The Scottish National Investment Bank (SNIB), launched in November 2020 with a pledge of £2 billion in taxpayer funding over a decade, has reported significant financial losses. In the 2025-26 fiscal year, the bank posted losses totaling £137.5 million, a development that has drawn criticism from opposition parties.
Despite these financial setbacks, the bank's chief executive, David Ritchie, who was appointed in January, is in line for performance-related bonuses amounting to £34,000 on top of his £214,000 salary. This reward structure is part of the government-owned company's pay policy. Critics argue that such bonuses undermine the principle of accountability, particularly when public funds have been lost through investment failures in companies that have collapsed or are underperforming.
Nicola Sturgeon, the former First Minister who described the SNIB as one of the most significant developments in the history of devolution at its launch, stated its potential to "transform, grow and decarbonise Scotland’s economy." However, the recent losses have been characterized as "reckless gambles with taxpayers' cash."
Craig Hoy, Scottish Conservative finance and social security spokesman, criticized the Scottish Government, stating that ministers have overseen "years of reckless spending" and that taxpayers are bearing the cost of these failures. He highlighted the discrepancy between the substantial losses and the bonuses awarded to bank executives.
The situation has fueled broader discussions about accountability within Scotland's public sector, with critics suggesting a culture where failure does not impede career progression or financial reward. This sentiment has been echoed in other public sector cases, such as the early retirement of NHS Fife chief executive Carol Potter amid an employment tribunal ruling that found the health board had discriminated against a nurse. Another instance cited involves former health secretary Michael Matheson, who faced scrutiny over an £11,000 iPad roaming bill incurred during a family holiday. Matheson initially claimed the charges were for constituency work but later admitted his sons had used the device to stream football matches. He resigned from his position ahead of a report that recommended a significant ban from parliament and salary deduction.
While there was cross-party support for the establishment of the SNIB, with a general consensus on its potential to benefit the national economy, the recent financial performance and executive compensation practices have cast a shadow over its operations and raised significant questions about governance and accountability in Scotland's public institutions.