Latest news with #ScottishNationalInvestmentBank
Daily Record
6 days ago
- Business
- Daily Record
Scottish Government challenged by Livingston MP over its policy of not spending to support munitions manufacture
Gregor Poynton is calling for reform of the Scottish National Investment Bank's policies Livingston MP Gregor Poynton has demanded the Scottish Government reverse its opposition to spending on the manufacture of munitions, warning Scotland risks being left behind as the UK commits billions to strengthening national security. The Labour MP has written to Deputy First Minister Kate Forbes, calling for urgent reform of the Scottish National Investment Bank's restrictive policies that prevent it from backing Scotland's defence companies. The intervention follows Prime Minister Keir Starmer's announcement of new defence investments, including £15 billion for the UK's sovereign warhead programme and plans to build up to 12 new attack submarines. The letter to the Deputy First Minister follows an announcement that defence spending will rise to £79.7 billion by 2027/28, with plans to build up to 12 new submarines, create six munitions' factories, and support 30,000 defence jobs across the UK. The Scottish Government has reiterated that it is not its policy to use money from the public purse for the 'manufacture of munitions'. Gregor Poynton MP labelled the Scottish Government stance as 'student union politics at its worst' and accused the SNP of being 'more concerned with ideology than protecting Scottish jobs and supporting our allies'. He added: 'They'll condemn Russia's invasion of Ukraine but refuse to let Scotland's public investment bank support the very industries helping Ukraine defend itself. 'This isn't principled, it's a dereliction of duty that will cost Scotland thousands of high-skilled jobs and billions in investment.' A Scottish Government spokesperson said: 'The Scottish Government's long-standing policy position is that it does not use public money to support the manufacture of munitions. 'We recognise the importance of the aerospace, defence and shipbuilding sectors for Scotland's economy, and are committed to ensuring Scotland is the home of manufacturing and innovation. 'Ministers continue to engage with industries across the country as part of this work – including through support for defence markets to diversify into civilian markets, training support and job creation. 'We have received the letter and will respond in due course.' However, the MP for Livingston claims Scotland risks missing out on this defence dividend due to the Scottish Government's blanket opposition to backing companies involved in defence manufacturing via the Scottish National Investment Bank. Senior figures from Airbus, BAE Systems, and Babcock have told Parliament that allowing defence investment in Scotland would strengthen the industry and boost the economy. In his letter to the Deputy First Minister, Gregor Poynton asks whether she agrees with maintaining 'blanket opposition to supporting defence-related projects, even when they would deliver thousands of high-skilled jobs and critical capabilities for Scotland.' With the UK moving to 'war-fighting readiness,' he warned that Scotland's defence sector will be left behind while other parts of the UK surge ahead.
STV News
15-05-2025
- Business
- STV News
‘Good start' for national investment bank but rule changes needed
The Scottish National Investment Bank (SNIB) has made a 'good start', Scotland's public sector watchdog has said, but changes to UK Government rules are needed for it to become self-sufficient. The bank was launched in 2020, with the Scottish Government pledging £2bn over the next decade to allow it to back start-up businesses. To date, the bank has committed £785m into 43 different projects and encouraged £1.4bn in outside investment, according to a report by Audit Scotland released on Thursday. The 42-page report praised the bank's 'clear and rigorous' processes for managing the risks associated with investment and in 2023-24 recorded £19.3m in gross income, more than paying for its £16.1m operating costs. But Treasury rules mean the bank is unable to carry forward income it generates on investments. One of the recommendations of the report urged the Scottish Government to 'ensure that it can effectively influence the UK Government's review of public finance institutions by having clear proposals to support the long-term ambition for the Bank to become a perpetual investment fund'. Auditor General Stephen Boyle said: 'The Scottish National Investment Bank was set up to deliver economic, social, and environmental benefits for Scotland, as well as a financial return – and it's made a good start on those ambitions. 'But for the bank to be successful, the Scottish Government needs to address the lack of flexibility around the bank's budget, and the barriers presented by UK Treasury rules.' Responding to the report, deputy first minister Kate Forbes said: 'Audit Scotland's report underlines the positive impact the Scottish National Investment Bank has had on the investment landscape. 'The bank has committed £785m in investments since its inception and attracted £1.4bn in private sector funding. This is helping build businesses, create jobs and reduce carbon emissions. 'The Auditor General also notes the sound arrangements made by the bank and the Scottish Government on its governance, accountability and risk management. 'The report sets out clearly the complex financial and budgeting operating environment. 'The Scottish Government is taking action to improve the financial position for the bank, but this report is clear that the UK Government also needs to take action as part of the Spending Review process to ensure that the bank can reach its full potential.' Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
