CoR - UK intro

Introduction

The United Kingdom is a constitutional monarchy and parliamentary democracy. The Parliament is bicameral and composed of the House of Commons and the House of Lords. The Government is led by the Prime Minister and the Head of State is the Queen.

The United Kingdom (UK) is an asymmetrically decentralised unitary state, comprised of England and three countries with devolved governments: Scotland, Wales and Northern Ireland. Although the UK Parliament[1] retains absolute sovereignty, the Scottish Parliament (Pàrlamaid na h-Alba) [2], the Welsh Parliament (Senedd Cymru – prior to May 2020 known as the National Assembly for Wales)[3] and the Northern Ireland Assembly[4] have acquired varying degrees of legislative powers since devolution in 1999. The arrangements established by the respective devolution Acts are not symmetrical – the powers of the three bodies have varied in nature and scope. There are generally speaking no formal positive lists of devolved powers. These are taken to be those powers that are not specified as “reserved matters" (or “excepted matters") of the UK Parliament.

As a result of the June 2016 referendum on membership of the European Union, the United Kingdom voted to leave the Union. The UK formally left the European Union (EU) on 31 January 2020. There is now a transition period until the end of 2020. No country has ever left the EU before, so in practice the UK Government is operating in an uncertain environment.

Implications for the definitive division of powers – and the union of countries within the United Kingdom – are unclear. The UK and devolved governments have agreed that common frameworks will be needed after the UK's exit from the EU to ensure that, in certain policy areas, there is no divergence between the nations of the UK where that would be undesirable.

The Scottish Parliament has primary and secondary legislative powers, as well as the power to set income tax rates. The Scotland Act 2012 made changes to the finances of the Scottish Parliament, including powers relating to borrowing and income tax, and made a number of adjustments to the boundary of devolved responsibilities. Following the rise of the Scottish National Party (SNP), forming its first majority Scottish Government in 2011 (and subsequently acquiring an absolute majority of seats in Scotland in the 2015, 2017 and 2019 UK general elections), a Scottish independence referendum was held on 18 September 2014, which asked the following question: “Should Scotland be an independent country?". After 55.3% voted against independence, Scotland remained in the UK. Following the referendum, draft legislation was issued, entitled “Scotland in the United Kingdom: An enduring Settlement"[5]. This has allowed for increased borrowing and greater revenue autonomy. Around 40 per cent of the (2020‑21) Scottish Budget is funded from revenue-raising powers devolved to the Scottish Parliament[6].

As a result of the Scottish referendum, the position of MPs from devolved nations was scrutinised, and the Commission on the Consequences of Devolution for the House of Commons was launched. It concluded with an answer to the "West Lothian" or "English" question, firstly as to whether MPs from devolved nations should vote on laws that affect only England. As a consequence, and after a majority Conservative government came to power in 2015, new parliamentary procedures were enacted to ensure MPs from England (and Wales) had more say in legislation affecting England (and Wales) only and an English Grand Committee was established, passed by the House of Commons[7]. The second aspect of the question, as to whether MPs with constituencies in England should vote on matters of devolved governments, arises less, since most of the issues affecting only the devolved parts of the UK are dealt with by the devolved parliaments.

Furthermore, the Scotland Act of 2016 introduced a range of new powers for the Scottish Parliament. Most notably the Parliament is now responsible for raising more than half of the money it spends[8]. Moreover, the Scottish Parliament sets the income tax rates and bands applying to non-savings, non-dividend income; the Scottish Government retains all devolved and assigned Scottish tax revenues. The Act also gives the Scottish Parliament new powers regarding: aggregates levy, air passenger duty, borrowing powers, consumer advocacy, the crown estate, elections, equal opportunities, employment programmes, energy efficiency and fuel poverty schemes, gaming machine licensing, income tax, onshore oil and gas licensing, public sector duty regarding socio-economic inequalities, railway policing, reserved tribunals, roads, social security, transport and VAT revenues.

The Northern Ireland Assembly has primary and secondary legislative powers; after several years' suspension due to disagreements at political (power-sharing) leadership level, the Assembly restarted work in January 2020. The National Assembly for Wales (now known as the Senedd Cymru or Welsh Parliament) received additional powers in 2006 under the Government of Wales Act (GoWA). Part 4A thereof allows the National Assembly to set the Welsh rates of income tax to be paid by Welsh taxpayers[9]. Following a referendum in March 2011, it was granted primary legislative powers in 20 specified areas, adopting “Acts of the Assembly", as well as secondary powers generally vested in Welsh ministers. The GoWA Act was amended by the Wales Acts of 2014 and 2017. The latter included putting in place a reserved powers model of devolution for Wales and devolving further powers to the Assembly and Welsh ministers in areas such as elections, transport, energy and the natural environment. The main change regarding devolved powers was the introduction of Schedule 7A to the Government of Wales Act 2006: this schedule defines the scope of the Assembly's legislative competence to adopt Acts of the Assembly (now known as "Acts of the Senedd"). Schedule 7A sets out the areas of policy – reserved matters – on which only the UK Parliament can legislate. Any area not listed in Schedule 7A is devolved to the Senedd. 2018 saw the commencement of the reserved powers model of devolution under the 2017 Wales Act; the first Welsh taxes came on stream. By 2019, Welsh income tax-varying powers were in place, as provided for in the 2014 Wales Act[10].

