Labour’s legislative programme will set the tone for relations between the Westminster and Scottish governments, writes TERRY MURDEN
They say that if you want something done ask a busy person. New Chancellor Rachel Reeves has, by her own self-imposed ambition, wasted no time gathering business leaders at the Treasury to outline her plans for the National Wealth Fund and raising housing targets as part of Labour’s attempts to stimulate economic growth.
Ms Reeves’ agenda will be the centrepiece of the King’s Speech on Wednesday when Labour’s Change manifesto will take the form of it first legislative programme and it will also set the tone between Westminster and the devolved nations and regions over a range of issues from energy transition to funding public services. As such, it may mark an end to the hostile political in-fighting of recent years.
The statement will build, not only on Ms Reeves’ energetic start to ministerial life, but on the early talks held by Energy Secretary Ed Miliband with the Scottish Government on the future of Grangemouth, a key plank in Labour’s green pledges, and John Healey’s promised review of defence spending.
At the very least, Labour can take credit for getting its plans in motion before the electorate has had time to fire off the first accusations of u-turns and flip-flops that dogged Sir Keir Starmer during his steady march into Downing Street. His army may have conquered Westminster and left the Tories suffering serious casualties, but there are major challenges ahead that will test Labour’s ability to transform the country.
There will be changes to devolution, focused primarily on more ‘metro mayors’ for England which have been seen as a success in generating local economies. Scottish Labour’s economy spokesman Daniel Johnson has called for a similar approach to local government north of the border where there is concern that too much power resides in the Edinburgh parliament.
Deputy Labour leader Angela Rayner has killed off another Tory legacy by removing Boris Johnson’s “levelling up” slogan from the housing, communities and local government department that she now leads.
Local government in England will get more powers over transport, housing and skills with changes to their budget settlements allowing for better planning and joined-up thinking. This new era of devolution is seen as key to improving the delivery of public services and may be seen as a model for Scotland if the SNP government is so minded to follow Labour’s lead.
Ms Rayner, however, needs to address the serious and chronic under-funding of local government which has had a knock on effect on the devolved governments’ ability to manage their own budgets. A radical restructure may be required to enable local authorities to get the full benefit of their new powers.
A potential for conflict may arise from Labour’s plans to beef up the Scotland Office and refusal to weaken the Tories’ Internal Markets Act which was put in place to ensure a level playing field for competition across the UK following Brexit. The SNP claims that it enables Westminster to overturn Holyrood decisions.
Labour’s intentions to reform business rates and planning will not apply in Scotland, putting more pressure on the SNP government to either adopt the same measures or come up with its own reforms. Without at least some similarity in replacement schemes there are obvious concerns for business.
On the energy transition, a new front has opened over the location of Labour’s publicly-owned GB Energy, an investment vehicle that for some time had been assumed to be a generator. Labour says it will invest alongside generators in the new cleaner power sources. The Highlands and Aberdeen are now competing to host its headquarters, with the former claiming it is a home to these industries of the future as opposed to those of the past, while Aberdeen says it has the workforce and the skills needed to make the transition.
This local spat is likely to be resolved in favour of one of the other as Labour is committed to basing GB Energy in Scotland. It should be another step in building on the promised collaboration between Holyrood and Westminster.
The bigger challenge will be how the two reach agreement on the timetable for transition. An erroneous report in the Daily Telegraph that Ed Miliband had ordered an immediate ban on new oil and gas licences sent the Tories into a frenzy and showed how sensitive the issue has become.
The difference in policy between Labour and the SNP is actually wafer thin. Both have said they accept the need to continue with some exploration, with the arguments being limited to how much more should be extracted and for how long.
A more active programme around how they make the shift to green energy work, including grid connections, would be welcomed by the companies, investors and the workforce.
Terry Murden was Scotland editor and Business Editor at The Sunday Times, Business Editor at The Scotsman, and Business and City Editor at Scotland on Sunday. He is now Editor of Daily Business
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