SCVO response: Smith Commission
3 November 2014
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- reduce inequality and celebrate diversity
- promote social justice
- create a more inclusive society
- enable and empower people
- promote environmental and economic sustainability
- Ensure people’s views are central to the decision-making process. We need to build on the enthusiasm for participation in democracy that emerged during the referendum.
- Take decisions as closely as possible to people. Scottish political parties should commit to decentralising new and existing devolved powers even further to people and communities wherever possible.
- Commit to an on-going review of Scottish devolution. Devolution is not a one-off event - it is an evolving process. Regular reviews will identify areas for opportunity and improvement.
- Understand the need for coherent policy making. We must create joined-up policies which recognise the links between issues. We need policies that complement each other and act together purposefully and effectively.
- Acknowledge the interrelated nature of powers. A focus on specific powers and responsibilities puts us at risk of a piecemeal devolution of powers which will inhibit our ability bring about real change.
- Enable Scotland to design its own services, not just deliver them. The devolution of powers cannot be merely administrative. Responsibility without the power to effect change is tokenistic, inhibiting and undermining.
- Government at all levels should be responsible for raising the money it spends. The devolution of any new powers to Scotland ought to be accompanied by appropriate fiscal powers to ensure accountability.
- Improve the relationship between UK and Scotland. There is a clear need for better working relations between the governments. UK Departments and Ministers must make more of an effort to appreciate the views and interests of the people of Scotland.
- Welfare – excluding pensions
- Employability
- VAT relief schemes for charities
- Equality law
- The Crown Estate
- Consumer protection
- Energy
- Those aspects of employment law that directly affect devolved powers such as social care and childcare
- The operation of asylum support should be devolved to the Scottish Parliament
- Powers over the Misuse of Drugs Act
- Remaining powers over transport which are not currently devolved
- Powers over Scottish elections and democracy
- Powers to bring about consistency with Scottish charity regulation
- A portfolio of taxes so not place a disproportionate burden on one tax and taxpayer base to generate income
Conclusion
In order to bring about the changes we hope to see in Scotland, to tackle problems such as poverty and inequality, we need a substantial package of devolved powers. These powers cannot merely be administrative. To create solutions that work for Scotland we must be able to design not just deliver. The devolution of further powers cannot be a token gesture, designed to appease. This has to be a genuine transfer of responsibility, which enables Holyrood to strive for, and achieve, the best outcomes for those living in Scotland. The piecemeal devolution of powers will not deliver the change we aspire to and may well hinder, rather than help. In many cases devolving a power in isolation will probably cause more problems than it will solve due to the interconnected nature of policies and political systems. It could be considered futile to transfer the power over, for example, housing benefit as while it makes sense in regards to bringing a devolved power into alignment with its related benefit, its connection to other aspects of welfare would inhibit the ability of any government to use such a power to its full potential. Therefore acknowledging the connections between powers and the need for a coherent package is essential to achieving a mature devolution settlement. Regardless of what settlement is ultimately achieved as a result of the Commissions’ work, we need to foster better working relations between the UK Government and Scotland which recognises the differing circumstances and interests of the people of Scotland. Second, we ought to take this opportunity to reflect on how the powers already devolved have been used and consider how they could be used more effectively now and in the future. This Commission is just the beginning of the next chapter of Scottish devolution. The timetable for this current phase is short but the process of creating an enduring, settlement ought to be a marathon not a sprint. We should take the time, over the next year, next five years, ten years, to review and improve how devolution is working for the people of Scotland. Lastly, we must build on the participative culture which emerged during the referendum campaign. We cannot ignore the views and interests of Scotland’s people. It is imperative that any proposals for devolution are put to a people-led review before they are enacted.Governance & Democracy
Ahead of discussion about particular powers and policy areas, SCVO considers it key that Scottish democracy and the governance of our country - regardless of what new powers may come it Holyrood in time – is underpinned by the following:- The entrenchment of the powers of the Scottish Parliament is a necessary development for devolution which can provide added confidence in the parliament’s work and its future.
- Devolution is not a singular event; rather it is an evolving process. Consequently, we believe there ought to be a periodic review of the Scottish devolution settlement to make sure that it is optimally designed for the governance of Scotland.
- Power ought to be held at the most appropriate level, be this at UK level, Scottish Government, local government, by communities or by the individual. SCVO would like to see a commitment from the Scottish parties to review how more powers can be decentralised to where they are best suited and examine in particular how power can be transferred to people and communities of both place and interest.
- It is necessary that people are at the centre of the constitutional debate. The enthusiasm and engagement of people in the referendum was extraordinary and it is vital to build upon this. We must ensure, therefore, that the opportunity people had during the referendum debate to discuss the nature of the Scottish constitutional settlement and the kind of Scotland they want to live in, is also offered to them once the Heads of Agreement has been made. Having been able to exercise their voices on the issue of independence it would be a mistake to exclude them from having their say on devolution. We propose a people-led process of review before any legislation is proposed. Nothing should be ruled out beforehand.
- With the extension of the franchise in order to allow 16 and 17 year olds to vote in the referendum, Scotland’s young people demonstrated their maturity, ability and enthusiasm. It is important for the health of our democracy that the power to extend the franchise for all election is rested in the Scottish Parliament. This point is expanded upon later in this document.
- Finally, the importance of transparency of and responsibility for decision making, including spending, at all levels of government is paramount. This must be considered when devolving powers to ensure relevant institutions can be held accountable.
Welfare
Key Points:- SCVO seeks the full devolution of welfare – excluding pensions. We consider that the interrelated nature of welfare with employability and other public services such as care means that should only be devolved in its entirety.
Employability
Key Points:- All powers over employability, and their accompanying benefits, ought to be devolved to the Scottish Parliament in order to enable the development of a coherent, integrated, approach to employment.
Fiscal Accountability & Taxation
Key Points:- Government at all levels must be fiscally accountable. Any potential devolution of taxation must be across the portfolio of taxes and not place a disproportionate burden on one tax and taxpayer base to generate income.
Charity Tax & Regulation
Key Points:- SCVO supports the devolution of VAT relief schemes for charities.
- SCVO favours consistency with Scottish charity regulation and considers Scotland requires the relevant powers devolved in order to achieve this.
Charity Tax
The issue of charity tax is one where the third sector is able to speak with confidence. We consider that supporting charitable activity through the tax system is an important principle for any modern democratic society. Significantly, any tax reliefs for charity must go hand in hand with the powers over the taxes they are connected to. Charity tax relief is currently reserved to the UK level and deployed by the UK HMRC department. Some charity utility reliefs such as water rates, non-domestic rates and property transaction fees are already devolved. If income tax were to be devolved, as it proposed by some political parties, then powers over income tax reliefs for charitable donations which follow personal taxation must also be devolved to ensure consistency. This includes Gift Aid, Social Investment and Inheritance Tax reliefs. These reliefs would need to be devolved in full, giving Scotland the power to redesign the schemes and not just deliver the existing UK systems. In discussion with the UK Charity Tax Group, of which SCVO is a management committee member, there was recognition that Scotland should have the power to design a different, perhaps better scheme of charitable tax reliefs if it wishes. This could perhaps then inspire improvement and therefore better use of the schemes in other parts of the UK. The only parameter would be that as part of the European Union, any devolved personal tax relief scheme would also need to recognise and provide relief for donations from Scottish tax payers to charities in other EU member states as well as to the rest of the UK. VAT, including partial and zero-rates on certain products is subject to EU rules and therefore there is limited opportunity to devolve reliefs from the UK. However, many activities undertaken by charities are regarded as non-business and therefore, unlike most private businesses, the associated VAT costs must be absorbed by the charity. At present VAT rebate schemes are the only mechanism to offer relief and a number of charity relief schemes supporting academy schools, national museums and galleries and to a lesser extent air ambulances and mountain rescue are in operation at UK level. We believe that the devolution VAT relief schemes offers a real opportunity to better reflect Scotland's unique geography, demography, public service mix and national ambitions. Importantly, this approach would be consistent under EU rules so long as the Scottish schemes reflected State Aid rules.Charity Regulation
