Greens call for Scottish Government to halt bonds programme after Deputy First Minister admits market “volatility”
Scottish Greens co-leader Ross Greer has repeated his call for the Scottish Government to halt its plan to issue bonds after the Deputy First Minister admitted there were “risks” from the volatile bonds market.
The Greens have previously warned against the bonds programme, arguing it risks being a “gimmick” which costs more in the long term and creates a new barrier to Scottish independence.
The Scottish Government is preparing a £1.5 billion bond programme, with the first issuance expected in late 2026 or early 2027. Earlier this year, they confirmed the nine major banks appointed to advise on the framework for the bond scheme, including HSBC, Merrill Lynch International and Barclays.
The involvement of Barclays has also been criticised by the Greens, who have pointed out that it contradicts the Scottish Government's stated support of a boycott of all companies complicit in Israel’s occupation of Palestine.
Economists have previously warned that raising money through bonds would be more expensive than regular government borrowing from the National Loans Fund, which offers low-cost loans to public bodies.
Deputy First Minister Jenny Gilruth told the Finance and Public Administration Committee this week that the Scottish Government will only move ahead if the “market conditions allow us to do so”.
Scottish Greens co-leader Ross Greer said:
“This is further evidence that the Scottish Government’s bonds programme would be a costly mistake. The Deputy First Minister has admitted how risky it is, something that the Scottish Greens have warned from the start.
“Scotland needs investment in schools, hospitals, homes, bus and rail services – but there are already safer ways to borrow the money needed for those investments. Issuing bonds is an unnecessary and avoidable risk.
“The Scottish Government should not put itself at the whim of the bond markets. It needs to drop this gimmick now, before the bonds are issued.
“The Scottish Government can borrow through existing routes which are cheaper and lower risk. Instead, the SNP are pushing ahead with a scheme that will be more costly and put another barrier in the way of Scottish independence.
“Scotland’s public finances are under huge pressure right now. The answer to that challenge must include serious investment plans from the Scottish Government – not risky gimmicks like the bonds programme.”