Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of 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 JPMAM's Georgina Brittain: the best opportunities in mid caps

JPMAM's Georgina Brittain: the best opportunities in mid caps

Brittain discusses where she sees opportunities in mid caps despite rising valuations.

Play Dark German days, dollar strength & Europe's banking recovery

Dark German days, dollar strength & Europe's banking recovery

This week's Investment Pulse looks at the troubled German economy, the health of the eurozone's banking system and what the ongoing dollar strength means for the global economy

Play Picton: The best opportunities in commercial property

Picton: The best opportunities in commercial property

Picton Capital chief executive Michael Morris reveals where he believes the best opportunities exist in the commercial property market.

Your Business: Cover Star Club

Profile: The opportunity set that attracted Brett Williams to wealth management

Profile: The opportunity set that attracted Brett Williams to wealth management

Brett Williams is best known for helping to build some of the biggest platforms in the IFA market.He made the move over to wealth management to head SEI’s UK business earlier this year in the belief that this is where the best opportunities now lie.

Wealth Manager on Twitter