If any organisation wants to be a charity in Scotland or to undertake substantial charitable activities in Scotland, they need to follow register with the Office of the Scottish Charity Regulator (OSCR) and Scottish charity law and regulation. This has been devolved since 1999, was codified in 2005 and in its implementation has followed a different trajectory to the rules governing charity law and regulation in England and Wales. This means it is possible, albeit unusual, for a charity in England and Wales to fail the charity test in Scotland, and therefore be prevented from carrying out charitable operations in Scotland. Many third sector organisations were involved directly in informing the scope and nature of the Scottish charity laws and regulations. It is evident that we need to give primacy to Scottish legislation when it comes to ensuring public trust in the charity brand in Scotland. One complication is that the HMRC maintains its own rules on who it recognises for charitable purposes independently of any of the charity regulators including OSCR. However, the HMRC has, in practice aligned its approach with the laws and regulations that are maintained by the England and Wales Charity Commission. The clear implication is that if substantial income taxes are devolved to Scotland, then the third sector in Scotland would want to see the rules around charity recognition for tax purposes to be fully devolved to Holyrood. This would this maintain the alignment between tax and charity, but would also further support alignment with charity status under Scottish law. Regulation of fundraising is one area where there is debate within our sector. Some aspects of fundraising are devolved, for example, the regulations around street collections. However, fundraising standards are currently self-regulated through the UK Fundraising Standards Board. If fundraising standards were to be taken back for direct regulation by UK Government, then this would raise questions around the devolved competencies. Potentially, the HMRC would take an interest with respect to tax avoidance and its rules around 'fit and proper' persons running charity finances. In addition, the charity regulators, including in Scotland, would take an interest with respect to charity brand protection. Therefore, we favour consistency with Scottish charity regulation and consider we need the relevant powers devolved in order to achieve this. However, it must be recognised that some charities have an interest in maintaining UK-wide consistency for fundraising rules, in some cases to support cross-border fundraising.Equality
Key Points:- SCVO calls for the full devolution of equality law to better align equality with devolved policy areas such as housing, health, education, employment & justice, to account for the different demographics in Scotland and to build on the strong relationships which exist between equality organisations and the Scottish Parliament.
Human Rights
It has been noted that that there is now significant policy divergence between the Scottish and the UK Parliament’s on human rights as seen in the UK government proposals to replace the Human Rights Act 1998 with a UK Bill of Rights. In contrast the Scottish Parliament has consistently expressed its support for the Human Rights Act, the European Convention on Human Rights and Scotland’s National Action Plan for Human Rights (SNAP), a partnership that has cross-party support and extensive commitment and backing from across Scottish civil society. Were it to be devolved power over human rights legislation would allow Scotland to show greater cognisance of the level of support for human rights based approaches in Scotland.Consumer Protection
- SCVO calls for the devolution of consumer protection to Holyrood.
Employment Law
Key points:- SCVO calls for all aspects of employment law that directly affect devolved powers such as social care and childcare to be devolved.
- If Equality Law is devolved the appropriate employment laws would also have to be devolved in order to ensure there is no disparity.
Asylum
Key Points:- Asylum and the right to remain should remain reserved but the operation of asylum support should be devolved to the Scottish Parliament
International development
Key Points:- There needs to be a formalisation of the Scottish Government’s ability to operate an international aid programme
Legislative Competence
Key Points:- SCVO calls for the powers over Scottish elections to be devolved to allow the franchise to be extended to 16 and 17 years olds
- The sovereignty of the Scottish Parliament should be enshrined by removing the requirement for final assent on devolved laws by UK Parliament.
Energy
Key Points:- The full devolution of energy to the Scottish Parliament would help align energy policy with devolved areas such as housing, energy efficiency and planning and address the current conflicting mix of devolved and reserved powers relating to energy
- the Energy Company Obligation the methodology for calculating the carbon and cost savings are based on average English housing stock and climatic conditions
- there is no appropriate feed-in-tariff for hydro which is a real opportunity in Scotland but of limited viability in England and so is not supported.
- the simplification in tariff structure greatly limiting the options for householders with electric heating especially heat pumps.
Transport
Key Points:- Devolving the remainder of transport to the Scottish Parliament would allow for the creation of more coherent policy making over transport issues
Justice
Key Points:- Giving Scotland powers over the control of illegal drugs would allow Scotland to adopt a different approach to our particular substance abuse problems
The Crown Estate
Key Points:- SCVO calls for the devolution of the Crown Estate to the Scottish Parliament to make it accountable to a democratic institution
‘should be conditional upon an agreement between the Secretary of State for Scotland and the Scottish Government on how such a scheme of subsidiarity to local authority and local community levels should be implemented.’
