The Scottish government has moved one step closer to launching a Scottish National Investment Bank, following the publication of the implementation plan for the new lender, which is intended to offer long-term finance for both smaller firms and larger projects
First Minister Nicola Sturgeon originally mooted the idea of a Scottish National Investment Bank in September last year, and Benny Higgins, CEO of Tesco Bank, has headed up an advisory group which has now made recommendations covering the remit, governance, operating model and financing of the new bank.
Under the proposals, the bank would be publicly-owned and focused on supporting Scotland’s economic priorities and promoting inclusive growth. It would be supported by long-term capitalisation of at least £2bn over the first ten years, with the aim of becoming self-sustaining in the longer term, raising its own capital to fund investments.
Welcoming the report, First Minister Nicola Sturgeon said: ‘To realise our ambitions for Scotland’s economy, innovative companies need access to strategic, patient finance to grow and thrive, while the business environment must encourage our young people to be the entrepreneurs of the future. That is why I committed to a publicly-owned national investment bank, which will act as a cornerstone for the economy.’
The Scottish government is expected to make a formal response to the recommendations in the spring.
Scottish National Investment Bank plan is here.
Report by Pat Sweet
