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Supporting Recovery and Delivering Sustainable Growth
September
2012
Government Economic Strategy
The Government Economic Strategy (GES) provides a bold framework to deliver the Scottish
Government’s central Purpose:
to focus the Government and public services on creating a more successful country,
with opportunities for all of Scotland to flourish, through increasing sustainable
economic growth.
This framework, as set out in Figure 1, identifies the key drivers of sustainable economic
growth – Productivity, Competitiveness and Resource Efficiency, Participation in the
Labour Market and Population Growth – and the government’s desired characteristics of
growth – Solidarity, Cohesion, and Sustainability.
The framework is underpinned by a set of ambitious targets, which form a key part of the
National Performance Framework (NPF). The NPF, which was refreshed in December 2011,
provides a clear vision for the kind of Scotland that we want to see. It provides a broad
measure of National Wellbeing, incorporating a range of social and environmental indicators
and targets covering issues such as mental wellbeing, income distribution and carbon
emissions as well as economic growth.
Figure 1: The Purpose Framework
Supply side growth drivers
Stimulate economic
participation
Increase productivity,
competitiveness and
resource efficiency
Stimulate population
growth
Increased Sustainable GDP Growth
Solidarity: reduce
inequalities across all
individuals
Cohesion: reduce the
disparity between the
regions of Scotland
Sustainability: enhance
the environment and
reduce emissions
Characteristics of growth and long-term drivers
Originally launched in 2007, a refreshed GES was published in September 2011 to take
account of the marked change in economic conditions over the intervening period and to
provide added focus toward new and emerging growth opportunities. The clear priorities and
actions set out in the GES remain just as relevant today. While our focus therefore is on the
delivery of these priorities, the Scottish Government stands ready to target policy and
resource towards any new pressures and opportunities that may emerge.
This update on progress sets out the series of actions which are being taken forward across
the public sector to accelerate recovery, deliver sustainable economic growth, boost
employment and tackle inequality.
Page 1 of 15
September
2012
Supporting Recovery and Delivering Sustainable Growth
ECONOMIC CONDITIONS
Global economic growth performance since the launch of the refreshed Government
Economic Strategy has been more subdued than had been previously forecast.
Economic conditions remain challenging and the global economy has struggled to gain
momentum through the first half of
2012. In particular, the ongoing
Chart: Quarterly GDP - G7 COUNTRIES (2008Q1 = 100)
Source: OECD
uncertainty in the Euro Area has 106
continued to act as a drag on 104
confidence and a long-term solution 102
to the crisis has yet to be found.
100
The Euro Area is expected to reenter recession in the second half of
2012, whilst there are signs that the
recovery in the US is beginning to
slow. The UK economy has now
contracted for three consecutive
quarters, with the ONS estimating a
decline of 0.5 per cent in 2012 Q2.
98
96
94
92
90
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2007
2008
Canada
2009
France
2010
Germany
Italy
2011
Japan
UK
2012
US
Reflecting this uncertainty, the IMF has recently revised down forecasts for global output to
3.5 per cent in 2012 and 3.9 per cent in 2013. Revisions have been especially significant for
the UK economy, both from the IMF and also, from the OECD who in their Interim Economic
Assessment, published on 6th September, now forecast that the UK economy will contract by
0.7 per cent during 2012. To put this in context, the Office for Budget Responsibility (OBR)
forecast growth of 2.8 per cent for 2012 back in June 2010.
Table 1: Recent IMF Annual Growth Forecasts (percent change)
Latest forecasts (July 2012)
Previous forecasts (April 2012)
2012
2013
2012
2013
World output
3.5
3.9
3.6
4.1
Euro Area
-0.3
0.7
-0.3
0.9
US
2.0
2.3
2.1
2.4
UK
0.2
1.4
0.8
2.0
Source: IMF, World Economic Outlook Update, July 2012
Chart: Scottish Gross Value Added (2007=100)
Source: Scottish Government
105.0
100.0
95.0
90.0
85.0
80.0
20
12
20
11
20
10
20
09
20
08
20
07
20
06
20
05
20
04
20
03
20
02
20
01
75.0
20
00
As an open economy, Scotland has not
been immune from these pressures
and the recovery that began towards
the end of 2009 remains fragile.
