Tag Archives: Barnett formula

Decoding the Conservative-DUP agreement

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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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English votes for English taxes? The EVEL proposals’ implications for tax and spending

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Jim-Gallagher

Responding to Daniel Gover and Michael Kenny’s analysis of last week’s English votes for English laws proposals, Jim Gallagher argues that the really challenging issue that EVEL raises relates to taxes and public spending.

The analysis by Daniel Gover and Michael Kenny of the government’s proposals for English votes is helpful in setting out what these plans might mean for legislation. I agree with much of their analysis. These are plans at the aggressive, though perhaps not the most aggressive, end of the spectrum. But the really challenging issue they raise is not about laws, but about taxes and public spending.

Not the Barnett formula

This isn’t about the Barnett formula. The idea that Scottish MPs should vote on purely English legislation because it will affect Scottish spending through the Barnett formula is simply wrong. The government has made this even clearer than it already was by explicitly exempting the legislation which determines spending from the new process in its proposals. A lot of nonsense is being talked about this. Even though they might have spending consequences, Acts of Parliament do not of themselves affect budgets. Spending plans will still be voted on in legislative processes in which all MPs – Scottish, Welsh and Northern Irish, as well as English – will have a vote. So the discovery by the SNP that they are now entitled to vote on English measures suggests they haven’t read the government’s plans.

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The future of the union: It’s about politics, stupid!

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brian-walker

On Friday 5 June, the Constitution Unit and the Wales Governance Centre jointly sponsored a conference of politicians and academics on ‘Devolution and the Future of The Union’ at the British Academy. It followed up a series of separate reports by them and by the Bingham Centre for the Rule of Law and the Institute for Government, urging an end to the UK’s government’s piecemeal approach to devolution. But the Scotland Bill’s second reading in the House of Commons on Tuesday made it clear that the political parties are not rushing to heed the academic advice. Brian Walker reflects on the differences between the two agendas.

The two rival victors in the general election have made opening moves over the future of the United Kingdom. After the second reading debate, government sources let it be known that the Scotland Bill based on the Smith Commission report was all Scotland was going to get this session, while the SNP played down full fiscal autonomy as one of its early aims. But this still leaves plenty to dispute. SNP demands for ’Smith plus’ – in the shape of further powers on job creation, taxation, welfare and wages – were left hanging. No clue was offered as to how the balance would be negotiated between pooling and sharing at UK level, and the extensive new fiscal powers being awarded to Holyrood. While the Barnett formula which disproportionally benefits Scotland remains in place, the government’s position contains the implicit challenge: if you want to take public service provision further, pay for it yourselves.

Fiscal devolution: Barnett and other issues

At the conference, it was the English local government expert Tony Travers who put his finger on the issue likely to feature more prominently than purely constitutional matters. ‘The Conservative aim of shrinking of the state to 36% of GDP raises big questions of how to sustain public services’. It is hardly shock news that there will be no increase in subvention levels from Westminster for further devolution under the Chancellor’s latest programme of fiscal consolidation. In his much-vaunted ‘Northern powerhouse’ plan, budgets will be concentrated for maximum effect, not increased. Fiscal tightening has already aggravated the stand-off between Westminster and Cardiff Bay over the ‘unfairness’ of Wales’ Barnett deal, and it has produced an anti-austerity rebellion at Stormont which could threatened the survival of the power sharing institutions. From the start of the parliament, political tensions over devolution seem set to rise, with unpredictable results for the future of the UK.

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The UK at a constitutional crossroads

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Alan Trench discusses Ways forward for the United Kingdom, a new report from the Bingham Centre for the Rule of Law which considers the constitutional issues that the UK as a whole will need to address in the short and medium term.

The impact of the Scottish independence referendum has been wide-ranging. It raises a number of questions about how the UK works as a whole and its territorial constitution, as well as ones about Scotland.  But for all the importance and urgency of these issues, they have not yet been subject to any wide-ranging or sustained scrutiny.  A new report from the Bingham Centre for the Rule of Law, available here, seeks to change that and look at what issues the UK as a whole will need to address in the coming months and years.  The review commission has been chaired by Sir Jeffrey Jowell QC, and its membership and remit are set out here. 

The Commission’s starting point was to consider the implications of the piecemeal, ad hoc approach to devolution taken so far.  Its view is that this has reached the end of its road.  The knock-on effects of the Smith Commission proposals for Scotland mean that this now creates serious constitutional difficulties beyond Scotland.  A more systematic view, considering the UK as a whole, is badly needed. 

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Scotland has voted for the union and for distinctiveness. Delivering both could present acute challenges

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Jim-Gallagher

After a dramatic referendum and UK general election, the Scottish remain divided on both independence and on whether to increase tax and public spending, while the English are becoming increasingly vocal in the devolution debate. Jim Gallagher considers the possibilities of a constitutional relationship that will satisfy Scottish aspirations and also be acceptable to the UK as a whole.

This is the second in a series of posts based on the Unit’s latest report, Devolution and the Future of the Union, published here.

Within the last year the Scottish people have said two apparently contradictory things. They want to stay in the United Kingdom, and they want to be represented by the SNP. In Holyrood, the SNP exercise dominant control over both Parliament and government. In Westminster, they will be the overwhelming Scottish voice, but will control nothing.

The partisan politics of the general election have been extraordinary. The Labour vote collapsed, and the SNP showed remarkable skill in building a coalition of voters, some for independence, others perhaps against austerity. But this tells us less about overall Scottish attitudes on either question than meets the eye. Scotland remains divided on both independence and on whether to increase tax and public spending, and not on the lines you might expect. Many independence supporters are anything but high spending socialists.

Constitutional challenges

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