MSPs has demanded an emergency overhaul of Holyrood’s financial powers to cope with the economic fallout from coronavirus.
The parliament voted 55 to 18 in support of a Scottish Government call for “additional fiscal flexibilities” to the 2016 Fiscal Framework that limits Holyrood’s borrowing powers.
SNP ministers want the power to borrow on the international money markets to cope with the extra public spending required by the pandemic.
The fiscal framework, which was negotiated in 2016, was already due for review next year, but ministers want the process accelerated.
A Tory amendment saying the framework was “currently operating as it should” was defeated by 55 votes to 18.
SNP Finance Secretary Kate Forbes welcomed £3.79bn in extra money received so far from the Treasury under the Barnett formula for Covid, but said it would not be not enough.
She said: “It has become even clearer that the fiscal framework was not designed with a pandemic or an economic emergency in mind.
“It’s not fit for the purpose of flexible budget management in these present circumstances.
“And that matters, because it will make the difference between investing in our communities, our economy, our public services or not.”
Tory MSP Donald Cameron said the UK had provided unprecedented support, adding:”The United Kingdom is Scotland’s insurance policy and it has paid out in full and on time.”
Ms Forbes also redirected £230m in underspends from plans disrupted by Covid to stimulating and greening the economy to help cope with the aftermath.
It includes £51m for business support, £78m for construction, £66m for green jobs and public transport, and £35.5m for digitisation, including justice and education services.
The LibDems and Labour backed short-term framework changes, not the full-time ones wanted by the SNP and Greens.
Scottish Labour deputy leader Jackie Baillie said: “There is the immediate challenge faced by the Scottish budget and I agree that some flexibility is required.”
With the prospect of Scotland’s social security bill rising, she said borrowing “might be necessary”.
Scottish Greens co-leader Patrick Harvie said it is “very clear that fiscal flexibility is required”.
He claimed the current funding arrangements have been “designed to hamstring and shaft the Scottish Government”.
Mr Harvie criticised the Tories after Mr Cameron’s claim ministers had “maxed out the credit card”.
He said: “I think it is quite a telling analogy, I think it is quite honest in saying that’s the kind of economic power the Scottish Government ought to have.
“They can have a wee credit card, they can pay through the nose to use it and they can have no meaningful powers any other Government would expect to have.’”
Scottish Liberal Democrat leader Willie Rennie said his party is “prepared to support short term flexibilities”, saying that would not “fundamentally undermine the strength and benefits of the United Kingdom”.
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