Scottish output fell by 0.1 per cent in
both 2011 Q4 and 2012 Q1. Although
Scotland’s performance over this
period has been stronger than in the
UK (where GDP declined by 0.7 per
cent during the same two quarters) it
does mean that Scotland has now reentered a technical recession.
Page 2 of 15
September
2012
Supporting Recovery and Delivering Sustainable Growth
The decline in output has been driven by a continued contraction in the construction sector
(where output is currently nearly 17 per cent below its pre-recession peak). In contrast, output
in the production and services sectors - which together account for 90 per cent of the Scottish
economy – has been much stronger with growth of 2.5 per cent and 1.0 per cent respectively
over the year.
The UK Government’s fiscal consolidation programme has also led to a period of significant
cuts to the Scottish budget. Adjusting for inflation, the total Scottish Budget is expected to fall
by around 11 per cent between 2010-11 and 2014-15. In addition to acting as a drag on
aggregate demand, this is also reducing the resources available to the public sector to
support growth.
PRIORITISING ACTION TO SUPPORT OUTPUT AND EMPLOYMENT NOW
The Government Economic Strategy provides a flexible and adaptable framework to support
the Scottish economy. This has allowed the public sector to quickly mobilise resources to
accelerate recovery, and build the foundations for long-term sustainable economic growth.
In order to mitigate the impact of the ongoing uncertainty in global economic conditions on the
Scottish economy, the immediate priorities of the Scottish Government continue to be:
•
Boosting public sector capital investment;
•
Taking direct action to tackle unemployment, in particular youth unemployment; and
•
Enhancing economic confidence by encouraging private sector investment and
providing security to Scottish households.
Boosting Capital Investment
Capital investment has been a central element of the Scottish Government’s approach to
supporting recovery.
When economic conditions are fragile,
shovel-ready capital investment by the public
sector can provide an immediate stimulus
and protect jobs and output.
For example, it is estimated that the Scottish
Government’s accelerated capital spending
programme, which brought forward nearly
£350 million of capital spending over the
period 2008-09 to 2009-10, supported
around 5,000 jobs.
Chart: Scottish Construction GDP (2008Q1=100)
Source: Scottish Government
105.0
100.0
95.0
90.0
85.0
80.0
75.0
70.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2007
2008
2009
2010
2011
2012
In addition to protecting jobs and output, capital investment has long-term benefits, including
the creation of assets - such as public infrastructure – and can help retain vital skills and
activity in key sectors such as construction.
However, capital investment – both public and private – has been constrained in recent years.
Page 3 of 15
September
2012
Supporting Recovery and Delivering Sustainable Growth
UK gross fixed capital formation (a
measure of total investment in the
economy) in 2012 Q1 was around 17 per
cent below its pre-recession peak (2007
Q4).
Chart: Index of Components of UK Gross Fixed Capital Formation (GFCF)
(2008Q1=100)
Source: Office for National Statistics
130.0
120.0
110.0
100.0
90.0
80.0
Under
the
current
constitutional
arrangements, the Scottish Government’s
direct DEL capital budget is determined
by the UK Government and is being
reduced by 33 per cent between 2010-11
and 2014-15.
70.0
60.0
50.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2007
Business Investment
2008
2009
General Government
2010
Total GFCF
2011
2012
Private Sector Dwellings
In addition to making the case to reverse these cuts, the Scottish Government is taking action
where it can to boost capital investment. These initiatives include:
•
Switching over £700 million of spending from resource to increased capital spending
over the period 2012-13 to 2014-15;
•
Continuing to progress the £2.5 billion Non-profit Distributing (NPD) pipeline of
investment. NPD is the government’s preferred procurement option for financing
infrastructure projects through revenue and the pipeline in Scotland is one of the
largest programmes of its kind in Europe;
•
Expanding the National Housing Trust initiative (NHT) – through which a government
guarantee of less than £2 million generates around £100 million of investment in the
construction of affordable homes; and
•
In conjunction with the European Commission and European Investment Bank the
Scottish Government has launched ‘Spruce’, Scotland’s £50m JESSICA fund. The first
investments are expected later in 2012.
£105 million Economic Stimulus Package
In June 2012 the Scottish Government announced a new £105 million stimulus package to
support new investment and accelerate projects from future years to boost the Scottish economy.
As well as providing welcome support for the construction industry these measures will benefit
key industries including renewables, tourism, transport and housing.
