Convention of the South of Scotland papers: October 2021 (papers only)

Papers

• update from Regional Economic Partnership
• outcomes from the convention of the South of Scotland - 3 February 2020
• update from South of Scotland Regional Economic Partnership
• overview of the South of Scotland Regional Economic Strategy
• delivering the South of Scotland Regional Economic Strategy

Update from Regional Economic Partnership

• The Convention welcomed the progress made in establishing the Regional Economic Partnership and its role in shaping the agenda for today’s meeting. The focus on progressing the Regional Economic Strategy at pace is also welcomed and members committed to supporting engagement activity which will inform it by encouraging and promoting participation through their networks. Members noted the potential for the region to capitalise on a growing green economy, but that digital connectivity will be a key enabler.
• The Convention recognises that the Team South of Scotland approach has been successful in aligning funding support and intervention for businesses impacted by the Covid 19 epidemic, and agreed it is imperative that that approach continues in view of the ongoing restrictions and resulting challenge to economic recovery. The Convention re-affirmed its commitment to work together on future funding support to strengthen economic recovery in the region and committed to take steps to ensure this outcome is achieved.
• The Convention also agreed that securing an effective replacement to EU funding for the rural economy is vital to the region’s economic recovery and that members will work together with the Regional Economic Partnership on a way forward to secure replacement funding which will be vital in supporting economic recovery. That collaborative effort will require to be sustained and in practical terms the Team South of Scotland approach must be supported by National Agencies

Update

Regional Economic Strategy

Informed by substantial public consultation, the Regional Economic Partnership (REP) has developed the South of Scotland Regional Economic Strategy (RES), which was published at the end of September. The RES has a ten year timeframe and sets out a vision for the South of Scotland – to be Green, Fair and Flourishing by 2031. Its central framework will drive actions and investments under 6 strategic themes by helping individual partner organisations to focus their contribution to regional growth through their core activities. One of the themes is “Green and Sustainable Economy” and Enhancing Digital and Transport Connections is identified as a priority under the “Thriving and Distinct Communities” theme. In addition the REP is currently in discussion with partners to develop a high level Delivery Plan, which will sit alongside the RES. The Delivery Plan will capture significant additional activity which requires collaborative action between partners. The aim is to publish the Delivery Plan later in the year (likely November).

Successor funding

At the 2021 Budget, the UK Government announced the launch of three new pan-UK funds – Community Renewal Fund (CRF), Levelling Up Fund (LUF), and the Community Ownership Fund (COF). Each is targeted directly to stakeholders and delivered by the UKG so cutting out any involvement of the Scottish Government. All are competitive funds with geographical prioritisation included in the CRF and LUF. 

The CRF is a 12 month £220m fund and focused on Business, Skills, Communities, and Employment; the LUF is a £4.8bn fund with Round 1 focused on Transport, Regeneration, Culture, Heritage; and the COF is a £150m fund targeted to support the purchase of community assets which would otherwise be lost. Applications to CRF have been made by both local authorities and bids to subsequent rounds of the Levelling Up Fund are under development.

An Investment Framework for the larger Shared Prosperity Fund is anticipated to be published in line with the Autumn Spending Review on 27 October. The Fund remains on schedule to be launched in April 2022.

Natural Capital and the Regional Economy

The Convention recognised:

• the high importance of the Region’s natural capital to the region’s economy and jobs,
• the strong natural capital expertise and partnerships that already exist in the Region, as reflected in the Borderlands Inclusive Growth Deal submission, and
• the considerable potential for the contribution of natural capital to regional jobs and economic recovery to grow in importance as public and private investment increases in the enhancement of the Region’s natural capital and in opportunities such as sustainable food production, nature-based solutions for climate change such as woodland expansion and peatland restoration, and nature-based tourism.

The Convention agreed to work together collaboratively to ensure that these economic benefits from natural capital are enjoyed within South of Scotland by communities and land managers by:

• creating employment opportunities,
• training local people in the new skills required, and
• working with businesses to develop markets, enhanced opportunities and confidence. 

The development of the Regional Economic Strategy provides an immediate opportunity for this collaborative action.

Update

The South of Scotland Regional Economic Strategy (RES), was published at the end of September and will be a key subject of discussion at COSS on 4 October.

There is continuing development work on the natural capital-themed projects within the Borderlands Growth Deal.

SoSE has commissioned a report on regional data requirements to underpin a natural capital approach to the regional economy. This work will inform national discussions on natural capital data and other regional data initiatives such as Regional Land Use Partnerships.

