National Strategy for Economic Transformation Delivery Board minutes: 12 March 2025

Attendees and apologies

Present

• Kate Forbes, Co-chair, Deputy First Minister and Cabinet Secretary for the Economy and Gaelic
• Barry White, Co-chair, Former Chief Executive, Scottish Futures Trust
• Graeme Dey, Minister for Higher & Further Education & Minister for Veterans
• Douglas Millican, Former CEO, Scottish Water
• Audrey Cumberford, Principal and Chief Executive, Edinburgh College
• Claire Mack, Chief Executive, Scottish Renewables
• Sir Simon Lister, Managing Director, BAE Systems Naval Ships
• Fiona Kell, Homes for Scotland
• Michael McNally, Glasgow City Region
• Gordon McGuinness, Skills Development Scotland
• Stuart Gallacher, BAE Systems

Apologies

• Roz Foyer, General Secretary, Scottish Trade Union Congress
• Gillian Docherty, Chief Commercial Officer, University of Strathclyde
• Ewan Aitken, Chief Executive, Cyrenians

Supporting Officials

• Gregor Irwin, Director General Economy, Scottish Government
• Aidan Grisewood, Director for Wellbeing Economy & Jobs, Scottish Government
• Marcus McPhillips, Deputy Director, Economic Strategy & Delivery Unit, Scottish Government
• Shirley Laing, Director for Lifelong Learning & Skills, Scottish Government
• Adam Reid, Deputy Director Skills, Scottish Government

Items and actions

Welcome

The Chair welcomed members to the first meeting of the NSET Delivery Board in 2025, noting apologies from Roz Foyer, Gillian Docherty and Ewan Aitken.

Update on Key Economic Strands

The Deputy First Minister (DFM) noted her desire for efficient use of governance groups across the economy portfolio and emphasised the crucial role the NSET Delivery Board plays, recognising the results in economic performance which have been realised under the board's governance. The Cabinet Sub Committee for Investment & Economy (CSC-IE) met for the first time late last year (2024). CSC-IE provides a forum for a broad range of Cabinet Secretaries and Ministers to meet regularly to streamline cross-portfolio coordination across the SG to support progress in economic growth. The housing letter issued by the NSET Delivery Board to the SCS-IE has since been fed into a number of streams of work on housing and subsequently housing governance boards.

DG Economy noted that internal governance has also been revised in line with the CSC-IE and NSET Delivery Board. A refreshed Economic Growth Programme Board led by DG Economy further strengthens internal accountability on the delivery of commitments as set out within NSET and Programme for Government (PfG).

Aidan Grisewood set out the current economic landscape in Scotland and further strands of ongoing work.

Members raised the following:

• welcomed the introduction of the CSC-IE, which is similar to the UKG approach, keen that investment in renewables sector features as part of these conversations
• members discussed the breadth of the pool of ministerial portfolio representation on the group and the coverage across enablers/blocker to economic growth, such as justice
• geopolitical and macroeconomic issues are being felt across sectors which, while generally challenging, could result in expansion of advanced manufacturing in the Defence sector
• within the renewables sector, key projects are typically heavily geared in terms of finance and therefore impacted by changes in the cost of capital. This is impacting inward investment but also taking some of the heat out of the supply chain pressures
• noted the particular pressure on universities and asked for a report at the next delivery board meeting

Planning and Consenting Update

The Chair highlighted that while progress had been made on improving planning and consenting it is still seen as a constraint on investment by many in the private sector. A piece of work would be taken forward by Board Champions in anticipation of a further board discussion in June and thanked Ellis for his agreement to lead a short-term task focused on planning and consenting for offshore wind (including associated onshore infrastructure) and housing.

Members raised the following:

• there is a desire to ensure alignment in ambition and timescale on progress on planning and consenting. Ellis confirmed he would collaborate with stakeholders to gather feedback on the current approach being taken to inform SG timeline of expected progress. Further discussion will take place at the June NSET Board meeting

NSET Audit Report and PfG Delivery Dashboard

Marcus McPhillips outlined progress made on the NSET Audit Report and PfG Delivery Dashboard. An audit of NSETs original actions is now complete, including indicating the actions that are complete and in progress. This will help align NSET with the Programme for Government, enabling SG to respond quickly to new opportunities. The NSET Annual Report is planned for publication in September 2025. The report will provide a retrospective on the year's delivery, including any new Programme for Government actions that deliver NSET objectives.

DFM noted that NSET's objectives and vision remain the guiding star throughout the length of the 10-year strategy. To maximise delivery of that vision, it is therefore important that actions are agile to new economic developments, while the target outcomes remain consistent.

