Britain allows Scottish local government to issue investment bonds

China News Service, London, February 19 (Reporter Zhou Zhaojun) The British government announced on the 19th that it will give the Scottish local government the power to issue its own investment bonds. This additional financial resources will enable the Scottish government to acquire new borrowing power. .

Scotland will hold an independent referendum in September this year to determine whether it will become a sovereign state if it leaves the UK. Recently, between the British central government and the local government of Scotland, there has been a constant outbreak of “spoken wars”. Analysts believe that the British government has allowed Scotland to issue debts to ease the opposition between the two sides.

After the British government granted Scotland the power to issue investment bonds on its own, the Scottish government can get up to £2.2 billion in loans for the construction of large-scale projects such as roads, hospitals and schools. In addition, the British government also agreed that the Scottish government will have the right to set its own income tax rate.

After the argument, the British government believes that if the Scottish government is given the power to issue its own investment bonds, the power of the Scottish government will be further enhanced.

The UK Treasury believes that this move has “historical significance”, but the Scottish government does not appreciate this policy, saying that this move “nothing new”. Scottish Chief Minister Salmond said the move did not give Scotland greater lending power, just “new bottled old wine”. Only after independence can Scotland fully control its own economy and finances.

Earlier, the British Chancellor of the Exchequer Osborne said that if Scotland was independent, the Scottish government could not use the pound as its legal currency, and the UK would not form a monetary union with Scotland. In response, Salmond countered that this practice was in the attempt to “threat and intimidate” the Scots. (End)

Responsible Editor: Zhang Xiaofang

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