Employability services to help those most at risk of long-term unemployment will receive up to £113 million of funding.
To deliver the ambitions set out in the National Strategy for Economic Transformation and the Child Poverty Delivery Plan, tailored services based on local needs will ensure the right help is given to ensure people are supported to move towards and into work.
The No One Left Behind approach – which includes the Young Person’s Guarantee – sees services funded through Local Employability Partnerships (LEPs) bringing together local government, Skills Development Scotland, Department for Work and Pensions, colleges, the third sector and other partners to provide support that meets both individual and labour market needs in each area. This is crucial to achieving shared aims around tackling poverty and inequalities.
The National Strategy for Economic Transformation aims to build a fairer and more equal society by ensuring economic transformation which tackles inequality, drives up working standards and improves pay. It also outlines how partnership working can support people into jobs by tackling labour market inequalities and unlocking Scotland’s economic potential.
Employment Minister Richard Lochhead said: “Redesigning services with the user in mind is part of the bold steps we’re taking to achieve the goals of the National Strategy for Economic Transformation.
“If delivering on our objectives involves change to get a better outcome for the people of Scotland, we won’t duck from that challenge.
“We have always been clear that No One Left Behind places people at the centre of employability services and support, to give them help tailored to their specific needs. I’m pleased that in 2022/23 we are able to invest up to £113 million to support those at risk of long-term unemployment.
“This investment will build on existing support to deliver more localised help around employability and skills to people most disadvantaged in the labour market. It will also align more closely with other local services in housing, justice, advice, and health.”
A new National Strategy for Economic Transformation, underpinned by detailed analysis of Scotland’s economic strengths and weaknesses, has been published by the Scottish government.
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.
A sixth programme marks a step-change in the way the Scottish Government and business listen to, support and work with each other in this national endeavour to transform the economy. Shaped by the Advisory Council and extensive engagement with stakeholders, this will enable government, business and key partners to work together to create a more prosperous, more productive and more internationally competitive economy.
The Economy Secretary launched the Strategy at the Michelin Scotland Innovation Parc in Dundee, a location which embodies the potential transformation that can be realised by bringing the six key programmes of action together.
Ms Forbes said: “This strategy intentionally focuses on five key priorities, within Scotland’s current powers, that we believe will deliver most impact. These are based on extensive data analysis which does not ignore the short or long term challenges and seeks to meet them head on.
“It does so by identifying our key strengths as a nation and the economic opportunities with the greatest potential for Scotland. Through our detailed analytical work we have identified significant and targeted action that can shift the dial in these areas, by doubling down on the work that is producing results and by working together to maximise our success.
“We must now be bold, ruthless and laser-focused to maximise the impact of the actions we have identified. We all know the challenges of our day – the short term and the long term – but through the tumultuous times of the past, Scotland has pioneered solutions, created jobs and established highly successful businesses. The opportunities of decarbonisation, new technologies and successful industries are far greater than the challenges.
“This is a unique moment and we are ready, willing and able to lead the way and ensure Scotland capitalises on the opportunity.”
Chief Executive Officer of Entrepreneurial Scotland Sean McGrath said: “This strategy is recognition of not just the importance of starting new businesses, but of building an entrepreneurial mindset across all types of organisations and at all levels.
“It shows a huge belief in the ability of our immensely talented workforce in Scotland. It also calls on everyone who wants to see Scotland succeed to take part. This only works if we all want it to.”
Chief Executive of Energy Transition Zone Ltd Maggie McGinlay said: “I believe energy transition has a key role to play in realising this ambition.
“Scotland has an immediate competitive advantage in that we are blessed with a vast array of natural assets that, if harnessed the right way, means we can become globally recognised for high-value manufacturing, research, development and deployment of offshore wind, green hydrogen and carbon capture and storage.
“The scale of the energy transition opportunity before us is huge and has the potential to contribute significantly to achieving true economic transformation for Scotland.”
Tracy Black, CBI Scotland Director, said:“Business will welcome the ambitions set out in the new ‘Economic Transformation Strategy’ as the right path for Scotland’s future economy.
“The Finance Secretary is also right to recognise the importance of delivery in turning high-level ambition into action – with business playing a vital role as a trusted partner.
“As firms across the country navigate rising living costs, ongoing shortages and spiralling business costs, they will want to see any new initiatives or investments bear fruit sooner rather than later.”
Environmentalists are calling for an urgent and inclusive national debate on economic transformation after the Scottish Government’s new strategy failed to show how it will achieve its own vision of wellbeing and ensuring a just transition to a zero-carbon economy.
The National Strategy for Economic Transformation ‘Delivering Economic Prosperity’ was launched today by the Cabinet Secretary Kate Forbes. She was supported by her Advisory Council which has previously been criticised for its lack of environmental and social justice expertise.
It comes the day after the latest UN IPCC report gave a stark reminder of the urgency of the climate crisis and the need to transform economies away from fossil fuels to avert its worst impacts.
Commenting on the Strategy, Matthew Crighton, Sustainable Economy Adviser at Friends of the Earth Scotland said: “This economic strategy has environmental sustainability and wellbeing in its vision, which is welcome, but there is a lack of concrete ideas as to how its good intentions will be delivered.
“Everyone recognises the need to be greener and fairer but without any realistic plan to achieve these changes they will remain aspirational daydreams.
“To deliver a just transition to zero carbon, the government has to assess and secure the investments needed in each part of our economy. It then needs to set out expectations for job creation and social benefits, how to measure them and who will deliver them.
