The wholesale Scottish government bond programme will result in approximately £170 million leaking out of the Scottish economy.
There is significant capacity within Scotland to invest in ourselves. This does not seem to be recognised by the current administration. Community Wealth Building is an essential “pillar” of investing in ourselves, and the Scottish Government could lead the charge for CWB by ensuring that all interest payments on Scottish Government debt are retained in Scotland’s economy. Indeed, we believe the spirit of the Community Wealth Building Act 2026 demands it.
The economic case for wholesale bonds is very narrow, and the bond programme is primarily driven by the desire to attract more FDI.
We make one recommendation. The Scottish Government should pause the process of issuing a wholesale bond and consult more broadly with Scottish households and businesses, including Scotland’s Local Authority Pension Schemes and Credit Unions. With the passing of the Community Wealth Building (Scotland) Bill on the 11th February 2026, this administration and the one that follows the 2026 Holyrood election have an opportunity to turn words into action by issuing a bond that, rather than weakening the Scottish economy, strengthens its resilience.