Scottish National Investment Bank
We want to be more ambitious for Scotland, providing patient and growth capital for businesses and catalysing private sector investment. In the Programme for Government 2017 to 2018, the First Minister announced plans to establish a Scottish National Investment Bank.
Businesses in Scotland often find it difficult to borrow money over a longer term (10 to 15 years), known as patient finance. This will be a key focus for the Scottish National Investment Bank.
The Bank will support ambitious companies and important infrastructure projects. By aligning its aims and objectives with Scotland’s Economic Strategy, the Bank has the potential to transform and grow Scotland’s economy.
Work to establish the Scottish National Investment Bank is continuing at pace and it will be operational in the second half of 2020. The Scottish Government has committed to investing £2 billion over 10 years to capitalise the Bank.
Taking a mission based approach, the Bank will aim to support innovative, high growth firms that have a positive impact in Scotland. The Bank’s primary mission will be to support Scotland’s transition to net zero carbon emissions through a range of debt and equity products.
As part of the initial capitalisation the Scottish Government announced that funding would be available to invest in activities which support Scotland’s transition to net zero. If you have a company or project that is seeking investment to drive low carbon activity then please email email@example.com for further information.
We ran a public consultation on the Scottish National Investment Bank during September and October 2018 to help shape the Parliamentary Bill. This was augmented by a series of 21 engagements with key stakeholders.
In February 2019 we published an independent analysis of responses to the consultation.
The Scottish National Investment Bank Bill was introduced to the Scottish Parliament on 27 February 2019.
The Scottish Parliament approved the Bill in principle after a Stage 1 debate on 26 September 2019. The Bill was debated and amended at Stage 2 on 19 November and passed Stage 3 on 21 January 2020. The Bill received Royal Assent on 25 February 2020.
We will also publish documents here that relate to the Scottish National Investment Bank Bill throughout its parliamentary passage:
- the revised equality impact assessment (EQIA) has been published in line with our commitment to update and revise the EQIA published in February 2019. It identifies opportunities for the Bank to improve access to finance for people who share the protected characteristics and to remove barriers that they experience working in the financial services sector
- the business and regulatory impact assessment (BRIA) considers the potential costs on businesses in Scotland that may result from the creation of the Bank
- the draft articles of association provide the draft constitution for the Scottish National Investment Bank as a public limited company. This draft reflects the provisions of the Scottish National Investment Bank Bill. The final version of the Bank’s articles of association will reflect any changes that result from the Bill’s parliamentary passage
- the child rights and wellbeing impact assessment (CRWIA) screening test assesses the potential impact that the establishment of a Scottish National Investment Bank will have on the rights and wellbeing of children and young people in Scotland. It concludes that the Bank will have a positive impact on the rights and wellbeing of children and young people in Scotland
- the Fairer Scotland Duty assessment considers how the Bank can reduce inequalities of outcome arising from socioeconomic disadvantage. It finds that by improving access to the finance for socioeconomically disadvantaged entrepreneurs and for businesses with specific characteristics as well as by introducing Fair Work conditions to investments, the Bank can in fact have a direct impact on reducing socioeconomic disadvantage in Scotland
We have produced a summary of the Scottish National Investment Bank Bill.
We will identify missions which will focus the Bank’s activities on addressing significant challenges facing Scotland. This will allow the Bank to create and shape future markets and help define how our economy develops.
The Programme for Government 2019-2020 confirmed that supporting Scotland’s transition to net-zero will be the Bank’s primary mission.
In March 2019 an innovative mission-oriented framework for the Scottish National Investment Bank was presented by UCL Institute for Innovation and Public Purpose.
In August 2020 a proposal to set missions for the Scottish National Investment Bank was published and laid in the Scottish Parliament to allow for a parliamentary consultation on the proposed missions.
In December 2020, upon completion of the consultation process, the missions were set for the Bank by Scottish Ministers. These missions were also communicated to Parliament in order to conclude the mission setting process.
The Scottish National Investment Bank will be a public body but will operate commercially and be operationally and administratively independent from government. This provides the Bank with the scope and freedom to decide what products it offers and how it delivers the missions set. The Bank’s Board will set out how they intend to meet the missions through an Investment Strategy.
The Council of Economic Advisers highlighted the important role that national investment banks play in providing long-term investment to support economic growth in many European countries.
In the Programme for Government 2017 to 2018, the First Minister announced plans to establish a Scottish National Investment Bank. Former CEO of Tesco Bank, Benny Higgins, and a small Advisory Group, led the work on developing an Implementation Plan. The plan was published in late February 2018, following a public consultation.
The Cabinet considered in detail the proposals outlined in the Implementation Plan, and we responded to the plan in a Parliamentary debate in May 2018, agreeing to accept all 21 recommendations.
In the Programme for Government 2018-2019, the First Minister announced plans to introduce legislation to formally underpin the bank. Having received parliamentary support, we are now taking forward the implementation of these recommendations under various work streams.
In June 2018 Benny Higgins was appointed as Strategic Adviser to the First Minister on the Scottish National Investment Bank.
In the Draft Budget 2018 to 2019 we announced the Building Scotland Fund as a precursor to the bank.
We provided £130 million in 2019-2020 to establish the Scottish National Investment Bank and finance its early activities, and will provide £281 million in 2020/21 for the same purpose.
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