Scottish Secretary Increases Scottish Government Borrowing Powers

25th April 2025

The Scottish Government will have increased borrowing powers following an Order made in Parliament this week by Scottish Secretary.

Ian Murray has laid the ‘The Scotland Act 1998 (Increase of Borrowing Limits) Order 2025' which increases the Scottish Government’s borrowing limits to a cumulative total of £3 billion for capital and £629 million for resource.

The Scottish Government’s borrowing limits (both annual and cumulative) are uprated annually in line with inflation, as set out in the Fiscal Framework. As the cumulative limits are legislated for under the Scotland Act 1998, secondary legislation is required to make the annual changes. The annual limits are non-legislative so no legislative change is required to amend these.

Speaking after laying the Order, Mr Murray said:

"I’m very pleased to have laid this Scotland Act Order which increases the Scottish Government’s cumulative borrowing limits to a total of £3.6 billion. The Autumn Budget provided an additional £4.9 billion for the Scottish Government, ending austerity. These borrowing powers are on top of the Scottish Government’s record funding settlement of £47.7 billion this financial year. We have reset the relationship with the Scottish Government, and this order is a key part of our commitment to maintain the devolution settlement."

The Order will take effect on 30 June 2025. There will be a debate in the House of Commons before then.

The 2023 Fiscal Framework Agreement between the Scottish and UK Governments sets out the Scottish Government’s funding arrangements, including budget management tools such as borrowing powers.

Officials in both the UK Government and the Scottish Government worked together to deliver the Order, as they do with all Scotland Act Orders.