Finance Ministers from the devolved administrations are urging
the UK Government to ease the financial restrictions imposed on
devolved governments so they can better respond to the
coronavirus (COVID-19) crisis.
Ahead of the Chancellor’s Summer Statement, ,
and
are calling 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. They are also looking for more
clarity on details around the forthcoming Spending Review.
, 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.”
Northern Ireland Finance Minister said:
“It is crucial that the devolved administrations are equipped to
respond swiftly and effectively to the challenges arising from
COVID-19.
“More financial flexibility can help us deal with these
challenges and use our budgets to support public services,
protect the vulnerable, and deliver an economic recovery.”
Welsh Finance Minister
said:
“Our response to the COVID-19 crisis has been hampered by UK
imposed rules that limit our ability to get more resources to the
frontline.
“There is no clear rationale for these rules, which undermine
good budget management in Wales.
“The Welsh Local Government Association, Wales TUC, FSB Cymru and
Institute for Fiscal Studies and, more recently, the Senedd’s
Finance Committee, have all made the same calls for change.
“The crisis has made the issue urgent. It’s time for the UK
Government to act and provide the flexibility we need to respond
and invest in Wales’ recovery.”
