Scottish Government issues fresh call for new financial powers

Scottish Government issues fresh call for new financial powers

Kate Forbes

The Scottish Government has issued a fresh call for the UK government to ease the financial restrictions imposed on devolved governments so they can better respond to the COVID-19 crisis.

The call has come from finance ministers from the three devolved administrations across the UK, with Kate Forbes, Rebecca Evans, and Conor Murphy all asking for assurances that will give them the freedom to switch capital funding to day-to-day revenue and put an end to the arbitrary limits on borrowing.

The three are also looking for more clarity on details around the forthcoming Spending Review.

Kate Forbes, Scotland’s cabinet secretary for finance, said: “The powers we are seeking will enable the Scottish Government to respond to COVID-19 more effectively and reboot our economy. They are relatively limited powers, but would ease some of the immense pressures on our budget and give us more tools to kick-start our recovery.

“At the moment, any extra money spent bolstering services and supporting the economic recovery must be taken from other areas. That creates risks for our essential public services, jobs and businesses. I am therefore calling on the Chancellor to ease these rigid fiscal rules and give us the flexibility we need to properly address the monumental challenges our economy is facing.

“I also want to see greater ambition in the level of investment in our economy. Last week the Scottish Government set out a proposal for an £80 billion UK-wide stimulus package. What is needed at this time of crisis is bold and practical policies that will boost consumption, promote investment and protect jobs.”

  • Read all of our articles relating to COVID-19 here.
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