The devolution of the Crown Estate to the Scottish Parliament was advocated by SCVO in its 2011 response the Scottish Affairs Committee inquiry. Community Land Scotland in its submission highlighted the need to align the strategy of the Scottish Parliament with that of the Crown Estate activity and improve the accountability of its management. Environment LINK also supports the devolution of the Crown Estate to enable greater protection of Scotland’s marine environment and to ensure sustainable development. The devolution of the Crown Estate is very much seen by the third sector as an interim measure until further devolution can take place to communities. Given the recommendation of the Committee but the lack of progress on this since 2012 the issue is still very much current.Additional points for consideration
The following points have been made throughout discussions with the sector and we hope there is scope for their consideration in Lord Smith’s response.- Powers need to be devolved further to communities. Decisions about people’s lives ought to be made by them or as near to them as possible. This has always been a strong message from our sector and it is in no way diminished by the prospect of more powers to Holyrood.
- Regardless of any further devolution there is a clear need for better working relations between the UK Government, the Scottish Government, and local government. For example, the Scottish Refugee Council has raised the point that the UK Government should formally recognise Scottish authorities such the Scottish Legal Aid Board who exercise competence in areas which are integral to the delivery of an effective asylum decision making process. Similarly, the differing needs of urban and rural Scotland need to be better understood by the various administrations.
- The importance of transparency and accountability, at all levels of government, has consistently been raised by the sector.
- It has been raised several times that an alternative approach would be for the Smith Commission to go back to the original devolution principle and to re-examine Schedule 5 of the Scotland Act to determine those powers that Westminster should retain, with all others being resolved to Holyrood. The Scottish Parliament is a mature institution and has generally improved the stewardship of funds and the accountability of public services within its responsibilities. Further powers, as set out above, which improve the coherence and effectiveness of its functions would be a positive step forward for Scotland.
SCVO engagement activity
Despite the tight timescale SCVO has facilitated a number of discussions with third sector which have contributed to this response. A full list of attendees can be found in Annex B They include:- SCVO Policy Committee with observers from the Scottish Government and the Scotland Office, 25 people - 24 September 2014
- Dinner with 100 third sector Chief Executives, directors and senior staff - 24 September 2014
- Joint event hosted with Scottish Government Third sector Division, 12 people - 1 October 2014
- SCVO Roundtable on Smith, 17 people - 1 October 2014
- Policy Officers Network, 16 people - 21 October 2014
- Third sector employability forum, 80 people - 8 October 2014
- Lord Smith discussion event, 40 people -26 October 2014
Submissions Received
Addaction Scotland
Apex Scotland
Archaeology Scotland
Argyll Voluntary Action
ASH Scotland
Association in Scotland to Research into Astronautics
Bield, Hanover (Scotland) & Trust Housing Associations
British Red Cross
Capability Scotland
Carers Scotland
Carr Gomm
Central Scotland African Union
Changeworks
Chest Heart and Stroke Scotland
Children in Scotland
Citizens Online Scottish
Coalition of Care and Support Providers in Scotland
Community Land Advisory Service
Community Land Scotland
Community Resources Network Scotland
CVS Aberdeenshire
Drake Music Scotland
Dynamic Woods
Edinburgh Tenants Federation
ENABLE Scotland
Engender
Environment LINK
Equality Network
Faith in Community Dundee
Haemophilia Scotland
Health and Social Care Alliance Scotland
HELP (Argyll and Bute)
Housing Support Enabling Unit
Impact Arts
Inclusion Scotland
Legal Services Agency Ltd
Link Group Ltd
Living Solutions
Living Streets Scotland
Lloyds TSB Foundation for Scotland
