The Scottish Government will have increased borrowing powers
following an Order made in Parliament this week by Scottish
Secretary.
has laid the ‘The Scotland Act 1998 (Increase of
Borrowing Limits) Order 2025' which increases the Scottish
Government's borrowing limits to a cumulative total of £3 billion
for capital and £629 million for resource.
The Scottish Government's borrowing limits (both annual and
cumulative) are uprated annually in line with inflation, as set
out in the Fiscal Framework. As the cumulative limits are
legislated for under the Scotland Act 1998, secondary legislation
is required to make the annual changes. The annual limits are
non-legislative so no legislative change is required to amend
these.
Speaking after laying the Order, Mr Murray said:
“I'm very pleased to have laid this Scotland Act Order which
increases the Scottish Government's cumulative borrowing limits
to a total of £3.6 billion. The Autumn Budget provided an
additional £4.9 billion for the Scottish Government, ending
austerity. These borrowing powers are on top of the Scottish
Government's record funding settlement of £47.7 billion this
financial year. We have reset the relationship with the Scottish
Government, and this order is a key part of our commitment to
maintain the devolution settlement.”
The Order will take effect on 30 June 2025. There will be a
debate in the House of Commons before then.
The 2023 Fiscal Framework Agreement between the Scottish and UK
Governments sets out the Scottish Government's funding
arrangements, including budget management tools such as borrowing
powers.
Officials in both the UK Government and the Scottish Government
worked together to deliver the Order, as they do with all
Scotland Act Orders.
