A new National Strategy for Economic Transformation, underpinned by detailed analysis of Scotland’s economic strengths and weaknesses, has been published.
The strategy contains over 70 actions across five key priority programmes that have been identified as having the greatest potential to deliver economic growth that significantly outperforms the last decade within the current constitutional arrangements.
Investment will be prioritised in entrepreneurialism, skills and retraining and the development of new markets and opportunities, particularly in the Just Transition to net zero.
Economy Secretary Kate Forbes says it provides renewed clarity on Scotland’s economic vision and a relentless focus on delivery in order to improve economic productivity, accelerate growth and ensure work provides a genuine route out of poverty through better quality jobs and higher wages.
What's in the plan?
The six programmes targeted by the National Strategy for Economic Transformation are:
1. Entrepreneurial people and culture
- to create one of the most advanced entrepreneurial infrastructures in Europe by establishing a national system of pre-scaler hubs that will help stimulate the very earliest stages of high growth commercial and social entrepreneurship
- through the education and skills system, to embed a culture in which entrepreneurship is encouraged, supported and celebrated, and where Scotland is recognised as one of the best countries in the world to start and to grow a business
- to attract international entrepreneurs to Scotland by rolling out an international marketing and engagement platform for Scotland’s start up scene
- to appoint a Chief Entrepreneurship Officer in the Scottish Government to work in partnership with industry and investors to drive forward our ambitions on entrepreneurship
2. New market opportunities
- to build on the legacy of COP26 and establish an investor panel, chaired by the First Minister, to grasp the opportunities of the Just Transition to net zero. This panel will be focused on attracting investment that supports the development of net zero industries and will bring new quality green jobs to Scotland
- promote Scotland as an innovative test bed for new technologies and markets
- provide capital investment to support renewable hydrogen production to make Scotland a leading nation in the production of reliable, competitive and sustainable hydrogen
3. Productive businesses and regions
- to work to improve productivity and address regional economic inequalities through actions such as setting up a Digital Productivity Fund to help businesses adopt new technologies
- to launch the Centre for Workplace Transformation to support experimentation in ways of working post-pandemic
- to appoint productivity ambassadors to promote understanding of how businesses can drive productivity improvements
4. Skilled workforce
- to ensure Scotland has the skills needed to drive economic transformation, the government will embed access to entrepreneurial learning in schools and colleges. Focusing on the transition to net zero, the digital revolution, and lifelong training, it will make sure employers have the supply of skills they need by developing a National Digital Academy
- as well as providing people with the skills they need to gain new opportunities, the strategy will help ensure new and current businesses are supported in investing in innovative ideas that could lead to new industries and quality jobs across the country
5. A fairer and more equal society
- to apply fair work conditionality to grants, requiring payment of real living wage, and channels for effective workers’ voice
- to deliver sectoral fair work agreements in areas of low pay, in partnership with industry and trades unions, that deliver payment of the real living wage, better security of work, and wider fair work first standards
- to support parents to increase their incomes from employment as part of cross-government action to deliver upon the ambitious targets set through the Child Poverty (Scotland) Act 2017
6. A culture of delivery
- to restructure existing boards to create a new National Strategy for Economic Transformation Board co-chaired by the Cabinet Secretary for Finance and Economy and a figure from the private sector, to include worker representatives
- to establish a programme to radically transform the way in which the public sector in Scotland provides support for workers and businesses
- to publish an annual progress report to enhance public accountability
Reaction
Russell Borthwick, chief executive of Aberdeen & Grampian Chamber of Commerce, said: “We welcome the ambition of this strategy, which must now move from aspirational words into a meaningful programme of action, at the pace we urgently need to get our economy firing again.
“Energy transition is both a huge challenge and opportunity for Scotland and we are encouraged to see the emphasis placed upon it in the report, which chimes with the First Minister’s statement on Monday that Aberdeen can reposition itself as the Net Zero Energy Capital of Europe. We are clear that the energy sector must be fully supported to take the lead on this.
“We look forward to engaging on how the Just Transition Fund can deliver optimum return on the £500million investment, but remain concerned at there being no mention of the future of oil and gas production and exploration. This is both central to our energy security and will provide much of the investment capital requited to develop new green energy sources.
“As we emerge from the pandemic and look to the future, Scotland’s government and business sector must support each other and commit to a more open dialogue and better way of working together. The lack of engagement we’ve seen through the pandemic cannot continue if we are to build the more productive and competitive nation we all seek.
“This Chamber and our wider business network stand ready to work with Scottish Government to reset that relationship and turn this strategy into reality.”