation within Regions. Take Southport as an example. The concentration on Liverpool is undermining our economy. There has just been a major report on Rail Strategy for the City region. It ignores Southport. Our great need is to re-open our transport connections to the North and the East-our traditional hinterland. Our economy which is founded on tourism and retail requires people to be able to get here easily. Since the wretched county of Merseyside has been created we have seen very little investment in those essential links. Everything has been poured into the narrow corridor to the South. Our retail offer is competing with Liverpool One which has had bucket loads of investment and will shortly get enhanced rail links. We regularly have business rates reduced because of the impact of Liverpool One. Our Conference trade is equally impacted. If it is difficult to get here why bother coming? And now our residents are meant to be pleased to see their council tax being spent to further scupper our economy. In significant part the decisions made in the 1970's made this inevitable
The North needs to plan across the whole region. We need real power decentraliseded. And just as Highlanders are seeking devolution in Scotland so those of us outside of the big cities require that our economic needs are catered for.We need the powers of this new constitutional settlement enshrined in a written constitution so that the are truly diffused not merely devolved for a season. From London The North may just be the cities -it is much more than that.
Jim Hancock, who I quoted above, has I think got it right when he writes that even if there is a Lab/Con consensus on the 'lite' form of devolution the civil service will scupper it.
It is secretive and bitterly opposed to any policy that would take power and influence away from Whitehall. It is the Civil Service. They used to wear bowler hats, now they are less identifiable. Their appearance might change but they’re basic attitude to the North will never change.
It is this context that John Pugh, speaking at his adoption meeting in Southport last week, called for a 'Peoples' Convention of the North' rather like the Scottish Convention that ushered in the Holyrood Parliament. We need to get on with the task of creating a Federal constitution which doesn't treat England as a unitary state. If Scotland had been offered a City Deal for Edinburgh and Glasgow instead of a Parliament I can get their response.