Regional economic policy review: paper 1 – the national perspective

In this review the Regional Economic Policy Advisory Group examine why, and in which policy areas, economic development works well on a regional scale, assessing how its delivery can contribute to the aims of the National Strategy for Economic Transformation.


Footnotes

1. NSET and PfG

2. NSET, p.4

3. Not all regions wish to use this term to denote their collaborative working, but this review and the Scottish Government use Regional Economic Partnerships (REPs) as a universal term.

4. Place Principle

5. Overview of the October 2021 Economic and Fiscal Outlook

6. An introduction to the UK Internal Market Act

7. Scottish Replacement EU Structural Funds

8. Christie Commission

9. Christie Commission p. 74

10. Audit Scotland - Christie Commission 10 Years On

11. Community Empowerment Act Scotland Summary

12. The full set of questions for the consultation can be found in Annex B.

13. A list of respondents can be found in Annex A.

14. Regional Spatial Strategies in spatial planning have a statutory basis in the 2019 Act, with Local Authorities being required to prepare them, and Regional Transport Partnerships are also defined in legislation.

15. City Region and Growth Deals and REPs.

16. Regional Transport Partnerships

17. Of course it is worth noting that the pandemic has altered the working environment with more working from home either all or part of the time. This makes the travel to work (and learn) areas less rigid in real terms

18. We ought to be careful not to overstate the formality of these regional identities, however, and don't intend to declare each region a REP by defining a region in this way. The Scottish Government understands that some REPs are more developed, and that collaborative working exists where a formal REP has not yet been declared. However, for the purposes of brevity, we shall refer to such collaborations as REPs in this review.

19. Inclusive Growth

20. Formally Scottish Centre for Regional Inclusive Growth.

21. Progress toward the targets is assessed annually through published statistics and changes in the drivers of poverty reduction are assessed through the Child Poverty Measurement Framework. Action is also taken to monitor the delivery, and evaluate the impact of individual policies.

22. Commissioned by Scottish Government, and carried out by SPIRU, due to be published on the Scottish Government website in the Autumn,

23. Currently in its second year, the Infrastructure Investment Plan will act as a blueprint for structural and economic progression, with projects intended to be completed by financial year 2025-26.

24. Economic Development; Transport; Just Transition; Digital Economy; Skills; Further and Higher Education; Population; Rural; Towns and Cities; Planning and Land Use; Community Wealth Building; Child Poverty; Natural Capital; and Blue and Green Infrastructure.

25. Required to be produced and updated as a result of the Planning (Scotland) Act 2019

26. One example is collaboration between cities to better compete on a UK and international stage. Another is tackling challenges that are specific to the type of place, rather than the geographic region in which they are located; for instance, action to transition to Net Zero

27. It is important to note that these are distinct from the Just Transition Fund, which also occupies a regional boundary, relating only to the North East and Moray

28. More will be said on this in Paper Two as we look at different regional approaches to economic development; each and every one of the regional partners we spoke with as part of this consultation cited the capacity challenges brought about by (both UK and Scottish) Government's misaligned and demanding funding landscape exacerbated by policy areas not collaborating effectively.

29. Annex D provides a summary of how economic development is supported in Scotland.

30. Economic development in Scotland

31. Enterprise and Skills Strategic Board

32. The UK Government's Levelling Up Agenda has also added to the landscape of economic development in Scotland, as noted above under the Political Landscape.

33. This Directorate also holds responsibility for a range of activities including supporting key sectors including innovation, inward investment, manufacturing, construction, space, financial services, tourism, life sciences and digital economy. All activity is aimed at boosting productivity, competitiveness, sustainable employment, and workforce engagement. The Directorate contributes to the creation of a more successful country by delivering sustainable and inclusive economic growth which provides opportunities for all.

34. These were the Regional Recovery Fund, which issued funding related to covid recovery, and the Regional Economic Partnership Fund, which funded activity on regional economic analysis, the development of regional economic strategies and supported the creation of REPs themselves.

35. These capacity challenges were laid bare during the pandemic, with a raft of additional, essential business support being provided by both Scottish and UK Governments. Though entirely necessary, there is no doubt that it revealed the acute resource issues in administering them all.

36. Business Gateway

37. Community Planning

38. Each CPP has responsibility for producing Local Outcome Improvement Plans (LOIPs) and Locality Plans which are produced to outline how community planning partners will work with communities to improve outcomes for individuals, families and communities . The LOIP is not an aspirational statement for the future but a document which takes into account the needs of communities.

39. North Ayrshire CPP Cover Report

40. Community Empowerment Local Outcomes Improvement Plans

41. No-one Left Behind Delivery Plan

42. Scottish Enterprise (SE), Highlands and Islands Enterprise (HIE) and South of Scotland Enterprise (SOSE) established in 2020 to promote and tackle the unique circumstances within the South of Scotland

43. SE National Opportunities are: Digital Scaling Up, Levelling Up, Scotland in Space, Health for Wealth, Future Healthcare Manufacturing, Decarbonising Heat, Hydrogen Economy, Zero Emissions Heavy Duty Vehicles.

44. Advisory Group on Economic Recovery

45. Supporting Opportunity North East who led on the development of this project.

46. Social Enterprise

47. Social Enterprise

48. RSAs published for: Highlands and Islands, Glasgow City Region, Tay Cities, Aberdeen City and Shire, Edinburgh and South East Scotland and the South of Scotland. Work is currently underway to develop one for Ayrshire.

49. Shared Outcomes Framework

50. Audit Scotland Planning Skills

51. In the June 2021 Review of Tertiary Education and Research, SFC outlined a refreshed approach to skills alignment and provision planning, incorporating Tertiary Provision Pathfinders to explore how provision planning and curriculum design can better ensure the education and skills system is responsive, integrated and supports inclusive economic recovery.

52. The Secretary of the Scottish Affairs Committee Inquiry into the UKSPF in Scotland, Alister Jack, said on 13 May 2021 "The amount of funding will be as great, or greater, than the EU funds."

53. Scottish Replacement for EU Funds

54. Levelling Up the United Kingdom - GOV.UK (www.gov.uk)

55. E.g. Scottish Government, Local Authorities, Enterprise Agencies, SCVO

56. Clelland, D. and Hill, C., 2019. Deprivation, policy and rurality: The limitations and applications of area-based deprivation indices in Scotland. Local Economy, 34(1), pp.33-50.

57. Wellbeing Economy Monitor

58. Urban Rural Classification

Contact

Email: rachel.phillips@gov.scot

Back to top