Draft Scotland Act 1998 (Increase of Borrowing Limits) Order 2025

Harriet Cross Excerpts

Wednesday 21st May 2025 General Committees

[Harriet Cross (Gordon and Buchan) (Con)]

It is a pleasure to serve under your chairmanship, Mr Efford. I am grateful for the opportunity to speak on behalf of the official Opposition as we consider the draft Scotland Act 1998 (Increase of Borrowing Limits) Order 2025. As Members will be aware, the instrument proposes an increase to the Government’s resource borrowing limit from £1,779.351 million to £1,834.303 million, and the capital borrowing limit from £3,050.316 million to £3,144.519 million. This represents an uplift of around 3.1% for both limits, which is in line with the annual inflation adjustments in previous years.

This is not the first time that this House or its Committees have considered such an order. These annual increases have become a routine feature of the fiscal framework between the UK Government and the devolved Administration in Scotland. This is process is familiar, but that does not mean that we should treat it as a routine exercise. What we are considering today is the capacity for the Scottish Government to borrow funds and, as in this place, that comes with significant responsibility, not just to the Treasury but to the people of Scotland—our constituents.

To be clear, the UK Government, under successive Conservative Administrations between 2010 and 2024, consistently recognised the importance of providing the Scottish Government with the appropriate tools to manage their finances. These borrowing limits are not arbitrary figures; they are designed to strike a balance between providing flexibility for the Scottish Government and maintaining fiscal discipline across the UK. The annual uplift ensures that the real value of these borrowing powers is preserved in the face of inflation.

However, greater borrowing levels must come with significantly greater scrutiny and far more robust accountability. It is simply not sufficient to approve increases year on year without requiring clear, transparent accounts of how the borrowed sums are being spent. It is the role of this House, and particularly of those of us representing Scottish constituencies, to ensure that every penny borrowed on behalf of the Scottish people is spent wisely and for the benefit of our communities.

Currently, there are mechanisms in place for this oversight—the UK Treasury and the Scotland Office provide some level of monitoring—but, frankly, given the sums involved and the track record of the Scottish National party Administration at Holyrood, we must ask whether those are enough. There is a pressing need for improved transparency and much more detailed public reporting on how the Scottish Government allocate and spend these funds. Regular independent audits and clear public reporting are essential steps towards rebuilding public confidence, which has been sorely tested in recent years.

This is not a theoretical concern. Questions have been raised about the efficiency of capital projects overseen by the Scottish Government, with serious doubts about the value delivered for the substantial sums invested. From the delays in ferry services, to millions spent on a climate review to excuse the SNP failing to deliver the dualling of the A96, to ongoing issues with the NHS, the public have witnessed too many examples of funds being allocated to projects without clear, demonstrable outcomes. The Scottish people expect to see real, tangible improvements in infrastructure, public services and their local economies, and they deserve transparency about how these funds are being spent.

While we acknowledge that the SNP Government have significant devolved powers, they have too often fallen short of the standard of fiscal transparency that the people of Scotland have the right to expect. This Government, therefore, should consider what specific checks and balances they will institute to ensure that the increased borrowing is used efficiently and effectively. It is one thing to increase the borrowing capacity, but it is another to demonstrate that those funds are being used to create tangible improvements in communities across Scotland.

The previous Conservative Government consistently sought to improve transparency and accountability in Scotland’s financial dealings, and we should expect the same from the Labour Government. It is crucial that this House remains an active participant in scrutinising the Scottish Government’s financial decisions.

While we do not oppose this order, recognising its routine and necessary nature, I urge the Government to use this moment to strengthen the systems of oversight and reporting that accompany these powers. The people of Scotland—those in our constituencies and beyond—deserve nothing less than the highest standards of accountability. They deserve to know that their money is being used in the best way possible, and that the Scottish Government are prioritising projects that bring real benefits for our communities.