A reset of intergovernmental relations on Brexit is needed to break the deadlock over the EU Withdrawal Bill

The EU Withdrawal Bill has exacerbated the already serious tensions between the UK and the devolved governments over Brexit. Akash Paun argues that the underlying problem is a lack of trust between the governments, and that to break the deadlock there must be a revival of intergovernmental mechanisms and compromise on all sides.

The EU Withdrawal Bill will take the UK out of the European Union while providing that all European law be imported into domestic law to avoid a regulatory black hole after Brexit.

The bill creates wide-ranging powers for ministers to amend this huge body of ‘retained EU law’ to ensure it will be ‘operable’ outside the EU and to reflect the terms of the withdrawal agreement.

In Edinburgh and Cardiff, there are serious concerns about the impact of the bill on devolution and on the balance of power within the UK. The Scottish and Welsh Governments have announced that they oppose granting the bill devolved consent, which Whitehall recognises should be sought under the Sewel convention.

The EU Withdrawal Bill sets a default that EU powers return to Westminster

The central point of contention is clause 11. At present, the devolved parliaments cannot pass legislation that is incompatible with EU law. Clause 11 replaces this constraint with a new provision preventing them modifying the new category of ‘retained EU law’.

This means all powers currently exercised at EU level will initially flow back to Westminster. There is further provision for some of these powers to be ‘released’ to the devolved level, but at the discretion of UK ministers.

The Whitehall view is that new frameworks will be required to coordinate policy currently held constant across the UK by EU law in areas such as environmental regulation, agricultural policy, state aid and aspects of justice and transport.

These frameworks might be needed to prevent new barriers to economic activity within the UK, to ensure the UK can strike comprehensive trade deals, to comply with international obligations or to manage common resources such as fisheries.

A long list of policy domains where EU and devolved powers intersect has been published. For Scotland there are 111 areas mentioned. But the extent to which new frameworks will be needed is unclear.

This is partly because the terms of exiting the EU remain unknown and if the UK remains within some EU frameworks, the devolution question will be (largely) moot. But it is also because the government failed to think through these complex questions before triggering Article 50 and is now in a race against the clock.

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Decoding the Conservative-DUP agreement

The confidence and supply agreement between the Conservatives and DUP was signed yesterday. Akash Paun discusses how it will work in practice, the financial commitments that have been made as part of the deal and the implications for the coming years.

The government yesterday confirmed details of its ‘confidence and supply agreement’ with the Democratic Unionist Party (DUP). The negotiations dragged on for over two weeks, but a deal of some kind always seemed probable. Holding the balance of power is a dream outcome for smaller parties. The DUP, therefore, had nothing to gain and a lot to lose by bringing down the Prime Minister and triggering another election.

Today’s announcement keeps Theresa May in Downing Street, for now at least. But how much do we know about how this arrangement will actually work?

How it will work in practice

The agreement commits the DUP to support the Government on explicit confidence motions and key votes on the Queen’s speech later this week. The status of the Queen’s Speech vote as a confidence test is a matter of some debate.

Further, the DUP will back the government on formal ‘supply’ votes through which the House of Commons authorises government to spend money from the Exchequer, but also on Budgets and other financial legislation. Beyond that, the deal includes a promise to support the government on Brexit and national security legislation.

This is a broader set of commitments than we might have expected. And in exchange for their support, the DUP will surely expect meaningful rights of consultation on the development of policy whether through the planned ‘co-ordination committee’ or other informal channels.

International experience shows that smaller parties in such deals often grow frustrated at their limited ability to influence government policy. This is a challenge even in formal coalitions, but in this instance the DUP will have no ministerial positions, civil service support or automatic access to confidential information. People are naturally interested in the policy substance of such inter-party deals, but getting the governance of the deal right is just as important if it is going to last.

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What happens if the election really does produce a hung parliament?

A hung parliament is a possible – if still unlikely – outcome of the election on Thursday. Akash Paun discusses what would happen next if no one party has an overall majority once the results have declared. He explains that in the UK system ultimately who forms a government is determined by who is best placed to command the confidence of the House of Commons. 

The recent and dramatic shift in the polls makes a hung parliament a plausible, if still unlikely, outcome on Thursday. Westminster has little recent experience of inconclusive elections – just two since the war, in 1974 and 2010. A second hung parliament in seven years would make things interesting, but it would be no crisis.

The sky won’t fall in

A hung parliament might produce a period of uncertainty about the composition of the new administration. The UK is accustomed to a government being formed immediately, but the sky will not fall in if it takes a little longer for the situation to resolve itself. In 2010, it took five days before the handover from Gordon Brown to David Cameron.

The UK is very odd in its haste to form a new government within 24 hours of the polls closing. Fellow Westminster systems like Canada and Australia wait over a week before swearing in the Prime Minister, even when he or she has won a clear majority.

With Brexit talks due to start on 19 June, weeks of coalition negotiations – as in Germany, for example – would be unhelpful. But that is highly unlikely. If it takes a few days to clarify who is best placed to form a stable administration, then that time should be taken. And if the media can restrain itself from hyperbole about political or constitutional crisis, then all the better.

We have argued for greater clarity about the government formation process, but there are some established principles. So long as it is unclear who is to be Prime Minister, the existing government remains in office, subject to similar constraints as in the pre-election ‘purdah’ period. It is the duty of an outgoing prime minister to hold on until unequivocal advice can be given to the Queen about who should be the next guest for tea at the palace.

