Scottish National Investment Bank Bill: equality impact assessment

Background

1. The Scottish Government’s 2017-18 Programme for Government included a commitment to establish a Scottish National Investment Bank, with the aim of boosting Scotland’s economic performance and realising the Scottish Government’s ambitions for the economy by providing patient capital to finance growth.

2. The Scottish Government commissioned Mr Benny Higgins, former Chief Executive of Tesco Bank, to provide recommendations on the role, remit, governance and capitalisation of the Bank. The Implementation Plan he produced recommended that the Bank be established as a public body and a public limited company, and that it be capitalised by the Scottish Ministers.

3. As a public limited company the Scottish National Investment Bank is required to have set out in its Articles of Association its company objects; these are provided in the Scottish National Investment Bank Bill. The main object for which the Bank is established is the giving of financial assistance to commercial activities for the purpose of promoting or sustaining economic development or employment in Scotland. The Bill also sets out ancillary objects for the Bank in pursuit of its main object.

4. The Bank will in general take a mission-based approach to its investment. Scottish Ministers will set out missions for the Bank to guide its activities and ensure alignment between the activities of the Bank and Scottish Government policy.  

5. The Implementation Plan identified possible transformative missions for the Bank which reflected the priorities set out in the September 2017 Programme for Government: transitioning to a low carbon economy; responding to an ageing population and wider population health; and promoting inclusive growth through placemaking and regeneration. We consulted on those potential missions in September and October 2018 and will consider the views expressed in responses to that consultation, and those expressed in subsequent stakeholder engagement, as the missions are developed.

6. The initial set of missions are expected to be in place for 5 years, but can be refreshed within that time should it be necessary. Subsequent sets of missions are also intended to be set for 5 year time periods. The development of subsequent sets of missions will be informed by the review which the Scottish National Investment Bank Bill requires Scottish Ministers to commission at least every 5 years.

7. Scottish Ministers will also agree with the Bank its target rate of return and performance management framework.