Infrastructure

• The Convention welcomed the publication of the Scottish Government’s Infrastructure Investment Plan for 2021-22 to 2025-26, noting the Convention’s interest in the key themes of the Plan and its commitment to delivering better outcomes for Scotland’s people. In particular, the commitment to taking a place-based approach to considering infrastructure needs was welcomed, as was the attention placed on natural infrastructure, noting the previous discussion on the economic, social and environmental benefits of natural capital.
• The Convention discussed the key priorities of the region, as presented in the paper and the recent indicative Regional Spatial Strategy submission – identifying key priorities within transport, digital and energy infrastructure. Sustained investment in electricity grid infrastructure and digital connectivity was highlighted as important areas to ensure the full economic benefits of the region could be realised, particularly the potential for growth in renewable electricity generation.
• The Convention recognises the process underway through the STPR2 to identify the strategic transport interventions building on the South West Scotland Transport and Borders Transport Corridors Studies and working through the STPR2 South of Scotland Regional Transport Working Group which includes membership from the local authority partners represented in COSS and the Regional Transport Partnerships. Phase 2 of STPR2 is due to report in autumn 2021. Transport Scotland will continue to engage with partners to ensure alignment in the evidence base as Partners develop their indicative Regional Spatial Strategy and Regional Transport Strategies, including east to west links within the region. An update on the outcome of these processes will be provided at a future Convention. The Convention recognises the impact of COVID-19 on public transport and the need to engage further on maintaining viable public transport models given the impact on transport demand.
• The Convention also notes the UK Government’s ongoing Union Connectivity Review.
• An interest in ongoing infrastructure discussion was noted, and the need for ongoing collaboration to ensure maximum benefits to the region from the delivery of the infrastructure plan and regional spatial strategies, including with the National Agencies. The Convention shall consider the collective approach to international marketing in order to attract investment.

Update

• The last annual progress report on the Scottish Government’s 2015 Infrastructure Investment Plan has published. Major infrastructure priorities totalling over £7.7bn in the past 5 years have been fully delivered by way of our accompanying project pipeline. Looking ahead, our new Infrastructure Investment Plan will provide a robust pipeline of public sector infrastructure delivery aligned with three core themes of enabling the transition to net zero and environmental sustainability; boosting inclusive economic growth; and building resilient and sustainable places.
• The second Strategic Transport Projects Review which will conclude later this year. The recommendations will be published alongside the statutory impact assessments for consultation. Transport Scotland has been engaging with Regional Partners through its STPR2 South of Scotland Regional Transport Working Group. An update will be provided at the next Convention.
• SWestrans and Dumfries and Galloway Council have recently agreed to develop a new public transport model for the Dumfries and Galloway area, using the new provisions made available in the Transport (Scotland) Act 2019 to mitigate the consequence of less commercial bus companies operating in the region. The 2019 Act provides Local Transport Authorities with a toolkit of measures to address the transport needs for their own particular area with options that can be utilised to influence how buses operate: the provision of local bus services by local authorities, bus service improvement partnerships and franchising.
• Transport Scotland is engaging with SWestrans as they look to progress the development and delivery of a new public transport model and will provide any advice and support as required.

Transport Scotland is committed to taking forward its Fair Fares Review to ensure a sustainable and integrated approach to public transport fares, this will look at the range of discounts and concessionary schemes which are available on all modes including bus, rail and ferry and will look at both cost and availability of services. The review will consider options in the context of the Climate Change Plan update 20% emissions target at a time where the costs of car travel are declining while public transport costs are increasing such that the impacts on those living in poverty are being exacerbated.

Workforce and skills

• Team South of Scotland partners continue to work together to identify the skills needs of the region and to ensure a coherent, aligned and effective response – across the system – to current and emerging labour market challenges.
• The new Education and Skills Strategic Coordination Group to lead on co-ordinating the revised education, training and skills offer to capitalise on new employment opportunities, and support up-skilling and re-skilling. Supporting the development of the Regional Economic Strategy, partners will work together to understand future skills and jobs opportunities and support and inspire young people, alongside other groups, to access those opportunities.
• The Convention recognises the importance of ensuring that there are clear pathways for young people into employment and education and the role that foundation apprenticeships can play. SOSE and SDS to report on the sectoral/employer demand for a shared apprenticeship in the South of Scotland.

Update

Team South of Scotland partners have worked collaboratively with SQW to undertake further labour market skills research across the South of Scotland. This research has focused on understanding the current economic baseline data held by partners; and identifying the gaps in data and insight. The draft report has outlined how an enhanced regional economic insight function could work in the South of Scotland and two delivery options have been identified (i.e. dedicated data repository vs new programme of research work). As previously noted SDS and SFC have completed engagement work with Further and Higher Education partners across the region to identify demand for skills in key sectoral areas of employment opportunity and align provision to meet this need. The colleges have launched a website which outlines the range of provision. Further activity will shortly take place through a new South of Scotland pathfinder, led by the SFC with input from SDS and regional partners.

SDS is sharing monthly insight on the changing economic context in the South of Scotland with Team South of Scotland partners. This includes an overview of labour market participation, recruitment activity, furlough statistics, equalities, PACE, redundancies, unemployment and trend analysis since March 2020. This has provided valuable insight to help shape the development of the new Regional Economic Strategy (RES) and the Regional Skills Investment Plan’s operational plan is now being aligned with the Skilled and Ambitious People theme within the RES.

Two sector-focused workshops have been set up with regional partners to identify the scale of skills shortages across sectors such as Hospitality and Tourism; Food and Drink; Road Haulage and Construction. Work is underway to map and align labour market interventions such as new National Transition Training Fund projects, Young Persons Guarantee etc to provide further support.

