8. To ask the Scottish Government whether it will provide an update on its plans to issue Government bonds. (S6O-02764)

The First Minister announced on 17 October that, subject to market testing and due diligence, the Scottish Government will go directly to the bond market in our own right for the first time.

The issue of bonds is part of a wide-ranging package of recommendations from an investor panel of senior figures from investment finance. The Scottish Government will issue bonds when the value-for-money case supports it from a fiscal and economic perspective.

It is deeply disappointing that the Chancellor of the Exchequer failed to provide the funding that devolved Governments need in the autumn statement. That makes the challenges for our budget next year even more severe, so it is right that the Scottish Government pursues all of its fiscal and economic levers to boost investment in Scotland, including the issuance of bonds.

The next steps will be set out in the 2024-25 Scottish budget on 19 December.

It is clear that bonds represent an important opportunity to use our powers to invest in infrastructure during a time that, judging by today’s autumn statement, will clearly be one of continued Westminster austerity. Can the cabinet secretary say any more about how the bonds could help to raise Scotland’s profile and engagement with international investors?

The investor panel provided its first-stage work to the Scottish Government in September, and it covers a wide range of findings and recommendations on how Scotland can attract mobile capital to support the just transition to net zero.

That piece of work also includes a recommendation that would involve additional costs but could result in Scotland’s profile being significantly raised in international capital markets through the use of existing devolved powers to issue debt. That would provide a motivation for regular engagement with investors and an opportunity to market Scotland’s investment story, and it would also allow the development of relationships with providers of debt, a track record and a credit rating. However, as I have stressed, the proposal has to meet the value-for-money test, which will be set out by the Scottish Government before we proceed.

The investor panel has produced a valuable piece of work, and I thank it for its efforts and the information that it has provided.

The Deputy Presiding Officer:

That concludes portfolio questions on finance and parliamentary business. There will be a short pause before we move on to the next item of business.