The Independent
15-05-2025
- Business
- The Independent
‘Good start' for investment bank but rule changes needed
The Scottish National Investment Bank (SNIB) has made a 'good start', Scotland's public sector watchdog has said, but changes to UK Government rules are needed for it to become self-sufficient. The bank was launched in 2020, with the Scottish Government pledging £2 billion over the next decade to allow it to back start-up businesses. To date, the bank has committed £785 million into 43 different projects and encouraged £1.4 billion in outside investment, according to a report by Audit Scotland released on Thursday. The 42-page report praised the bank's 'clear and rigorous' processes for managing the risks associated with investment and in 2023-24 recorded £19.3 million in gross income, more than paying for its £16.1 million operating costs. But the bank said Treasury rules mean it is unable to carry forward income it generates on investments. One of the recommendations of the report urged the Scottish Government to 'ensure that it can effectively influence the UK Government's review of public finance institutions by having clear proposals to support the long-term ambition for the Bank to become a perpetual investment fund'. Auditor General Stephen Boyle said: 'The Scottish National Investment Bank was set up to deliver economic, social, and environmental benefits for Scotland, as well as a financial return – and it's made a good start on those ambitions. 'But for the bank to be successful, the Scottish Government needs to address the lack of flexibility around the bank's budget, and the barriers presented by UK Treasury rules.' Responding to the report, Deputy First Minister Kate Forbes said: 'Audit Scotland's report underlines the positive impact the Scottish National Investment Bank has had on the investment landscape. 'The bank has committed £785 million in investments since its inception and attracted £1.4 billion in private sector funding. This is helping build businesses, create jobs and reduce carbon emissions. 'The Auditor General also notes the sound arrangements made by the bank and the Scottish Government on its governance, accountability and risk management. 'The report sets out clearly the complex financial and budgeting operating environment. 'The Scottish Government is taking action to improve the financial position for the bank, but this report is clear that the UK Government also needs to take action as part of the Spending Review process to ensure that the bank can reach its full potential.' A UK Government spokesperson said: 'This is false. The funding arrangements and flexibilities for the Scottish National Investment Bank are a matter for the Scottish Government, which has the ability to carry forward funding across financial years through the Scotland Reserve.'
Yahoo
14-05-2025
- Business
- Yahoo
‘Good start' for investment bank but rule changes needed
The Scottish National Investment Bank (SNIB) has made a 'good start', Scotland's public sector watchdog has said, but changes to UK Government rules are needed for it to become self-sufficient. The bank was launched in 2020, with the Scottish Government pledging £2 billion over the next decade to allow it to back start-up businesses. To date, the bank has committed £785 million into 43 different projects and encouraged £1.4 billion in outside investment, according to a report by Audit Scotland released on Thursday. The 42-page report praised the bank's 'clear and rigorous' processes for managing the risks associated with investment and in 2023-24 recorded £19.3 million in gross income, more than paying for its £16.1 million operating costs. But the bank said Treasury rules mean it is unable to carry forward income it generates on investments. One of the recommendations of the report urged the Scottish Government to 'ensure that it can effectively influence the UK Government's review of public finance institutions by having clear proposals to support the long-term ambition for the Bank to become a perpetual investment fund'. Auditor General Stephen Boyle said: 'The Scottish National Investment Bank was set up to deliver economic, social, and environmental benefits for Scotland, as well as a financial return – and it's made a good start on those ambitions. 'But for the bank to be successful, the Scottish Government needs to address the lack of flexibility around the bank's budget, and the barriers presented by UK Treasury rules.' Responding to the report, Deputy First Minister Kate Forbes said: 'Audit Scotland's report underlines the positive impact the Scottish National Investment Bank has had on the investment landscape. 'The bank has committed £785 million in investments since its inception and attracted £1.4 billion in private sector funding. This is helping build businesses, create jobs and reduce carbon emissions. 'The Auditor General also notes the sound arrangements made by the bank and the Scottish Government on its governance, accountability and risk management. 'The report sets out clearly the complex financial and budgeting operating environment. 'The Scottish Government is taking action to improve the financial position for the bank, but this report is clear that the UK Government also needs to take action as part of the Spending Review process to ensure that the bank can reach its full potential.' A UK Government spokesperson said: 'This is false. The funding arrangements and flexibilities for the Scottish National Investment Bank are a matter for the Scottish Government, which has the ability to carry forward funding across financial years through the Scotland Reserve.'