The Education and Skills Strategic Coordination Group has been established as a sub-group of the Regional Economic Partnership, and has met on 4th February, 1st June and 26th August 2021. Professor Russel Griggs OBE is acting as Chair, with Dame Barbara Kelly as Vice-Chair. The four key areas of focus include:

• Overseeing the implementation of the SOS Regional Skills Investment Plan which will include the Skilled and Ambitious People theme from the RES, and establishing a monitoring plan that will assess progress towards the RES/RSIP Vision and Strategic Outcomes
• Ensuring that there is a robust, comprehensive and regionally sensitive evidence base of labour market intelligence and insight, that can be used by partners to make informed decisions on the shape of future education and skills provision
• Developing innovative approaches to the delivery of work-based learning (Foundation, Modern and Graduate Apprenticeships) in the South of Scotland, to ensure that real or perceived barriers to participation from employers and individuals are overcome
• Co-ordinating and ensuring there is a coherent South of Scotland response to the labour market implications of the COVID pandemic, and that the skills system effectively supports economic recovery.

The RSIP operational plan is now largely agreed but additional actions from the emerging RES action plan will be included here and finalised in October 2021. This focuses on ensuring that the education, skills and training offer capitalises on employment opportunities in areas of labour market growth, such as Digital; Green Skills; Hospitality/Tourism; Land-based sectors; Health and Social Care; Early Years Learning and Childcare and Customer Services. It will also address skills shortages in sectors of importance to the South of Scotland economy as noted above. The plan also focuses on re-skilling and up-skilling in areas of employment opportunity, linked to new National Transition Training Fund projects.

SDS and wider partners are continuing to promote the uptake of Foundation, Graduate and Modern Apprenticeship activities across the South of Scotland.

SDS and SOSE appointed Cambridge Policy Consultants to focus on three key areas:

• • Review evidence on demand for apprentices in key sectors
  • Capture real or perceived barriers to micro businesses engaging with apprenticeships
  • Identify solutions through shared apprenticeships or other work-based learning models

A Steering Group was established to oversee the work, comprised of SDS, SFC, Borders College, Dumfries and Galloway College. The key sectors chosen (based on likely demand) were Creative Industries, Engineering, Food and Drink, Land-based, Textiles and Tourism. The project was extensively promoted to employers in these sectors through college contacts; SDS and SOSEs’ social media platforms; Developing Young Workforce Employer Forums; and through SDS’s Key Sector Managers. Complying with GDPR, 45 employer interviews and 22 stakeholder consultations were completed. The research considered demand in the key sectors noted above, and reviewed shared apprenticeship models in Scotland, UK and internationally.

The core findings highlighted that there was general support for the approach but varying levels of understanding around ‘what’s involved’. The sectors which showed greatest interest included Creative Industries; Engineering and Land-based sectors. A series of options were developed and the options which are now progressing are noted below:

• • Extension of pre-apprenticeships in land-based sectors through the Machinery Rings from 48 in 2020-21 to 60 in 2021-22, with 2 start points for new entrants in the year to take account of seasonality
  • Development of an anchor institution model where the region’s large employers (e.g. councils, NHS etc) over-employ apprentices and place them with micro-businesses, focusing on cross-cutting skills. Colleges will have a delivery role here.

The anchor model pilot will seek to place an initial cohort of around 16 young people in the sectors above which have expressed an interest in supporting the shared model from January 2022. Hall Aitken has been appointed to develop an operational plan and marketing/promotional strategy which will outline how the model will work in practice, building on the Young Person’s Guarantee resource in the local authorities with support from wider Team South of Scotland partners.

Outcomes from the convention of the South of Scotland - 3 February 2020

Vision and ambition for CoSS

The Convention endorsed the ambition and vision for the Convention of the South of Scotland – with a particular emphasis on driving inclusive growth through engaging with, and listening to, local communities and local businesses.

Convention members agreed the importance of shared ownership of the Convention agenda and action. The purpose of the Convention should be to address interconnected, and ‘wicked’ problems – and to work together to resolve them. The work of SOSEP has demonstrated to us that partnership and hearing from a wide range of voices is important to maximise the region’s economic potential. We must ensure that the voices of communities and the private sector are heard and heeded in the work that COSS takes forward.

The critical areas that members agreed for consideration at the next Convention are:

• ensuring the skills and education opportunities align with the current and future economic needs of the region and are delivered in flexible ways that maximise local people’s ability to access training that enhances their economic prospects. A paper will follow which will include a review of mechanisms and approaches to achieve this
• the opportunity around the national Net Zero ambition is huge for the region, and the work on this must intensify. We will identify the opportunities and challenges for the region in contributing to the Net Zero by 2045 target. A paper will follow to the next Convention
• work has already started to establish a Senior Officers’ Group with representation from all members of the Convention. The Senior Officers’ Group alongside Government officials will be commissioned to take forward work before the next meeting to progress these areas and report back in September

Updated September 2021

This Outcome is now closed on the basis that the issues raised have been addressed, or have been the subject of specifically focussed discussions at COSS. In addition, the REP has established the Education and Skills Strategic Co-ordination Group to lead the work on aligning education and skills provision with economic needs given the central importance of developing talent to the region’s future economic success.

Transport and regional collaboration

The Convention recognised and endorsed the strong collaborative and joined up working to date, and agreed the importance of this going forward.

The Convention recognised the need for alignment across digital and physical connectivity including alignment between transport, digital and energy.

Acknowledging the Climate Change targets whilst also recognising rurality in transport decisions and in the context of the application of the hierarchies is important; members noted that there would continue to be the practical reality of reliance on vehicle movements within a rural setting.

There are opportunities for innovation in the South of Scotland, and using demonstrator projects for both the development and application of new technology within transport to promote the economic opportunity for the SOS from the green agenda.

