This paper explores the role of balance relationships for background error covariance modelling as the model's grid box decreases to convective-scales. Data assimilation (DA) analyses are examined from a simplified convective-scale model and DA system (called ABC-DA) with a grid box size of 1.5km in a 2D 540km (longitude), 15km (height) domain.The DA experiments are performed with background error covariance matrices (B) modelled and calibrated by switching on/off linear balance (LB) and hydrostatic balance (HB), and by observing a subset of the ABC variables, namely v , meridional wind,ρ , scaled density (a pressure-like variable), and b , buoyancy (a temperature-like variable). Calibration data are sourced from two methods of generating proxies of forecast errors. One uses forecasts from different latitude slices of a 3D parent model (here called the 'latitude slice method'), and the other uses sets of differences between forecasts of different lengths but valid at the same time (the National Meteorological Center method).Root-mean-squared errors computed over the domain from identical twin DA experiments suggest that there is no combination of LB/HB switches that give the best analysis for all model quantities. It is frequently found though that the B-matrices modelled with both LB and HB do perform the best. A clearer picture emerges when the errors are examined at different spatial scales. In particular it is shown that switching on HB in B mostly has a neutral/positive effect 1 This article has been accepted for publication and undergone full peer review but has not been through the copyediting, typesetting, pagination and proofreading process which may lead to differences between this version and the Version of Record. Please cite this article as