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Devolution
John Dearlove and Peter Saunders have written new material on devolution specifically for this website

DEVOLUTION

In 1998 there were elections for the Northern Ireland Assembly; in 1999 there were elections for the Welsh Assembly and the Scottish Parliament; in 2000 Ken Livingstone was elected as the first directly elected mayor for London; and in 1999 eight Regional Development Agencies were established in England. The UK entered the year 2000 with four governments instead of one and a unitary system gave way to a messy quasi-federal set-up. However, much was unstable at the same time as the peace process in Northern Ireland and the 'English question' - how England should be governed in a devolved UK - were not the only matters that were left unresolved.

So, where are we now on devolution and what are the key issues that have pushed to the fore?

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SCOTLAND

The new politics in Scotland has not been without pettiness (the initial squabble over office support for MSPs); scandal (the so-called 'Lobbygate' affair with the suggestion that a prominent firm of lobbyists was improperly influencing ministers); and three good old-fashioned independent MSPs (Tommy Sheridan, the ex-poll tax campaigner, won a seat in the Glasgow region for the Scottish Socialist Party; Robin Harper won a seat for the Green Party in the Lothians region; and Dennis Canavan, having failed to win a place on the official Labour candidate list, beat the New Labour candidate by a mile in his old Westminster seat of Falkirk West).

Coalition and university tuition fees
The 1999 election for the Scottish Parliament produced a hung parliament. Labour entered into a coalition with the Liberal Democrats. Donald Dewar became First Minister and Jim Wallace, the leader of the Scottish Liberal Democrats, was his Deputy and one of just two Liberal Democrat ministers in the eleven strong Scottish Executive.

It was always going to be the case that university tuition fees would be a bone of contention between the coalition partners. The Liberal Democrats entered the election strongly pledged to abolish them but Labour wanted to maintain them and was very reluctant to go against a policy of the UK government knowing that it could have expensive knock-on repercussions south of the border. To help get Labour off the hook A Committee of Inquiry into Student Finance was established under Andrew Cubie and his recommendations have been largely implemented.

So, consider yourself lucky if you were born in Scotland and plan to study at a Scottish university because fees have been abolished from autumn 2000. True, students will have to pay into a graduate endowment once they have started to earn a 'significant' income after graduating. However, this will be about a third less than tuition fees elsewhere in the UK and will be easier to pay than the up-front lump-sum fee being paid by those of you south of the border. More than this, from 2001 non-repayable cost of living bursaries, to a maximum of £2,000 a year, will be available to young students from poor families in Scotland, and about 30,000 mature students entering higher education will benefit from discretionary bursaries.

The death of Donald Dewar and long-term care
Donald Dewar died in October 2000. Fifty three Labour MSPs and twenty seven members of the party's Scottish Executive elected Henry McLeish as party leader and First Minister of Scotland. Dewar, an ex-Cabinet minister and long-time Westminster MP, had served as a crucial bridge between the old unitary UK and the new devolved system so that open conflict between Holyrood and Westminster had been 'managed' and almost non-existent. At the time of his death, one senior Labour MP was reported as saying, 'Donald's death is going to have a huge impact on the relationship between Edinburgh and London.' In bald terms, the New First minister has had to adopt a more nationalistic tone and that means being prepared to be less 'on message' with New Labour in London. McLeish faced his first test on the issue of the funding of long-term care.

In December 1997 the Labour Government set up a Royal Commission on long-term care under Sir Stewart Sutherland. The Commission reported in March 2000 and recommended that all long-term care should be free. Westminster ruled this out on grounds of cost and said that only nursing care should be free. Initially the Scottish Executive looked set to follow the Westminster line. When McLeish took office he made the Sutherland Report a key plank of his new administration, claiming that he wanted to 'move forward' on it, which most interpreted as Scotland going it alone and introducing free nursing and personal care.

