‘Westminster & Holyrood should have equal powers’

Murdo Fraser is expected to claim federalism could deliver a secure framework for the future. Picture: Phil Wilkinson

Mr Fraser will use a speech tonight to declare his support for federalism within the UK for the first time – a policy which is opposed by the Tories at Westminster, which has responsibility for the issue.

Scottish Tory leader Ruth Davidson, who defeated Mr Fraser in a leadership contest in 2011, backed handing full income tax powers to Holyrood as part of a package recommended by the party’s Strathclyde Commission on further devolution.

However, Mr Fraser will call for an “equalising” of the powers of Holyrood and other devolved administrations with Westminster in a formal written constitution – a position that goes further than recommended by the Strathclyde Commission – in his speech at Glasgow University.

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The Scottish Liberal Democrats are the only major party to back federalism, which would create a series of regional and national parliaments and assemblies across the UK, with a federal government retaining powers over foreign affairs, defence, currency, welfare and pensions.

Mr Fraser will tonight hint at support for regional assemblies or parliaments for areas such as the North-east of England, Yorkshire and Cornwall as part of the “federal structure” of the UK – another policy opposed by Prime Minister David Cameron.

Mr Fraser backs “reducing the size of the House of Commons substantially” as more powers are transferred to devolved parliaments and assemblies.

The Conservative MSP, who is part of Ms Davidson’s shadow cabinet, also backs the abolition of the House of Lords – a policy which Mr Cameron has resisted in government.

Mr Fraser will call for the replacement of the Lords with a “senate” made up of representatives from devolved parliaments and assemblies as an “appropriate counterweight to the House of Commons, with its own electoral mandate”.

The MSP said his backing for a federal parliament was “complementary” to the work of the Strathclyde Commission, which also backed handing Edinburgh powers to supplement benefits in a move that would effectively create a Scottish welfare state.

Mr Fraser, the Scottish Conservatives’ enterprise spokesman, does not state in tonight’s speech whether he would back further tax powers on top of those recommended by the Strathclyde Commission, chaired by former minister Lord Strathclyde.

However, it is understood Mr Fraser’s federalism plans would see Holyrood becoming responsible for raising similar levels of tax as recommended by the commission, which said Holyrood should decide on rates and bands.

Mr Fraser is expected to use his speech, at an event staged by the non-party think tank Reform Scotland, to claim that federalism could deliver a “secure framework for the future” of Scotland in the UK in the event of a No vote on 18 September.

He is expected to say: “I would suggest that federalism within the UK, if it were workable and could be achieved, is a solution which could unite both unionists, and many nationalists, and provide a secure framework for the future.

“It would involve entrenching in a written constitution the existence, and sovereignty of these institutions, moving some way to equalising their powers, and providing greater financial responsibility.”

Mr Fraser will go on to suggest that the independence referendum has led to a surge in support for devolution in other parts of the UK.

“There has been little appetite within England for the sort of regional government that would be required to balance a Scottish parliament or Welsh or Northern Irish assembly.

“But given the concern within the North of England about being left behind as Scotland gets more and more power, I suspect that if there were now a credible proposal for regional government, then the result of a referendum might be very different from that in 2004.”

A spokesman for the Scottish Conservatives declined to comment on Mr Fraser’s backing for devolution beyond the proposals set out by the Strathclyde Commission.

The Liberal Democrats welcomed Mr Fraser’s backing for federalism or home rule as set out in a party commission chaired by former leader Sir Menzies Campbell. A Lib Dem spokeswoman said: “We’re delighted that our plans for home rule in a federal UK continue to gather cross-party support.”

SNP MSP Stuart McMillan said: “The No campaign parties accepting that Scotland needs more powers is galvanising the Yes vote.

“Scotland needs the full economic and welfare powers of independence, which only a Yes vote can deliver, and barely a third of people trust Westminster to deliver anything. That is why a Yes vote is so important.

“From Ruth Davidson we had a line in the sand – and now we have pie in the sky from Murdo Fraser.”

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