Scotland needs more flexible financial powers, say advisers

Published on Friday 4 December 2009 22:09

AN EXTENSION of the Scottish Government's borrowing powers and the establishment of a commission to scrutinise fiscal policy are among the 17 recommendations made by the Council of Economic Advisers in its report.

It said Scotland needed more flexible financial powers to help economic growth, including being able to engage in "clear and transparent" borrowing from capital markets and having the freedom to deploy accumulated year-end funds without discussion with the UK Treasury.

Greater emphasis should be placed on financial qualifications in Scotland's education system, and the Scottish Government should seek more formal and informal influence on UK competition policy and look to become more involved in the ongoing reorganisation of the UK banking sector.

In addition, Scotland must ensure it plays a greater role in the ongoing worldwide debate over financial regulation.

The group of advisers, which includes economists John Kay and Andrew Hughes Hallet, also called on the Scottish Government to review the contribution made to the Scottish economy by the whisky industry, after it raised doubts over the overall economic value brought to Scotland by its national drink.