There has been much talk of McLeish coming under pressure from Blair and Brown in Westminster who are both anxious that Scotland should not have a different policy from England in the run-up to a general election. The Guardian reported that 'McLeish has been subtly playing down the whole issue. He has consistently denied he ever said he would implement the report in full'. However, the Liberal Democrats in the coalition continue to press the case for free personal care. In order to avoid losing a vote in the Scottish Parliament, the Executive had to state its commitment to the Sutherland proposals and set up a development group to report by August 2001 on how to implement them.

The 'tartan tax'
Not surprisingly, commentators are beginning to wonder whether the 'tartan tax' (the Scottish Parliament can 'vary' income tax by up to 3p in the pound on the basic rate, unlike the Welsh Assembly) will have to be levied in order to pay for Sutherland; university tuition fees; and other commitments such as the 23% increase in teachers pay over next 3 years.

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WALES

Devolution in Wales seems to have been dominated by resignations. Ron Davies, the main architect of the 1997 Act, resigned as the party leader in July 1999 following his 'moment of madness' on Clapham Common; Alun Michael, his successor and the Blairite leader of the Labour minority government, was forced to resign on a 'no confidence' vote in the Welsh Assembly in February 2000; Rod Richards, the leader of the Welsh Conservatives, resigned in August 1999 following a charge of serious bodily harm; and Dafydd Wigley, the veteran Plaid Cymru leader, resigned in August 2000 because of ill-health.

From minority government to coalition
Labour failed to win sufficient seats in the Welsh Assembly to form a majority government, but instead of entering into a coalition it chose to go it alone as a minority government. Following the resignation of Alun Michael (seen by some as an 'imposition of London rule'), the new leader of Welsh labour, Rhodri Morgan, tried a different tack and there emerged 'what might be described as a more continental-style informal cohabitation between Rhodri Morgan's administration and Plaid Cymru.'

Rhodri Morgan's informal accommodation with Plaid Cymru did not put a stop the turbulence and instability. In October 2000, and after months of private negotiations, Labour and the Liberal Democrats announced that they were forming a coalition government along the lines of the similar partnership administration in Scotland. The three year deal gave the Liberal Democrats two seats on the six strong Welsh Executive. Labour was forced to concede an inquiry into higher education funding in Wales; has agreed to free eye tests and free dental checks and prescription charges for under 25s; and will establish a review to look at the case for proportional representation for local government in Wales.

Jobs crisis and the development of the Welsh Assembly
In early 2001, Corus announced the loss of more than 2,500 steel jobs. This was seen as 'the first major policy crisis' for the devolved government but there was little it could do about it. A package of £20m to persuade the company to stave of its closure programme was as of nothing against the £226m loss the company made in the first half of the financial year. It was a bruising lesson about power: devolution might enable more decisions to be taken by elected politicians in Wales but those politicians might not be able to touch the onward march of global economic forces.

A recent study by the Institute of Welsh Affairs, Inclusive Government and Party Management, suggested that the National Assembly for Wales is 'moving in the direction of becoming a parliamentary body and away from the local government model laid down in the 1997 Wales Act'. But in The State and the Nations, Robert Hazell argues that 'the Welsh Assembly can show few tangible achievements for its first year of operation, apart from ditching its Blairite First Secretary.' Hazell recognises that the limitations of Welsh devolution might have much to do with the limited powers provided by the initial legislation. This being the case it is not too surprising that when the Assembly's Operational Review got underway in January 2001 it quickly focused on this issue and the Assembly's 'right' to have the kind of substantial legislative powers enjoyed by Scotland.

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NORTHERN IRELAND

Rival constitutional futures
The conflict in Northern Ireland revolves around its constitutional future: is it to stay in union with Great Britain or does its future lie with the Irish Republic? However, within the tighter confines of the Belfast Agreement of 1998, the issue, and the stumbling block in the way of anything approaching stable devolved 'power-sharing' government, continues to centre on arms decommissioning by the IRA.

