Source · Select Committees · Scottish Affairs Committee
Recommendation 16
16
Limited Scottish Government borrowing powers constrain ability to manage fiscal shocks
Conclusion
At present, the Scottish Government’s limited borrowing powers constrain its ability to manage fiscal shocks, as it is only able to borrow for resource purposes to cover forecast errors. Capital borrowing limits are currently linked to and grow in line with inflation, which may not necessarily be the highest metric of growth. (Conclusion, Paragraph 113)
Government Response
A response document is linked to this report, dated 17 October 2025. Response attribution to this conclusion has not been verified. Read the response document ↗