Individual projects are being taken forward quickly to deliver the maximum economic impact. The
package includes:
•
£21.6 million of investment in renewables and low carbon initiatives;
•
£39 million investment in housing throughout Scotland and regeneration projects in
Govanhill, Inverclyde and Bridgeton;
•
Accelerated investment of £15 million to expand the existing programme of maintenance
of Scottish hospitals;
•
£7.5 million higher and further education investment in Inverness Campus and West
Highland College;
•
£6 million to take forward additional transport projects; and
•
£4.5 million investment in tourism within Scotland’s national parks, the Forestry
Commission estate and Edinburgh’s Royal Botanic Garden.
Page 4 of 15
Supporting Recovery and Delivering Sustainable Growth
September
2012
Addressing Unemployment
The Scottish Government is taking direct action to tackle unemployment and ensure that
people who are out of work or under-employed – particularly young people – have access to
the right training, skills and education opportunities.
The timing and impact of the downturn on the labour market has varied across groups with,
for example, differences in the effects on young people and female workers.
As has been witnessed across many advanced economies, young people are most exposed
during an economic downturn. In Scotland, although the youth employment rate (16-24)
increased by 2.3 percentage points to 56.3 per cent over the year to April-June 2012, the
youth unemployment rate remains far too high at 21.1 per cent – although it should be noted
that 23 per cent of those classified as unemployed were enrolled in full-time education.
The Scottish Government is focussed on addressing these challenges with a range of policy
responses designed to enhance the long-term employment opportunities for all. Actions
include:
•
Continuing to support the Partnership Action for Continuing Employment (PACE), the
Scottish Government’s initiative for responding to redundancy situations. Between
April 2011 and March 2012, PACE supported over 13,000 individuals and 365
employers;
•
Holding a Women’s Employment Summit on 12 September, jointly with the STUC
focussing on: Childcare, Occupational Segregation, Workforce Issues, Women’s
Enterprise, and Employability; and
•
Publishing a refreshed Employability Framework in September 2012.
Measures to Address Youth Unemployment
A dedicated Minister for Youth Employment was appointed in December 2011, whilst Action for
Jobs – Supporting Young Scots Into Work, the Youth Employment Strategy, sets out how
spending and action are being harnessed across the government to support young people into
employment or training. Actions include:
•
Opportunities for All, launched in April 2012, which ensures that every 16-19 year old not
already in work, education or training is offered a learning or training opportunity;
•
Delivering 25,000 Modern Apprenticeship opportunities in each year of the current
parliament – with a record 26,427 Modern Apprenticeship starts in 2011-12;
•
Providing an additional £30 million budget to tackle youth unemployment over the three
year period to 2014-15 – including £9 million to support the six local authority areas with
the highest levels of youth unemployment;
•
Using Structural Funds programmes – including refocusing up to £25m of European
Funding to support youth employment and business growth for SMEs; and
•
Providing £31.6 million per year to maintain the Education Maintenance Allowance (EMA).
Page 5 of 15
September
2012
Supporting Recovery and Delivering Sustainable Growth
Enhancing Economic Confidence
As the Government Economic Strategy makes clear, robust growth in the private sector is key
to accelerating recovery and to unlocking Scotland’s long-term potential.
Business investment remains considerably lower than pre-recession levels, whilst there are
continued challenges in the demand for, and supply of, finance (particularly for SMEs). The
Scottish Government is therefore continuing to take action to encourage private sector
investment and growth, and build on
Chart: UK Real Disposable Income (2008Q1 =100)
Source: Office for National Statistics (ONS)
Scotland’s strong inward investment
record.
110.0
Growth of 3.9%
between 2004 Q1
and 2008 Q1
105.0
Growth of 13.4%
between 2000 Q1
and 2004 Q1
100.0
Growth of 1.5%
between 2008 Q1
and 2012 Q1
95.0
90.0
85.0
80.0
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Our approach to enhancing economic
confidence is also focused on providing
security to households during difficult
global economic conditions. Families have
experienced weak growth in real incomes,
as wages have failed to keep pace with
inflation in recent years (see chart).