Arms decommissioning
Unionists see decommissioning as the tangible embodiment of a Nationalist commitment to the ballot box over the bullet; as a tacit Republican acceptance of the Union; and as nose in the dirt surrender. Many Nationalists also see decommissioning as a raw surrender and as a denial of their 'right' to continue to fight for union with the Irish Republic. That said, both sides cannot help but recognise that it has been violence, and the public desire to escape still more violence, that brought about the Belfast Agreement and that somehow keeps an awkward 'peace process' alive, if not kicking.

The on-off-on of devolved government
Following the Assembly elections of June 1998 there were many months of on-off inter-party negotiations on the implementation of the Agreement before it became apparent that devolution could proceed. The Assembly eventually met in November 1999 and this enabled the four parties to the Executive (Ulster Unionist Party, Social Democratic and Labour Party, Democratic Unionist Party, and Sinn Fein) to nominate their ministerial choices and select their chosen departments. The Executive met for the first time in December 1999, but minus its two 'no to the Agreement' Democratic Unionist Party ministers.

The Belfast Agreement called for decommissioning by 22 May 2000 but it did not set a start date. First Minister David Trimble, always under pressure from the 'no' Unionists within and without his own Ulster Unionist Party, made it very clear that he would resign if the decommissioning process did not start by 12 February 2000. This produced what the new (and now resigned) Northern Ireland Secretary, Peter Mandelson, referred to as a 'devolution-decommissioning stalemate' and he suspended devolved government after just 72 days rather than wait for Trimble's resignation.

Following hectic rounds of negotiation and talks between all sides, Prime Minister Tony Blair on 5 May announced at Hillsborough Castle that he would be prepared to restore devolved government on 22 May. But he would only do so if the IRA made a commitment to getting rid of its guns. There was the further suggestion that the real deadline for decommissioning (what was euphemistically referred to as the 'full implementation of the Good Friday Agreement') would be put back a year to June 2001. The Prime Minister also indicated that the government would seek to 'normalise' security in Northern Ireland, a placating response to the long-standing republican concern to see 'Troops Out' and 'demilitarisation'.

On 6 May the IRA issued a statement which committed the organisation to initiating a process of putting arms 'beyond use'. It would re-engage with the de Chastelain Independent International Commission on Decommissioning and 'within weeks' it would allow 'a number' of its arms dumps to be inspected by international third parties as a 'confidence building measure'. Because this was seen as 'a first step' towards full decommissioning it was just about enough to enable Trimble to sell the deal to his bitterly divided party. Devolved government was restored but the decommissioning issue has not gone away. It has been finessed and put off, again. Expect to see another crisis this June but do not expect to see a handover of IRA weapons - ever.

Ugly realities behind the peace process
Behind the peace process, the power-sharing, and the symbolic and bizarre politics of flowers, flags, parades and marches, and the correct name (and badge) for any new police service there exists a far harder reality. A 'No Surrender' Real IRA (the organisation widely suspected of having planted the Omagh bomb which killed 29 and injured 200) is prepared to continue to bomb its way to a united Ireland and may well attract the active support of hard-liners in the Provisional IRA if there is ever to be real decommissioning. One commentator has noted how 'the organised, selective and high-level violence of the "pre-ceasfire" period has been replaced, "post ceasefire', by disorganised, diffuse and low-level violence' involving sectarian attacks', principally perpetrated by loyalists on Catholics living in the 'wrong' place. Moreover, the early release of 'political' prisoners has thrown the links between paramilitaries and organised crime into sharp focus. The UDA and the UVF have been trading accusations of involvement in drugs and extortion, naming names, at the same time as criminal gangs linked to republican paramilitaries have been involved in the illegal cross-border trade in livestock.