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Sturgeon sets Scotland on collision course with May’s government

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Yesterday, at the SNP autumn conference in Glasgow, Nicola Sturgeon addressed her party faithful for the first time since the UK voted to leave the European Union. Akash Paun argues that the speech sets the UK and Scottish governments on a collision course.

First Minister Nicola Sturgeon’s opening address to the SNP conference in Glasgow emphasised both her continued opposition to Brexit, especially a withdrawal from the single market, and also her intention to keep Scottish independence high on the agenda. These two issues are very much intertwined in a single debate about Scotland’s right to determine its own constitutional future. Sturgeon has consistently argued that it would be ‘democratically unacceptable’ for Scotland to be taken out of the EU, given that 62 per cent of Scots voted Remain.

Another referendum on independence

Sturgeon announced that her government would publish a draft Independence Referendum Bill as early as next week, paving the way for a rerun of the 2014 referendum in which Scots voted by 55 per cent to 45 per cent to remain in the UK.

Opponents will inevitably argue that this was a decisive victory for the unionist side, and that there is therefore no call for another referendum so soon, not least since that vote was described at the time as a ‘once-in-a-generation decision’. Anticipating this critique, Sturgeon argued yesterday that ‘a UK out of the single market will not be the same country that Scotland voted to stay part of in 2014.’

In 2014, the UK and Scottish administrations struck a deal on the referendum, and legislation was passed at Westminster to allow Scotland to hold a one-off vote on independence on specific agreed terms. Crucially, this power was not devolved permanently and it has now expired. This would imply that an agreement might be needed once more. If the UK government is unwilling to play ball and the Scottish Parliament presses ahead nonetheless with a second referendum, the prospect of a legal challenge by the UK government would loom.

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Brexit consequentials: why the UK must involve the devolved governments in the process of leaving the EU

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The shockwaves from Thursday’s earthquake continue to reverberate through the political landscape. The Prime Minister has been toppled, and the existing differences between the UK’s four nations threaten to widen into serious rifts. In particular, the place of Scotland in the UK – supposedly settled for a generation two years ago – is again in question. Akash Paun explains.

Every single local authority area in Scotland voted Remain. Meanwhile, with the exception of London, every region in England voted Leave, as did Wales. Northern Ireland voted narrowly to remain, but with a large minority, mainly from the unionist community, opting for Leave, in line with the preference of Northern Ireland’s unionist First Minister.

The outcome flipped the pattern of the 1975 European Economic Community (EEC) referendum, when England was the most pro-Europe of the four nations, while Scotland and Northern Ireland were more sceptical about the European project. On that occasion, though, EEC membership was supported by a majority in each of the four nations, and a total of two-thirds of all UK voters, so there was no sense in which the outcome was being imposed against the will of any part of the UK.

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The situation today is very different and territorial tensions are running high. Nicola Sturgeon, Scottish First Minister, has already announced that a second referendum on Scotland’s independence is now ‘on the table’ – although Westminster’s agreement would be needed for any such poll. The SNP would only be likely to want to hold such a poll if it was confident of victory – not a given, even in the context of Brexit. But placing the issue back on the table will concentrate minds in Westminster.

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Seven challenges for the fifth term of devolved government

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Today voters across the UK go to the polls for the fifth time since devolution began in 1999. As further powers are devolved to Scotland, Wales, Northern Ireland and parts of England, government at all levels faces a number of challenges. Akash Paun highlights his top seven.

 

1. Adapting to the new politics of fiscal devolution

A central feature of devolution to date is that the Scottish, Welsh and Northern Irish governments have little control over the size of their budget. Important tax and borrowing powers are now being devolved to all three nations, although the Barnett Formula also survives for now. Fiscal devolution within England is far less developed, but this may change as the voice of cities and regions grows louder and business rate changes come into effect. The result is that sub-national governments increasingly have to make trade-offs between public expenditure, taxation and borrowing, rather than simply deciding how to spend a grant from Westminster. This creates sharper accountability and strengthens their incentives to take policy decisions that boost the tax take.

2. Building devolved capacity to take on new powers

New systems and institutions need to be built to ensure that new powers are effectively managed. In Scotland, the Government is planning a new Social Security Agency to administer devolved welfare benefits. Revenue Scotland – the tax-collection body – may need to expand as further taxes are devolved. Similarly, a Welsh Revenue Authority is being created. Fiscal scrutiny bodies such as the Scottish Fiscal Commission and the planned Independent Fiscal Council for Northern Ireland are also becoming more important. Within England, devolution in areas such as health, justice and transport will require new policy and operational capacity in local areas too.

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We need clearer reporting on the 2015 election

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The 2015 election is one of the most unpredictable in decades. But last Monday’s dissolution of parliament was the most predictable event of the year and still large parts of the media got it wrong. This does not bode well for how the post-election period will be reported, writes Akash Paun.

Under the Fixed-term Parliaments Act (FTPA), passed in 2011 and amended in 2013, Parliament was automatically dissolved last Monday, 25 working days before the first Thursday in May, when the country goes to the polls. Nonetheless, several major news outlets managed to confuse their readers and viewers by reporting that David Cameron had to request a dissolution from the Queen (as was the case before the FTPA was passed).

There are more important parts of our constitution than the precise mechanism used to dissolve parliament. But this is just one of a number of misconceptions likely to confuse voters in the run-up to and days following the election, particularly if there is another hung parliament. Even the Government’s Cabinet Manual, created expressly to clear up confusion about such matters, has not been kept up to date and incorrectly states that the election occurs 17 (rather than 25) days after dissolution (at page 96).

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