3.1 The Government want a United Kingdom which everyone feels part of, can contribute to, and in whose future all have a stake. The Union will be strengthened by recognising the claims of Scotland, Wales and the regions with strong identities of their own. The Government’s devolution proposals, by meeting these aspirations, will not only safeguard but also enhance the Union.

3.2 There are many matters which can be more effectively and beneficially handled on a United Kingdom basis. By preserving the integrity of the UK, the Union secures for its people participation in an economic unit which benefits business and provides access to wider markets and investment and increases prosperity for all. Scotland also benefits from strong and effective defence and foreign policies and a sense of belonging to a United Kingdom.

Reserved matters

3.3 The matters which the Government propose to reserve in the light of these considerations are listed below in general terms:

• The constitution of the United Kingdom including the Crown, the UK Parliament, electoral law, the Civil Service and the award of dignities and titles of honour;

• UK foreign policy including the ability to conclude European Union and other international agreements in both reserved and devolved areas and Ministry of International Development matters;

• UK defence and national security including responsibility for the armed forces and the security services, treason and other provisions for dealing with terrorism or subversion related to these matters;

• The protection of borders and certain matters subject to border controls including designation of the United Kingdom’s land and maritime borders and fisheries limits, immigration and nationality, extradition, the criminal law in relation to drugs and firearms, and the regulation of drugs of misuse;

• The stability of the UK’s fiscal, economic and monetary system including macroeconomic, monetary and fiscal affairs (except the tax varying and local taxation powers devolved under the Government’s proposals), the granting of UK tax concessions and the currency;

• Common markets for UK goods and services at home and abroad including the law on companies and business associations, insurance, corporate insolvency and intellectual property, regulation of financial institutions and financial services, competition policy (subject to satisfactory rights of representation in the Scottish interest), consumer protection, regulation of the energy supply industries and international trade policy and Export Credit Guarantee Department matters;¹

• Employment legislation including industrial relations, equal opportunities, health and safety and the matters for which the Employment Service is responsible;

• Social security policy and administration, including benefits and the matters for which the Benefits Agency is responsible, contributions, child support maintenance and occupational and personal pension regulation and related employment policy, services and assistance;

• Regulation of certain professions primarily where these are currently dealt with under UK statutes, including medical, dental, nursing and other health professions.² The Civil Service Commissioners, the UK Senior Salaries Review Body and primary legislation in respect of public service pensions will also be reserved matters;

• Transport safety and regulation including regulation of aviation and shipping, marine and air safety, rail safety and regulation (except for appropriate oversight by the Scottish Executive of Scottish passenger rail services), and some aspects of road traffic regulation.³

• Certain other matters presently subject to UK or GB regulation or operation including the UK Research Councils, nuclear safety, the control and safety of medicines, reciprocal health agreements, the designation of assisted areas, the Ordnance Survey, the regulatory framework for broadcasting and film classification including the regulation of the distribution of video recordings, the licensing of theatres and cinemas, cultural property matters dealt with at UK level, gambling and the National Lottery and data protection. In addition a number of matters in the health sector, including abortion, human fertilisation and embryology, genetics, xenotransplantation and vivisection will be reserved in view of the need for a common approach. Equality legislation (covering racial, gender and disability discrimination) will be reserved.

3.4 The Government believe that reserving powers in these areas will safeguard the integrity of the UK and the benefits of a consistent and integrated approach.

1 Reserved matters under this heading also include wireless telegraphy and telecommunications regulations and licensing, the regulations of pharmaceutical prices, postal services, weights and measures and technical standards of goods and the regulation of time zones.

2 Professions outside the health sector the regulations of which will be reserved will include veterinary surgeons, architects, auditors, estate agents, insolvency practitioners and insurance intermediaries.

3 Other transport matters to be reserved include transport security, driver and vehicle licensing and testing, road haulage, vehicle standards general speed limits, marine, air and rail accident prevention and investigation, some other aspects of road safety and road traffic regulation and technical standards relating to transport of disabled persons.