Note that these are not complete and absolute transfers of power: a) there are specified exceptions within both reserved and devolved powers; and b) the UK Parliament retains the right to legislate on all matters in all parts of the UK, although it would not normally do so without the consent of the devolved Assembly or Parliament concerned.

There are four legal systems in the UK: the laws of England and Wales (combined), Scots law, Welsh law and Northern Irish law.

Successive reforms have produced a complex set of bodies in England which are responsible for delivering public services at local level. There are 25 county councils in England (normally traditional two-tier areas), in which there also 188 district councils.

As well as the county councils, there are 57 unitary authorities in England; together these are responsible for all local services. Wales is divided into 22 unitary authorities (principal councils); Scotland has 32 directly elected unitary authorities (councils); Northern Ireland has 11 unitary authorities (local councils).

In England there are 36 metropolitan boroughs and 33 London boroughs. Ten Combined Authorities have been created in English metropolitan city regions, eight of which have directly elected mayors. A Combined Authority (CA) enables two or more councils to collaborate and take collective decisions across council boundaries.

The "regional" level in England has been pruned. The Government Offices for the Regions (GOs) were abolished in 2011; the nine Regional Development Agencies ceased operations in 2012 and have been replaced inter alia by Local Enterprise Partnerships (voluntary partnerships between local authorities and businesses).

Town and parish councils exist in some parts of England; Scotland and Wales have community councils. There are no such bodies in Northern Ireland.

The UK has no written constitution. UK legislation is available at the following site: http://www.legislation.gov.uk/. The constitution of the United Kingdom effectively consists of the Acts and Bills passed by the Houses of Parliament.

Fiscal powers in the United Kingdom remain relatively centralised, except in Northern Ireland. 31.7% of budgeted revenue expenditure in 2019-20 was scheduled to be funded through council tax. Central government grants were scheduled to account for 49.4%, with the remainder raised by authorities through the business rate retention scheme[11]. Scottish local government revenue in 2018-19 was composed of a General Resource Grant (57.8%), Non-Domestic Rates Income (NDRI - set nationally, and collected and retained locally) (22.1%) and council tax revenue (20%)[12], with fees and charges accounting for the rest. In Wales in 2018-19, local revenue was composed of 67% specific and general government grants, 20% council tax and 13% shared taxation[13]. In Northern Ireland local council revenue in 2018-19 was composed of about 70% autonomous taxation (district rates), 22% service fees and charges and other income and 8% from central government grants (6% revenue funding and 2% capital funding)[14].

Central level

The UK's reserved powers[15] (central powers applying in every part of the UK) include:

the constitution
foreign affairs
defence and national security
international development
macro-economic and fiscal matters
immigration, asylum and nationality
international trade and financial markets
competition
international development
UK parliament elections
aspects of transport (e.g. regulation of air services and international shipping)
financial services and pensions
national minimum wage
broadcasting and telecommunications
intellectual property
foreshore and seabed.

The UK's reserved powers also include:

In Scotland

employment law
cross-border rail
energy
social security (in part)
genetics, surrogacy, medicines and embryology
Civil Service
equal opportunities (in part)
postal services

In Wales

employment law
cross-border rail
energy
social security
abortion, genetics, surrogacy, medicines and embryology
Civil Service
equal opportunities (in part)
postal services
justice and policing
charity law

In Northern Ireland

firearms and explosives
nuclear energy

Regional level

The UK has devolved powers (to every devolved part of the UK) in the following areas:

agriculture, forestry and fisheries
education, training and skills
environment and planning
health and social services
housing
law and order
local government
sport, culture and heritage
tourism
economic development
transport
fire and rescue services
water and flood defence.

The UK has also devolved powers inter alia in the following domains:

To Scotland

justice and policing
charity law
drink-drive limits
stamp duty
onshore oil and gas extraction – licensing
some income tax (ability to set rates and thresholds)
equal opportunities (in relation to public bodies in Scotland)
air passenger carriage tax
abortion
landfill tax
some areas of social security
consumer advocacy and advice
Scottish parliament and local elections
road signs and speed limits
railway policing

To Wales

Welsh language
some income tax
stamp duty
landfill tax
road signs and speed limits
equal opportunities (in relation to public bodies in Wales)
onshore oil and gas extraction – licensing
Welsh parliament and local elections

To Northern Ireland

justice and policing
charity law
energy
employment law
social security, child support, pensions
NI Civil Service
equal opportunities
time
long-haul air passenger duty.

Local level

In the two-tier areas in England:

County councils are responsible for: education, transport, planning, fire and public safety, social care, libraries, waste management and trading standards.

District councils are responsible for: rubbish collection, recycling, council tax collections, housing, and planning applications.

Unitary authorities – councils – in England, Wales and Scotland, and district councils in Northern Ireland, are responsible for local services.

In London and metropolitan areas, some services, like fire, police and public transport, are provided through 'joint authorities' (in London by the Greater London Authority).

The Greater London Authority (GLA) shares responsibilities with the London boroughs (councils) in, inter alia, the following areas: