Answers needed on £9m loan from government-backed bank to Circularity Scotland

Scottish Liberal Democrat economy spokesperson Willie Rennie MSP has today called for answers on what will happen to the £9 million loaned by the government-backed Scottish National Investment Bank to Circularity Scotland, following the news that the firm has now appointed administrators and teeters on the edge of collapse.

In May 2022, the Scottish National Investment Bank committed £9m to fund the development of Circularity Scotland Limited.

Last week, the Daily Record broke the news that staff were sent home and the company’s board was unable to confirm whether they would be paid for the month or whether they would be able to return to the office.  

Mr Rennie said:  

“This is an extremely difficult time for Circularity Scotland staff, whose jobs are at stake because our two governments are incapable of working with one another.  

“The £9m loan from the government-backed bank raises serious questions about whether that money would be lost in the event of its collapse, adding taxpayers to the long list of people left out of pocket by the chaos wreaked by the Scottish Government.  

“Staff need to know if they will be paid. Taxpayers also need answers on the amount outstanding on the loan and whether any of that debt can be recovered in the event of administration."