Meeting of the Parliament 09 January 2024
The convener partly answered Mr Swinney’s question about how that would happen. There has been and continues to be a need for the UK Government to understand and accept what happens in the devolution process and the way in which that is managed, but I fundamentally believe that we can find a way forward. There must be a way forward to ensure that we can work collaboratively and take a holistic approach to making things work.
The committee’s report makes recommendations. It talks about the need for a new memorandum of understanding to be developed. That would be a good way of trying to manage the situation going forward. For that recommendation to be successful, it needs a positive approach. That option would keep some of the advantages of the current system, which need to be considered.
We have already discussed the internal market, which I have no doubt will continue to be discussed in many speeches in the debate. The committee heard numerous opinions on the United Kingdom Internal Market Act 2020 and how it relates to the devolution settlement. The Scottish Government stated in evidence that the act is a
“wide-ranging constraint on devolved competence”,
and we have heard that from the cabinet secretary today. However, we have to acknowledge that the act will have an effect on the economy, and we must understand that.
The committee heard evidence that significant divergence can
“be expensive for businesses, disrupt supply chains and, ultimately, reduce choice for consumers.”
We also heard about the important issue of
“what divergence would mean for the effective delivery of business on both sides of the border.”—[Official Report, Constitution, Europe, External Affairs and Culture Committee, 9 March 2023; c 6-7, 8.]
We have to understand that exports to the rest of the UK continue to increase, and now make up 61 per cent of Scottish exports, and that about two thirds of imports come from the rest of the UK. That is vitally important, as we talk about jobs and trade in the United Kingdom.
The possibility of regulatory divergence between different parts of the United Kingdom that responds to the different needs and circumstances is an important principle. However, the principle must not come at the expense of preventing the UK internal market from operating effectively. The operation of the internal market is therefore vitally important to the success of the economy in Scotland.
When we look at how devolution will work in the future, we find that there may be significant changes compared with where we have been. Devolution has been a success in the past, and Brexit cannot be seen as a complete failure. Some people believe that, and I have no doubt that we will hear that today, but I automatically think that there is potential in where we want to take that. We need to think about the principles of the devolution settlement that we will create under Brexit.
The committee talked about a “shared space” between the UK and Scottish Governments after Brexit, which is vital. Along with other members of the Constitution, Europe, External Affairs and Culture Committee, I will continue to push for that approach at all levels of Government, to continue the success. By working together, we can achieve things in a much better way.