Archive: fiscal-federalism

Common ground on Scotland's future

A series of posts

  1. Finding the common ground
  2. My view on Scotland’s constitutional future

In the wake of Kezia Dugdale’s retirement from blogging, and having noted the often poisonous atmosphere that pervades some of the darkest corners of the Scottish blogosphere, I think now is a good time for me to come out with an idea that has been floating around in my head for the past few months.

This is an attempt to find the common ground in the constitutional viewpoints of SNP supporters and those of other persuasions. It recently struck me that we all have much more in common than we perhaps imagine.

The eureka moment came after I had a discussion in the pub with a card-carrying SNP member and full-on nationalist. We both sought to gain a good understanding of each other’s views and as the conversation went on we found that we had a lot more in common than we felt at first glance.

I set out my federalist position, using the opportunity to point out that the SNP, too, shares my view that having different powers at different levels of government can be a desirable thing. For instance, it is well-known that the SNP would wish for an independent Scotland to be a member of the European Union.

Furthermore, under current SNP policy, a very important policy instrument would never be controlled by Scotland. The SNP recognises that Scotland is not an optimal currency area, thanks to the large amount of trade Scotland does with the rest of the UK and the rest of the EU. Most likely, an SNP-designed independent Scotland would continue to use sterling in the short-to-medium term while adopting the euro in the longer term future. This means that monetary policy would be set either in London or in Frankfurt, not Edinburgh.

Already we see that the independence issue is not so black-and-white as some of the debates might lead you to believe. The SNP do not support full independence. I am sure that there are some people on the fringes who do, but they are thin on the ground and are certainly not represented in mainstream politics.

That means that there is not actually a great deal that separates the SNP from the ‘unionist’ parties. All of the major parties believe a similar thing. Admittedly they do so to varying degrees. At one end we have the Labour and Conservative position of maybe considering a greater degree of fiscal federalism. At the other, we have the likes of the Greens who want more powers for local government in addition to the Scottish Parliament. And the Lib Dems have long supported federalist solutions.

From my perspective, this is actually pretty damn close to being a consensus in Scottish politics. The introduction of a Scottish Parliament was almost seen as a given in 1997, but even then the Conservatives had a good bash at running a ‘no’ campaign. Were there to be a referendum on having increased fiscal powers for the Scottish Parliament a few years down the line, surely any ‘no’ campaign would be a pathetic laughing stock. Certainly, anyone calling for the abolition of the Scottish Parliament would be totally ignored.

It seems to me that most people now have very similar viewpoints on Scotland’s near-future constitutional direction. The differences are almost a matter of semantics, or at least of niggly details.

That was the conclusion I came to in the pub during this discussion. My nationalist sparring partner, if I understood him correctly, was more or less saying that once Scotland had fiscal powers it was more-or-less independent enough anyway. He was telling me, as a Lib Dem sympathiser, that given this huge amount of common ground the Lib Dems ought to be working with the SNP to try and advance these ideas.

In May 2007 I understood and supported the Lib Dems’ decision not to go into coalition with the SNP. There was a damaging perception that the Lib Dems would just get into bed with anyone so it was a good idea to try and put the lid on that. The flip-side, though, is that the Lib Dems are beginning to like an appendage of the Labour Party — and this isn’t the time to be that.

Worse still, particularly given the large amounts of common ground between the SNP and the Lib Dems on a variety of different issues, the Lib Dems are beginning to look like the sulky party. I am starting to think it would be much more constructive for the Lib Dems to start working with the SNP. Of course, given the relative success of the SNP minority administration so far, it wouldn’t be surprising if the SNP just thumbed their nose at any Lib Dem approach.

All-round, it is beginning to look like a huge missed opportunity. That underlines why I think we need to start focusing on the common ground rather than the minor differences and the petty squabbles.

Scotland sorely needs a proper national conversation right now. Unfortunately, the way things have worked out, we are having two conversations in tandem and the risk is that everyone is just preaching to the converted without actually taking in what ‘the others’ are saying. It’s not very constructive.

I think if everyone ditched the political posturing and the party rhetoric, the politicians and the people would probably find a lot to agree with. Am I right, or do you think I’m being a bit wide-eyed and naive? I want to try and find out.