The trend to extremism
In Northern Ireland there is the grinding struggle between the rival and seemingly irreconcilable traditions of Unionism and Nationalism, Protestantism and Catholicism. There are low levels of trust and both traditions are desperate to avoid getting 'locked in' to any kind of political process which they cannot control and from which they cannot escape. There are also intense rivalries within the traditions between moderates and extremists, with politics always seeming to gravitate towards the extremes. These rivalries may well unfold in ways with profound implications for the viability of the Belfast Agreement. For example, in the coming General Election in June will Trimble's Ulster Unionist Party face electoral meltdown and will Ian Paisley's Democratic Unionist Party emerge as the strongest protestant force in Westminster? And will Sinn Fein finally overtake John Hume's Social Democratic and Labour Party as the largest nationalist party in the electorate?

The future: direct rule or a united Ireland?
Devolved government in Northern Ireland is a problematic 'involuntary coalition' between four parties where there is no tradition of collective responsibility on the part of a divided executive and where everything is on a constant crisis knife-edge. In these circumstances is a return to direct rule a possibility and, in the longer term, is a United Ireland on the cards? Catholics may already account for more than 46% of the population, with the Protestant majority predicted to 'fall sharply' once this year's Census figures are revealed.

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ENGLISH REGIONS

New Labour
New Labour's 1997 election manifesto promised to move 'in time' to directly elected regional government for those areas in England that voted for it in a referendum. No referendums have yet taken place. The government is divided on the whole issue and although Deputy Prime Minister John Prescott (and now Chancellor of the Exchequer Gordon Brown) are both keen, the Prime Minister Tony Blair has been decidedly cool.

The Conservatives
The regional issue and the 'West Lothian Question' (see British Politics p.328) have both been taken up by the Conservatives who, lacking much of a base in Wales or Scotland, press the case for 'English votes on English laws' in the hope of garnering the vote of English nationalists. That said, few Conservatives press the case for a fully-fledged English Parliament although many advocate excluding Scottish MPs from the conduct of English (and Welsh) business in the House of Commons, thus using that chamber as a proxy English parliament. But beyond that, most Conservatives are not fans of regional government seeing it as a step on the road to a federalised 'Europe of the regions' and in their mini-manifesto Believing in Britain they advocate the abolition of Regional Development Agencies and Regional Assemblies with 'their powers and budgets … given back to local authorities.'

Campaigns
There has been a robust campaign for regional government from the North-East, provocatively (?) backed by Hartlepool MP and now backbencher Peter Mandelson. Similar campaigns have begun to occur in other regions and in 1999 this prompted the formation of the Campaign for the English Regions. This is a national umbrella organisation designed to link the separate regional campaigns and with a brief 'to secure a commitment in the manifesto of the Labour Party and the other main parties to allow referendums on directly elected and representative regional governments in England in the term of the next parliament.' However, campaigns are less well-developed in a number of English regions and the South-East, Eastern Region, and East Midlands have yet to move on the issue. In the South-West, Cornish Nationalists want to exclude their county from any South-West regional assembly. They hope instead for a proper Cornish Parliament, with some urging that debates be conducted in the Cornish language which could be something of a problem since the last native-speaker died some years ago.

A regional hotch-potch
As things currently stand there has been the piecemeal development of a hotch-potch of Regional Development Agencies; voluntary Regional Chambers (which some regional 'constitutional conventions' want to see directly elected and re-badged as Regional Assemblies); and Government Offices of the Regions that were set up by the Conservatives in 1994. Some doubt whether RDAs have the powers and resources necessary to act as effective promoters of development in the regions; few think that the RCs have 'yet borne a great deal of visible fruit'; and how much public steam is there behind the regional campaigns for devolved assemblies along the lines of the National Assembly for Wales?

Local government or regional government?
London has a directly elected mayor and under the Local Government Act 2000 all local authorities are obliged to develop proposals to bring in a directly elected mayor; a cabinet and a leader; or a directly elected mayor with a council manager. But there is only so much room for new political organisations, and directly elected mayors would surely be rivals for the political 'space' that could be occupied by elected regional government. Moreover, would it be feasible to introduce regional government and retain the county councils alongside the district councils, in effect creating a three-tier system of sub-central government? Would not the creation of unitary authorities and the effective abolition of the county and district councils, promised in Labour's 1997 election manifesto, be a necessary step along the road to regional government?

