Inside Holyrood: Holyrood hamstrung as global cash crisis unfolds

Published on Sunday 28 September 2008 22:31

THE last few weeks have been a frustrating time to be an MSP.

With the world's economy melting down, dragging a venerable Scottish institution – the Bank of Scotland – with it, Holyrood has found itself at the bottom of the international political food chain with little real power.

Added to that, another Scottish-based FTSE100 company – British Energy – has been sold off with the blessing of the UK government to the French, leaving question marks over the long-term future of its East Kilbride headquarters.

With that in mind, this week sees committees begin the process of looking at the Scottish budget for 2009-10.

In such pressing times, a proper national parliament would want take measures to protect jobs and maybe kickstart the economy.

Few of these powers are available to MSPs, who are in the middle of a three-year budget settlement set by Westminster, and therefore can do little but tinker around the edges.

The only serious budget proposal to boost the economy is a 2p income tax cut put forward by the Lib Dems, which would mean 800 million slashed from the budget.

A sceptic might suggest the Lib Dems are making the proposal safe in the knowledge that nobody will take them up on the offer.

So if there were any MSPs around who did not think the Scottish Parliament needed more control over the Scottish economy, then they must have been disabused of that by now.

There are still valid doubts over whether an independent Scotland would be swamped in the current circumstances.

But given the turmoil and the clear competing interests with protecting jobs in Scotland and England, the case for the devolution settlement to be revamped cannot now be ignored.

It is too late for this particular crisis, but in the rebuilding that must surely follow, Holyrood will need a greater say in shaping Scotland's future.