Plans take shape as recommendations published.
Developed by Benny Higgins, Chief Executive Officer of Tesco Bank, the plan covers the remit, governance, operating model and financing of the new bank.
The plan recommends that the bank should:
• Be publicly-owned and mission-driven, focused on supporting Scotland’s economic priorities and promoting inclusive growth
• Operate in an ethical and transparent way
• Co-work to crowd in, not crowd out, private sector investment
• Be supported by long-term capitalisation of at least £2,000 million over the first decade
• Become self-sustaining in the longer term, raising its own capital to fund investments
• Provide long-term, patient finance for both smaller firms and larger projects
• Create opportunities and new markets for the private sector to invest in
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.
“I thank Benny Higgins and the advisory group for their work to bring this aspiration a step closer. The SNP Government will carefully consider his recommendations, as we move forward with the creation of the Scottish National Investment Bank.”
Mr Higgins added:
“There is an incontrovertible case for creating a Scottish National Investment Bank. The economic and social wellbeing of our country will be enhanced by an institution that complements private sector investment, with a clear focus on small and medium sized enterprises and projects that require strategic patient capital.
“We have undertaken rigorous analysis through this process and engaged an extensive and broad group of individuals and bodies in both the public and private sectors. There is a strong consensus that there is an immediate and pressing need for the creation of the bank.”
Patricia Gibson MP added:
“To bring prosperity to North Ayrshire we need thriving businesses, aspiring entrepreneurs and increased investment. The Scottish National Investment Bank will be the shot in the arm we need to help deliver that and I warmly welcome its creation by the SNP Government.”
Establishing a Scottish National Investment Bank was announced by the First Minister on 5 September 2017. An advisory group to support Mr Higgins included investment professionals, academics, the Scottish Futures Trust, Scottish Enterprise and senior Scottish Government officials. The recommendations will be considered by Scottish Ministers, before a formal response in the spring.
A consultation on the Scottish National Investment Bank at the end of last year found responses were overwhelmingly positive.