Mary's Meals
Mindspace
MND Scotland
Network of International Development Organisations
Nourish Scotland
Oxfam Scotland
Quality Scotland
SAMH
Scottish Accessible Transport Alliance
Scottish Disability Equality Forum
Out of School Care Network
Scottish Refugee Council
Scottish Sports Association
Scottish Woodlot Association
Scottish Youth Parliament
Smallpetitklein
Stonewall Scotland
Stop Climate Chaos Scotland
The Ecology Centre
Therapy4Health
Visibility
Voices of Experience
Voluntary Action Perth
Voluntary Arts Scotland
Voluntary Health Scotland
Volunteer Glasgow
Who Cares Scotland
Winds of Justice
WorkingRite
YouthLink Scotland
Constitution Roundtable - 1 October 2014
Fiona Collie, Carers Scotland Sara Cowan, Oxfam Lily Greenan, Scottish Womens Aid Gillian Wilson, NIDOS Bill Scott, Inclusion Scotland Angus Hardie, Scottish Community Alliance Patrick Grady, SCIAF Gary Christie, Scottish Refugee Council Rev. Dr. Graham Blount, Church and Society Council Elliot Stark, Strive Craig Sanderson, Link Group Jacqueline Lamb, Children in Scotland Marion Davis, One Parent Families Scotland Alex Cole-Hamilton, Aberlour Siobhan Reardon, Amnesty InternationalLord Smith discussion event - 24 October 2014
Adam Lang, Shelter Scotland
Alan Staff, Apex Scotland
Amy Dalrymple, Alzheimer Scotland
Andy Lee, Prince's Trust Scotland
Angus Hardie, Scottish Community Alliance
Bill Scott, Inclusion Scotland
Carolyn Roberts, SAMH
Claire Stevens, Voluntary Health Scotland
Daniel Aldridge, Stonewall Scotland
David Clark, Chest Heart and Stroke Scotland
David McColgan, British Heart Foundation Scotland
Derek Young, Age Scotland
Ella Simpson, Edinburgh Voluntary Organisations’ Council
Fraser Kelly, Social Enterprise Scotland
Gillian Wilson, NIDOS
Gordon MacRae, Which?
Graham Martin, SCVO
Hamira Khan, Scottish Youth Parliament
Helen Macneil, GCVS
Ian Welsh, Health and Social Care Alliance Scotland
Jamie Livingstone, Oxfam Scotland
Jeanette Campbell, Citizens Advice Scotland
Jenny Bloomfield, SCVO
Jim Sweeney, Youthlink Scotland
John Brady, One Kind
John Downie, SCVO
John Paul Fitzpatrick, University of Strathclyde
John Wilkes, Scottish Refugee Council
Kate Wane, SCVO
Kerry Reilly, YMCA Edinburgh
Kim Atkinson, Scottish Sports Association
Lily Greenan, Scottish Women's Aid
Lynn Williams, SCVO
Lynne Carr, Impact Arts
Martin Tyson, OSCR
Mary Taylor, SFHA
Nicolas White, Breast Cancer Care
Penny Brodie, Lead Scotland
Rhona Cunningham, Fife Gingerbread
Satwat Rehman, One Parent Families Scotland
Simon Hodgson, Carers Scotland
Susan Archibald, The Poverty Alliance
Teresa Bray, Changeworks
Policy Officers Network - 21 October 2014
Alexa Morrison, RSPB Beth Reid, Crisis David McColgan, British Heart Foundation Derek Young, Age Scotland Duncan Thorp, Social Enterprise Scotland Emma Dore, Shelter Gareth Brown, Scottish Youth Parliament Heather Noller, Carers Janine Mckenna, Scottish Churches Parliamentary Office Martin Docherty, Volunteer Scotland Mike Andrews, ASH Scotland Pauline Nolan, Inclusion Philippa Faulkner, HIV Scotland Rob Gowans, CAS Rosalind Greig, Inclusion ScotlandDinner with Chief Executives – 24 September 2014
Adrienne Airlie, Martin Aitken & Co
Alan Staff, Apex Scotland
Alison Douglas, Scottish Government
Alison Todd, Children First
Alison Elliot, The University of Edinburgh
Alistair Dutton, SCIAF
Amanda Millar, Mindspace
Andrew Sim, Samaritans
Angus Hardie, Scottish Community Alliance
Bill Scott, Inclusion Scotland
Brian Sloan, Age Scotland
Brian Wright, Social Enterprise Academy
Calum Irving, Voluntary Action Scotland
Carole Patrick, Life Changes Trust
Celia Tennant, Inspiring Scotland
Chris Yiu, SCVO
Claire Stevens, Voluntary Health Scotland
Craig Sanderson, Link Group Ltd
David Robb, OSCR
Delia Henry, Action on Hearing Loss Scotland
Denise Swanson, Scottish Government
Derek Young, Age Scotland
Donna MacKinnon, SCVO
Duncan Dunlop, Who Cares? Scotland
Eliot Stark, STRiVE
Ewan Aitken, Cyrenians
Ewan Gurr, The Trussell Trust
Ewan McIntyre, Turning Point Scotland
Fanchea Kelly, Margaret Blackwood Housing Association
Felix Spittal, SCVO
Fiona Malcolm, Scottish Government
Fraser Kelly, Social Enterprise Scotland
George Thomson, VDS
Giles Ruck, Foundation Scotland
Gillian Wilson, NIDOS
Gordon Allan, Unity Trust Bank
Gordon MacRae, Which?
