According to the legislation.gov.uk text of the Scotland Act 1998 (Increase of Borrowing Limits) Order 2026, the UK Government has raised the statutory borrowing ceilings available under the devolution settlement for Scotland. The instrument was made on 29 June 2026 and came into force on 30 June 2026, one day later. The Order was made by the Secretary of State with Treasury consent, and the text states that a draft had already been approved by the House of Commons. In practical terms, this is a technical fiscal update to the Scotland Act 1998 rather than a new spending programme.
The legislation amends two figures in the 1998 Act. The resources borrowing limit in section 67(2) rises from £1,834.303 million to £1,910.141 million, while the capital borrowing limit in section 67A(1) rises from £3,144.519 million to £3,274.527 million. That means an increase of £75.838 million for resources borrowing and £130.008 million for capital borrowing, or £205.846 million in total. On the face of the instrument, both ceilings rise by about 4.1 per cent.
The legal route matters. The instrument states that it was made using sections 67(3) and 67A(2) of the Scotland Act 1998, with Treasury consent required before the Secretary of State could act. It also records approval by the House of Commons under paragraphs 1 and 2 of Schedule 7 to the 1998 Act. Although the borrowing powers sit within Scotland’s devolved finance arrangements, the Order extends to England and Wales, Scotland and Northern Ireland because it amends a UK statute. That is a drafting point with legal significance, even though the policy change itself is focused on Scotland.
The 2026 Order also revokes the Scotland Act 1998 (Increase of Borrowing Limits) Order 2025. The explanatory note says the earlier instrument has been superseded, so the new figures now replace the 2025 ceilings rather than sitting alongside them. For officials tracking devolved finance, that revocation matters because it leaves a single current set of statutory limits in force from 30 June 2026. It reduces uncertainty over which figures departments, auditors and analysts should apply.
The explanatory note attached to SI 2026/713 is clear about what the change does and does not do. It raises the maximum borrowing limits written into the Scotland Act 1998, but the text itself does not allocate money to named projects or set out a programme-level spending decision. That distinction is important for public sector readers. A higher ceiling increases available headroom within the statutory rules; it does not, by itself, show when borrowing will be used or identify a particular project, service or budget line.
The same explanatory note states that no full impact assessment has been produced because no, or no significant, effect on the voluntary or public sector is foreseen. That indicates the Government is treating the measure as an adjustment to the fiscal settlement rather than a regulatory change carrying wider compliance costs. The Order was signed for the Scotland Office by Parliamentary Under-Secretary of State Kirsty McNeill on 29 June 2026, with Treasury consent dated 22 June 2026 and given by Christian Wakeford and Deirdre Costigan. For policy teams, the immediate position is straightforward: from 30 June 2026, the statutory borrowing ceilings in the Scotland Act 1998 are higher, and the 2025 Order is no longer the operative instrument.