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Dialogue Between the Scottish Government and Uk Government About the Scotland Bill

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Dialogue Between the Scottish Government and Uk Government About the Scotland Bill DIALOGUE BETWEEN THE SCOTTISH GOVERNMENT AND UK GOVERNMENT ABOUT THE SCOTLAND BILL Main events May 2010 14 May Introductory meeting between Prime Minister, First Minister, Secretary of State for Scotland (Danny Alexander) and John Swinney 24 May Letter from Fiona Hyslop to Danny Alexander offering to work closely on the development of the devolution settlement. 27 May Letter from Mr Swinney to the Chancellor proposing joint work between Scottish and UK Government officials on financial issues, including bolder and more ambitious proposals than the Calman Commission June 02 June Letter from new Secretary of State (Michael Moore) to First Minister inviting discussion on developing the Calman Commission proposals. 03 June Letter from First Minister to Michael Moore with critique of Calman Commission proposals (copied to HMT Ministers) 07 June John Swinney writes to the Chief Secretary and Michael Moore with analysis of the financial recommendations made by the Calman Commission . 07 June Introductory meeting between Fiona Hyslop and Michael Moore 07 June Introductory meeting between First Minister and Michael Moore 09 June Meeting between Scottish and UK Government officials about the financial aspects of the Bill, focusing on the Scottish Government’s critique of the Calman proposals. 14 June Letter from the Prime Minister to the First Minister agreeing work to be taken forward as a matter of high priority between Scottish and UK Government officials to examine the Calman Commission proposals and alternatives. 15 June Letter from Michael Moore to Fiona Hyslop agreeing to work together on the Calman Commission, including the SG’s proposals 18 June Meeting between SG and SO officials in London to discuss development of Bill. SO undertaking to share policy thinking and draft material. 29 June Letter from Chief Secretary to the Treasury (Danny Alexander) to Mr Swinney reiterating UKG commitment to the Calman financial proposals, but indicating a keenness to listen to SG views 29 June CST appeared at SP Finance Committee; reiterated UKG commitment to Calman proposals 30 June Meeting between Scottish and UK Government officials about the financial aspects of the Bill. HMT officials set out their assessment of the problems with Calman relating to volatility and policy risks July 05 July DG Economy letter to HMT summarising the work to date and emphasising the Scottish Government’s position that more ambitious proposals for fiscal reform are required to overcome the shortcomings of the Calman Commission proposals 05 July Letter from Mr Swinney to CST emphasising SG proposals address flaws in the Calman Commission proposals in line with the principles identified by the Commission. 6 July Letter from Perm Sec to Sir Gus O’Donnell on parameters for financial discussions 08 July HMT letter confirming that proposals should contain significant economic levers but that UK Government was committed to implement Calman rather than more ambitious proposals for fiscal responsibility 09 July Telephone conference between Scottish and UK Government officials about the financial aspects of the Bill 13 July Meeting between Scottish and UK Government officials about the financial aspects of the Bill. Agreement to produce a joint issues paper for Ministerial discussion (paper was ultimately superseded by telephone conversation between FM and Chancellor in August) 26 July First meeting of SO/HMT Ministers’ stakeholder group on Calman implementation, in Edinburgh. SG sent an observer. August 06 Aug Letter from DG Economy to HMT stating that the Scottish Government was temporarily suspending discussions between Scottish and UK Government officials, due to a lack of substantial engagement from HMT on flaws with Calman highlighted by SG and the proposals for full financial responsibility. Emphasised need for Ministerial discussion 10 Aug Video-conference between SG and SO officials to compare positions on the Calman non-financial proposals. 13 Aug HMT reply to DG Economy acknowledging the issues raised in the letter. 18 Aug Telephone call between the First Minister and the Chancellor to discuss the Calman recommendations and SG proposals for full fiscal responsibility, allowing resumption of official exchanges 24 Aug Video-conference between SG and SO officials about Bill progress and the Parliamentary/Inter-Parliamentary recommendations of Calman. September 09 Sept Meeting between SG and HMT to discuss technical issues with Calman, including the volatility of tax revenue and policy spillovers from UKG actions. 13 Sept Meeting between SG and HMT to discuss the Scottish Government’s proposals for full fiscal responsibility within the UK. 15 Sept Video-conference between SG and SO officials to discuss progress on Bill. 16 Sept Letter from Michael Moore to Fiona Hyslop stating commitment to implement Calman package and suggesting a meeting. 27 Sept Video-conference between SG and SO officials about Bill progress and the Parliamentary/Inter-Parliamentary recommendations of Calman. 