HC 835 - The Implementation of the Smith Agreement

On 18 September 2014, Scotland held a referendum on the question "Should Scotland be an independent country?". 55.3% of voters cast their ballot in favour of remaining part of the United Kingdom. In the lead up to the referendum the three largest UK political parties pledged to devolve further powers to the Scottish Parliament in the event of separation being rejected. The day after the referendum the Prime Minister invited Lord Smith of Kelvin to set up a commission to take forward that commitment. This report focuses on the recommendations of the Smith Commission, particularly those on taxation and welfare, and the work of the UK Government in transposing those recommendations into draft legislation. The Committee believes the Smith Agreement represents the best of both worlds for Scotland giving much greater fiscal autonomy and accountability, but maintaining a good degree of protection within the wider UK economy from fiscal risks and shocks. The Committee is surprised, however, that the Scottish Government did not raise its concerns when it was initially consulted over the draft text of the clauses but instead waited until after publication to air them. The idea that the draft clauses contain "twelve vetoes" is a ludicrous one and it is disappointing that the UK Government failed adequately to rebut such claims. It is hoped that a good working relationship between the two Governments will mean that consultation will be routine, agreement a formality, and that dispute will not arise.