The Scotland Act 1998 (Increase of Borrowing Limits) Order 2025

Published: Fri 27th Jun 25

The 2025 Order increased Scotland's borrowing limits under the Scotland Act 1998 and revoked the 2024 Order.

The Scotland Act 1998 (Increase of Borrowing Limits) Order 2025 raises Scotland's borrowing limits under the Scotland Act 1998.

Specifically, it increases the lending limit under section 67(2) from £1,779.351 million to £1,834.303 million and the capital expenditure limit under section 67A(1) from £3,050.316 million to £3,144.519 million.

The Order supersedes the 2024 Order and applies to England, Wales, Scotland, and Northern Ireland.

It came into effect the day after its enactment.

Arguments For

Increased borrowing limits allow Scotland to fund essential public services and infrastructure projects.
The increase reflects the growing needs of the Scottish economy and population, ensuring sufficient resources for essential investments.
The process of increasing borrowing limits follows established procedures outlined in the Scotland Act 1998. Amendments are made through an Order laid before and approved by the House of Commons.
Previous increases in borrowing limits through similar Orders demonstrate a consistent approach to adjusting limits as needed.
The approval of the Order by the House of Commons indicates parliamentary oversight and support for the increased borrowing capacity.

Arguments Against

Increased borrowing could lead to higher levels of public debt and potential future financial challenges for Scotland.
Some argue for alternative financing models using non-debt methods, such as utilizing private sector investment or optimizing existing resource allocation.
Potentially rapid increases in borrowing limits could face criticism if there's a lack of transparency or robust justification for the need.
The lack of detailed impact assessments could be interpreted as insufficient analysis of the broader economic consequences of the increased borrowing ability.
If not carefully managed, increased borrowing capacity could lead to unsustainable spending and negatively affect long-term fiscal health.

Citation, commencement and extent (1) This Order may be cited as the Scotland Act 1998 (Increase of Borrowing Limits) Order 2025. (2) It comes into force on the day after the day on which it is made. (3) It extends to England and Wales, Scotland and Northern Ireland.

This section provides the title, effective date, and geographical coverage of the Order.

The Order's official name is specified.

It became effective one day after the date it was enacted.

Its stipulations apply across all four nations of the UK.

Amendments to the Scotland Act 1998 (1) The Scotland Act 1998 is amended as follows. (2) In section 67(2) (lending under section 66(1)), for “£1,779.351 million” substitute “£1,834.303 million”. (3) In section 67A(1) (lending for capital expenditure), for “£3,050.316 million” substitute “£3,144.519 million”.

This section details the specific amendments made to the Scotland Act 1998.

The borrowing limit for general lending (under section 67(2)) is increased by approximately £55 million.

Similarly, the borrowing limit for capital expenditure, covered by section 67A(1), is increased by roughly £94 million.

Revocation of the Scotland Act 1998 (Increase of Borrowing Limits) Order 2024 The Scotland Act 1998 (Increase of Borrowing Limits) Order 2024 is revoked.

This section clarifies that the previous Order setting borrowing limits (from 2024) is canceled and replaced by the current, updated Order.

Explanatory Note (This note is not part of the Order) This Order amends the Scotland Act 1998 (c. 46) to increase the resources borrowing limit set out in section 67(2) from £1,779.351 million to £1,834.303 million, and the capital borrowing limit set out in section 67A(1) from £3,050.316 million to £3,144.519 million. This Order revokes the Scotland Act 1998 (Increase of Borrowing Limits) Order 2024 which has been superseded by this Order. A full impact assessment has not been produced for this instrument as no, or no significant, impact on the voluntary or public sector is foreseen.

The explanatory note summarizes the Order's purpose: to increase borrowing limits within the Scotland Act 1998 and to replace the previous 2024 Order.

It notes that a full impact assessment was not deemed necessary due to the anticipated minimal effect on the public or voluntary sectors.

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