30 Sept DG Economy writes to HMT emphasising that the need to make further urgent progress given the timing of the Scotland Bill. 30 Sept Letter from Fiona Hyslop to Michael Moore with a further explanation of the SG position on the Calman non- financial proposals and seeking dialogue on improvements and extensions to the package. Letter also sought clarification on proposals for implementing those aspects of Calman which had been overtaken by wider policy developments, eg welfare reform, and inter-governmental dialogue on the inter-parliamentary proposals of Calman. October 01 Oct HMT reply to Dr Goudie’s letter agreeing that further progress needs to be made. 11 Oct Telephone meeting between Ms Hyslop and Michael Moore about the progress of the Bill 14 Oct Fiona Hyslop writes to Michael Moore summarising recommendations in the Bill which the UKG and SG are in broad agreement on, and making case for devolution of marine environment. Provides detailed arguments against the proposed reservations. Urges early sharing of draft provisions. 17 Oct DFM writes to Iain Duncan Smith asking how the UKG intends to implement the recommendations on welfare made by the Commission on Scottish Devolution, given that the UKG deems its plans for welfare reform to have overtaken the Commission’s recommendations. 18 Oct Meeting between Ms Hyslop and Michael Moore about the progress of the Bill. Agreement to share draft clauses in confidence. 18 Oct First 2 sets of draft clauses passed by SO to SG for comment (technical provisions about the appointment of deputy presiding officers and statements of legislative competence about Bills). 21 Oct Letter from Michael Moore to Fiona Hyslop noting the agreement to share draft non-financial clauses in confidence and seeking a similar process on financial clauses. 15 Oct Video conference between SG and HMT. Cancelled by HMT. 26 Oct Video conference between SG and HMT scheduled to devolving specific taxes and enabling powers in the Scotland bill. Cancelled by HMT on the day. First meeting of HMRC’s technical working group on the income tax proposals. SG not invited November 1 Nov First meeting of HMRC’s technical working group on the impact of the income tax proposals on pensions. SG not notified of the meeting. 03 Nov Letter from Michael Moore to John Swinney notifying SG of the stakeholder meeting the following date, outlining the proposed policy framework for the Calman income tax provisions and seeking assurances about sharing of financial clauses in confidence. 04 Nov Letter from Fiona Hyslop to Michael Moore providing the assurances about the handling of the financial clauses. Letter requested to be kept fully informed about exchanges with the Scottish Parliament. It also expressed concern about the slow progress in consultation on draft clauses and the delays in engagement on financial matters. 04 Nov Second meeting of SO/HMT Ministers’ stakeholder group on Calman financial proposals, in Edinburgh. SG sent observers. 04 Nov Meeting between SG and HMT/SO in Edinburgh to discuss borrowing for resource and capital expenditure and devolution of small taxes Calman. SG handed over proposed clauses on HMT outlined its thinking on borrowing, but could borrowing and small taxes, as the not share draft provisions. basis of discussion. 05 Nov 3 further draft clauses provided for comment (covering re-reservation of health professions, devolution of aspects of drug licensing and SP corporate body). 5 Nov Letter from SG Constitution Director to SO hoped to share further clauses early in the w/c head of Scotland Office expressing 9 November. concern about slow progress in sharing of draft provisions. 9 Nov Video -conference between SG and SO officials to discuss progress on Bill. Further clauses promised imminently. 9 Nov It emerged in discussion with SO that UK is considering technical amendments to the Scotland Act. No prior consultation. 10 Nov Fiona Hyslop writes to Michael Moore requesting that SG officials be invited to attend HMRC’s Technical Groups to discuss the tax proposals, as previously agreed. The letter also emphasises the need for full engagement on the Bill, and seeks an indication of the UKG’s policy positions on matters which impact on the devolution settlement but which the UKG seems unlikely to include in the Bill 10 Nov 5 further draft clauses provided for comment on non-financial elements of the Bill. 11 Nov Further letter from SG Constitution Director to head of Scotland Office noting that time appeared to be running out for consultation about the financial elements of the bill, The letter referred to the consultation requirement in Devolution Guidance Note 10. 11 Nov Telephone conference between SG, HMT and SO officials to discus the design of the borrowing provisions for the Bill. Agreement to discuss further on 19 November. 12 Nov Michael Moore writes to Fiona Hyslop outlining the UKG’s emerging thinking on financial provisions for the Scotland Bill 12 Nov 2 policy notes provided for comment on non-financial elements of the Bill (appointments to BBC Trust and Crown Estate Commission) 13 Nov Letter from DFM to Andrew Lansley setting out case against the reservation of health professions.
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