Three key Scottish questions for Rishi Sunak

1 year ago 31

Rishi SunakImage source, PA Media

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Rishi Sunak says helium wants to enactment intimately with the Scottish government

By Philip Sim

BBC Scotland governmental correspondent

Rishi Sunak has signalled that Scotland is connected his mind, with a telephone telephone to Nicola Sturgeon connected his archetypal time successful office.

And successful his archetypal quality successful the Commons arsenic premier minister, Mr Sunak reiterated that helium wanted to enactment intimately with the Scottish government.

But portion helium whitethorn beryllium seeking a person narration with the archetypal curate than his predecessor Liz Truss - who ne'er got arsenic acold arsenic picking up the telephone - determination are inactive heavy governmental differences betwixt their governments.

Here are 3 cardinal Scottish questions for the caller PM which could specify however his caller medication is seen northbound of the border.

Can helium 'level up' Scotland?

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The 2 governments person worked unneurotic connected freeports

As chancellor, Mr Sunak helped found a strategy of making nonstop investments successful section projects crossed the UK done "levelling up funds".

Levelling up was a Boris Johnson-era buzzword, but Mr Sunak has already fixed a "cast-iron commitment" to proceed it - and Michael Gove has been enactment backmost successful complaint of the department.

Mr Sunak's speech of starring "the astir progressive UK-wide authorities successful decades" besides suggests helium is keen to grow the boots and currency connected the crushed attack successful a bid to emphasise to Scots that they person 2 governments moving connected their behalf.

For each that this is arguable with Scottish ministers, who fishy Holyrood is being chopped retired of the loop successful a "Westminster powerfulness grab", it is hard for adjacent SNP-run councils to garbage other funds.

And determination are besides cross-border projects which impact much practice - similar the concern zones announced by Ms Truss, which would connection incentives to firms to assistance concern flourish successful definite areas.

Scottish Finance Secretary John Swinney told MSPs that ministers had "engaged successful treatment constructively" astir mounting up immoderate of them northbound of the border, though helium said determination were "very delicate judgements" to beryllium made.

There is precedent for the governments moving unneurotic connected schemes similar this, similar freeports - which Scottish ministers got connected committee with aft mildly rebadging them arsenic having greenish credentials. A akin compromise statement could beryllium struck here.

Less fashionable volition beryllium Ms Truss's plans for a caller circular of North Sea lipid and state licencing.

While Nicola Sturgeon hopes to usage the manufacture to bankroll an concern money post-independence, she is besides keen to determination connected to greenish vigor and a "net zero" system arsenic rapidly arsenic possible.

This is 1 country wherever the UK authorities tin property up careless - dissimilar the promised reforms to the readying strategy Mr Sunak is besides mulling, which volition not use successful Scotland.

The devolution of readying powers besides means that decisions astir fracking and the gathering of caller atomic powerfulness stations volition beryllium efficaciously vetoed by Scottish ministers.

Can helium debar austerity successful Scotland?

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There was a gloomy aerial to the caller premier minister's archetypal code connected the steps of Downing Street, informing of the "profound economical challenge" and "difficult decisions" ahead.

The instrumentality of Jeremy Hunt arsenic chancellor suggests the question of fund cuts and imaginable taxation rises helium was informing of volition travel to fruition, though we volition present request to hold until mid-November for the detail.

This means it besides remains to beryllium seen however it volition impact Holyrood's finances.

Mr Swinney has delayed an update to MSPs portion helium waits for clarity and fiscal forecasts - for each that helium somewhat bullishly insisted helium hadn't bothered to update his calculations based connected the Truss "mini budget" due to the fact that helium was truthful assured it would collapse.

The lawman archetypal curate has already made immoderate cuts, informing that ostentation and the rocketing outgo of nationalist assemblage wage deals person efficaciously knocked £1.7bn disconnected the existent year's budget.

Mr Sunak aspires to pare backmost taxes successful the longer term, but much arsenic a reward for short-term prudence and getting ostentation nether power than arsenic an ideological touchstone. Indeed, taxation rises whitethorn beryllium connected the array successful the immediacy.

Image source, Reuters

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Nicola Sturgeon has soubnded the alarm astir austerity

Income taxation is devolved to Holyrood, but changes to rates successful England and Wales person a nonstop knock-on effect connected the artifact grant.

So could large cuts to departmental budgets, which is wherefore Nicola Sturgeon is already sounding the alarm astir a instrumentality to austerity measures.

Questioned astir this by the SNP's Westminster person Ian Blackford, Mr Sunak said his grounds arsenic chancellor during the Covid pandemic had demonstrated that helium would ever look to "protect the astir vulnerable".

Tighter budgets mean hard choices each round. If Scottish ministers privation to effort to offset cuts successful 1 area, they either request to instrumentality the wealth from different portfolio oregon look to hike taxes successful their ain budget, owed to beryllium published successful December.

Uprating benefits successful enactment with ostentation would besides person an interaction successful Scotland, some successful schemes which are inactive tally from Westminster - similar Universal Credit - and successful the currency sent to Holyrood for the moving of the devolved societal information system.

Scottish ministers are pressing UK counterparts to bring successful other windfall taxes to money enactment schemes for households and inflation-matching rises successful benefits and pensions - and besides privation to spot Holyrood's fund boosted adjacent year.

Will helium alteration his caput connected indyref2?

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Perhaps the astir evident clash betwixt the Scottish and UK governments is implicit Nicola Sturgeon's program for an independency referendum connected 19 October 2023.

Mr Sunak has described having a caller ballot during a outgo of surviving situation arsenic "quite frankly barmy", and said helium could not ideate the circumstances wherever helium would backmost one.

This deadlock isn't precisely new, arsenic helium is present the 4th premier curate to employment the "now is not the time" enactment successful 5 years.

He has arrived successful bureau to an unthinkable stack of issues weighing down his in-tray and is improbable to privation to adhd to them, truthful the question whitethorn beryllium whether Ms Sturgeon tin bash thing to unit Mr Sunak's hand.

If the Supreme Court were to regularisation that MSPs tin acceptable up a referendum themselves, that could beryllium a important lever. But a woody would inactive beryllium needed, fixed the Scottish authorities argued successful tribunal for a "consultative" ballot which would lone pave the mode for negotiations and authorities astatine Westminster.

Majoring connected the constitution saw the Tories determination into 2nd spot astatine Holyrood successful the aftermath of the 2014 referendum, truthful Mr Sunak whitethorn consciousness the party's campaigning volition summation much from maintaining a steadfast refusal than from agreeing to engage.

Ms Sturgeon noted that she had discussed "mutual respect, including for mandates" with the premier curate during their introductory telephone call.

She believes she has a mandate for a referendum; Mr Sunak believes helium has a mandate to tally the UK authorities for different 2 years without a wide election.

Respect determination whitethorn be, but statement connected either constituent is improbable to beryllium forthcoming.

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