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A sense of relaxation

Brian Taylor | 12:58 UK time, Thursday, 5 February 2009

This consensus thing seems to be catching. . Now the issue of borrowing powers for the Scottish Government.

At the moment, the Treasury has the power to borrow money. Local councils have the power to borrow money. But the Scottish Government has no such power.

The case for granting such a change? It would enhance the financial autonomy of the devolved administration and allow them, within limits, to fund capital projects.

The case against? The Scottish Government already gets borrowed money to fund capital projects, albeit processed through the Treasury.

Further, unless sharply constrained, borrowing powers at the devolved level could countermand UK efforts to limit the national debt.

Although, admittedly, that is rather a tricky case to advance at the moment when debt is soaring without devolved assistance.

But back to that consensus. Holyrood has been debating the issue on a motion from the Liberal Democrats.

Autonomy and accountability

The SNP, self-evidently, is in favour of enhancing Holyrood powers - but has now agreed, as a government, to submit evidence to the urging such a development.

A Tory amendment to the Lib Dem motion is also warm towards the concept of borrowing powers - while suggesting that it "could" rather than "would" improve Holyrood autonomy and accountability.

Which leaves Labour. Their amendment is notably neutral, simply welcoming the examination of the issue by all parties and also endorsing the Scottish Government's decision to engage with Calman.

However, Sir Kenneth Calman held talks with Labour MSPs last night - and I believe Labour's submission to his commission is imminent.

My feeling is that Labour in Scotland is decidedly relaxed about the granting of borrowing powers to Holyrood.

Will that sense of relaxation extend to the Treasury?

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