New Deal for Business Group: final progress report

Co-Chairs’ Foreword

Kate Forbes MSP

Deputy First Minister and Cabinet Secretary for Economy and Gaelic

Thriving businesses are key to Scotland’s prosperity and their success is critical to delivering the First Minister’s priorities.

This Scottish Government is an unashamedly pro-growth administration, committed to working with business. Over the last 24 months, the New Deal for Business Programme, designed to take conscious action to better the relationship between business and government, has been front and centre of our approach. And I am proud of what we have achieved.

We have built a strong relationship between business and government, which recognises that Government actions and policies exist for a reason; whether tackling climate change; driving economic growth; reducing child poverty or supporting people to live long healthy lives; but that those actions also impact on business. We must therefore understand the impacts of Government choices on business, and work in partnership to manage these and support economic growth.

The New Deal for Business Programme was deliberately time limited, designed to kickstart systemic change. Change that we all recognise will take longer to fully realise. Delivering the New Deal for Business Implementation Plan, our roadmap for the past 18 months, has fundamentally altered how we engage with business for the better.

I am seeing changes to the culture of government; improved relationships with the business community; new tools and processes that support evidenced based policy development and better outcomes for all. And I am seeing genuine enthusiasm and a new willingness to work together.

I am delighted by these real tangible improvements, set out in more detail in this report, but I am not complacent. This is just the start, and I look forward to continuing to improve how we work with business and build on the momentum created.

I am grateful to my co-chair Dr Poonam Malik, and all Members of the New Deal for Business Group and Subgroups for their honesty, patience, commitment, and partnership. I was fortunate to take over as Co-chair from colleagues Neil Gray MSP, now Cabinet Secretary for Health and Social Care, and Mairi McAllan MSP, now Cabinet Secretary for Net Zero and Energy. Though portfolio ministers have changed, our shared commitment to the programme has been steadfast, and supports the cross-portfolio work central to ongoing culture change.

We must continue to work better with business to achieve the economic growth required to deliver our key priorities: eradicating child poverty, growing the economy, tackling the climate emergency, and ensuring high quality and sustainable public services.

Whilst business and government won’t always agree on every action, by continuing to work together, we will ensure we deliver the outcomes we need as a nation, minimise any adverse impact and maximise the opportunities for business, and create the fair, green and growing wellbeing economy we all seek.

Dr Poonam Malik MBA, PhD, FRSE, FRSB

It has been a privilege to serve as Co-Chair of the New Deal for Business Group (The Group) since its inception in April 2023. Representing the business community in Scotland, I was honoured to be invited by the Former First Minister of Scotland to Co-Chair an initiative with such ambition: to reshape the way business and government engage, work together, and ultimately, deliver for the economic growth of Scotland.

From the start, it was clear that the New Deal for Business wasn’t about quick wins or superficial change. I outlined at the beginning of this 2-year journey that the task ahead was not a sprint but a marathon. It was about laying the foundation for a lasting ‘culture change’, productive relationship—one that supports a fair, green, and thriving economy for our nation. That kind of transformation demands more than policy tweaks; it requires a realignment of expectations, sustained efforts, and a shift in cultural and organisational practice, and alignments in processes across sectors. It was to be a long-term effort—and one that all involved in, committed to with clarity and purpose.

The Group, along with its five Subgroups, played a central role in shaping the recommendations by June 2023, which were accepted in full by the First Minister. Over the following months the Group worked with Officials in identifying priority actions to deliver under the six outcomes, outlined in this report. The Group then took on the role of providing Assurance on the delivery of the Implementation Plan from Oct 2023. I am pleased to note the progress we have secured, and it is something we can all feel proud of. Throughout this critical period for developing trusting relationships and achieving change in the policy formation cycle, the tone of engagement has been constructive, positive, and solution-focused—a testament to the dedication of everyone involved. I extend my sincere thanks to my Co-Chair, Deputy First Minister and Cabinet Secretary for Economy and the previous two Cabinet Secretaries for Economy. I deeply appreciate the valuable contributions of and thank the Group Members and Subgroup Members for their time. I also commend the dedication of the Officials that have supported this fast-paced work throughout the past 24-months and convey my heartfelt thanks to them all.

The last 18-months have delivered a real, measurable, and meaningful change. New policy tools and processes are in place to ensure that the voice of business is heard and that the cumulative impacts on them are considered during policy development, across the Scottish Government. This shift is transformational, it is more than procedural—it signals a welcome cultural change. There is now a deeper understanding within government of the crucial role business plays in achieving national priorities, from economic growth to environmental sustainability and social wellbeing. I was particularly pleased to experience the voice of business being recognised and included in the development of the Programme for Government, and Scottish Budgets.

The New Deal for Business was always about more than a plan or a single action—it was about setting out a new standard for how business and government can work together. As this report shows, we have made significant progress together. But this isn’t the end and there is a strong need for continuity on the New Deal principles, that strategic business intelligence remains a critical part of robust ministerial advice, and that silos remain broken so that there is porosity across Government Directorates and Ministerial Portfolios. The new processes, tools, and cultural shift are just the beginning of a broader seismic transformation. The Scottish Government’s commitment to continue building on this work is clear, and I am confident that what we have achieved together will not only endure but evolve and continue to thrive in the years to come. The future for Scotland’s innovative business environment and ultimately economic growth ought to be stronger, more connected, and more confident. That’s a legacy worth prioritising and continue to build on.