Question reference: S6W-02060
- Asked by: Alex Rowley, MSP for Mid Scotland and Fife, Scottish Labour
- Date lodged: 4 August 2021
-
Current status: Answered by Kate Forbes on 24 August 2021
Question
To ask the Scottish Government what consideration it has given to using any relevant powers that it has to issue its own bonds to finance capital investment.
Answer
As the member will be aware, capital investment is funded from the Scottish Government’s capital budget and its limited borrowing powers.
The annual Medium Term Financial Strategy which was last published alongside the Scottish Budget on 28 January, details the Scottish Government’s borrowing policies, including the source of capital borrowing. The National Loans Fund is the preferred source of capital borrowing because it remains the most cost effective approach to maximising the limitations of the fiscal framework restrictions.
If the Scottish Government had the same borrowing powers as local authorities, alternative sources of borrowing, including bonds, would become a more attractive option.