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011 2012
Actions to enhance economic confidence include:
•
Continuing with a ‘no-compulsory redundancy’ policy in the areas under our
responsibility, to support thousands of public sector jobs and give confidence to
households across Scotland;
•
Continuing with the Council Tax freeze which has saved families in the average Band
D property £479 over the five year period 2008-09 to 2012-13;
•
Providing business with the most generous package of rates reliefs available
anywhere in UK, worth over £500 million a year over the period 2010 to 2015;
•
Implementing core economic and social commitments through the social wage
including: free prescriptions, free higher education, and free personal care; and
•
Supporting equity investment schemes and leveraging private sector investment
through the £113 million Scottish Loan Fund, via the Scottish Investment Bank.
Attracting International Investment
Scotland continues to be a highly attractive place for international investment, with the recent
Ernst & Young UK Attractiveness Survey showing that Scotland maintained its position as the
leading UK location for Foreign Direct Investment (FDI) in terms of job creation.
In 2011 there were over 2,000 foreign owned companies in Scotland employing over 280,000 with
a combined turnover of over £87 billion. Scotland’s International Trade and Investment Strategy
has set a target of 25,000-35,000 planned jobs through inward investment between 2011-2015.
The government is determined to build on Scotland’s strong inward investment record which
includes successes such as:
•
The Avaloq software centre in Edinburgh
•
Samsung Heavy Industries’ investment at Energy Park, Fife
•
Lifescan’s investment in Inverness;
•
Fios Genomics, which has been confirmed as the first tenant for Edinburgh BioQuarter; and,
•
Gamesa and Mitsubishi Power Systems.
Page 6 of 15
Supporting Recovery and Delivering Sustainable Growth
September
2012
DELIVERING SUSTAINABLE ECONOMIC GROWTH
Alongside actions to accelerate recovery, the Scottish Government is continuing to take
forward the measures required to transform Scotland’s long-term sustainable economic
growth performance.
The Government Economic Strategy identifies six Strategic Priorities that will deliver
sustainable economic growth, boost employment, and provide opportunities for all to flourish.
Strategic Priorities for Delivering Sustainable Economic Growth
•
Supportive Business Environment;
•
Transition to a Low Carbon Economy;
•
Learning, Skills and Well-being;
•
Infrastructure Development and Place;
•
Effective Government; and
•
Equity
These priorities continue to inform policy and spending decisions, including the fundamental
shift towards preventative spend.
Supportive Business Environment
The key to unlocking Scotland’s potential and creating the opportunities for all to flourish is
through growth and investment in the private sector.
This is why the Scottish Government is focused on maintaining and further investing in a
Supportive Business Environment, with a particular focus on growth companies, growth
markets and growth sectors.
In order to allow businesses, entrepreneurship and innovation to flourish in Scotland:
•
The Scottish Government has retained Scotland’s Enterprise bodies and ensured that
they are focused on growth and recovery. For example, they are working intensively
with Scottish companies with the greatest growth potential, and who account for
around 330,000 jobs and £80 billion of turnover in Scotland;
•
Business Gateway, which is delivered by local authorities, is providing new and
established businesses with a first point of contact for advice and support. In 2011-12
Business Gateway assisted in the formation of over 11,000 new businesses;
•
The Scottish Government is also supporting investment in some of Scotland’s most
dynamic industries through the creation of four Enterprise Areas which are open for
business now;
•
The £45 million per annum Smart:Scotland fund brings together activity across the
Enterprise bodies, and ensures that interventions offered to businesses and
universities are better aligned;
•
The Scottish Funding Council is investing £10 million to create a number of Innovation
Centres where businesses and universities can work together to drive innovation in
and across Scotland's key economic sectors; and, Page 7 of 15
Supporting Recovery and Delivering Sustainable Growth
September
2012
Increasing Scottish Firms Exposure to International Trade
Exports and increasing Scottish firms’ exposure to international trade will be key to boosting
competitiveness and rebalancing the Scottish economy. Trade presents an excellent opportunity
for Scottish firms to grow their market, innovate and become more competitive – particularly in
new and emerging international growth markets.
The Scottish Government has established an ambitious target for Scottish businesses to deliver a
50 per cent increase in the value of international exports by 2017.
Scotland’s Trade and Investment Strategy has set the priorities to deliver this including:
•
Increasing the number of Scottish companies exporting with a goal of having 8,000-10,000
more businesses with the skills to go international by 2015 through initiatives such as
Smart Exporter; and
•
Increasing the international sales of supported companies from £1.2 billion to £1.7 billion
by 2015.
