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Devolution reloaded
After Scottish Labour’s success in the polls, VINCE MILLS calls for bold devolution of immigration and borrowing powers to tackle Scotland’s economic challenges — and outflank the SNP

CONGRATULATIONS to the Scottish Labour Party (SLP) for its part in the victory over the despicable Tories on July 4. It won 37 seats (65 per cent) on a 35.3 per cent share of the vote, higher than Labour’s Britain-wide share of 33.7 per cent.

Although, as in England and Wales, it was a victory gained in the face of a spectacular collapse of its main rival, in Scotland’s case, the Scottish National Party (SNP) which lost 39 seats on a 30 per cent share of the vote, leaving them only 9 MPs in Westminster (16 per cent).

The victory was also won on a reduction in turnout of 8.4 per cent from the 2019 election to only 59.2 per cent and in a few constituencies the turnout was down by as much as 10 per cent. That was a bigger reduction than the UK turnout which fell by 7.6 per cent to 60 per cent.

In Scotland, the Liberal Democrats increased their seats from two to six on a 9.7 per cent share of the vote and the Tories lost a seat, on a 12.7 per cent share of the vote taking them down to five.

Reform managed a worrying 7 per cent vote share. The other parties that stood like Alex Salmond’s Alba and left parties did not reach 3 per cent of the vote share in any constituency.

The Scottish Greens did better on 3.8 per cent overall and in the cities of Edinburgh and Glasgow much better, with 10.9 per cent in Edinburgh North and Leith and 13.1 per cent in Glasgow South, for example, where the Green candidate was Niall Christie, formerly Scottish reporter for the Morning Star.

It is clear from this brief account of the election results in Scotland, that there was, as in England and Wales, no significant electoral challenge from left parties. In Scotland’s case, even the Scottish Greens failed to get near winning a seat. Unlike England, nor was there any electoral impact from independent candidates mobilised by the Gaza crisis.

Despite the dominance of the constitution in Scottish politics since the creation of the Scottish parliament, the SLP’s pitch heavily emphasised bread-and-butter issues. This included measures like cutting NHS waiting times, and setting up GB Energy in Scotland “to create good jobs and cut bills for good.”

Further promises on jobs saw commitments to creating opportunities for young people by improving access to apprenticeships, as well as establishing 69,000 Scottish jobs in the clean energy industries.

And last, but not least, it promised to deliver the New Deal for Working People “that will ban exploitative zero-hour contracts and deliver a genuine living wage for 200,000 Scots.”

In this they correctly identified key concerns of the Scottish and indeed Britain electorate as the economy and public services, specifically the cost of living and the NHS. As Stephen Low wrote in this paper last week, independence is now no longer the issue but neither has it disappeared.

Given that, on the devolution settlement, there was a rather limp promise in the SLP manifesto that UK Labour would “reset the devolution relationship.” This was linked to a commitment to “push power out to communities, using the economic levers available in Scotland … ”

Detail on how power will be pushed out, the controversial power to create regional mayors excepted, was thin on the ground in the manifesto. But interviews with Ian Murray, the ultra-unionist MP reinstalled as Secretary of State for Scotland, since the election, suggest that it will not involve additional powers for the Scottish Parliament despite polling evidence last year (commissioned by ex-Tory spin doctor Adam Morris) that most Scots want more powers for the Scottish Parliament.

Ignoring the wishes of the Scottish people is not the only reason why this is problematic. Firstly, given Labour’s recognition that economic growth requires decentralising, it is odd that they think that should only happen at a very local level. Scotland needs more powers if it is to address its current economic torpor.

Secondly, the SLP manifesto acknowledges that success in the general election is only the first half in the match against the SNP. The second half has already started and the final whistle will be blown on May 7 2026 when the votes are in for the general election of the Scottish Parliament.

Anas Sarwar, leader of the SLP is no doubt keenly aware that the one in four voters polls calculated went from voting “yes” in 2014 to supporting Labour in 2024 could go in the reverse direction in two years’ time if there is no significant improvement in their lives.

He has to show then, how Labour in charge of the Scottish parliament can make a real difference. By 2026 he is almost certain to face charges by the SNP, that Labour has failed to deliver for Scotland therefore the economic powers Scotland needs can only come through independence.

Which powers then should a Labour government be devolving to the Scottish parliament? The Red Paper Collective has been discussing this issue since 2012, but let me suggest just two that would help transform the Scottish economy. Scotland has a declining population which will increasingly undermine the supply of labour.

The Scottish parliament should have increased powers to issue visas that would let migrants live and work in Scotland. This measure already has a lot of support in Scotland including the STUC.

In their words: “Bespoke visa schemes for Scotland, combined with expanding international outreach activities in relation to immigration to advertise these new arrangements, would be an effective way of ensuring that immigration policy meets Scotland’s needs.” Scotland has a separate tax registration so this could be managed.

And while it is true that the current SNP government in Scotland could do much more with the parliament’s existing powers, including their limited borrowing powers, nevertheless the Scottish government’s capacity to tackle austerity and grow the economy would be greatly enhanced if it had increased borrowing powers.

The Scottish government should therefore have the power to borrow and issue bonds for both resource (e.g. public services) and capital (e.g. infrastructure) spending without any restriction.

The absence of any challenge to the constitutional status quo in the Scottish Labour manifesto can only be understood as a commitment to Westminster’s central management of the economy that has blighted Scotland for so long. It may yet come back to haunt Scottish Labour which looks as if it is regretting devolution, rather than resetting it.

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