Cameron tries to woo Scots with bond issuing rights

Scotland will be given the power to issue its own bonds starting next year, British prime minister David Cameron’s government said as it steps up its campaign to keep the country in the UK.

The move, announced by chief secretary to the Treasury Danny Alexander, broadens the potential sources of funding for the Scottish government, though borrowing will continue to be limited to £2.2bn (€2.67bn). The British government will provide no guarantees on bonds issued by Scotland, the Treasury said.

“Being able to issue its own bonds gives Scotland new powers and new responsibility, within the security of the UK,” chancellor of the exchequer George Osborne said in a statement. “Alongside the considerable new tax and spending powers we have already given in the Scotland Act, it is further evidence of why being part of the UK gives Scotland the best of both worlds.”