To deliver these ambitions, Scottish Development International is growing its overseas network
with plans to establish a presence in Brazil, Norway and West Africa and expand its operations in
the Middle East with the aim to more than double activity in these regions over the next three
years.
The expansion also includes investment in traditional markets that offer significant opportunities for
firms, particularly new exporters, such as Canada, the US and Germany.
•
The Scottish Manufacturing Advisory Service (SMAS), is providing support for the
manufacturing sector. For example, SMAS advisors are working with businesses
seeking to develop their capabilities in the renewables sector.
A key aspect of the government’s approach to promoting growth and jobs is the focus upon
growth sectors – sectors which have the potential to make a significant contribution to
Scotland’s long-term growth potential.
Key activities include:
•
Scottish Enterprise are investing over £6 million in the Food and Drink sector, on major
projects such as the Food & Health Innovation Service, the Scotland Food & Drink
Insights project and the National Food Forums;
•
In the Creative Industries sector Scotland's industry strategy for the Digital Media
sector, Digital Inspirations, sets a series of ambitious targets, including a doubling of
sector revenues to £6.3 billion by the end of 2012;
•
Refreshing the Strategy for the Financial Services Industry in Scotland to identify new
growth opportunities and the support required to realise those opportunities;
•
Working with the Oil & Gas sector to set out Scotland’s strategy, Maximising our
Future which aims to increase international supply chain sales to £18 billion by 2020;
•
Delivering the ambitious target to double Life Sciences turnover to £6.2 billion by 2020.
Scottish Enterprise are supporting the sector to capture the opportunities in areas such
as stem cells, translational medicine, medical devices and pharmaceutical services,
and are also helping the development of the £600m Edinburgh BioQuarter; and,
Page 8 of 15
Supporting Recovery and Delivering Sustainable Growth
•
September
2012
Working closely with the tourism industry to take forward the recently published
Tourism Scotland 2020 strategy. This sets out the vision to make Scotland a first
choice for high quality, value for money and memorable vacations and tourism
activities.
Tourism
The Scottish tourism sector contributed £2.9 billion to Scottish Gross Value Added (GVA) in 2010.
Despite challenging economic conditions there was a 5 per cent increase in tourism visits to
Scotland (domestic and overseas) in the year to March 2012. There was also a 15 per cent
increase in combined tourism expenditure over the same period.
The Scottish Government is determined to build on this success through investing in
VisitScotland’s extensive international and domestic marketing activities.
This includes £7 million of funding to maximise the benefits from the release of the Disney-Pixar
film Brave. VisitScotland successfully secured a partnership with Disney (the first such partnership
ever around the release of a Disney film). Projections are that the investment will deliver more
than £140 million of additional revenue to the Scottish economy over the coming years.
In addition, the Scottish Government is working to maximise the potential from major upcoming
events: Year of Natural Scotland 2013, Homecoming Scotland 2014; the 2014 Ryder Cup,
and the 2014 Commonwealth Games.
Transition to a Low Carbon Economy
The Transition to a Low Carbon Economy provides an excellent opportunity to place
Scotland in a leading position within the global economy and aims to take advantage of
Scotland’s comparative natural advantages.
Actions to support the transition to a low carbon economy and ensure that the benefits of this
change are shared across Scotland’s communities include:
• The Scottish Government is preparing a second report on policies and proposals
(RPP2) to meet the next batch of annual statutory targets. This will require a reduction
of greenhouse gas emissions of around 56 per cent against 1990 levels by 2027;
• With support from Skills Development Scotland, the Scottish Funding Council and
Highlands and Islands Enterprise, the Nigg Skills Academy has been established to
train and equip individuals with the skills needed by the energy industry. The Academy
has been contracted to deliver 270 Modern Apprenticeship starts in 2012-13 and aims
to provide training for 3,000 by 2015;
• A £327 million spending commitment for the period 2012-13 to 2014-15 to tackle fuel
poverty, home energy efficiency, support housing quality, and meeting contractual
commitments to housing stock transfer landlords;
• Hosting Scotland’s Low Carbon Investment Conference on 10th and 11th October 2012
bringing together low carbon leaders, projects and investors;
Page 9 of 15
Supporting Recovery and Delivering Sustainable Growth
September
2012
Scotland’s Renewable Energy Sector
Renewable energy lies at the heart of our strategy to grow a low carbon economy. Industry figures
estimate that £750 million of renewables projects were switched on in 2011, and a total of £2.8
billion investment has now taken place since the beginning of 2009.
