Devolved nations push for greater powers to aid recovery
FINANCE ministers from the devolved administrations have joined forces to push for more fiscal powers from the UK Government.
A joint message to Chancellor Rishi Sunak ahead of his summer statement today requests “relatively limited powers” they believe will help to bolster the recovery of each country.
The three ministers are asking for the Chancellor to allow capital spending to be moved over to day-to-day revenue as well as an end to “arbitrary” limits on borrowing.
Wales’ Finance Minister Rebecca Evans MS said the response from her government had been “hampered” by current fiscal rules.
“There is no clear rationale for these rules, which undermine good budget management in Wales,” she said. “The crisis has made the issue urgent.
“It’s time for the UK Government to act and provide the flexibility we need to respond and invest in Wales’ recovery.”
Scotland’s Finance Secretary Kate Forbes said any funding used to secure the recovery and pay for public services would need to be found from elsewhere in its budget.
Ms Forbes said: “They are relatively limited powers but would ease some of the immense pressures on our budget and give us more tools to kick-start our recovery.
“At the moment, any extra money spent bolstering services and supporting the economic recovery must be taken from other areas. That creates risks for our essential public services, jobs and businesses.
“I am therefore calling on the Chancellor to ease these rigid fiscal rules and give us the flexibility we need to properly address the monumental challenges our economy is facing.”
Ms Forbes added she would like to see “greater ambition in the level of investment in our economy”.
She pointed to a proposal outlined last week by the Scottish Government for £80bn of UK-wide investment.
“What is needed is bold and practical policies that will boost consumption, promote investment and protect jobs,” she said.
Northern Ireland Finance Minister Conor Murphy said it is “crucial” for devolved administrations to be given the powers allowing them to “respond swiftly and effectively” to the challenges presented by Covid-19.