Graeme Brown, Shelter Scotland
Graeme Smith, STUC
Grant Campbell, Glasgow City Mission
Hamira Khan, Scottish Youth Parliament
Harriet Eadie, Volunteer Centre Edinburgh
Helen MacNeil, GCVS
Iain Forbes, Scottish Mentoring Network
Ian Brooke, EVOC
Ian McLaughlan, Youth Scotland
Is Szoneberg, CSV
Jackie Brock, Children in Scotland
James Jopling, Breakthrough Breast Cancer
Jamie Livingstone, Oxfam Scotland
Jane-Claire Judson, Diabetes UK
Jenny Bloomfield, SCVO
Jim Sweeney, Youthlink Scotland
Jo Armstrong, Fiscal Affairs Scotland
John Dickie, CPAG in Scotland
John Wilkes, Scottish Refugee Council
John MacDonald, Community Transport Association
John Downie, SCVO
John Ferguson, SCVO
Kate Mavor, National Trust for Scotland
Kate Wane, SCVO
Katherine Trebeck, Oxfam Scotland
Kathleen Doyle, VDS
Kay Steven, Scottish Women's Aid
Keith Walker, Samaritans
Kim Atkinson, Scottish Sports Association
Lisa Curtice, Health and Social Care Alliance Scotland
Liz Watson, Befriending Networks
Lucy Wren, Carr Gomm
Lucy McTernan, SCVO
Lynn Williams, SCVO
Lynne Carr, Impact Arts
Mandy Rhodes, Holyrood Magazine
Marjory Burns, British Heart Foundation Scotland
Mark Ballard, Barnardo’s Scotland
Mark McGeachie, Scottish Government
Martin Johnstone, Faith in Community Scotland
Martin Sime, SCVO
Mary Craig, Lloyds TSB Foundation for Scotland
Mary Duffy, BBC Children in Need
Mary Taylor, SFHA
Meg De Amasi, Central Scotland African Union
Michael Keating, University of Aberdeen
Michelle McCrindle, Food Train
Moira Tasker, Citizens Advice Edinburgh
Neil MacLennan, Scotland Office
Nicolas White, Breast Cancer Care
Pandora Summerfield, Down's Syndrome Scotland
Pat Armstrong, ACOSVO
Paul Brown, LSA
Paul White, SCVO
Penny Brodie, Lead Scotland
Philip Dunion, Apex Scotland
Richard Hamer, SCVO Board
Richard Kerley, Centre for Scottish Public Policy
Ruchir Shah, SCVO
Russell Gunson, NUS Scotland
Sally Witcher, Inclusion Scotland
Sally Ann Kelly, Aberlour
Sarah Davidson, Scottish Government
Satwat Rehman, One Parent Families Scotland
Simon Hodgson, Carers Scotland
Shulah Allan, SCVO
Sophie Fleming, University of Edinburgh Business School
Stephen Jones, Scottish Government
Susan Lowes, Voluntary Health Scotland
Susan Archibald, The Poverty Alliance
Susan Murray, SCVO
Susan Smith, SCVO
Teresa Bray, Changeworks
Theresa Shearer, OMS
Willie Sullivan, Electoral Reform Society
Yvonne Strachan, Scottish Government
Last modified on 22 January 2020