The renewables sector currently supports more than 11,000 jobs. Our Offshore Renewables
Investment Map, published in April 2012, highlights many of the recent investment commitments
and proposals announced in just one sector of our world-leading energy industry.
The Scottish Government is continuing to develop Scotland’s renewable energy sector through
measures such as:
• The £103m Renewable Energy Investment Fund (REIF), announced in March 2012, which
will ensure that financial support is in place to help innovative renewable projects become
commercial realities; and
•
The £70m National Renewables Infrastructure Fund, which will ensure that Scotland’s
ports and harbours are suitable for supporting offshore renewables. This is already helping
to attract major infrastructure investment by a range of parties in key projects such as
Energy Park Fife and Dundee Port.
•
Launching a Sustainable Housing Strategy consultation (June 2012) which aims to
help the refurbishment and house-building sectors to contribute to, and benefit from,
Scotland’s low carbon economy; and,
•
Making funding available through the Low Carbon Skills Fund - managed by Skills
Development Scotland – to support businesses develop their sustainability and reduce
resource use.
Technology and Innovation Centre
The University of Strathclyde’s Technology and Innovation Centre (TIC) will be located at the core
of the International Technology Renewable Energy Zone (ITREZ) in Glasgow.
The Centre brings together major university research and commercialisation activities with
corporate and SME research. The £89 million project (supported by £6.7 million of European
Regional Development Funds) is focussed primarily on renewable energy and enabling
technologies. The centre aims to:
•
Support 5 new SMEs a year;
•
Increase the turnover of supported SMEs by £850 million per annum; and
•
Enable supported businesses and research centres to develop new products/services and
create over 1,400 jobs.
Scottish Enterprise will work alongside energy companies to establish ITREZ as a renewables
cluster with a strong supply chain which is able to stimulate innovation and meet the needs of the
renewables sector in areas such as design, manufacturing, installation, operations and
maintenance.
The Technology Strategy Board (TSB) has also announced it will headquarter the UK ‘Catapult’
innovation centre for offshore renewables in ITREZ. The project will be backed by £10 million a
year of TSB funding over the next five years.
Page 10 of 15
Supporting Recovery and Delivering Sustainable Growth
September
2012
Learning, Skills and Well-being
The Strategic Priority on Learning, Skills and Well-being recognises the importance of a
skilled, educated and healthy workforce to building on Scotland’s comparative advantages
and to the delivery of sustainable economic growth.
The Scottish Government is taking forward a range of actions to improve learning, skills and
well-being, including:
• Maintaining free access to higher education by ensuring that the opportunity to learn is
based on the ability to succeed, not the ability to pay;
• Introducing a Post-16 Education Reform Bill that will ensure that all post-16 learning is
aligned to meet the needs of learners and employers - with a system-wide focus on
jobs and growth;
Scotland’s Schools for the Future Programme
The Scotland’s Schools for the Future programme - which, with local government partners,
amounts to an investment in the school estate of £1.25 billion to 2017-18 - will deliver around 67
new or refurbished schools, 12 more than originally planned. This is possible because of careful
management of the programme in order to drive efficiency.
In February 2012, the first school (Pumpherston and Uphall Station Community Primary in West
Lothian) was officially opened by the First Minister. In August 2012 three new schools opened
their doors in Ayrshire, Falkirk and the Western Isles. More than £25 million has been invested in
these schools delivering benefits to the local community and over 800 pupils. These state of the
art schools are being delivered as part of the Scottish Government’s commitment to halving the
number of pupils in poor condition school buildings during this Parliament.
The Scottish Futures Trust (SFT) is working with all 32 local authorities in Scotland to drive
forward the investment. SFT’s role is to manage the programme efficiently and to help local
authorities achieve best value. The Scottish Government expects to be able to announce which
schools have been successful in securing funding, in the third and final phase of the programme,
by the end of September 2012.
The programme is being funded via a mixture of capital grant and revenue support through the
Non-Profit Distributing (NPD) pipeline of investment.
