The proposals from the cross-party Smith Commission for greater powers for the Scottish Parliament seek to redeem the pledge given by panic-stricken unionists on the eve of September’s referendum. On the surface, this appears to be purely a democratic question concerning the right of a small nation to self-determination and how it would be best exercised in modern conditions. Yet it raises fundamental matters of class politics that the left and labour movement ignore at their peril. The SNP took less than 24 hours to move from endorsing the Smith Commission settlement to dismissing it. The Scottish nationalists have reverted to their spurious separatist manifesto which claims to serve the interests of both big business and the Scottish working class. Their notion that Scotland could be “independent” within the orbit of the EU, Nato and the Bank of England to pursue policies in the fundamental interests of workers and their families is nonsense. This is the myth that must be exploded, although no pro-EU, pro-Nato party or movement can do so with honesty or credibility. Meanwhile, still running scared of the electoral threat posed by the SNP, the Labour Party central leadership immediately declared its unconditional support for the Smith package, leaving would-be leader of the party in Scotland and arch-unionist Jim Murphy looking painfully uncomfortable aboard the “devo-max” bandwagon. Of course, many of the Smith Commission’s proposals offer the potential for progressive advance with the right kind of government elected in Holyrood. Greater economic powers and control over electoral arrangements, including votes for 16 and 17-year-olds, are clear examples. But the devolution of some tax and welfare responsibilities could suck the Scottish Parliament into the quicksand. Most of the extra funds raised by a Scottish government to expand public spending would automatically result in a cut in Scotland’s block grant from Westminster and Whitehall. Thus the blame for austerity spending limits would be devolved from central government in London to the administration in Edinburgh. Moreover, the Smith Commission’s financial reforms would entrench a central funding system which discriminates against Wales and the poorest regions of England and excludes any element of wealth redistribution across Britain. Such a settlement would suit ruling class interests, centred as they are on the City of London, where a grossly disproportionate share of Britain’s wealth is grabbed by finance capitalists and either retained in south-east England or stashed abroad in tax havens. But working-class interests require a united response across Scotland, Wales and England to impose fair taxation on the rich and big business and redistribute wealth to those who actually produce it. Scotland’s new fundraising powers could supplement a block grant allocated on the basis of social need, rather than substitute for central funds disbursed according to the unfair Barnett head-count formula. Similarly, freshly devolved economic and financial powers should enable the Scottish government to intervene decisively in the economy to control market anarchy and plan for balanced growth. But this will be difficult if not impossible without challenging EU treaties and trade deals designed to impede public ownership and other essential policies. Again, working-class unity is the best basis for mounting such a challenge. It is also the best guarantee that a federal Britain can be built in which the peoples of Scotland, Wales and — where the democratic will exists — the English regions can elect parliaments with the powers and resources to govern in the interests of workers and their families.
Posted on: Wed, 07 Jan 2015 01:15:17 +0000
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