Tuesday June 30th 2026
First Minster John Swinney
Written by Midlothian View Reporter, Liam Eunson
Scottish Greens co-leader Ross Greer has made calls for the First Minister to pause plans to issue Scottish Government bonds, arguing that they ‘risk being a gimmick which costs more in the long term’ and that the plans create a barrier towards independence.
The Scottish Government is preparing a £1.5 billion bond programme with nine banks appointed to a framework to advise and support the delivery.
Confirmed on Friday, HSBC Bank Plc, Merrill Lynch International, NatWest Markets Plc and RBC Europe Limited have been selected to act as the joint bookrunners – lead managers for the bonds for the Scottish Government’s inaugural bond issuance. Other banks on the framework will have the opportunity to support any subsequent bond sales.
Law firm Clifford Chance LLP has been appointed as legal adviser to assist with its inaugural issue.
With the first issuance expected in late 2026 or early 2027, the Scottish Greens have made calls to pause the plans, highlighting that the shorter term bonds suggested instead by fund managers would put more financial pressure on the Scottish Government over the next five to ten years, a period in which Scotland’s public finances are projected to be under immense pressure.
Scottish Greens co-leader Ross Greer explained:
“Scotland needs investment in homes, bus and rail services, schools and hospitals. Governments borrowing to build this kind of infrastructure makes total economic sense, but these bonds are not the way to do that.
“The Scottish Government can borrow through existing routes which are cheaper and lower risk. Why would the SNP choose to issue expensive bonds instead, especially when they put another barrier in the way of Scottish independence?
“Borrowing to build the infrastructure Scotland needs isn’t just a good idea, it’s essential. The Scottish Government should drop its bonds plan and use its regular borrowing powers to deliver the homes, rail lines and public services so urgently required.
“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 this.”
Speaking on Friday, Deputy First Minister Jenny Gilruth highlighted that the funds raised will support capital infrastructure projects, explained:
“This new framework will play an important role in supporting the delivery of the Scottish Government’s bond programme, bringing together a range of market expertise.
“The funding raised from these bonds will help support delivery of the capital infrastructure projects outlined in the Spending Review, while allowing the Scottish Government to diversify its borrowing. Bonds are a standard form of borrowing for governments around the world.
“The Scottish Government’s bond programme is underpinned by high investment grade credit ratings from two global credit rating agencies. These are an endorsement of the strength of the Scottish economy and efforts we are making to drive that forward.”
The Scottish Greens highlighted economists’ previous warning 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.
Last year the Scottish Government was given the same high credit rating as the UK as part of preparations for the bond programme.
The UK Government sets strict limits on the overall amount of money the Scottish Government can borrow, regardless of whether it is through the National Loans Fund, bonds or by other means. The Greens argued that this means that issuing bonds will not increase the funding available to the Scottish Government, it will only change the source of those funds and the cost of repaying those debts.
The Financial Times has also reported that fund managers are urging the Scottish Government to avoid long-term bonds, warning that the prospect of constitutional change could push up the cost of Scottish debt.
Explaining that the plans hinder and create a barrier towards Scottish independence, Ross Greer added:
“An independent Scotland, with all of our immense assets and talents, would clearly secure an excellent credit rating. That is a completely different issue to the Scottish Government’s current credit rating, which was secured for the purpose of issuing these bonds and is based on our place in the UK.
“Giving our unionist opponents a reason to cast doubt on our prospects of success as an independent nation or to talk up potential costs – real or imagined – would be a major strategic mistake for a pro-independence government.
“Westminster treats Scotland like a child who can’t be trusted with their pocket money. The borrowing limits imposed on the Scottish Government give it less power in this area than a local council. The only way out of that ridiculous situation is with independence. Anything which gets in the way of achieving that goal should be immediately discounted.
“The case for independence must be credible, serious and focused on how we can improve people’s lives with the full powers of a normal nation. Why risk undermining that with an unnecessary and expensive bond scheme that will be used against us ahead of the next referendum?”
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