Here is what I propose. As a starting point, I am going to ask if everyone believes that different powers should be held at different levels. This could be Scotland as part of the EU, Scotland as part of the UK and the EU, or whatever other permutations you care to come up with. I have already noted that I think almost everyone agrees with the principle of this. Am I wrong?

Once we get past the first hurdle, I want to understand why people believe that certain powers should be held by certain institutions. What powers should the Scottish Parliament have? In which areas would it be acceptable for Westminster to retain control? What would be the ideal role of the EU? If you think Westminster should be taken out of the equation completely, what is the reasoning behind that? I don’t necessarily want this to be a game of ‘fantasy constitution’. I’m only interested in realistic ideas.

I’ll post what I think the answers to these questions are within the next day. I hope some other bloggers join in so that we can see where we all agree and get a proper handle on where the disagreements come from.

So it looks as though the SNP and the Greens have come to some sort of deal, something just short of a proper coalition. But I’m with Shuggy — I don’t really understand what’s in it for them.

Obviously it can give the SNP two extra votes in the Scottish Parliament. But it is only two votes, and still far short of a majority. An SNP–Green coalition is not a good deal stronger than an SNP minority administration.

Meanwhile, I am really scratching my head as to why the Greens want to get involved. When coalition talks started, there was a joke (or was it a joke? Was it real?) that the Greens had two conditions. Those conditions were no more nuclear and fewer carbon emissions — which are both already SNP policies anyway.

If the Greens wanted to maximise their influence (as you would assume they would), you would expect them to at least ask for something a bit more radical, like no second Forth Road Bridge. Obviously no deal would be made in those circumstances because it would make both the SNP about as electorally popular as Hitler, particularly in Fife. But it would be a good starting point for the Greens.

But I’ve not heard anything about demands made by the Greens, besides a few “disagreements about transport policies”, which is a bit vague. It sounds like the Greens are giving up a lot for the sake of not a lot of power (because it would still be a minority administration).

I guess both the Greens and the SNP are hoping that the Lib Dems will come to the table. Their original stance was principled, but the fact that they are refusing to even talk about it is beginning to make them look petulant.

After all, as has been pointed out by many people, any referendum on independence would probably be lost. And a multi-question referendum would give the Lib Dems the perfect opportunity to campaign for more fiscal federalism in Scotland. Even though these issues are technically reserved matters, the debate that would be initiated could also open to door to a campaign to resolve the West Lothian Question via a federal solution in Westminster.

Moreover, there is the fact that the SNP and the Lib Dems are so damn similar, apart from the issue of independence. Would it not, for instance, be a good opportunity to implement a form of Local Income Tax, which both parties favour over the current system?

Meanwhile, those rumours that the Lib Dems’ refusal to talk is really being dictated by Gordon Brown don’t go away. I don’t know how true it is. But the very idea makes me quite uncomfortable, and for as long as the Lib Dems refuse even to talk about it, it begins to look true.

Back to the SNP, and Holyrood Watcher has noted how the SNP now face the harsh realities that come with actually being in power. Compromises to be made, and the fact that there are scarce resources (I sense this is a particular weak point for the SNP!).

The one solid Green demand — to go ahead with Edinburgh’s tram scheme — is uncomfortable for the SNP to take on board. And the SNP appear to be learning that increasing spending in one area involves opportunity costs, ie. decreasing spending in another area. Doh! Why didn’t they think of that before?

Update: Just as I finished writing this post, I saw this from Brian Taylor:

So what is this deal? The SNP and the Greens agree that – they won’t build any new nuclear power stations; they’ll introduce a law to cut climate-change pollution year on year (instead of vague longer-term targets); and they’ll “work to extend the responsibilities of the Scottish Parliament.”

Ha! In other words, no nuclear and fewer carbon emissions. ie. the Greens have extracted bugger all from the SNP. Oh well. And that wording, “work to extend the responsibilities of the Scottish Parliament” — very weak, don’t you think? The Lib Dems would like to do that as well. It looks to me like this the plan — to bring the Lib Dems on board.

Update: Having read the actual agreement (PDF), it is actually a bit stronger than that. It mentions ‘independence’ and contains a strong hint that a referendum is still on the cards.