THE Finance Secretary has warned the Scottish Government may need to make “deep cuts” to public services if Holyrood does not receive new fiscal powers to help the economic recovery from the Covid-19 crisis.
Kate Forbes said the arrangements currently in place make it “increasingly difficult” for the Government to fund its response to the pandemic without hitting other areas.
The MSP says it’s “critical” that the UK Government give Holyrood new borrowing powers – adding it is the only way ministers can avoid a “return to austerity”.
READ MORE: Nicola Sturgeon: More borrowing powers needed if lockdown continues
Writing in The Scotsman, Forbes explained: "Our funding needs for the NHS, business and the third sector are greater than the sums provided by the UK Government and, as things stand, the Scottish budget will have to make up the balance.
"While we have been able to re-prioritise some existing budgets, it is becoming increasingly difficult without impacting on vital public services.
"The devolved arrangements were not designed for a health emergency and an economic crisis of this scale.
"With a global pandemic raging, fast decisions on public spending are required and it is critical that we have borrowing powers and greater financial flexibility to respond effectively.
"Otherwise, the only way the Scottish Government will be able to fund our ongoing response would be to make deep cuts to other services."
She went on to say that is a path the Scottish Government will always resist – but the only way it can be rejected it with “greatly enhanced fiscal powers”.
The Scottish Government currently has the power to undertake capital borrowing of up to £3 billion with an annual limit of £450 million and resource borrowing of up to £1.75bn with an annual limit of £600m. Resource borrowing can only be carried out under specific circumstances set out in the Fiscal Framework.
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel