Question reference: S4W-24455
- Asked by: Christina McKelvie, MSP for Hamilton, Larkhall and Stonehouse, Scottish National Party
- Date lodged: 17 February 2015
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Current status: Answered by Fergus Ewing on 25 February 2015
Question
To ask the Scottish Government whether it has considered the impact of a tax designed to encourage banks to finance small and medium-sized enterprises.
Answer
The Scottish Parliament has limited powers over taxation and the majority of taxes paid by banks, including corporation tax, remain reserved to the Westminster Parliament.
However, the Scottish Government, through its enterprise agencies Scottish Enterprise and Highlands and Islands Enterprise, and the local authority delivered Business Gateway, continues to work with businesses to help them understand the approach of the banks – the banks risk lending profiles have changed materially since 2008, with availability of security now being absolute key for businesses to be able to secure debt funding, the processing of loans can take longer and companies need to demonstrate that future loan repayments can be met. Businesses need to ensure that they present a viable funding proposition to banks and seek to secure the right funding product for their business.