Source · Select Committees · Scottish Affairs Committee
Recommendation 16
16
Acknowledged
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 summary AI-generated
The government acknowledges the conclusion by explaining that borrowing powers and limits were jointly agreed in the 2023 Fiscal Framework and are uprated annually by the GDP deflator to maintain real value, committing to consider these arrangements at the next Fiscal Framework review.
Government Response
The government responded to this report on 17 October 2025. No passage in that response could be matched to this conclusion. Read the response document ↗