“…the challenge is stark, with a likely deficit far in excess of the UK as a whole, other comparable countries or that which is deemed to be sustainable in the long-term. It is not enough to say ‘everything will be fine’ or ‘look at this country, they can run a sensible fiscal balance so why can’t Scotland?’. Concrete proposals and ideas are needed.”
What do Humza Yousaf’s new policies mean for Scotland?
“It may be that the process of establishing and issuing the bonds is seen as strengthening the Scottish state in advance of a future independent Scotland. But in a constrained fiscal environment, it will be fair to ask whether borrowing in a more expensive way makes sense.”