Members noted the following:

• the way the Audit paper was set out was helpful in supporting accountability
• it would be helpful to understand the actions that require the board's immediate focus to accelerate growth. Risk factor is important in assessing where the board should focus its attention
• further explanation of those actions classed as in-progress, and whether they are on target or not, is requested to support the board's assurance function
• audit paper - keen to understand the extent to which progress is taking place on actions e.g. action is only at the start of progression vs those that are almost finalised. RAG rating system may help make progress clear
• on the Delivery Dashboard, this was welcomed in providing the board with assurance on how things are truly progressing, and puts focus on the most crucial actions in an easy-to-use concise way
• consideration should be given to how more intel from agencies and public bodies can be integrated into the dashboard
• welcome AI project featuring in the PfG dashboard
• the focus of Regional Economic Partnerships within PfG was welcomed, and the role of the board in driving good REP functioning and co-ordination was discussed. The Tay City deal was noted as a good example. This should largely be a 'bottom up' activity enabled from the centre rather than a top-down function

Skills Planning

The Minister opened the session, recognising skills and workforce challenges facing some employers. The Minister noted that while many of the challenges sit outside the post-school education system, there is a key role for SG to play across the skills system through colleges, universities, apprenticeships and careers. Dialogue is continuing with employers and partners as part of the reform programme, and that immediate skills challenges are a priority. Stakeholders raise workforce shortages, as well as skills gap and that partnership working is needed to meet required progress.

Adam Reid covered a wider update on skills planning. There is a twin track approach to skills; implementing short term actions to address skills shortages in key sectors alongside reform of the post school education system to ensure we have an agile and responsive system. Skills planning function is in development and reform will also look at apprenticeships, careers support and post-school qualifications. Work is underway on addressing shorter-term skills and workforce challenges in key clusters, including Energy Transition, Advanced Manufacturing, Digital and Life Sciences.

Key enabling areas for skills are also being considered: Housing, Planning, Health and Social Care and Childcare. A short life working group has been created on Offshore Wind (OSW) which brings together industry and key partners to develop and implement an OSW action plan. Targeted funding will also support colleges in creating region-specific training hubs on OSW skills.

Claire McGrath provided an update on work being undertaken on Advanced Manufacturing. A range of proposals are being developed and tested, and engagement will continue with stakeholders as work develops. Claire introduced Gordon McGuinness, Mike McNally and Stuart Gallacher to discuss the Clyde Maritime Skills project, who noted the following points:

• a common theme from the Clyde Maritime Group is lack of availability of skills, acting as a risk to delivering current commitments and limit future growth
• a study was commissioned from RAND through Skills Development Scotland (SDS) and Glasgow City Council (GCC) to provide data to demonstrate the skills challenge for businesses in the Clyde Maritime Group
• the study found that Clyde Maritime businesses would be competing for the same resources going forward, there would be competition from adjacent sectors for the same skills needed
• following the study, the Workforce Optimisation for the River Clyde Group was established. Work is underway to develop an action plan, and the group are in dialogue with SG officials to agree the detail and structure of a development award to support activity in fiscal year 25/26
• there are plans in place to develop Local Authority partnerships and those relationships which encourage the connection of services to tackle economic inactivity

Members noted the following points:

• a positive move in the work being undertaken in the skills space and were supportive of the papers 
• immediate short-term interventions needed alongside longer-term ambition
• cluster to cluster interactions are important across sectors
• need to consider adjacent skills, which groups are being targeted and what support do they need
• looking at addressing short-term skills needs, in line with growth clusters. This is not the only lens we need to look through - more effective regional collaboration also needed
• demand for practical/technical skills outweighs all other demand, need to look at investment in innovative technologies in the college sector which stimulate work
• increased spending on engineering apprenticeships could benefit many sectors 
• whole family support is needed to support broader employability work. The current system No One Left Behind (NOLB) could benefit from stronger connections with private sector employers

The Minister noted that the existing apprenticeship model is locked in for the next year, due to contracts with providers and that prioritisation of key areas such as childcare are in immediate need to allow people to return to work. Mr Dey also noted that SG need to understand what the economic return will be for any additional funding provided to organisations/businesses to grow their specific skills pool.

Close and AOB

The Chair and DFM closed the meeting and thanked members for attending. The next meeting will take place on 25 June 2025.

Actions

• report to come back to the board on the effectiveness of strategic actions for economic growth in the HFE sector in light of recent events
• planning and consenting work to be undertaken and discussed at June Delivery Board
• reporting of in-progress items to be strengthened. Action 40 to be revised, reflecting the positive narrative behind stopping this action. Impact of partners e.g. SDI to be considered in future reporting
• hydrogen to be discussed at a future meeting of the NSET Delivery Board to focus on action 24
• Anne-Marie Martin to arrange a meeting with Ellis Watson to discuss potential test cases for regional development
• update on current work relating to economic inactivity to be shared with the board
• consideration to be given to the interactions between the PVG system and accessing work in specific sectors (such as defence)
• skills planning to feature on agenda at future meetings for follow-up discussion