Commons Sense

House of Commons · Ministers' Questions

Fiscal Settlement

Wednesday 3 February 2021 · 2 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 1 Not answered 0

Key points

  • The UK Government provided 16.8 billion to the devolved Administrations to fight coronavirus, including 5.2 billion to the Welsh Government.
  • The UK Government has secured vaccines for all four nations, highlighting the importance of the Union.
  • The UK Government has provided 8.2 billion of extra funding for the Scottish Parliament.

Topics (select to filter)

Questions & Answers

Q1 Owen Thompson SNP
Economy Wales
Context

Discussions regarding the fiscal settlement for devolved administrations in the UK, focusing on the impact of limitations on borrowing powers during the covid crisis.

Question

What recent discussions has he had with the Welsh Government on the adequacy of the fiscal settlement?

Answer from David Davies

We have provided £16.8 billion to the devolved Administrations to fight coronavirus, including £5.2 billion to the Welsh Government and £8.6 billion to the Scottish Government. We have also secured vaccines for all four nations, demonstrating the importance of the Union and how we are stronger together.

Partly answered

Not addressed: The specific adequacy of the fiscal settlement was not addressed directly; instead, funds provided were mentioned.

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Q2 Owen Thompson SNP
Climate Scotland
Context

The fiscal settlement's limitations on devolved nations' borrowing powers have impacted their ability to respond effectively during the covid crisis. There is a call for these constraints to be lifted in order to better address climate change challenges.

Question

With evidence from the Dasgupta review and the Committee on Climate Change showing how far we still have to go, will the Government now ensure that the devolved nations are fully equipped to meet this challenge by devolving borrowing powers?

Answer from David Davies

I would have thought that the Scottish people, with their reputation for understanding the importance of money, would be quite pleased that the UK Government have provided £8.2 billion of extra funding for the Scottish Parliament, rather than expecting it to borrow money and pay it back at some point. I suggest that the hon. Gentleman might like to familiarise himself with the report from the London School of Economics this morning, which suggested that independence for Scotland would end up costing every Scottish taxpayer thousands of pounds a year, in addition to the £8 billion that they would have lost as a result, as the UK Government would not have provided that extra money to the Scottish Parliament.

Not addressed: The question about devolving borrowing powers for climate action was deflected by discussing funding and potential costs of independence.

How: Discussing Funding Rather Than Borrowing Powers, Mentioning Costs Of Independence

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