By Mike Thatcher
Prime Minister Gordon Brown has indicated that he is poised to drop his opposition to borrowing powers for Scotland.
Prime Minister Gordon Brown has indicated that he is poised to drop his opposition to borrowing powers for Scotland.Lord (David) Steel, the former presiding officer of the Scottish Parliament, told delegates at the CIPFA in Scotland annual conference that Brown had explained his change of heart at a private meeting.
‘I got the impression that we are pushing at an open door [on borrowing powers],’ said Steel. ‘I don’t think it will be unrestricted, but something will happen.’
The Labour Party in Scotland has recently joined the other main parties in supporting the extension of borrowing powers, but Brown has hitherto been opposed. The issue is currently being discussed by the Calman Commission into Holyrood’s powers.
David Heald, professor of accountancy at the University of Aberdeen Business School, suggested that the Westminster government was concerned that borrowing was seen simply as a way of spending more.
‘Borrowing powers are not a way of spending more,’ he stressed. ‘They are a way of reprofiling your expenditure and revenue.’
John Swinney, Scotland’s finance secretary, had earlier told conference delegates that borrowing powers were essential for Scotland. The fact that the Scottish National Party, Labour Party, Liberal Democrats and Conservatives were all in favour of the new powers should give the initiative ‘real impetus’, he claimed.
‘It’s frankly absurd that today the Scottish Government does not have the ability to either meet the costs of the Forth replacement crossing or has the powers to borrow to ensure we can deliver the type of fiscal stimulus that we are pressing the UK government to deliver in the Budget,’ he said.
