Chamber and committees

Scottish Government has been monitoring closely the economic impact of Covid on business - including business indebtedness - throughout the pandemic, and has implemented a range of measures to alleviate the resulting financial difficulties. For example, the Advisory Group for Economic Recovery was set up in April 2020, led by Benny Higgins, to provide independent expert advice on actions that will make a difference to businesses across sectors and regions throughout Scotland; Scottish Government also convened a number of discussions with banks and other private sector investors to understand better how to facilitate financing economic recovery, culminating in the February 2021 publication of “Financing the Recovery” which highlighted the need to manage debt exposure, to finance growth opportunities and to design successor loan schemes that are ambitious, flexible and responsive to the needs of the economy. The report made 10 recommendations to the UK Government and to Scottish Ministers, across four areas of focus: Economic Overview, Financing Business Survival and Resilience, Financing Opportunity and Growth, and Business Support and Collaboration. As the regulation of financial services is reserved to the UK Government, the Cabinet Secretary for Economy, Fair Work and Culture wrote to the Economic Secretary to the Treasury urging him to take forward some of the actions from the report, including extending forbearance measures and the introduction of a framework to manage and recover debt. A positive response was received, outlining what action is already being taken to assist recovery as we move forward.