Daily Mail
14-05-2025
- Business
- Daily Mail
SNP's national bank gave staff £865k bonuses, all paid for by Scots taxpayers
Scotland's state-owned bank has been urged to monitor whether its bonus system represents value for money after paying out £865,000 to staff last year. Public spending watchdog Audit Scotland called for the Scottish National Investment Bank to continue to monitor the 'operating efficiency' of its bonus schemes and 'ensure arrangements deliver good value'. The bank, set up by Nicola Sturgeon when she was First Minister, remains reliant on public funding despite generating more income than it spent on operating costs for the first time last year. It follows previous revelations that chief executive Al Denholm was awarded almost £90,000 in bonuses, which saw his total remuneration package top £335,000. Audit Scotland's new report on the bank, published today (THUR), highlighted that it operates a long-term incentives plan as part of its pay and reward package which provides payments over three years if staff meet and sustain annually agreed performance conditions, while staff who are not eligible can receive payments through a 'mission-contribution reward scheme'. In 2023/24, the total amount paid out through the two schemes was £865,000, which is 9.2 per cent of total employment costs. The Audit Scotland report said: 'Bonus schemes are not standard practice within public sector pay and reward frameworks. 'As with all public bodies, we would expect the Bank to continue to monitor its operating efficiency and ensure arrangements deliver good value.' It said that the Bank 'recognises there are risks and challenges with attracting and retaining staff, and that it cannot compete for the specialist skills it requires on remuneration alone', and goes on: 'It has developed its wider offer to attract staff which involves promoting the Bank's values and culture, its focus on delivering impact for the people of Scotland, and its approaches to flexible working.' Scottish Conservative business, economy, tourism and culture spokesman Murdo Fraser said: 'While it's good to see that SNIB is now covering its costs, it is responsible for huge amounts of taxpayers' money and the public should be confident that they are getting value for money. 'Ministers must ensure all public-sector funded bonuses represent value for money. They should also accept that the high taxes and red tape imposed by the SNP are a major impediment to the SNIB's mission, and should be abandoned.' Scottish Labour finance spokesman Michael Marra said: 'These huge bonuses are bound to raise some eyebrows. 'SNP mismanagement has left public finances stretched to breaking point. They urgently need to get a grip and ensure taxpayers' money is spent wisely. 'The SNP must work with the Scottish National Investment Bank to ensure that it is getting good value for money and delivering results for Scotland's economy and communities.' The Audit Scotland report said that the SNIB will remain reliant on public funding unless the UK Treasury changes rules stopping it carrying unspent funding into the following year. Since 2020, it has awarded £785 million of funding to 43 businesses and projects, attracted £1.4 billion of private funding and helped create or safeguard 3,000 jobs. It generated over £19 million in income in 2023/24, more than covering its operational costs for the first time, according to Audit Scotland. A spokesperson from the SNIB said: 'As the Audit Scotland report outlines, recruiting and retaining people with the right skills and expertise is crucial to the success of the Bank. Offering competitive incentives is an important element of this. 'The Bank will continue to review its approach to ensure it remains well placed to deliver value and impact.' Deputy First Minister Kate Forbes said: 'Audit Scotland's report underlines the positive impact the Scottish National Investment Bank has had on the investment landscape. 'The Bank has committed £785 million in investments since its inception and attracted £1.4 billion in private sector funding. This is helping build businesses, create jobs and reduce carbon emissions. 'The Auditor General also notes the sound arrangements made by the Bank and the Scottish Government on its governance, accountability and risk management. 'The report sets out clearly the complex financial and budgeting operating environment. The Scottish Government is taking action to improve the financial position for the Bank, but this report is clear that the UK Government also needs to take action as part of the Spending Review process to ensure that the Bank can reach its full potential.'
