I wrote a few days ago on the need for Scotland to have a National Investment Bank and referred to the suggestion that with an initial investment from the Scottish Government of only £225 million, £3.4 billion could be leveraged in the first year alone.
I’d forgotten that we already have one. The Scottish Investment Bank which is the ‘investment arm’ of Scottish Enterprise has been investing in Scottish companies for decades. In 2016/17, it invested £63.5 million of government funds into 146 companies. This is up 21% from £52.4 million in 2015/2016 due to the Scottish government’s increased ambitions to grow the economy.
The SIB also leveraged £106 of private funds. So, the idea works in practice. We just need a bigger one, a much bigger one, leveraging £3.4 billion!