In a recent article, the Mercat Group highlighted the need for a vital conversation on how public services in Scotland are delivered. For over 25 years, Scotland has seen the devolution of power from Westminster to the Scottish Parliament, yet local councils have seen little of that power returned. Instead, more services are being managed by unelected quangos, diminishing the influence and capacity of local authorities.
A Vision of Local Empowerment
The Mercat Group, comprising former chief executives from Scottish local authorities, argues that the original devolution settlement has been reversed. While services continue to be centralized, the role of Scotland’s councils has diminished. The Scottish Government now functions as the largest local authority in Scotland, an imbalance that the Mercat Group believes needs to be addressed.
The call for a reset in the governance of Scotland’s public services is urgent. The Mercat Group proposes that a Scottish Civic Convention be established to lead a public conversation on how services should be restructured. This review would look at the importance of devolving decision-making powers back to local councils. The idea is simple yet impactful: restore local democracy by ensuring decisions are made at the local level, where communities can hold their representatives accountable.
Necessary Conditions for Change
To facilitate this conversation and restore the balance of power, the Mercat Group has outlined a set of conditions they believe are essential to clearing the space for the Civic Convention to work effectively. These conditions are focused on enabling local councils to regain financial autonomy and control over their own decision-making processes.
Proposed Conditions:
- A Moratorium on Further Service Removals from Local Councils
- Public sector reforms over the past decades have weakened local councils by taking away essential services. To ensure any future reforms align with the needs of local communities, no further services should be removed from local councils without a thorough review and public consultation.
- Transfer Ring-Fenced Budgets to Councils
- This would allow councils to use their budgets more flexibly to meet local needs, offering greater control and responsibility over how funds are allocated.
- Provide Three-Year Funding Settlements
- Long-term funding arrangements would provide councils with the certainty they need to plan and deliver services more effectively.
- Full Control of Council Tax by Local Councils
- Councils should have the autonomy to set council tax rates without interference from the Scottish Government. This would strengthen local accountability and align funding more closely with local priorities.
- Independent Review Group on Finance and Taxation
- A review group should be established to explore how business rates can be determined by local councils, and to consider other forms of local taxation such as tourism taxes and land development taxes.
Possible Flexibilities for Immediate Action
The Civic Convention, once established, could also review certain areas where local councils could regain control or test pilot programs to adjust governance structures for greater local impact.
- Abolish Regional Education Improvement Collaboratives
- Transfer Public Health from Health Boards to Local Councils
- Strengthen the Accountability of Health and Social Care Partnerships
- Reassign Responsibilities from Scottish Enterprise and Skills Development Scotland to Local Authorities
- Enhance Scrutiny of Police and Fire Services at the Local Level
- Create Statutory Accountability for Quangos to Local Community Planning Partnerships
By enabling councils to take on more responsibility in these areas, local democracy could be revitalized and service delivery would better reflect community needs.
The UK Government’s Shift Towards Local Governance
Interestingly, the UK Government has also shown signs of recognizing the value of local governance. The recent English Devolution White Paper stresses the importance of local authorities in solving local problems. Proposals include transferring responsibility for a wide range of services, including housing, regeneration, and transport, to local governments.
This approach, while still under discussion, could provide valuable insights for Scotland. A similar recognition of local government’s capacity to deliver solutions could be the catalyst for the changes needed to strengthen local democracy in Scotland.
A Blueprint for the Future of Scottish Governance
The Scottish Parliament has achieved much since devolution began, but it is clear that local democracy has suffered. The Mercat Group’s call to restore local decision-making is not just about decentralizing power, but about making Scotland’s governance structures more efficient and responsive to the needs of local communities.
After 25 years of devolution, it is time to rethink the governance structures in Scotland and return to the vision that councils should be empowered to drive local progress. The Civic Convention could be the mechanism that brings about this vital change—ensuring Scotland’s future is built on democratic principles, local accountability, and stronger communities.