• Ensuring that the 25,000 new Modern Apprenticeship opportunities in each year of the
Parliament include higher-level technical and professional places which are developed
in response to employer demand;
•
Announcing a further investment of £6m of Opportunities For All funding to extend the
Community Jobs Scotland programme for a further year. The programme will support
up to 1,000 16-19 year olds into work and training opportunities across the third sector;
• Continuing to invest in Glow (national schools intranet) with the current contract
extended to December 2013. In addition, Microsoft has agreed to provide Microsoft
Office 365 for Education free to every pupil, teacher and parent through Glow - the first
offer of its kind in the world for a national schools project;
• Providing approximately £4.5 million over 2012-15 for Working Health Services
Scotland, providing occupational health support for employees for small and mediumsized enterprises; and
• Introducing the best student support package in the UK, with a minimum income of
£7,250 for those from the lowest income households and access to a substantially
enhanced non-income assessed loan for all students.
Page 11 of 15
Supporting Recovery and Delivering Sustainable Growth
September
2012
Infrastructure, Development and Place
The Scottish Government’s focus on Infrastructure Development and Place aims to
harness the strength and quality of Scotland’s cities, towns and rural areas and ensure that
Scotland is positioned to take full advantage of the opportunities offered by the digital age.
Recent actions to support infrastructure development and place include:
•
Publication of Scotland’s Digital Future – Infrastructure Action Plan, which sets out
how we will deliver a world-class, future-proofed infrastructure which will provide
connectivity across the whole of Scotland by 2020 and a step change in coverage and
speed for everyone by 2015. The plan sets out 3 distinct but aligned infrastructure
programmes, underpinned by over £240m in public funding;
•
The Community Broadband Scotland initiative was launched on 8 August 2012 and
establishes a national programme providing a one-stop-shop for all community
broadband enquiries and needs. £5m will be invested over the next three years in a
Rural Seed Fund providing targeted support to community projects;
•
Accelerating the pace of investment in Scotland’s cities and supporting the work of the
Scottish Cities Alliance through the £7m Cities Investment Fund;
•
Launching a package of proposals to simplify and streamline planning processes and
drive improved performance;
•
Taking forward the Infrastructure Investment Plan, published in December 2011, which
outlines the priorities for infrastructure investment in Scotland up to 2030. This
includes the Forth Replacement Crossing which has already delivered 1,100 jobs on
site and is estimated by the British Chambers of Commerce to be worth around £6
billion to Scotland’s economy;
Investing in Scotland’s Transport Infrastructure
The Scottish Government has invested in improving transport infrastructure and services across
Scotland, bringing substantial benefits to the Scottish economy.
Investment in Scotland's transport infrastructure also directly supports business. For example, in
2011-12 95 per cent of Transport Scotland's £1.8 billion budget was invested back into the private
sector, supporting over 25 per cent of civil engineering contracts in Scotland and 12,000 jobs.
In 2012-13 we are investing £21.4 million in strategic roads projects (excluding the Forth
Replacement Crossing) and £290 million in improvements to the rail network. We will also
continue to deliver the concessionary travel scheme to provide free or discounted trips on public
transport to the people that need it most, connecting Scotland’s people and communities.
•
Delivering at least 30,000 affordable homes over the 5-year term of this parliament,
including 20,000 social homes of which at least 5,000 will be council homes. In 201112, 6,882 new affordable homes were delivered - nearly 900 homes and 15 per cent
more than the target - with 82 per cent for social rent under the Scottish Government’s
Affordable Housing Supply Programme.
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Supporting Recovery and Delivering Sustainable Growth
September
2012
Effective Government
The efficiency and effectiveness of the public sector - Effective Government - has a major
impact on the performance of the Scottish economy.
The Scottish Government’s approach to renewing Scotland’s public services prioritises
prevention rather than reaction; promotes much closer integration and partnership at local
levels; places a sharp focus on improving performance; and values the people who deliver
services through joint action on workforce development and leadership.