Updated September 2021

Specifically on the opportunities for innovation within SOS, Transport Scotland has supported both Dumfries and Galloway and Scottish Borders Councils with feasibility studies through our Switched on Towns and Cities Programme. These are intended to support Local Authorities in developing applications for the Programme’s capital fund which aims to address perceived barriers to decarbonisation of transport and to facilitate a step change in the uptake of zero emission vehicles across Scotland’s towns and cities. There are clear opportunities for innovation and support for new technology as part of this capital fund. We anticipate opening a further application round during 2021.

The Convention will also be aware that Parliament is currently scrutinising the Climate Change Plan update which includes a range of bold measures to reduce transport emissions and help Scotland meet its statutory net-zero targets, such as the policy outcome for a 20% reduction in car kilometres by 2030.

This Outcome is now closed.

Demographics and skills in the south of Scotland

The Convention reconfirmed the central importance of skills and education to the future of the region, particularly noting the crucial importance of growing the working age population. 

The three key elements included: developing economic opportunities, alignment with employers and local economic demand, and availability of supporting infrastructure such as housing. There is a need to ensure planning rules are appropriate to the rural context and consider whether there is sufficient incentives to support conversion or repurposing of properties.

In order to consider these interrelated elements, the Convention commissioned the Senior Officers’ Group to undertake work on repopulation (to support work described in Outcome 1 on education and skills) which would form an agenda item at the next Convention meeting. This should include how the community wealth building approach can be utilised within the region.

The Convention particularly noted the importance of an educational offer within the region that both retained and attracted working age population. SDS, SFC, local authorities, FE and HE have a particular role in developing a refreshed offer for the next meeting.

This work should build on and support current activity, such as the Ministerial Task Force on Population, and SDS and SFC’s work on skills alignment. It should also look to maximise the potential of greatly enhanced digital connectivity and existing physical assets.

Updated September 2021

This Outcome is now closed as it has been superseded by a more recent Outcome.

COVID-19 - regional economic impacts and supporting recovery

The Convention welcomed and endorsed the paper on economic recovery, specifically highlighting that the priorities identified align to the Convention’s own view of the crucial areas of focus for economic recovery and the significant ambitions that members have for the South of Scotland.

The Convention recognised the importance of having an approach to economic recovery that engages all local partners to set a strategic direction for the region that reflects the area’s particular strengths and challenges, operating in an agile and responsive way to ensure swift, targeted and sustainable interventions that reflect local need and fully engage local communities in their development.

Members highlighted that there needs to be a further increased focus on the opportunities of greater digital capability and accessibility in the region, as a key route to supporting business, education and bolstering the quality of life that attracts people to the South of Scotland as a destination.

A second area of particular focus was on the combined aims of accelerating the South of Scotland’s progress towards a net zero transition whilst leveraging the natural capital of the region to position it as a leader in renewable energy development and a centre for green jobs.

There was agreement that significant challenges remain, across many sectors, including tourism but that there is also positivity about the opportunities that the South of Scotland has in forging a sustainable path to economic recovery through renewed partnership and use of the area’s natural assets.

Updated September 2021

This Outcome is now closed on the basis that the issues raised have been addressed, or have been the subject of specifically focussed discussions at COSS. In addition, further recovery opportunities and regional impacts will be considered as part of the National Strategy for Economic Transformation.

Transport Scotland comment – there is a Workforce Mobility Project included within the ESES City Region Deal which will make a meaningful contribution to accessibility, particularly in relation to employment and education.

Workforce and skills

South of Scotland Enterprise will lead work with SDS and other partners, including Developing the Young Workforce partnerships, to clearly articulate the scale and scope of opportunities within Food and Drink, Engineering and Textiles and other sectors important to the South of Scotland. Working closely with industry groups, we will identify the flexible support needed to drive these forward and explore how we can deliver the support required.

The Regional Economic Partnership, supported by the Team SOS Senior Officer Group, as part of the work they are doing to drive forward the Regional Economic Strategy, should identify a package of measures to support people move into the area and retain young people in the region, involving partners (including the NHS) across the region. The Group could usefully draw on approaches elsewhere including: the Western Isles model; using Foundation Apprenticeships as a pathway to careers in the local economy; and deploying group training models such East Kilbride Group Training (engineering) to see how they could be adapted to fit the needs of the rural South of Scotland.

Updated September 2021

This Outcome is now closed as it has been superseded by a more recent Outcome.

Community wealth building

The Convention discussed the opportunities community wealth building (CWB) presents for the region, particularly the offer from Scottish Government to work alongside local partners to produce a CWB action plan for the area. 

Noting the need to drive inclusive economic opportunity and grow the working age population, members recognised the growth opportunity presented by increased access to public and private sector contracts for the large SME base in the South of Scotland, and the associated supply chain development benefits. They also discussed the central commitment to Fair Work practice and the small family firms, independent business, and community energy which already exists in the region as being a good basis on which to build any CWB activity.

Highlighting that seemingly small scale interventions can have a huge impact on outcomes experienced by communities, a number of options for how CWB could be taken forward in the region emerged: 1) doing more to identify and profile what is happening already (across 5 pillars) to scale that activity where possible; 2) embed 5 community wealth building principles across emerging plans for SOSE and its operations to shape the type of support offered and the nature of growth activity; 3) specifically work with a local council/s as anchor organisations and prioritise activity that could be delivered across the 5 pillars (akin to the North Ayrshire approach); and 4) explore taking a sectoral CWB approach via, for example, housing or education.

