THE SNP has been accused of making economic policy “on the back of a fag packet”, after it admitted a critical decision on its Scottish Investment Bank was done at short notice.

Nicola Sturgeon announced the bank in her Programme for Government on September 5, telling MSPs it would be developed by Tesco Bank chief executive Benny Higgins.

However it has emerged government officials only approached Mr Higgins about the role a fortnight before the announcement, and Ms Sturgeon did not meet him until after it.

The First Minister told MSPs said the bank would offer “a new approach on capital investment”, providing money for businesses the market might not.

She said: “Benny Higgins, the chief executive officer of Tesco Bank, has agreed to lead work on developing the bank’s precise remit, governance, operating model and approach to managing financial risk - vital steps that will see the new bank up and running and providing the patient capital investment that the Scottish economy needs for the future."

However after Labour MSP Jackie Baillie asked about the timing of Mr Higgins’s involvement, Economy Secretary Keith Brown said civil servants called him on August 22 and 29, and had a face-to-face meeting on September 1.

It was not until September 21 that Mr Brown met him, and not until September 27 that Ms Sturgeon discussed the idea with him.

Ms Baillie said: "A Scottish Investment Bank was a Labour manifesto commitment in June, and formed the centre piece of the SNP’s attempted relaunch in the Programme for Government.

“It is clear for the Nationalists it was an idea sketched out on the back of a fag packet.

“It is now being left to Mr Higgins to plan the establishment and creation of the bank, once again this looks like SNP spin over substance."

The Scottish Government did not respond to a request for comment.