Independent Commission on the Constitutional Future of Wales – Final Report
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Specialist communications support for the development and infrastructure sectors
?Overview of Report?
Published last week, the Independent Commission on the Constitutional Future of Wales, has called for urgent changes to the Welsh devolution settlement, arguing for the transfer of further legislative and regulatory powers to the Senedd and Welsh Government.??
The report has identified significant issues with the current system of governance within the Union and presented three viable options for Wales moving forward:??
The final report concludes that all three options are entirely feasible for the long-term, but immediate changes are needed, including the devolution of powers over financial management, justice and policing, energy, and rail infrastructure. There are also calls for improvements regarding citizen understanding and education at a devolved level, and legislated protections for inter-governmental relations, particularly to enshrine the Sewel Convention into statute law. The Report concludes that Welsh democracy and devolution is in dire need of revitalisation and calls for new democratic innovations and institutions to enhance civic participation and representation.?
The overwhelming message of the report is that the current status quo of devolved Wales is unsustainable, and changes need to be made in order to address the needs of the citizens of Wales.??
Recommendations on Energy?
On energy specifically, the report states that an expert group should be convened with the UK Government to discuss how energy could be reformed to prepare for rapid technical innovation in energy generation and distribution as a means of ensuring that Wales maximises its contribution to net zero through the local generation of renewable energy.?
The Commission established six-groups on specific, thematic issues, where the boundaries of devolution come into question. The energy sub-group identified four key areas for discussion: inter-governmental engagement; regulation; local energy generation and trading; and the management of the Crown Estate.??
Referencing the impact of UK energy policy on devolved matters, such as economic development, the sub-group concluded that stronger cooperation and consultation between the two governments should be institutionalised given the existence of overlapping responsibilities. It was also felt that some of the current reserved powers appear outdated and lack strategic rationale, such as in the case of local heating systems and energy efficiency measures. It is thus argued that the UK Government should be open to institutionalising a new settlement based on a duty of cooperation and parity of esteem between governments.?
The sub-group also emphasised the importance of regulatory powers in energy development, and lamented that the Welsh Government currently has no formal role in regulator governance, recommending another joint review. The sub-group similarly highlighted the barriers to local energy generation and trading and stated that the devolution of energy incentives would help, in conjunction with increased funding from Westminster. Finally, with reference to the precedent created by the devolution of the Crown Estate to the Scottish Government, the sub-group recommended an urgent review of the devolution settlement by an expert group tasked with reviewing the relationship between the Crown Estate and energy policy in Wales.?
Conclusion?
Outgoing First Minister Mark Drakeford described the report as ‘an important moment in the debate around our constitutional journey’ and confirmed that Welsh Government would consider the report’s recommendations carefully. The decision on how many of the report’s recommendations to accept will undoubtedly influence the strategic direction of the next First Minister.?
Indeed, beyond Wales, the report could play an influential role in crafting national Labour policy for the upcoming general election, with Keir Starmer pledging at Welsh Labour Conference in March 2023, to ‘Give the communities and great nations of this country the powers they need to control their destiny.’?
Time, and political resolve, will tell whether the type of Welsh devolution envisaged by the Commission returns to the forefront of the political debate.?