Partners agreed outline ideas were a good basis on which to develop a CWB action plan for the area, and Scottish Government should now work with local partners to produce an action plan and report on delivery progress at next CoSS in 2021.

Updated September 2021

Action plans were produced in early summer, looking at 2 different aspects of community wealth building in SoS. These are in final process of sign off by SOS board.

1. A plan has been produced in early summer, that focussed on the role of Housing sector as anchor (6 RSL’s) within the South of Scotland. In this consideration of how resource pertaining to maintenance and development (circa £80M annually collectively) could be utilised to develop, grow and create innovation within the SOS supplier base, especially in relation to green retrofit of housing stock. A range of recommendations were produced which are being worked through by the RSL’s as regards how they procure suppliers, but also the means by which suppliers could be more willing and fit to compete for maintenance and development contracts. The lesson from this will have resonance within wider Scottish Housing Strategy 2040. But also other public sector anchors, in SoS and rest of Scotland including Health Boards, Colleges, Universities etc.

2. A strategic plan was compiled for SOSE, which focussed on how they could embed community wealth building within their operations and within the wider Draft Regional Economic Strategy. In this the role of SOSE as an anchor organisation across the five pillars was considered, alongside their role in promoting community wealth building and anchor approaches across other public sector anchors within the SOS.

Update from South of Scotland Regional Economic Partnership

Authors – South of Scotland Enterprise, DUmfries and Galloway Council and Scottish Borders Council

Purpose

To update the Convention of the South of Scotland on the activity of the South of Scotland Regional Economic Partnership (REP) since the meeting of the Convention in February 2021, which has focused on the production of the South of Scotland Regional Economic Strategy.

The creation of the Strategy involved an immense effort by members and organisations that make up the REP. The circumstances of COVID-19 enabled a strong focus of effort to be given to the development of the Strategy. This has meant that through on-line working the Strategy, which might have taken two or three years to be carried out, has been completed in less than one year. It has involved many hours genuine co-production between the consultants appointed to undertake the work on the draft strategy, officers and members of the REP, together with a very significant consultative effort with the public, communities, third sector, businesses and local and national public bodies. The REP met on a regular and frequent basis to discuss and agree the various development stages of the Strategy. In addition a small reference group of REP members met often weekly to oversee the production of the Strategy. It is a Strategy genuinely ‘for and by the South of Scotland’.

The Convention of the South of Scotland is invited to consider the paper and:

• note the contents of the paper and the considerable time and efforts by the REP, together with the significant community and stakeholder engagement, that has gone into the production of South of Scotland Regional Economic Strategy
• welcome the effective partnership arrangements that have enabled the region wide regional economic strategy to be developed reflecting local ambitions and opportunities in communities

Approach to the development of the South of Scotland Regional Economic Strategy

The South of Scotland Regional Economic Partnership (REP) is committed to delivering a clear and compelling vision and direction for the economic success of the South of Scotland which harnesses the efforts of all its partners. The 31 members of the REP come from the community, third sector, social enterprise, business, Higher and Further Education and key public sector organisations joining Elected Members appointed from both Councils (D and GC and SBC) and South of Scotland Enterprise Board members. The Chair of the REP rotates between Dumfries and Galloway Council and Scottish Borders Council on an annual basis based on financial years. The current chair is Councillor Mark Rowley, Executive Member for Economic Regeneration and Finance, Scottish Borders Council.

At the initial meeting on 18 September 2020 the REP agreed its immediate focus would be on the development of a South of Scotland Regional Economic Strategy that would be clearly for and done with people, communities and businesses across the region. The REP also wanted the Strategy to be delivered at pace, and that this should be done without compromising its robustness and quality of outputs. To achieve this goal the REP met weekly until the end of March and then bi-monthly until 2 September 2021 when it agreed the Strategy.

In preparing the Strategy, the REP wanted the Strategy to be ambitious and long term, covering the next 10 years. This Strategy would ‘take advantage of the moment’ and make the most of the unprecedented economic opportunities presented to the South of Scotland. These include the:

• establishment of South of Scotland Enterprise
• borderlands Inclusive Growth Deal
• Edinburgh and South East Scotland City Region Deal
• other Scottish Government and external funding opportunities through the Lottery etc., and more recently the UK Government’s Build Back Better Funds

The REP indicated that the purpose of the Strategy should be to shape the future economic direction of the South of Scotland, by tackling key issues and challenges and making the most of opportunities, and focusing on long term outcomes with a rolling forward delivery plan.

