Thursday, May 19, 2011

Devolution in the UK


So, with the SNP gaining a working majority in the Scottish parliament, it means that Scotland will get to go to the polls in a referendum on Scottish independence. Though that is likely to happen in about 3 to 4 years time, towards the end of this current Scottish parliaments term of office. Giving the SNP time to try to swing the polling figures their way, given that at the moment, the majority of Scots are not in favour of independence (they like the extra subsidies.)


But what does all this mean for the UK? Well, we are going to end up with a bizarre mishmash of political establishments. Northern Ireland has its Assembly, and it looks like they could well be given the ability to make changes to the rate of corporation tax.


In Wales, the Welsh Assembly is in the process of gaining more power, and with the rise of the SNP, it looks like Scotland is going to be pushing for "devolution max."

And England? Nothing. 


The argument goes that if England sneezes, the other home nations catch a cold. Whatever happens in England has an impact on the rest of the UK, therefore, the rest of the UK should have a say. Problem here is that it treats people in England almost as second-class citizens. Of course, the British parliament make the argument that if England has its own setup, what do they do?

Well, my argument is simple.

Full and proper devolution across the whole of the UK.

We can have devolved Welsh, Scottish, Northern Irish an English parliaments. They can look after regional issues, and UK-wide topics can remain with a UK parliament.

Each devolved parliament will have the same responsibilities. In my opinion these would be:
> Delivery of welfare
> Health
> Culture
> Some taxation, such as land tax, property tax and the like.
>Regional transportation
> Education
> Agriculture
> Environment
> Recreation (In part)
> Employment
> Business (tactical level)

And the UK parliament would be responsible for:
> Corporation tax
> Business (Strategic level)
> Defence
> Foreign policy
> Recreation (oversight. some sports are home nation based, others are not)
> Core infrastructure such as power, water, gas, and trans-national transportation. Such as the motorways, and intercity railway corridors/future high speed rail network.

In essence, I want to see the UK parliament slimmed down and representative of the UK properly, so we stop seeing Scots votes being of "more value" than English votes. After all, in the US, with a population of 300,000,000, the House of Representatives has 435, and the Senate only has 100 members. together, that is less than the UK's House of Commons!

It would mean that the UK constituencies would be dramatically expanded, but a UK MP's responsibilities to their constituents will be vastly altered, with many of their functions being handed to an English parliament. Therefore, they have more time to serve a larger area.

With regards money. The UK government is going to be collecting a lot in tax. A portion of that will be set aside for its own functions, and then the rest of it is then divided PROPORTIONALLY to each devolved parliament. No more of this rubbish where in Scotland they enjoy over £1000 more per annum in council spending. If the devolved parliaments want more money, it has to come from their own taxation.

I feel that the UK parliament should be the ultimate arbiter in all things, even devolved issues. This would then stop disparities becoming too large between the home nations. But it would also have to work alongside the devolved parliaments with regards business. Competition is good, but the UK parliament would have to step in to keep a relatively even playing field. 

For example, with corporation tax, should each home nation have total control, then Scotland could drop it a little, but England, thanks to the squillions flowing through London could drop it a lot and bury Edinburghs hopes of becoming a financial centre. After all, why go to Edinburgh, when in London you have a potentially similar (or lower) tax rate, a lot more financial institutions to meet and do deals with, the infrastructure to support large companies, the London Stock Exchange, and 3 major airports. 1 of which is the biggest international airport in the world, and Stanstead as the smallest, is still many factors larger than Edinburgh. 

Stanstead Airport

Edinburgh Airport

I know the SNP has said that Scotlands finances would be helped by being in control of oil revenues. Problem is, if Scotland where to be independent, the oil will run out a long time before Scotland got itself properly on its feet. The oil is already running down, and searching for more oil is getting more and more expensive. It is the law of diminishing returns at play.

Thats my idea, anyway.

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