Scottish National Investment Bank review of performance 2026: Scottish Government response

I welcome the publication of this independent performance review of the Scottish National Investment Bank and would like to thank Sir John Elvidge for the thorough and thoughtful assessment of the Bank’s first five years of operation.

The review concludes that the Bank has made strong progress since its inception, deploying over half of the £2 billion in capital funding that has been committed to 2030. It has successfully established itself as a mission-led development bank and has already made an important contribution in supporting investment across Scotland. The findings reinforce those of Audit Scotland's report published in May 2025.

The review also identifies clear opportunities for both the Bank and the Scottish Government to build on that foundation and strengthen the Bank's contribution to Scotland's economic, social and environmental ambitions over the years ahead. 

The Scottish Government accepts the broad conclusions of the review. We welcome the recognition of the positive and constructive relationship that has been established between the Government and the Bank, including our commitment to respecting the Bank's operational independence while providing strategic direction through its missions and shareholder arrangements. We are committed to taking forward the recommendations directed towards the Scottish Government. We will: 

• Review and update the Shareholder Relationship Framework Document with the Bank to ensure that governance, reporting and strategic engagement arrangements remain fit for purpose and reflect the Bank’s maturity. This will continue to support the Bank’s operational independence and commercial focus, while ensuring robust shareholder oversight, transparency and accountability for public investment.
• Continue to work with the Bank and the other economic development and investment institutions active in Scotland and the UK to strengthen collaboration, promote strategic alignment and ensure a shared understanding of the respective roles and responsibilities where appropriate.
• Make greater use of the insights and market intelligence generated by the Bank to inform policy development and economic decision-making. 
• Continue to engage HM Treasury in line with the previously agreed 'Statement of Intent'. This includes seeking formal Public Finance Institution designation for the Bank with modifications for the devolved context, and creating the conditions that enable the Bank to act as a Perpetual Fund.

The review also identifies a number of recommendations for the Bank itself. These include actions relating to governance, strategic communication, risk appetite, investment processes and ecosystem engagement. 

The Scottish Government has discussed the review's findings with the Bank and agrees on the key areas for action. Together, we are developing a clear plan to take forward the recommendations, many of which are already underway, with defined responsibilities and timescales. The next phase of development will focus on maximising the Bank's impact, helping more businesses to scale up and innovate, unlocking investment in housing and infrastructure, and supporting the creation of high-quality jobs across Scotland. We will continue to work closely with the Bank to ensure it delivers on its missions for the people of Scotland.

Stephen Flynn

Cabinet Secretary for Economy, Tourism and Transport

Related publication

Scottish National Investment Bank: review of performance 2026