In developing the Strategy the REP has emphasised the need for the Strategy to

• bring a fresh and place based response to the circumstances of the South of Scotland
• be imaginative and embed and portray enthusiasm and confidence
• reach out despite the challenge of COVID-19 and listen and reflect what matters most to those who live, work and operate across the South of Scotland
• have a strong sense of ownership and pride at the end, to be achieved through a collaborative approach and a process of co-production 

The REP has also recognised that the work on the Strategy is an opportunity to

• proactively drive inclusive, sustainable and green growth
• align partner aims and ambitions
• translate partner commitment into firm priorities
• better co-ordinate partner capacity and resources
• tailor the effort of national agencies to the needs and opportunities regionally and locally
• positively influence other regional and local plans
• ensure the South of Scotland contributes effectively to the national economic recovery efforts

Draft South of Scotland Regional Economic Strategy

Following a lot of preparatory work, the production of the Strategy commenced in early December 2020 with the appointment of consultants to bring in additional capacity, expertise and external challenge. The method of working was based on co-production between the consultants, officials and members of the REP. The REP met monthly up until April 2021 to oversee this work. The first stage involved comprehensive analyses of economic, social and other data and other studies pertaining to the South of Scotland. This was followed by an extensive public and stakeholder consultation exercise through February, March up to mid-April 2021. This comprised direct interviews with key public and private partners, and on-line surveys and drop-ins aimed at businesses and communities.

There were 655 responses to the surveys, 215 from businesses and 440 from other groups and the general public; 38 direct discussions and interviews involving around 140 individuals; 3 business focus groups involving 115 businesses and 6 open to all online meetings involving 20 individuals. During April/May 2021 there were also 9 thematic workshops on topics relevant to the Strategy involving around 100 individuals. Some additional funding from the Scottish Government was given to support some additional consultation carried out as part of this work.

A smaller Reference Group of the South of Scotland Regional Economic Partnership chaired by Councillor Rowley met weekly from mid-April to the early June 2021 to consider these responses and feedback from the themed workshops. This Group continued to meet frequently, often weekly, to maintain momentum to achieve the finalised Strategy and Delivery Plan.

The draft Economic Strategy was presented and agreed by the REP at its meeting on 8 June 2021 and then endorsed by Dumfries and Galloway Council, Scottish Borders Council and the SOSE Board at their meeting at the end of June 2021.

Finalising the South of Scotland Regional Economic Strategy

Consultation on the draft strategy

The consultation on the draft South of Scotland Economic Strategy began on 2 July 2021 and finished on 16 August 2021. It was well publicised via social media and digital/web means, radio, newspaper and select publication adverts and an on-line public survey was hosted on ‘Citizen Space’ by Scottish Borders Council. Key policy leads in both national agencies and Scottish Government were also engaged and work took place with young people to ascertain their views. There were around 100 responses to the consultation.

Development of the initial delivery plan for the strategy

In tandem with the consultation exercise the REP worked on the development of an initial delivery plan. This plan will have a three year focus. It aims to identify actions that are:

• strategic and high-level and collaborative
• new or add value to what is already happening
• able to demonstrate a tangible impact across the themes of the Strategy
• stretching and ambitious but ultimately deliverable within the timeframe of the delivery Plan (3 years)

Six advisory workshops aligned to the draft Strategy’s six key themes were held at the end of July 2021 and first week in August 2021 with officers and representatives from local and national partner bodies. The aim of these was to generate ideas and advise on potential actions for each of the priorities defined for each of the key themes. The REP Reference Group then discussed these actions to see how they might be prioritised within the delivery plan.

Measurement framework and integrated impact assessment

The REP has worked on a measurement framework for the Strategy. This focuses on measuring progress towards the Strategy’s aims and ambitions and embraces social and environmental measures as well as economic ones. It has taken account of approaches and practices elsewhere including: Borderlands Inclusive Growth Deal; Edinburgh and South East City Region Deal; National Performance Framework and Wellbeing Economy Monitor; emerging thinking on SOSE’s performance framework; Scottish Enterprise’s approach; and social accounting methodology.

A small group of REP members has also taken forward the work of producing an Integrated Impact Assessment for the Strategy. It is recognised this will be an ongoing process to ensure the needs of equality and other groups are fully taken into account as part of the implementation of the Strategy. It is intended that a standing Group of REP members is to support this work. 

The Strategy has been pre-screened for a Strategic Environmental Assessment (SEA). While a SEA is not required for the Strategy, it may be required for actions in the delivery plan.

Conclusion

In conclusion the REP has made considerable efforts to ensure the Strategy is robust and that there has been effective public and stakeholder engagement and co-production in the production of the Strategy. The Strategy is ambitious for the short, medium and long term and has been developed by the South of Scotland for the South of Scotland with an emphasis on transforming place and communities in an inclusive and sustainable way. The next phase of the work of the REP is finalising the delivery plan for the Strategy and then ensuring its effective implementation. 

Action

COSS is invited to consider the paper and:

• note the contents of the paper and the considerable time and efforts by the REP, together with the significant community and stakeholder engagement, that has gone into the production of South of Scotland Regional Economic Strategy
• welcome the effective partnership arrangements that have enabled the region wide regional economic strategy to be developed reflecting local ambitions and opportunities in communities

South of Scotland Enterprise, Dumfries and Galloway Council and Scottish Borders Council September 2021

Annex 1 – South of Scotland Regional Economic Partnership Membership

Membership of the Partnership is comprised as follows:

• Dumfries and Galloway Council
• Scottish Borders Council
• South of Scotland Enterprise
• Scottish Enterprise
• Skills Development Scotland
• Scottish Funding Council
• Visit Scotland
• Private Sector representatives
• Social Enterprise representatives
• Third Sector representatives
• Registered Social Landlord representatives
• Community Development Trust representatives
• Borders College
• Dumfries and Galloway College
• Heriot Watt University
• Crichton Leadership Group
• Scotland’s Rural College (SRUC)

Scottish Government officials are invited to attend meetings as observers.

