Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Scotland given ‘historic' powers to issue bonds

Scotland given ‘historic' powers to issue bonds

The government has granted Scotland the power to issue its own bonds in what the chancellor has described to be a ‘historic move’.

The Treasury has said the Scottish will be permitted to issue up to £2.2 billion in debt to fund investments in various infrastructure projects.  

The idea was first mooted in an amendment to the Scotland Bill in June 2011 and today’s announcement - which is ahead of schedule - comes as the nation prepares for September’s referendum on independence.

However, the Treasury warned the cost of issuing Scottish bonds would be ‘significantly’ higher than the UK because of the higher ‘credit risk’ north of the border.  

Danny Alexander, chief secretary to the Treasury, said: ‘It will of course be up to the Scottish government to manage their borrowing, but this is complemented by the tax powers in the Scotland Act providing the Scottish government with an independent source of revenue to support borrowing costs.’

Chancellor George Osborne added: ‘[It is a] historic moment for Scotland, a country where the economy is growing with the government's long term economic plan. Being able to issue its own bonds gives Scotland new powers and new responsibility, within the security of the UK.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Biotech Growth: we will ride out this storm

Biotech Growth: we will ride out this storm

Geoffrey Hsu of Biotech Growth Trust says the sell-off in biotechnology stocks represents a buying opportunity for long-term investors.

Play Sector Spotlight: Kleinwort Benson's Choukeir on UK equities

Sector Spotlight: Kleinwort Benson's Choukeir on UK equities

In our first Sector Spotlight of the year we explore UK equities on the back of the extreme market turbulence in 2016.

Play Picton: the UK property hotspots for rental income

Picton: the UK property hotspots for rental income

Picton Property Income CEO Michael Morris reveals how he is planning to ride the ‘ripple effect’ as UK economic growth spills out from the capital across the country.

Your Business: Cover Star Club

Profile: PortfolioMetrix is on a mission to kill 'Frankenstein' systems

Profile: PortfolioMetrix is on a mission to kill 'Frankenstein' systems

In a buyers’ market for off-the-peg discretionary management, self-funded start-ups begin at an inherent disadvantage

Wealth Manager on Twitter