Financing Scotland's recovery: analysis
The Cabinet Secretary for Economy, Fair Work and Culture has been working closely with the banks in Scotland since the start of the COVID-19 crisis to better understand how we can facilitate economic recovery.
Footnotes
1 The recommendations are set out in much greater detail in the body of the advice.
2 Scottish Government, Business Impacts of Coronavirus (COVID-19) Survey (BICS) – Weighted Scotland Estimates: Wave 16. Data is for businesses with 10 or more employees with a presence in Scotland and relates to the period 19 October to 1 November 2020.
3 British Business Bank, CBILS and BBLS Regional and Sector Lending Data. Data to 10 January 2021.
4 Under the Pay As You Grow facility, businesses can apply to extend the BBLS loan term to 10 years.
5 British Business Bank, CBILS and BBLS Regional and Sector Lending Data. Data to 10 January 2021.
6 Bank of England, June 2020, Decision Maker Panel
7 BVA-BDRC, January 2021, SME Finance Monitor: 3 Month Rolling Analysis to end December 2020
8 Ibid.
9 Ibid.
10 Bank of England, January 2021, Credit Conditions Survey 2020 Q4
11 BVA-BDRC, January 2021, SME Finance Monitor: 3 Month Rolling Analysis to end December 2020
12 Bank of England, Net Finance Raised from Banks, Building Societies and Capital Markets. Data is for businesses in the UK as a whole for the period March to December 2020.
13 UK Finance, December 2020, SME Lending and Deposits – Great Britain, 2020 Q3.
14 Bank of England, Monthly 12 Month Growth Rate of M4 Lending (monetary financial institutions net lending to private sector), Seasonally Adjusted. Data to December 2020.
15 Bank of England, January 2021, Credit Conditions Survey 2020 Q4
16 National Audit Office, October 2020, Investigation into the Bounce Back Loan Scheme
17 BVA BDRC, September 2020, SME Finance Monitor 2020 Q3
18 Institute of Directors, June 2020, Policy Voice Poll
19 Office for Budget Responsibility, November 2020, Economic and Fiscal Outlook – November 2020
20 Ibid.
21 Scottish Government, Business Impacts of Coronavirus (COVID-19) Survey (BICS) – Weighted Scotland Estimates: Wave 15 (5 – 18 October 2020).
22 Scottish Government, Business Impacts of Coronavirus (COVID-19) Survey (BICS) – Weighted Scotland Estimates: Wave 21 (29 December 2020 – 10 January 2021).
23 Office for Budget Responsibility, November 2020, Economic and Fiscal Outlook – November 2020
24 Bank of England, February 2021, Monetary Policy Report
25 National Audit Office, October 2020, Investigation into the Bounce Back Loan Scheme
26 EFG facilitates lending to smaller businesses that are viable but unable to obtain finance from their lender due to insufficient security. EFG provides the lender with a government-backed guarantee of up to 75%.
27 Equity for high growth businesses is discussed below.
28 LINC Scotland, July 2020, Press Release: ‘Another Strong Quarter from Business Angel Syndicates’
29 New deals were however boosted by SG’s Early Stage Growth Scheme.
30 Investment funds which invest only in businesses and industries which meet pre-defined ethical and environmental criteria.
31 The Taskforce on Climate-related Financial Disclosures (TCFD) is an international body that was tasked by the Financial Stability Board to recommend a set of common disclosure standards for the financial sector and major NFCs. The recommendations were published in 2017, and focused on governance, strategy, risk management, and metrics and targets.
32 The participating institutions are Bank of Scotland, Barclays, HSBC, RBS, Santander, TSB and Virgin Money.
33 Scottish Government, March 2018, Scotland’s Digital Economy Maturity Index 2017
Contact
Email: Kat.Feldinger@gov.scot
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