In response to the royal commission's report, James Callaghan's Labour government brought forward proposals to establish a Scottish Assembly.

In November 1977 a Scotland Bill providing for the establishment of a Scottish Assembly was introduced; it received the Royal assent on 31 July 1978.

Two possible contenders for the post of First Secretary were The Reverend Geoff Shaw, leader of Strathclyde Regional Council, and Professor John P. Mackintosh, MP – but both died in 1978.

During its passage through Parliament, an amendment introduced by George Cunningham (a Scot who represented an English seat) added a further requirement that the approval at the referendum be by 40% of Scotland's total registered electorate, rather than by a simple majority.

The vote to approve the statutory instrument repealing the Act was not held until 20 June 1979, by which time a Conservative government had come to power under Margaret Thatcher.