“Instead, it seems happy just to point the boat forwards and hope that the fickle winds of the market economy will blow it in the right direction.
“The focus on economic growth and entrepreneurship fails to show how this approach can deliver on these wider social and environmental benefits. Instead we have a repeat of lots of the tired old ideas that have helped bring us the current state of inequality, environmental breakdown and economic insecurity.
“The Scottish Government clearly hasn’t understood the roots of these problems nor recognised the mistakes of previous plans. Perhaps this is because it hasn’t spoken to either environmental experts nor to people at the sharp end of our current economic system.”
Ahead of the strategy launch, the ‘Transform Our Economy’ alliance produced Ten Points for a Transformative Economic Strategy against which to judge the Government’s plans. These ideas were backed by 40 academics and outline a new purpose at the heart of our economy: providing wellbeing for all within environmental limits.
Crighton continued: “With our allies in the Transform Our Economy alliance, we prepared Ten Points to judge the new strategy, endorsed by 40 leading academics.
“Sadly the Scottish Government’s document gets poor marks against these, starting well with its overall vision but then failing, in particular on practical things like generating enough of the right investment streams, having clear tests for all finance and integrating new performance measures for decarbonisation and biodiversity into economic decisions.”
The document has also been criticised by the country’s leading trade unionist. Roz Foyer, STUC General Secretary who sat on the advisory group said: “Sadly, this is more a strategy for economic status quo than economic transformation.
“The National Strategy for Economic Transformation has a sprinkling of good ideas and we have successfully argued for some strong lines on the importance of Fair Work, decent pay and the role of trade unions, but overall, it is a missed opportunity to address the challenges before us and make real, transformational change.
“The main engine of the Scottish economy is the foundational economy. Unsurprisingly it is also the biggest employer. It encompasses transport, retail, energy generation, distribution and importantly education and public services.
“So, at the heart of the NSET should have been a strategy to increase pay and improve terms and conditions in these sectors. Investing in public services offers huge opportunity to support sustainable growth while tackling poverty and inequality.
“Over the coming years we face enormous challenges, none greater than the journey to net zero, a journey that must be carefully planned to ensure we create good, secure jobs that do not leave communities abandoned. Whilst the NSET talks about the potential for future development in the renewables and low carbon economy it fails to acknowledge previous failures or, more importantly, how we can learn from them and build a new industrial strategy.
“Scotland is not immune from global economic shocks, or the UK Government’s self-inflicted economic damage. Financialised capitalism embeds structural inequalities as evidenced by the escalating cost-of-living crisis.
“Addressing these structural inequalities is fundamental and it will certainly not be solved by prioritising becoming a ‘magnet for global private capital’ nor through the appointment of a ‘Chief Entrepreneurship Officer.’ Genuinely building new business start-ups is a good idea, flooding the economy with new start-ups, too many of which then fail, is not.
“The public sector has an enormous role to play in our economic transformation yet it is barely mentioned in the Scottish Government’s strategy. Neither is there any mention of tax – which is crucial to tackling inequality and raising revenue.
“Paying lip-service to community wealth building and the desire for a well-being economy will not deliver the change needed. If we are serious about economic transformation the Scottish Government must develop a green industrial strategy and invest in our public sector and the local authorities that make our vital services a reality.
“We will continue to engage with Scottish Government both on taking forward the more positive elements and aspirations of this strategy and to ensure the foundational economy is not left behind in Scotland’s economic future.”
The next 10 years will be decisive in building a more resilient, entrepreneurial and fair economy, according to Economy Secretary Kate Forbes.
Speaking ahead of the expected publication of the National Strategy for Economic Transformation, Ms Forbes said the Scottish Government will work with businesses, trade unions, third sector and public bodies to seize Scotland’s economic potential.
The publication later this week follows the recent announcement of the updated Strategic Framework that sets out how Scotland can move forward whilst managing the risks of Coronavirus (COVID-19).
Ahead of the launch the Cabinet Secretary will tomorrow chair the Green Finance Taskforce to help transition Scotland in to a global leader for Green and Sustainable Financial Services.
Building on the legacy of COP26, the group will develop an action plan to cement Scotland’s position as a world leader in green and sustainable financial services, helping to build capability and create new greener jobs.
Ms Forbes said: “From the television to the telephone, penicillin to steam engines, Scotland has a rich history of innovation and invention. In the next decade, Scotland faces a choice to either lead or to lag behind other successful economies all whilst we recover from Covid, deliver net zero, tackle structural inequalities and grow our economy. We choose to lead.
“Over the next ten years, we aim to deliver economic growth that significantly outperforms the last decade, so that the Scottish economy is more prosperous, more productive and more internationally competitive.
“To do that, we must be a country in which the public, private and third sectors respect each other’s strengths, draw on each other’s talents and work together to create and sustain an economy that works for all.
“This strategy is about delivering the best economic performance possible for Scotland within the current constitutional constraints.
There is much more we would do with greater powers, however this strategy takes decisive steps towards the creation of new, well paid, green jobs and will drive an economic recovery that will meet our climate and nature targets while ensuring we maximise the benefits of a just transition.
“We want the Scotland of tomorrow to be a more resilient and more entrepreneurial economy – in which everybody can share in our success.
“As we look beyond the pandemic we must be ready to seize the economic opportunities that come with achieving net-zero and becoming a fairer country.”