Overview of the South of Scotland Regional Economic Strategy

Authors – South of Scotland Enterprise, Dumfries and Galloway Council and Scottish Borders Council

Purpose

This paper provides an overview of the content of the South of Scotland Regional Economic Strategy. The full strategy is attached as an annex to this paper. 

It invites the Convention of the South of Scotland (COSS) to:

• endorse the South of Scotland Regional Economic Partnership’s Regional Economic Strategy; and the insight it gives on the strengths and opportunities for the economy of the South of Scotland
• commit to taking collective action required to deliver on our agreed ambitions for the region
• seek regular updates from team South of Scotland partners on the progress on delivering the ambition in the RES
• agree that the South of Scotland Regional Economic Strategy provides a strong basis for discussion on the regional and strategic links with the emerging 10 Year National Strategy for Economic Transformation

Regional economic strategy – development

Paper Three describes the process that the Regional Economic Partnership followed in developing the strategy for the South of Scotland. The strategy draws together the significant research, analysis and engagement in a document that is vital to the future economic success of the South of Scotland.

Vision

The strategy has a ten year timeframe and starts by setting out a bold and compelling vision for the South of Scotland – to be Green, Fair and Flourishing by 2031:

“We will be a region of opportunity and innovation – where natural capital drives green growth, ambition and quality of life rivals the best in the UK, communities are empowered and cultural identity is cherished, enabling those already here to thrive and attracting a new generation to live, work, visit, learn and invest in the South of Scotland.

Our approach to developing our vision was shaped by what the people of the South of Scotland told us matters – core values of shared prosperity, making the most of our potential, thinking differently and pioneering environmental responsibility. The strategy responds to a range of key influences and goes beyond what is important to the South of Scotland. 

The strategy captures the opportunity for our region. It is frank about our challenges but recognises we have strengths to build on with positive and sustained opportunities.

Strategic framework

At its centre the strategy sets out a strategic framework, driving actions and investments in the future. It has six themes equally important and interlinked each with specific priorities:

• theme 1 – skilled and ambitious people – with priorities that enable access to skills, training and employment, attracting and retaining more people with a range of skills, ambition and knowledge, preparing for the future of work and building lifelong learning and opportunity;
• theme 2 – innovative and enterprising – with priorities that embrace research and innovation, enhancing business support services, activating networks and business interaction and creating flexible and accessible workspaces;
• theme 3 – rewarding and fair work – with priorities that grow and diversify our economy, attract and secure new investment, improve productivity and competitiveness and secure and improve fair working conditions and wages;
• theme 4 – cultural and creative excellence – with priorities that celebrate and enable creativity, champion a regional identity, invest in the visitor economy and boost culture and heritage assets;
• theme 5 – green and sustainable economy - with priorities that harness and enhance natural capital, seize the economic opportunities of a Just Transition to Net Zero, improve the efficiency of homes and buildings and support community wealth building and growing regional supply chains; and
• theme 6 - thriving and distinct communities - with priorities that revitalise towns and rural communities, create and sustain high quality, affordable homes, enhance digital and transport connections and activate and empower communities, the third sector and social enterprise.

This framework aligns strongly with the emerging themes from the national strategy. 

Alignment and engagement

The strategy sets out our ambitions for the region. At our inaugural Convention, members endorsed a commitment to working together to deliver our collective ambition. The strategy provides a strong and clear structure for our engagement with the Scottish Government and national agencies to do so, enabling us to discuss how their activities in the South can contribute to delivering the strategy. It will also help to ensure alignment across other regional and local plans and strategies. 

Members of the Convention will have an opportunity to discuss the high level and strategic actions that their organisations will take forward at a subsequent agenda item exploring the delivery of the RES (Paper Five). This builds on the positive discussions that national agencies have been having with team South of Scotland members over the summer. It is important that those discussions continue as we move into the delivery phase. 

Conclusion

The Convention is invited to:

• endorse the South of Scotland Regional Economic Partnership’s Regional Economic Strategy; and the insight it gives on the strengths and opportunities for the economy of the South of Scotland
• commit to taking collective action required to deliver on our agreed ambitions for the region
• seek regular updates from team South of Scotland partners on the progress on delivering the ambition in the RES
• agree that the South of Scotland Regional Economic Strategy provides a strong basis for discussion on the regional and strategic links with the emerging 10 Year National Strategy for Economic Transformation

South of Scotland Enterprise, Dumfries and Galloway Council and Scottish Borders Council

September 2021

Delivering the South of Scotland Regional Economic Strategy

Authors – South of Scotland Enterprise, Dumfries and Galloway Council and Scottish Borders Council

Purpose

This paper provides information on the development of a strategic Delivery Plan to realise the ambitions within the new South of Scotland Regional Economic Strategy (RES) and invites discussion on the engagement and contribution of national agencies to support this.

It invites the Convention of the South of Scotland (COSS) to:

• endorse the approach to developing a strategic delivery plan to realise the ambitions in the South of Scotland Regional Economic Strategy
• invite national agencies to outline the opportunities to align their strategic activity to contribute to the delivery of the Regional Economic Strategy
• agree that the Convention is updated at future meetings on the additional action taken by national agencies to deliver our collective ambition for the South of Scotland

Context for delivery

Paper four presented the South of Scotland Regional Economic Strategy reflecting the vision and strategic framework that will drive actions and investments in the future. The inter linked themes each with specific priorities, were described, underlining the ambition of the South of Scotland, firmly placed within our local communities and places.

