EDINBURGH, SCOTLAND - NOVEMBER 13: Scottish First Minister John Swinney gestures during FMQs at the Scottish Parliament Building on November 13, 2025 in Edinburgh, Scotland. (Photo by Jeff J Mitchell/Getty Images)

The SNP’s plan to issue quasi-sovereign bonds is little more than a political gesture that will ultimately push up the price of borrowing, says Tim Focas

The Scottish government’s plan to issue its first-ever £1.5bn of quasi-sovereign bonds, known as “kilts”, is being pitched as a confident stride towards financial maturity. In reality, it looks more like a politically motivated misstep that risks exposing Scotland to higher borrowing costs, market scepticism and the unforgiving discipline of bond investors who don’t care for constitutional grandstanding.

Yes, the credit ratings agencies have played along. Scotland has been awarded an AA/Aa3 rating, matching the UK’s. But let’s not kid ourselves. These grades rest almost entirely on the strength of Scotland’s integration with the wider UK fiscal framework. Strip out the stabilising influence of........

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