大鹰制度：Current Issues in UK Devolution (2020–today)

• Scottish independence movement still politically active.

• Northern Ireland stability power-sharing interruptions.

• English governance debate whether England should have its own parliament or broader devolution.

• Funding disputes especially regarding the Barnett formula (devolution budget).

• Post-Brexit powers distribution caused tension between devolved governments and Westminster.

1. Tension over reserved vs devolved powers the internal market

• The United Kingdom Internal Market Act 2020 (UKIMA) was introduced after Brexit to ensure a seamless UK internal market, but it has been criticised by the devolved governments as undermining their regulatory autonomy (e.g., in Scotland and Wales). Institute for Government+3Wikipedia+3Wikipedia+3

• Example: The Scotland Act 1998 allows the Scottish Parliament competence over many areas, but the UK government used Section 35 to block the Gender Recognition Reform (Scotland) Bill illustrating Westminsters ability to override devolved legislation. Wikipedia+1

• The devolved governments argue there is a democratic deficit in how UK-wide legislation can apply to devolved matters without full consent. Wikipedia+1

• The interplay of Brexit + the internal market + devolution has triggered new tensions over who decides what (regulation, trade, economic policy). Institute for Government+1

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2. Funding fiscal pressures across the devolved nations

• Devolved governments are under significant budgetary stress. For example, changes to UK welfare policy (PIP reductions) mean devolved administrations face lower funding allocations, even though the policy area is devolved in part. The Times+1

• The way funds are allocated (via the Barnett formula) is frequently criticised as outdated or unfair for the devolved nations. The Guardian

• Because devolved governments now have more responsibilities (health, education, transport), but limited tax-raising powers compared to Westminster, the mismatch puts pressure on service delivery.

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3. Constitutional/territorial questions: independence, union, and stability

• In Scotland, the issue of a second independence referendum (indyref2) remains live. The Scottish Government continues to push for further powers or independence, leading to friction with the UK government. Wikipedia+1

• In Northern Ireland, the legacy of the Good Friday Agreement together with Brexit (especially the Northern Ireland Protocol) continues to create complex governance and identity issues. Institute for Government

• More broadly, questions of how England fits into the devolution settlement remain unresolved: should England have its own parliament? Should there be more regional devolution within England? Centre for Cities+1

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4. Devolution asymmetry and institutional complexity

• The devolution arrangements are asymmetric: Scotland, Wales and Northern Ireland each have different powers, institutions and legal frameworks. That in itself causes friction (for instance if Scotland has more powers than Wales, etc). Parliament UK News+1

• Theres also complexity in how devolved and UK governments interact: inter-governmental relations, common frameworks for post-Brexit regulations, the boundaries of legislative competence. The devolved governments sometimes feel the UK government is re-centralising powers. Institute for Government+1

• In England, local devolution via combined authorities and metro mayors is progressing, but this is distinct from national-devolution in the other nations and raises questions of parity and fairness. GOV.UK+1

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5. Policy divergence and public service variation

• Because each nation has autonomy over health, education, etc., there is growing divergence in policy and outcomes: e.g. different tuition fee regimes in Scotland vs England. HEPI

• Divergence causes challenges: for example, how to coordinate UK-wide issues (migration, climate, economic policy) when devolved governments may wish to take a different path.

• Also, policy innovations in one part of the UK can raise questions about spill-over effects or postcode inequality across the UK.

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6. The Post-Brexit context and common frameworks

• With the UKs departure from the European Union, many regulatory powers returned to the UK. Some devolved areas now need common frameworks to ensure consistency across the UK (e.g., environment, agriculture). But negotiating these frameworks has been difficult, and the devolved governments sometimes view them as limiting their autonomy. Wikipedia+1

• The question of how the internal market operates (and how devolved governments can diverge) remains unresolved, especially where regulations affect cross-UK trade.

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7. Democratic legitimacy, accountability public perceptions

• There is ongoing debate about which level of government is accountable for what: for example, when policy fails, is it devolved or Westminsters fault?

• The fact that European issues, trade, immigration etc are still largely reserved means some voters feel under-represented in decisions affecting them at the devolved level.

• Public fatigue or confusion: with so many overlapping institutions (UK Parliament, devolved parliaments/assemblies, combined authorities), clarity is harder.

• Some commentators argue that devolution is either incomplete or not widely understood, which poses legitimacy risks.

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8. Emerging issues flashpoints

• Immigration: For example the Devolution (Immigration) (Scotland) Bill 2024?25 shows that the Scottish Government is pressing to acquire immigration powers. The Constitution Society

• The role of the Crown Estate in Wales: There is active demand in Wales for the Crown Estates assets to be devolved, which the UK government has resisted. Wikipedia

• Local devolution in England: The English Devolution and Community Empowerment Bill (2025) is a new initiative by the UK government to devolve further powers to English local authorities and combined authorities, but the framing and powers remain contested. Wikipedia

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9. Implications for business, investment and stability

• For someone in your role (VP, GM, business development Asian sales) its worth noting that devolution affects:

  • Regulatory environment (if Scotland or Wales choose diverging standards)

  • Taxation/cost of doing business (because devolved governments have limited tax-raising power but increasing spending obligations)

  • Infrastructure planning and funding (transport, digital, energy) which may vary across the UK

  • Uncertainty about constitutional futures (e.g., independence or increased powers) can affect investor confidence.