Scotland ‘does not need more fiscal power’, UK Government minister insists

Members from All Under One Banner take part in a static demonstration for Scottish independence outside the Scottish Parliament in Edinburgh.

An extra £1.9 billion of Covid-19 funding from Westminster should ensure Scotland does not need more fiscal powers, the Chief Secretary to the Treasury has said.

Steve Barclay said the uplift, which has seen a total of £3.7 billion handed to the devolved nations, was in response to a request from the Scottish Government.

Speaking yesterday during a visit to LOVE Gorgie Farm in Edinburgh with Scottish Secretary Alister Jack, Mr Barclay said Holyrood ministers had claimed £1.9bn extra would be needed this year to ensure they could meet the demands of dealing with coronavirus.

Mr Barclay met with Scottish finance secretary Kate Forbes yesterday afternoon, hours after she again asked for greater flexibility on fiscal matters and the ability to borrow more. Similar repeated requests have been made, including one alongside the finance ministers in Wales and Northern Ireland, but all were turned down.

Mr Barclay said: “What the Scottish Government said is that they wanted greater flexibility to be able to deal with some of the uncertainty of the pressures from Covid and they gave us an estimate as to what that cost would be.

“We’ve listened to that and we’ve responded with something that’s not been done before, which is giving that in-year clarity as to the additional Covid funding for the rest of the year.”

Mr Barclay said £6.5bn had been invested in Scotland since the beginning of the pandemic to aid the response. He questioned how Scotland would borrow the extra funding it seeks.

Mr Barclay said: “It’s difficult to see even what currency the Scottish Government would be borrowing under.

“The UK, through pooling its resources, is able to borrow at low interest rates.

“Through the block grant, Scotland benefits in terms of its funding – £125 per head compared to £100 in England.

“But the measures today are in addition to that and they sit within the wider package of UK support, and that’s because across the UK we’re better able to weather the storm of the Covid crisis.”

When asked about the prospect of Scottish independence or another referendum on the issue in the near future, the Chief Secretary echoed comments made by Boris Johnson when he visited Scotland on Thursday that the union has worked for Scotland and the rest of the UK in the response to Covid-19.

Mr Barclay also highlighted 60 per cent of Scottish trade was with the rest of the UK.

But when asked if an independent Scotland could make a trade deal with the rest of the UK in the same way the UK Government is attempting to with the European Union, Mr Barclay said: “The question would be for the Scottish Government as to what sort of trading relationship they were hoping to secure.”

Mr Barclay also claimed people want to see politicians “coming together” to protect jobs.