The Scottish Government Legislative Programme for 2012-13
As highlighted in Working for Scotland: The Government’s Programme for Scotland 2012-13, the
legislative programme for the coming year has been strongly influenced by the priorities in the
Government Economic Strategy, with a number of bills focussed on supporting the recovery and
delivering sustainable economic growth:
•
the Budget Bill will set out the Scottish Government’s spending plans, allowing the
allocation of resources to support and deliver the Purpose;
•
the Better Regulation Bill will further improve the way regulations are applied in practice
across Scotland;
•
the Post-16 Education Reform Bill will support the development of a system that is better
aligned to meet the needs of learners and employers, and therefore help drive jobs and
growth;
•
the Procurement Reform Bill will establish a national legislative framework for sustainable
public procurement that supports sustainable economic growth; and
•
the Bankruptcy Bill will modernise bankruptcy law for the 21st century.
The Scottish Government is taking action to improve public services and create the conditions
for local innovation and integration. This includes:
• Ensuring that public sector procurement, worth more than £9 billion annually, brings
the maximum possible public benefit. The procurement reform programme has
delivered almost £1.2 billion of savings and already 45 per cent of the value of
Scotland’s current procurement spending goes to small and medium-sized
businesses;
• The Procurement Reform Bill, which was issued for consultation on 10 August, will
ensure that community benefit clauses are included in all new major public sector
contracts and that public contracts do more to boost jobs and the Scottish economy;
• In 2011-12 more than 75 per cent of suppliers awarded contracts through the Public
Contracts Scotland portal were to companies based in Scotland;
• Maintaining a clear expectation that all public sector bodies deliver 3% efficiencies on
an on-going annual basis over the course of the current spending review;
• Implementing Scotland’s Digital Future – Delivery of Public Services strategy – to be
published on 20th September. This commits the public sector to achieving better value
through collaboration, sharing ICT infrastructure and greater use of digital technology;
and
• Continuing to deliver value for money from public-sector infrastructure, with £131
million of savings and benefits secured by the Scottish Futures Trust during 2011-12.
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Supporting Recovery and Delivering Sustainable Growth
September
2012
Equity
As well as being a desirable outcome and characteristic of growth, Equity – social, regional,
and inter-generational – is also a key driver of growth and jobs. At the heart of the Scottish
Government’s approach is ensuring that shared and sustainable growth provides the most
disadvantaged areas and people in society with the opportunity to prosper.
A lack of equality in opportunity acts as a constraint on the contribution that individuals and
communities can make to delivering a more successful Scotland, as well as impairing the
quality of life that people can enjoy.
To deliver a fairer and more equal society, the Scottish Government is taking forward a range
of actions, including:
• Committing £500 million to implement the shift towards preventative spending through
three change funds over the three year period to 2014-15;
• Legislating, through the Children and Young People Bill, to increase the current
entitlement to 475 hours per year of pre-school education for 3 and 4 year olds to a
minimum of 600 hours per year of early learning and childcare;
•
Taking forward a range of actions to support the development of an enterprising third
sector in Scotland including the Just Enterprise Programme, a £3m business support
initiative financed by the Scottish Government, which delivers business support and
learning services to Social Entrepreneurs and Enterprising Third Sector Organisations;
Regeneration Strategy
The Scottish Government is committed to supporting regeneration and development in Scotland’s
most deprived areas and announced £175 million of support through its Regeneration Strategy in
December 2011.
The Strategy will take forward a range of interventions including a £24 million People and
Communities Fund to support community-led innovation, and a Capital Investment Fund worth
£150 million over three years.
To promote cross-agency collaboration and ensure regeneration outcomes are embedded within
mainstream programmes, a high-level working group had been formed. A stakeholder working
group has also been established in order to support the implementation of the Strategy.
•
Responding and engaging with key stakeholders following the publication of the first
Annual Report on the Child Poverty Strategy for Scotland in March 2012; and
•
Consulting on a proposed Community Empowerment and Renewal Bill, which will
seek to strengthen community participation, unlock enterprising community
development and renew communities.
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Supporting Recovery and Delivering Sustainable Growth
September
2012
Next Steps
The Government Economic Strategy will continue to set the direction for the public sector in
Scotland and everyone has an important contribution to make to delivering the Purpose.
It will continue to shape policy actions and most importantly the allocation of resource within
the forthcoming Draft Budget 2013-14.
The latest forecasts indicate that global economic growth conditions are likely to remain
challenging during 2012 and into 2013. Through the flexible and adaptable framework
provided by the Government Economic Strategy, the Scottish Government will continue to
respond to emerging challenges and capture new opportunities for growth.
Scottish Government
September 2012
Page 15 of 15