Why Scotland must have new powers
Thankfully the past few weeks have seen us make great progress in Scotland in suppressing and moving towards elimination of coronavirus.
This has allowed us to progress through phase two and, from this week, into phase three of the Scottish Government road map to cautiously ease the country out of lockdown.
However, this will be a slow process, not the flick of a switch that returns us to pre-pandemic normality.
We are emerging from the biggest economic shock of our lifetimes. It has hit the most vulnerable in our society disproportionately and presents challenges that the government does not currently have the powers to meet.
The Scottish Government is also planning and seeking to work with others to minimise the economic shock.
That is why it has established the Advisory Group on Economic Recovery (AGER) to provide expert advice on Scotland’s economic recovery.
There is no doubt that the challenges we face are considerable and to tackle them the government will need more flexibility and additional financial powers.
We have, therefore, called on Boris Johnson to announce an emergency budget that makes a clear commitment to devolve the financial powers needed to secure a strong recovery from coronavirus in Scotland.
These powers are the essential key to Scotland’s economic recovery. Without them the Scottish Parliament will be left tackling this unprecedented crisis with one hand tied behind its back – leaving our recovery at risk and threatening prolonged damage to Scotland’s economy.
Just as Scotland has had its own tailored response to the health pandemic, the Scottish Parliament must have the full powers that are necessary to shape our own economic response. This will allow us to make different choices to protect jobs, strengthen our economy and build a fairer society.
The powers we need must include flexibility to reallocate certain budgets and underspends, additional borrowing powers with extended repayment periods, and more flexibility on drawing down reserve money - to deliver a significant increase in access to capital to stimulate our economy.
With the normal powers of an independent country Scotland would be able to make the most of historically low interest rates to protect jobs and boost the economy, just as other countries are doing around the world.
The Scottish Government has called on the UK Government to introduce its own major stimulus package, meeting the ambition of the £80billion investment programme proposed last week by the First Minister, with a jobs guarantee for young people to ensure another generation isn’t left behind.
Unfortunately, the £5 billion “build, build, build” announcement by Boris Johnson is devoid of ambition and any real benefit to the Scottish economy.
A UK Government investment plan which is solely designed, directed and dictated by the Treasury in London can’t and won’t meet Scotland’s speciial needs. The Scottish Parliament and Government are best placed to control and utilise investment powers to back our businesses and protect our people.
If Boris Johnson is serious about resetting his premiership and securing a strong recovery then devolving these crucial powers are an integral first step for Scotland.