The future
Last year, the Labour Party conference agreed 'as soon as practicable, to move to directly elected regional government where and when there is a clear demand for it'. The Constitution Unit at University College London has argued that from being on the political sidelines, the English Question and regional government has moved 'towards the top of the government's second-term agenda.' In March of this year, in a speech to business leaders in Cardiff, Tony Blair announced that he was prepared to hand more power to the English regions and 'where people vote for it, to move to directly elected regional assemblies.' With strong commitment, a freshly elected New Labour government could establish regional assemblies by 2004. That said, it might well choose to move more gradually, confining itself to giving statutory powers to the existing indirectly elected Regional Chambers, and it does have to confront the tricky issue of the relationship between regional and local government.

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GENERAL

Impact on Westminster & Whitehall
Devolution has obviously had an impact in Scotland, Wales and Northern Ireland but no should ignore its impact on the very centre of British politics. New machinery has been developed for intergovernmental relations, mainly in Whitehall but also in Westminster, and a new House of Lords Select Committee on the Constitution will play a vital role in scrutinizing relations between Westminster and the devolved Parliament and Assemblies.

Coalition government
In Westminster, one-party majority government is the order of the day but, thanks to the proportional voting systems, no single party has a majority in Scotland, Wales or Northern Ireland. Two-party coalition government is the reality in Scotland, and now Wales, whilst Northern Ireland struggles on with an 'involuntary coalition' of four feuding parties. There are tensions inside the assemblies and the executives between the coalition partners and 'conventions' have yet to develop to ensure that a measure of ordered government prevails over turbulence and double-dealing.

Policy benefits but who pays?
There are limits as to what devolved governments can do and Hazell has argued that there are 'no significant policy differences' and 'little to upset UK policy dominance'. This may be the BIG picture but we have already shown that devolved governments have come to do their own thing on a number of policy issues in ways that actually cost public money, so who pays?

All three devolved governments are funded on the basis of block grants from Westminster that are uprated annually through the application of the population-based 'Barnett formula' that was introduced in 1978. These grants are relatively generous. In Scotland, public expenditure per head is 23% above the English average; in Wales it is 18% above; and in Northern Ireland 39% above. All this thrusts the 'English Question' to the fore, with northern regions feeling particularly disadvantaged in relation to the more generous levels of spending just across the border. Pressure is growing for a review of the Barnett formula ('it is not written in stone' said John Prescott in April this year) but will New Labour in London rock the current funding boat when those in the three nations have somewhere else to go politically?

The asymmetry of the devolution settlement
It should be obvious from our discussion of devolution that there is no common pattern. 'Each of the assemblies has a different size and composition, a different system of government, and a very different set of powers.' England, with 85% of the population, is the gaping hole in the devolution settlement; there are those who argue that Scotland is 'over-represented, under-taxed, and excessively subsidised'; and across the nation, but especially in Northern Ireland, we are dealing with a dynamic and unstable process of change and not just a one-off and settled event.

Devolution has got off to a slow and rather shaky start and although Westminster might be 'quietly dominant' it is likely to be increasingly difficult for the centre to control what happens as the devolved governments feel the need to flex their muscles in response to their own electorates. So far, there has been no break-up of Britain and no major rows between Westminster and the devolved governments but little has been resolved in Northern Ireland.

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CHECK OUT

Robert Hazell (ed) The State and the Nations: The First Year of Devolution in the United Kingdom (London, Imprint Academic 2000)
http://www.ucl.ac.uk/consitution-unit

J.Osmond and J Barry Jones (eds) Inclusive Government and Party Management (Cardiff, Institute of Welsh Affairs, 2001)

J.Curtice and L.Paterson (eds) New Scotland, New Politics? (Edinburgh, Edinburgh University Press, 2001).
http://www.guardian.co.uk/devolved politics