National Strategy for Economic Transformation: third annual report

Introduction

By Barry White, Co-Chair of the NSET Delivery Board

As Co-Chair of the National Strategy for Economic Transformation (NSET) Delivery Board, I am pleased to introduce the third Annual Progress Report. The Board was established to ensure the successful delivery of the actions set out in our national economic strategy; to explore and challenge any aspects within the identified programmes that do not deliver on the ambitions; and to prioritise based on what is most impactful and where the greatest influence can be brought to bear. This is particularly relevant to the commitment to embed a ‘Culture of Delivery’ across all areas of economic growth.

Over the past year, the Board has seen progress in several areas that reflect a maturing approach to delivery. We welcome the Scottish Government’s commitment to aligning their economic strategy with the Programme for Government, focusing on fewer, more impactful actions. This sharper focus on prioritisation and cross-government coordination is a positive step toward embedding delivery discipline.

In November 2024, the Board discussed the need for a more enabling and accessible planning and consenting process, and government policies that are designed to create an environment that supports investment opportunities. We were encouraged by early signs of reform in this area, particularly efforts to align planning with economic priorities such as housing, energy, and infrastructure. The June 2025 meeting built on this, with a strong focus on the importance of a joined-up approach across planning, skills, and investment to unlock Scotland’s economic potential. A responsive and investment-ready planning framework will be critical to realising Scotland’s ambitions.

The Board welcomed the establishment of the Cabinet Sub-Committee for Investment and Economy (CSC-IE), which is helping to streamline cross-portfolio coordination and strengthen governance across economic policy. CSC-IE is supported by the Board, with priority areas of focus escalated to CSC-IE where Ministerial attention is required. We also progressed the integration of the Board’s input—particularly around housing—into wider government workstreams and governance boards. The refreshed Economic Growth Programme Board, led by the Director General Economy, was seen as a positive development in reinforcing internal accountability and aligning delivery across the public sector landscape with both our economic strategy and the Programme for Government. The commitment to implement the Housing Investment Taskforce recommendations and the new Cabinet Secretary for Housing role are welcome steps to boost all tenure housing investment - a vital underpinning to economic growth.

Looking ahead, the Board believes that, above all else, we will have to continue to fight to secure the investment in an expanding green economy supply chain, and to back our entrepreneurs to scale up. We see Green Freeports and strengthened Regional Economic Partnerships, including the investment zones, as a key mechanism for delivering place-based economic growth and regional empowerment. The development of green skills, particularly in the renewables sector, must be accelerated to support the Just Transition. And the recommendations of the Just Transition Commission’s latest report on a Just Transition for Aberdeen and the North-East must be implemented to ensure that the transition to net zero is fair, inclusive, and sustainable.

The Board remains committed to its role as a critical friend, supporting where appropriate, challenging where necessary, and always focused on delivery. We commend the progress made to date but recognise that the next phase of transformation will require even greater pace, coordination, and accountability.