Scotland gains own spending power from the British government
Feb 24, 2016 02:45 AM EST
The British government and decentralized Scotland sealed a deal regarding the latter's spending power which is in accordance to their independence referendum last 2014.
The talks were centered over the amount of money the Scottish government will get from the British treasury in the future. Scotland will also have a new reformed tax law which was also included in the major deal. It is the promise of the British government together with their London-based political parties to grant Scotland their request.
According to Reuters, the Scottish government will get new borrowing powers to manage its budget effectively. Also, it will be able to invest up to 3 billion pounds to create much-needed infrastructures. However, the new government will still be accountable to its people.
During the elections in 2015, Scottish people already rejected the call for independence which gained 55 percent of support from pro-independence Scottish National Party in Britain. But the current standing of officials that wants the said independence are now a majority in the parliament seat which triggers speculations that the same call will be revived.
The first minister of the Scottish Parliament, Nicola Sturgeon said that the treasury of UK has already agreed on a six-year arrangement that would make sure that Scotland will not suffer from any detriment in funding because of the new installation of power, as reported by Financial Times.
According to BBC, Sturgeon added that utilizing the power given to Scotland is another matter. If the Scottish government makes a wise draft regarding tax, it will either benefit or take the hit.
The British treasury said that the new agreement will lay the ground for the Scottish parliament to be the most powerful of its kind in the whole world. On the other hand, the treasury department has ensured that there will be equality among taxpayers.