The Smith Commission's recommendations for the further devolution of powers to Scotland would significantly change Scotland's devolution settlement, adding greater complexity to the relationship between the UK and Scottish Governments. This report considers the Government's proposals for implementing the Smith Commission's recommendations, set out in the Command Paper "Scotland in the United Kingdom: An enduring settlement". The Committee considers the process by which these proposals were produced, and then examines their implications for the constitution of the UK as a whole. The Smith Commission was given only two months to produce its recommendations, and took less than four weeks to produce its proposals once the closing date for public submissions was reached on 31 October 2014. This is not to criticise Lord Smith of Kelvin, nor the members of the Smith Commission, who worked effectively to a tight timetable. Its recommendations are, however, necessarily the result of a short process, with minimal time for consultation and for engagement with the UK and Scottish parliaments. Yet the leaders of the three main UK-wide political parties agreed to implement the recommendations of the Smith Commission in advance of its first meeting. The Committee are deeply concerned that this agreement has pre-empted any possibility of meaningful consultation and discussion on the merits of the proposals with either the Scottish or UK Parliament, or indeed with citizens and civil society both in Scotland and across the UK. In particular, it restricts the capacity of the UK Parliament to contribute to the development of these proposals. Nor does the Smith Commission process meet the standards expected for the production of proposals for significant constitutional change.

The Smith Commission's recommendations for the further devolution of powers to Scotland would significantly change Scotland's devolution settlement, adding greater complexity to the relationship between the UK and Scottish Governments. This report considers the Government's proposals for implementing the Smith Commission's recommendations, set out in the Command Paper "Scotland in the United Kingdom: An enduring settlement". The Committee considers the process by which these proposals were produced, and then examines their implications for the constitution of the UK as a whole. The Smith Commission was given only two months to produce its recommendations, and took less than four weeks to produce its proposals once the closing date for public submissions was reached on 31 October 2014. This is not to criticise Lord Smith of Kelvin, nor the members of the Smith Commission, who worked effectively to a tight timetable. Its recommendations are, however, necessarily the result of a short process, with minimal time for consultation and for engagement with the UK and Scottish parliaments. Yet the leaders of the three main UK-wide political parties agreed to implement the recommendations of the Smith Commission in advance of its first meeting. The Committee are deeply concerned that this agreement has pre-empted any possibility of meaningful consultation and discussion on the merits of the proposals with either the Scottish or UK Parliament, or indeed with citizens and civil society both in Scotland and across the UK. In particular, it restricts the capacity of the UK Parliament to contribute to the development of these proposals. Nor does the Smith Commission process meet the standards expected for the production of proposals for significant constitutional change.

On 18 September 2014, Scotland held a referendum on the question "Should Scotland be an independent country?". 55.3% of voters cast their ballot in favour of remaining part of the United Kingdom. In the lead up to the referendum the three largest UK political parties pledged to devolve further powers to the Scottish Parliament in the event of separation being rejected. The day after the referendum the Prime Minister invited Lord Smith of Kelvin to set up a commission to take forward that commitment. This report focuses on the recommendations of the Smith Commission, particularly those on taxation and welfare, and the work of the UK Government in transposing those recommendations into draft legislation. The Committee believes the Smith Agreement represents the best of both worlds for Scotland giving much greater fiscal autonomy and accountability, but maintaining a good degree of protection within the wider UK economy from fiscal risks and shocks. The Committee is surprised, however, that the Scottish Government did not raise its concerns when it was initially consulted over the draft text of the clauses but instead waited until after publication to air them. The idea that the draft clauses contain "twelve vetoes" is a ludicrous one and it is disappointing that the UK Government failed adequately to rebut such claims. It is hoped that a good working relationship between the two Governments will mean that consultation will be routine, agreement a formality, and that dispute will not arise.

Proposals for devolutionary change in Scotland, Wales, Northern Ireland and England have been made at what appears to be dizzying speed since the Scottish referendum result in September 2014. This report considers what these developments mean for the future of devolution across the United Kingdom, and finds that the settlements have been approached in a bilateral fashion and without much consideration of what each means for the future of the Union as a whole. Scottish devolution has been able to move further and faster because many of the key issues had already been debated fully during the referendum campaign. Nevertheless the implications of further transfers of powers for the Union as a whole must be fully taken into account. While the political commitments made on the implementation of further devolution for Scotland should be honoured in full, and to the timescale envisaged, the rushed process of the Smith Commission Agreement cannot substitute for a full deliberation on the constitutional future of all elements of the United Kingdom. Amongst other recommendations, the Government should establish, in the first six months of the new Parliament, a commission to review proposals for further devolution within England and to reach agreement on a suite of powers which local authorities can draw down where they can demonstrate demand and popular support. A Convention for England, with broad popular representation from the public and civil society, could examine the relationship between England and the United Kingdom and develop a process for further agreed devolution from the centre to regions and localities

During the Scottish independence referendum campaign, political commitments were made which led, after the "No" vote, to the convening of the Smith Commission, the purpose of which was to facilitate an agreement for further devolution of powers to the Scottish Parliament. Draft clauses were published by the Government in response to the Smith Commission's report. The Committee have reviewed those draft clauses which concern political and constitutional reform (draft clauses 1 to 9). While the Committee acknowledges the political reasons for swift publication of the clauses, they express concern that this seems to have been at the expense of broader consideration of the consequences for the future of the UK. The Committee are disappointed there has been no attempt to provide for full pre-legislative scrutiny of the clauses by this Parliament. The Committee call upon the incoming administration to recognise, and consult upon, the consequences for all parts of the UK when introducing legislation to implement the Smith Commission Agreement and other proposals on constitutional reform affecting the Union. The Committee further recommends that the Government establish a mechanism for considering the effects of proposed devolution settlements in the round, together with the trends towards decentralisation in England, to ensure that change strengthens the Union.

The UK Government is undertaking a major cross-government programme of analysis prior to the referendum on Scottish independence in 2014. The aim is to provide a comprehensive and detailed analysis of Scotland's place in the UK. This paper, the first of a series to be published in 2013 and 2014, examines the UK's constitutional set-up and the legal implications of independence. The UK Government is convinced that the current devolution offers the best for Scotland: the Scottish Parliament and Government are empowered to take decisions on a range of domestic policy areas - such as health, education, policing - while Scotland continues to benefit from decisions made for the UK as a whole - defence and security, foreign representation, economic affairs. Independence is very different to devolution. Based on independent expert opinion (published as Annex A), the paper concludes that if there were to be a vote in favour of leaving the UK, Scotland would become an entirely new state whilst the remainder of the UK would continue as before, retaining the rights and obligations of the UK as it currently stands. Any separation would have to be negotiated between both governments. Legal and practical implications of independence, both at home and abroad, are addressed. An independent Scotland would have to apply to and/or negotiate to become a member of whichever international organisations it wished to join, including the EU and NATO. Scotland would also have to work through its positions on thousands of international treaties to which the UK is currently party.