The Scottish Conservatives said the Scottish Government had not discussed its proposed £500 million Scottish Growth Scheme with the UK Treasury despite the plan requiring Treasury approval.

The Scottish Conservatives said finance secretary Derek Mackay admitted Holyrood “had held no discussions with the UK Government before announcing the new funding.”

The Conservatives said that due to the nature of the scheme, which offers guarantees or loans to businesses of up to £5 million, the Scottish Government “will need to agree the budgeting treatment of the guarantees with UK Treasury.”

Murdo Fraser, Scottish Conservative shadow cabinet secretary for finance, said: “This growth fund was the centrepiece of the SNP’s Programme for Government, and yet they didn’t even bother discussing it with the people they need to work with to make it happen.

“While the SNP was announcing this investment, it turns out that they hadn’t even consulted the UK Treasury on whether they would be able to agree this extra funding.

“It’s clear that this policy has been cobbled together without any real consultation.

“This is an amateurish approach to conducting the business of government. Scotland deserves better.”