Consultation on bonds launches

UK Political Editor

Friday 22 June 2012

A CONSULTATION on whether or not the Scottish Government should be able to issue its own bonds to borrow money is launched today.

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MICHAEL SETTLE UK POLITICAL EDITOR

Danny Alexander, Chief Secretary to the Treasury, who will make the announcement when he addresses the Glasgow Chamber of Commerce, said: "This takes forward the commitments we made in the Scotland Act, which represented the greatest transfer of powers from Westminster for 300 years."

The Coalition included a provision in the 2012 Scotland Act to enable it to amend the way in which Scottish ministers can borrow to include issuing bonds.However, the power, if agreed, will not come into being until 2015 and will not alter the current Treasury-imposed ceiling on borrowing of £2.2 billion.Last month, First Minister Alex Salmond insisted greater borrowing powers for Holyrood were the "absolutely necessary Plan B" to prevent the economic recovery in Scotland from faltering. He wanted the ceiling raised immediately from £2.2 billion to £5.6bn – equivalent to the level in Northern Ireland.

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Consultation on bonds launches

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