RESTRICTIONS on borrowing and funding must be removed for the devolved governments of Wales, Scotland, and Northern Ireland to be able to revive their post-lockdown economies, according to those countries' finance ministers.

The UK's devolved governments have jointly appealed to UK chancellor Rishi Sunak for a more flexible deal that would allow them to transfer more money into day-to-day spending and remove current limits on borrowing money.

The chancellor will make his Summer Statement – effectively a mini-budget – later today, with measures to help the economic recovery from coronavirus likely to dominate.

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“Our response to the Covid-19 crisis has been hampered by UK-imposed rules that limit our ability to get more resources to the frontline," Welsh finance minister Rebecca Evans said. “There is no clear rationale for these rules, which undermine good budget management in Wales."

She added: “The crisis has made the issue urgent. It’s time for the UK government to act and provide the flexibility we need to respond and invest in Wales’ recovery.”

Ms Evans said "the same calls for change" had been made by local government, trade union, and business groups in Wales.

The finance ministers in Scotland and Northern Ireland have also urged Mr Sunak to grant the UK's devolved governments more financial freedoms during the Covid-19 response.

Kate Forbes, Scotland’s cabinet secretary for finance, said the powers she was seeking would help government to respond to Covid-19 "more effectively and reboot our economy".

"They are relatively limited powers, but would ease some of the immense pressures on our budget and give us more tools to kick-start our recovery," she added.

And in Northern Ireland, finance minister Conor Murphy said: “It is crucial that the devolved administrations are equipped to respond swiftly and effectively to the challenges arising from [Covid-19].

“More financial flexibility can help us deal with these challenges and use our budgets to support public services, protect the vulnerable, and deliver an economic recovery.”

The chancellor will make his Summer Statement in the House of Commons this afternoon.