While the RES will help focus the contribution that individual partner organisations and others make through their core activities, the Regional Economic Partnership (REP) as a collective is committed to maintaining a high-level ‘Delivery Plan’ alongside the RES. This plan, which is currently under development, will capture and help coordinate important strategic actions, those being the significant areas which will make the biggest contributions to the RES and where all partners need to work together to deliver.

At the inaugural Convention, members endorsed a commitment to working together to deliver our collective ambition. The strategy provides a strong and clear structure for our engagement with the Scottish Government and national agencies, enabling us to discuss how their activities in the South can contribute to delivering the RES. It will also help to ensure alignment across other regional and local plans and strategies. 

Developing the strategic delivery plan

The REP will provide sustained strategic leadership and strategic oversight of the delivery of the RES. It presents a forum through which it will enable partners efforts to be better aligned and co-ordinated, helping efforts to go further and more to be achieved for less. It is important that this alignment extends beyond the REP itself and sees other key organisations and collaborations meaningfully engaged, including the region’s health and social care partnerships given the strong focus on wellbeing within the RES.

Across the life of the ten year strategy the approach to the strategic Delivery Plan will ensure it responds to the need for flexibility. The intention is that the Delivery Plan will be reviewed by the REP, at least on an annual basis, to ensure that we are working collaboratively on the right areas to realise our vision for a Greener, Fairer and Flourishing South of Scotland.

There is much existing strategic activity to build on and the Delivery Plan will act to bring this together, helping to showcase what is happening and in doing so afford a better understanding of what activities are underway or planned by partners to address the Strategy priorities within the RES. It will therefore comprise of a mixture of existing and already committed activities – such as those associated with the Borderlands Inclusive Growth Deal and Edinburgh and South East Scotland City Deal.

The approach to developing the Delivery Plan will also identify the need for new activities and interventions, to address gaps or where a fresh approach may be required. The process of preparing the delivery plan will also help identify gaps, where no activity is taking place or planned, with a view to enabling collective agreement about what needs to happen in response.

In parallel with the period of consultation on the draft RES during summer 2021, the REP commissioned early work on developing the Delivery Plan with a wide range of stakeholders, and also held a series of structured positive conversations with many of the national agencies on the RES content, with a view to encourage a process of identifying existing and capturing potential action which could contribute to the RES ambitions. It was clear from these early discussions there are a range of contributions and opportunities for national partners to work with the South of Scotland within the Delivery Plan, in the immediate and longer term. It is intended that through a programme of ongoing engagement, between the Regional Economic Partnership and national agencies, future delivery of the Strategy will be developed and programmed.

While the REP will own the Delivery Plan, the specific actions within will be the sole or joint responsibility of individual partner organisations. Such an approach respects that individual partner organisations will have their own governance and approvals processes in place. It also gives partners the flexibility they need to determine the appropriate detailed focus and how best they can creatively deploy their resources to have maximum effect in a way which also contributes to wider objectives they may have.

Measuring progress in future

It is intended the Delivery Plan will include a number of long-term outcomes and associated performance targets linked to the vision at the heart of the strategy. Key indicators will be measured from a clear baseline position. Reflecting the breadth and ambition of the RES, the approach to measuring success will need to embrace new and wider measures, going beyond traditional economic measures to capture impacts against social and environmental ambitions. There will be a clear focus on measuring what matters most to the South.

Alignment and engagement

Members of the Convention have an opportunity to discuss the strategic actions, from their organisation’s existing plans and reflecting on activity which can be developed in future, that can contribute to the delivery of the RES, reflecting on the six themes below:

• theme 1 – skilled and ambitions people – with priorities that enable access to skills, training and employment, attracting and retaining more people with a range of skills, ambition and knowledge and, preparing for the future of work and building lifelong learning and opportunity
• theme 2 – innovative and enterprising – with priorities that embrace research and innovation, enhancing business support services, activating networks and business interaction and creating flexible and accessible workspaces
• theme 3 – rewarding and fair work – with priorities that grow and diversify our economy, attract and secure new investment, improve productivity and competitiveness and secure and improve fair working conditions and wages
• theme 4 – cultural and creative excellence – with priorities that celebrate and enable creativity, champion a regional identity, invest in the visitor economy and boost culture and heritage assets
• theme 5 – green and sustainable economy - with priorities that harness and enhance natural capital, seize the economic opportunities of a Just Transition to Net Zero, improve the efficiency of homes and buildings and support community wealth building and growing regional supply chains
• theme 6 – thriving and distinct communities - with priorities that revitalise towns and rural communities, create and sustain high quality, affordable homes, enhance digital and transport connections and activate and empower communities, the third sector and social enterprise

Conclusion

The Convention of the South of Scotland (COSS) is invited to:

• endorse the approach to developing a strategic delivery plan to realise the ambitions in the South of Scotland Regional Economic Strategy
• invite national agencies to outline the opportunities to align their strategic activity to contribute to the delivery of the Regional Economic Strategy
• agree that the Convention is updated at future meetings on the additional action taken by national agencies to deliver our collective ambition for the South of Scotland

South of Scotland Enterprise, Dumfries and Galloway Council and Scottish Borders Council

September 2021