A state-owned bank is facing £110million of losses from failed investments following the collapse of firms it invested in.

An independent review of the Scottish National Investment Bank (SNIB) has revealed that financial losses have been made on six projects which it supported since being set up by Nicola Sturgeon in 2020 when she was First Minister.

Up to the end of March this year, there were £73million of losses following the collapse of four firms the taxpayer-funded bank invested in.

There are expected to be a further £37million of losses from two more investments in firms which have entered liquidation or administration since then, according to the five-year review by Sir John Elvidge, while there will also be ‘an additional sum of as yet unrealised losses’.

In his review, the former Scottish Government Permanent Secretary said the losses will understandably trigger public and political concern and urged the bank’s leadership team to ensure it ‘learns the right lessons from the experience of each individual unsuccessful investment’.

Scottish Conservative finance spokesman Craig Hoy said: ‘These staggering losses raise serious questions about the SNP’s flagship investment bank.

‘This was supposed to be a beacon for driving economic growth in Scotland, but instead failed investments have left taxpayers footing a huge bill that is only continuing to increase.

‘Ministers must use this critical review to ensure that those in charge at SNIB are undertaking due diligence before backing certain projects and guarantee that every possible measure will be taken to deliver value for money for taxpayers.’

The SNIB confirmed that the investments where losses were made were Circularity Scotland, the firm set up to manage Scotland’s deposit return scheme, Glasgow-based technology firm M Squared Lasers, satellite technology company Krucial, and electric vehicle charging company Trojan Energy.

The two losses since the end of 2025-26 relate to Orbex, which was set up to run a planned satellite launch facility in the north-west Highlands, and medical technology firm Pneumowave.

In his report, Sir John said there has been £1.16billion committed to date with 53 live investments.

On the failed investments, he said: ‘Each investment failed for a particular combination of specific reasons. And it is difficult to express a general view with any confidence as to whether the overall level of losses, while considerable, is higher than might have been expected from an institution in its start-up phase. I heard views from external investment professionals that it was not.

‘Given that Bank investments are funded by the taxpayer, it is nevertheless entirely understandable that there has been some public and political concern about the losses; and it is right that the bank should stand ready to defend its record. It is also valuable that the Bank has had consistent support from Scottish ministers on this front.

‘The most important thing is that the leadership of the Bank learns the right lessons from the experience of each individual unsuccessful investment; and that where necessary, it puts measures in place to address any points on which the Bank’s policies, processes or actions were considered to have had any bearing on the outcome.’

The review said there are ‘inevitably some potential tensions between seeking a commercial return and the broader goal of unlocking additional economic activity’.

It also urged the Scottish Government to take forward discussions with the bank and the quango Scottish Enterprise following concerns about a ‘lack of clarity’ on their roles and said ministers should set out ‘a clear plan of action and timetable’ for the bank by early next year.

Of the investments so far, the smallest was £700,000 and the largest £70million. Roughly half of the investments were across Edinburgh, Glasgow and Aberdeen, but there has been ‘relatively little’ investment in the south of Scotland.

Economy Secretary Stephen Flynn said: ‘The Scottish Government has discussed the review’s findings with the bank and agrees on the key areas for action.

‘Together, we are developing a clear plan to take forward the recommendations, many of which are already underway, with defined responsibilities and time-scales.

‘The next phase of development will focus on maximising the bank’s impact, helping more businesses to scale up and innovate, unlocking investment in housing and infrastructure, and supporting the creation of high-quality jobs across Scotland.

‘We will continue to work closely with the bank to ensure it delivers on its missions for the people of Scotland.’

Willie Watt, chairman of the SNIB, said: ‘While strong progress has been made, we recognise that there is more to do. We are committed to learning from the review, building on our strengths and continuing to evolve as an institution delivering lasting economic and social impact for Scotland.’