National Strategy for Economic Transformation Delivery Board minutes: September 2025

Attendees and apologies

Present

• Kate Forbes MSP (Co-Chair), Deputy First Minister and Cabinet Secretary for Economy and Gaelic
• Barry White (Co-Chair)
• Audrey Cumberford
• Douglas Millican
• Jane Wood
• Claire Mack
• Roz Foyer
• Ellis Watson
• Sir Simon Lister
• Gillian Docherty
• Damien Yeates - Chief Executive, Skills Development Scotland
• Satwat Rehman - Co-Chair, Just Transition Commission

Supporting officials

• Aidan Grisewood, Director for Jobs and Wellbeing Economy
• Colin Cook, Director for Economic Development
• Catriona Laing, Deputy Director, Climate Change
• Charlie Hogg, Interim Deputy Director, Economic Growth, Delivery and Finance

Apologies

• Ewan Aitken

Items and actions

Welcome 

Barry welcomed members to the third meeting of the NSET Delivery Board in 2025, noting apologies from Ewan Aitken. The minutes from the June meeting were agreed, and a progress update on actions will be shared in the September bulletin.

The board reflected on the Deputy First Minister (DFM)’s decision to step down at the upcoming election, expressing disappointment but offering best wishes, while emphasising the need to maintain momentum in the lead-up to the election. Progress in housing was also noted, with Màiri McAllan MSP’s appointment as Cabinet Secretary for Housing welcomed as a positive development.

Update on key economic delivery strands 

Aidan Grisewood provided an overview of the Programme for Government (PfG) Delivery Dashboard and the NSET Annual Report, due to be published in September.

He gave a brief update on economic inactivity and noted that a recent session chaired by the DFM was productive, particularly in exploring how to better engage businesses in tackling inactivity. As well as critical interventions in health, government procurement was identified as an area where leverage could be better used to encourage good working practises and recruitment of people in danger of slipping into long-term inactivity. 

DFM expressed appreciation for the board’s prioritisation and contributions to date and noted priorities for the next two NSET meetings should be inactivity, innovation, and investment. DFM emphasised the need for tangible progress by March in order to maximise the economic opportunities available to Scotland, with the budget as the next milestone and the Cabinet Sub-Committee for Investment and Economy (CSC-IE) remaining a route for escalation.

Members raised the following

• capital and commitment highlighted as key factors to green economy investment, along with the "3 Cs" - Consenting, Connection, and Contracts for Difference (CfDs). They stressed the need to redouble efforts in the green economy in light of global developments
• NSET itself lacks a clear mission around green energy and Scotland risks losing ground to other countries if progress isn’t made to engage and enable the private sector more dynamically
• the next six months critical in delivering significant Offshore Wind opportunities, important that the Scottish Government (SG) has a clear plan on how to deliver these
• collaboration on industrial strategy between SG and UK Government (UKG) was discussed, with assurances of ministerial cooperation, though concerns remain about alignment and localised supply chain development
• local content in green energy projects was highlighted as valuable by industry. It was noted that while legal mandates are not possible, SG is engaging directly with developers to encourage local sourcing
• consensus on the opportunity to embed sustainability and social value within existing frameworks
• a more strategic, coordinated approach needed to strengthen local supply chains i.e. leveraging Scotland-based HQs and improving skills development

Clusters development

Barry noted the relevance of defence in the clusters development context despite it not being covered in this item.

On defence, DFM highlighted significant developments regarding growth deals and noted strong engagement with UKG on these matters. Recent SG policy changes in defence were also highlighted.

Mark McLaughlin set out the current work being taken forward on the Clusters Development Programme, referencing international examples such as Catalonia where clusters are used effectively as economic tools. In Scotland, cluster leaders have observed a lack of consistency across the current landscape. SG has studied international models and identified key factors for success, including the need for long-term commitment and multi-year funding.

Members raised the following

• some concern around low innovation levels in Scottish businesses
• a disparity in cluster success was noted, with Fintech highlighted as a strong example of progress
• strong clusters enable innovative projects that attract partner funding. Key success factors include understanding regional strengths, recognising business needs and supporting sectors outside the formal cluster landscape (e.g. creative industries)
• raised questions about cluster prioritisation and highlighted the value of international examples, particularly in skills development
• early stage investment a common challenge with Scottish National Investment Bank (SNIB) noted as a potential vehicle
• regulatory challenges, especially in emerging areas like AI, and stressed the importance of industry matching and structured development
• advocated for cluster thinking as a way to achieve durable outcomes through collaboration
• emphasised that clusters should be allowed to develop organically and be encouraged, not overly managed
• suggested SG could learn lessons from UKG support for Oxford/Cambridge, and how SG might replicate successful elements

Regional Economic Partnerships and Workforce North Programme

Chris Thomson shared insights from recent stakeholder engagement on Regional Economic Partnerships (REPs), explaining that the purpose of this item was to reflect on what’s been heard from stakeholders and gather board input. He noted that not all regions are at the same stage in developing REPs, and that Scotland’s context differs from the rest of the UK, requiring tailored approaches. 

