Smith Commission

Smith Commission. The Smith Commission was an independent, cross-party commission established by the British Government in the aftermath of the 2014 Scottish independence referendum. Chaired by Robert Smith, Baron Smith of Kelvin, its mandate was to broker an agreement on new devolved powers for the Scottish Parliament within the United Kingdom. The commission's work culminated in the Smith Commission Agreement, which formed the basis for the subsequent Scotland Act 2016.

Background and establishment

The commission was announced by Prime Minister David Cameron on 19 September 2014, following the referendum result where Scotland voted to remain part of the United Kingdom. During the campaign, the main pro-union parties—the Conservative Party, the Labour Party, and the Liberal Democrats—had jointly pledged to deliver "extensive new powers" for Holyrood in a "Vow" published in the Daily Record. The establishment of the commission, with a tight deadline for reporting, was intended to fulfill this political promise and address calls for greater devolution. Its creation was part of a wider constitutional debate that also led to the establishment of the Commission on Devolution in Wales.

Membership and remit

The commission was chaired by the independent crossbench peer Robert Smith, Baron Smith of Kelvin, a prominent businessman and former chairman of the Glasgow 2014 Commonwealth Games. Its membership comprised representatives from the five main political parties in the Scottish Parliament: the Scottish National Party (SNP), the Scottish Conservatives, Scottish Labour, the Scottish Liberal Democrats, and the Scottish Green Party. The remit was to convene talks and reach a consensus on a package of powers that would strengthen the Scottish Parliament in areas such as taxation, welfare, and public spending, while maintaining Scotland's place within the United Kingdom and the integrity of the UK single market.

Recommendations and proposals

The commission published its final report, the Smith Commission Agreement, on 27 November 2014. Its key recommendations included granting the Scottish Parliament full control over rates and bands of Income Tax and receiving all proceeds from this tax, a power shared with no other devolved legislature. It also proposed devolving significant elements of welfare policy, including aspects of Disability Living Allowance and Attendance Allowance, and assigning a portion of Value Added Tax revenues. Further powers were recommended in areas such as Air Passenger Duty, the management of the Crown Estate in Scotland, and some elements of employment programmes.

Implementation and legislative outcome

The UK government accepted the recommendations and published a command paper, *Scotland in the United Kingdom: An Enduring Settlement*, in January 2015. The proposals were translated into legislation through the Scotland Bill 2015-16, which was introduced to the House of Commons following the 2015 general election. After scrutiny and amendment in both the House of Commons and the House of Lords, the bill received Royal Assent in March 2016, becoming the Scotland Act 2016. This act significantly amended the founding Scotland Act 1998 and is considered the largest transfer of fiscal powers since the creation of the Parliament of Ireland in the 18th century.

Reception and analysis

Reaction to the commission's work and the resulting legislation was mixed. Unionist parties and the UK Government presented it as a historic and substantial devolution settlement that honored the pre-referendum Vow. However, the Scottish Government, led by First Minister Nicola Sturgeon, and the SNP argued it did not go far enough, particularly in excluding key welfare powers like Universal Credit and control over National Insurance. Some academics and think tanks, such as the Institute for Fiscal Studies, highlighted the new complexities and fiscal accountability created by the tax powers. The process remains a central reference point in ongoing debates about the future of the United Kingdom constitution and further constitutional change.

Category:Scottish devolution Category:2014 in Scottish politics Category:Commissions and inquiries in the United Kingdom