Scottish National Investment Bank
We want to be more ambitious for Scotland, and to provide the financing that businesses need through every stage of their investment lifecycle. 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.
The Bank will be operational in 2020, investing in businesses and communities across Scotland.
We have committed to investing £2 billion over 10 years to capitalise the Scottish National Investment Bank, making it a cornerstone of Scotland’s economy.
We ran a public consultation on the Scottish National Investment Bank during September and October 2018 to help shape the Parliamentary Bill. This will be augmented by a series of 21 engagements with key stakeholders. We have commissioned an independent report to analyse responses.
The consultation will inform the draft Bill to establish and capitalise the Scottish National Investment Bank that we will bring forward in early 2019. We are now developing detailed governance arrangements and engaging with stakeholders to inform proposals on how the Bank will operate.
Through consultation, Scottish Ministers will set out major priorities for investment “missions” which address major societal challenges in order to achieve transformative and inclusive change. This will allow us to create and shape future markets and help define how our economy develops.
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 Minster 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.
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