Overview

This bill amends the Scotland Act 1998, primarily concerning financial powers and responsibilities for the Scottish government, introducing changes to borrowing limits, information sharing with the Office for Budget Responsibility, and clarifying devolved competences regarding social security, roads, and traffic regulations. It also makes adjustments to election procedures and clarifies the legislative process.

Description

Financial Powers

The bill significantly increases the Scottish Ministers' borrowing powers from the UK Treasury, raising the limit to £1.75 billion for lending under section 66(1) and to £3 billion for capital expenditure under section 67A. It also allows borrowing to cover welfare payment shortfalls and Scotland-specific economic shocks. A new clause mandates the Scottish Ministers to provide financial information to the Office for Budget Responsibility (OBR).

Social Security

Amendments clarify the Scottish Ministers' role in social security, transferring responsibility for payments from the social fund. Regulations relating to this are subject to the negative procedure.

Roads and Traffic

The bill clarifies the division of responsibilities between the UK and Scottish governments regarding road traffic regulations, focusing on speed limits, parking, and traffic signs. Amendments specify that the Scottish Ministers' regulations regarding these matters will be subject to the negative procedure. Consultation between the UK and Scottish Governments on road related regulations in Scotland is required.

Legislative and Election Procedures

The bill makes several technical amendments to the legislative process and electoral procedures, including minor changes to election dates and the definition of “ordinary local election.”

Government Spending

The bill increases government spending by raising the borrowing limits for the Scottish government. The total increase is £1.75 billion + £800 million = £2.55 billion. The exact impact on overall UK government spending will depend on the actual use of these increased borrowing powers.

Groups Affected

• Scottish Government: Increased borrowing powers and responsibilities for social security and roads.
• Office for Budget Responsibility (OBR): Granted greater access to Scottish public finance information.
• UK Government: Increased financial commitment to Scotland and adjustments to its regulatory powers over Scottish roads and traffic.
• Local Authorities in Scotland: Changes to election procedures.
• Citizens of Scotland: Potential impact on social security payments, road regulations, and local elections.

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