Scottish borrowing powers brought forward

10 Jun 11
The Scottish Government will be able to use new capital borrowing powers in the Scotland Bill this year, instead of in 2013, following an agreement with Westminster.
By Keith Aitken in Edinburgh | 10 June 2011


The Scottish Government will be able to use new capital borrowing powers in the Scotland Bill this year, instead of in 2013, following an agreement with Westminster.

An early beneficiary will be the new Forth crossing, for which Alex Salmond’s government will now be able to raise around £200m from the capital markets in the current year.

Salmond welcomed the announcement, made by UK Deputy Prime Minister Nick Clegg at talks with Scottish ministers in Edinburgh yesterday. But the first minister continues to insist that the £2.2bn borrowing limit proposed is less than half of what is needed, and that additional fiscal powers are required.

Acknowledging that Scotland faced a tough economic climate, Clegg said that UK ministers were keen ‘to do additional things that will help right now’.

He said: ‘That’s why we will not just wait for the full borrowing powers to come into effect in several years’ time, but use that prospect to access some money now; so that we can, for instance, get going with the new Forth crossing project, which creates jobs now, creates a sense of confidence, creates a sense of optimism.’

Salmond welcomed the concession and said the meeting had been constructive. But he stressed that he had also used the talks to present Clegg with a shopping list of further powers that his Scottish National Party government, emboldened by its landslide win at last month’s Holyrood election, want the Scotland Bill to devolve.

As well as an increase in the borrowing powers to £5bn, they include Scottish control over corporation tax, Crown Estate revenues from offshore renewables development, excise duties on alcohol, and broadcasting regulation. Salmond also wants direct representation for Scotland at the European Union’s Council of Ministers.

Spacer

CIPFA logo

PF Jobsite logo

Did you enjoy this article?

AddToAny

Top