Damien Yeates explained that Workforce North emerged from the economic opportunity in the Highlands and Islands, where significant investment is underway but demographic challenges persist. The programme was designed to address a shared ambition to grow and expand the regional workforce, with alignment to housing and infrastructure needs. Following a series of workshops, the initiative secured high-level leadership from key stakeholders and an employer group of 70 organisations. The aim is to leverage industry co-investment to create a multiplier effect. 

Members raised the following

• issues around regional governance, noted that whether elected leadership might be required if powers are further devolved. Additionally, any new structures must be substitutional, not additional, to avoid duplication
• regulatory complexity and a cluttered landscape means that despite strong examples of collaboration tensions exist between regional coherence and local delivery
• concerns around the long term legacy of short term employment boosts, particularly in construction. Stressed the need to translate strategic vision into tangible benefits for communities
• Stressed the importance of matching the rest of the UK on REPs to avoid falling behind, drawing on lessons from growth and city deals
• Concerns were raised about capacity and resources, noting that Highland and Islands Enterprise’s unique remit contributes to its success. Future planning must also consider how to create regions that people want to live and invest in
• Warned against assuming all problems require national solutions and noted that regional and local solutions are often more effective and quicker to implement
• Supported a systems based approach, cautioning against waiting for full consensus before acting
• Highlighted blockers in the wider system, particularly in skills and education, noting that several colleges face risk of insolvency
• Workforce North exemplifies self-ownership and more regions should to adopt this mindset

Just Transition 

Catriona Laing described the Just Transition Commission report as important and timely, with a deliberate focus on the North East of Scotland. The emphasis is on skills transfer and job creation, with lessons to be learned from Grangemouth. The Scottish Government’s role was discussed, acknowledging constraints such as limited powers over licensing and regulation. However, investment in skills, innovation, and regional job creation, via the Just Transition Fund and other mechanisms, was highlighted as a key lever. Fair work concerns were raised, particularly around whether grant conditionality is translating into positive outcomes for workers. 

Satwat Rehman noted that while full mitigation may not be possible, it can be improved. She stressed the need for multiple flexible pathways, especially for support workers like those in hospitality, so individuals retain agency and a good standard of living.

Roz Foyer stressed that workers must be at the heart of the Just Transition and noted that many are currently experiencing redundancies, not opportunities. She cited catering staff as an example of those being left behind, despite their contributions to regional development. She also warned that workers are not seeing hope, and that complex strategies mean little to those seeking immediate answers. She called for quick wins, fair work, and community benefit to counteract fear and frustration.

Members raised the following

• echoed Roz’s points and highlighted the need to focus on strategic assets like Grangemouth, which does have a future 
• noted that the wind sector has not progressed as hoped, and that the zonal pricing debate has had a chilling effect on investment
• acknowledged the lack of clear support for catering staff reinforced the need for targeted support
• described the situation as striking and stark and noted a vacuum in communication. Without clear visibility of a plan, there is a real risk of far-right narratives filling the void. Need to align policy, funding, and strategy, and to communicate effectively with communities
• reflected on the Energy Profits Levy, which was initially supported but later extended and increased, raising questions about its long term impact
• suggestion that the narrative around oil and gas may need updating
• important to continue building a clean energy economy and stressed the need for regionally focused investment that creates meaningful jobs

Close

DFM highlighted that energy emerged as a recurring theme across multiple agenda items but noted that, while energy is a critical enabler, it is not the mission itself and the true mission should be centred on fairness, prosperity and localised regional growth. 

Barry thanked members for their attendance and input into the meeting, noting the next meeting is scheduled for Wednesday 12 November.

Actions

• NSET board to have a technical discussion at November meeting on Offshore Wind to prepare and capitalise on upcoming economic opportunities
• prepare paper on Offshore Wind (specific scope to be set) outlining: current risks and barriers to delivery, including existing activity and gaps; breakdown of the transition challenge; the scope for mandating procurement and local content, including any legislative changes required; separate section on operationalising skills delivery