Benny Higgins

In September last year, Mr Higgins was asked by economy secretary Fiona Hyslop to provide a review of how companies are being funded and what will happen next.

The former chief executive officer of Tesco Bank is a strategic adviser to First Minister Nicola Sturgeon and helped design the framework for the Scottish National Investment Bank as well as heading the Advisory Group on Economic Recovery from coronavirus.

In the 35-page review “Financing Scotland’s Recovery” published yesterday, Mr Higgins listed a number of recommendations including seeking to delay the paying back of borrowing to allow firms to re-establish their revenues and retain jobs and a new financial support schemes to help companies bridge the gap between the pandemic and a return to more normal market conditions.

Mr Higgin’s analysis reinforces the need to ensure that debt repayments are manageable and can co-exist with access to capital for investment in growth.

The review also signals the possible need for Government initiatives to shift from universal support towards targeted support for the most distressed sectors and communities.

There is also a call for a clear system for any businesses that feel they have been treated unfairly to seek redress.

Mr Higgins worked with banks, CBI Scotland, the Federation of Small Businesses and others. They found many companies have taken on more debt during the pandemic and there is a concern about “economic long Covid”.

The full review can be found here.