SNP boost for firms ‘is a joke’
£500m growth scheme yet to give out a loan, two years on
THE SNP’s flagship plan to hand out millions of pounds to businesses in a bid to boost the economy has failed to issue a single loan or guarantee – two years after its introduction.
The Scottish Growth Scheme support fund for private sector firms was branded a ‘joke’ last night after it emerged key strands of the initiative have yet to distribute any money.
The First Minister described the £500million plan as a ‘half-billionpound vote of confidence in Scottish business’ when she unveiled her Programme for Government in 2016.
But Nicola Sturgeon’s flagship policy has yet to provide a loan or guarantee,
‘The SNP simply isn’t up to the job’
the Scottish Government confirmed yesterday, although a spokesman said 78 companies had benefited from more than £90million in equity funding.
The equity funding, which is used by companies looking to sell off shares, is done in partnership with the European Investment Fund through the Scottish European Growth Co-Investment Programme.
This is the only part of the growth scheme in operation. It provides up to £2million but firms must be looking to sell off part of their company.
It comes as Finance Secretary Derek Mackay launches a consultation on plans for a national investment bank, which is set to receive up to £2billion of public funds over ten years – with an annual running cost of £30million.
Last night, Scottish Conservative economy spokesman Dean Lockhart said: ‘This is becoming a joke.
‘Nicola Sturgeon described her big £500million scheme as a “half-billion-pound vote of confidence”. We now discover it hasn’t issued a single loan or guarantee. A national investment bank was then set up. But after consulting on it last year, the big plan is to have yet another consultation.
‘It’s becoming clearer by the day that the SNP simply isn’t up to the job. Scotland is being trapped in the economic slow lane as a result.’
The growth scheme was designed to provide investment to new small and medium-sized enterprises (SMEs) with high growth potential and export strategies. It was expected that loans of up to £5million would be made available.
A similar initiative run by the UK Government, the British Business Bank, has given hundreds of millions of pounds in finance and startup loans to nearly 7,000 SMEs in Scotland.
Mr Mackay officially launched a public consultation on the national investment bank last week. He said ministers were set to hand out lucrative pay packets and bonuses to attract top talent.
Miss Sturgeon announced plans for a bank last year, with former Tesco Bank chief Benny Higgins paid £95,000 a year to advise her.
It is being introduced to encourage ‘inclusive growth’, with £500million of funding earmarked for the bank to lend over three years. Meanwhile, it was revealed yesterday that Scotland is on course to receive a £1billion bonus from the UK as a result of Barnett consequentials from the Government’s national productivity investment fund.
The Scottish Government confirmed Scotland has already received £110million and is set to get £206million this year, rising to £312million and £370million in 2019 and 2020. The total Barnett bonus will be £1billion by 2021.
Mr Lockhart said: ‘Yet again the SNP has taken money from the UK to fund its pet projects and eye-catching freebies and dressed it up as Nationalist largesse.
‘The SNP has totally failed to tackle the problem of low productivity or the 11-year stagnation of the economy.’