National Strategy for Economic Transformation: annual progress report June 2023

First annual progress report on the delivery of the 10 year National Strategy for Economic Transformation (NSET).

Progress Update by NSET Programme

This section summarises the progress made in the first year of delivering the economic strategy and future priorities for each programme, including new actions. Annex A provides an assessment of the delivery status of each action.

Also included is the latest data for the measures of success, which represent the key areas where the strategy is seeking to shift the dial. Achieving this will take time and will lag the progress made by the programmes. Therefore, the data can be interpreted as tracking indicators providing the latest picture on Scotland’s progress rather than measuring the direct impacts of activity in the first year of our ten-year strategy. Annex B provides further detail of the strategy’s measurement framework.

Programme 1 Entrepreneurial People and Culture

Our aim

Programme 1 aims to establish Scotland as a world-class entrepreneurial nation founded on a culture that encourages, promotes and celebrates entrepreneurial activity in every sector of our economy.

Our programme of action

1. Embed First Rate Entrepreneurial Learning Across the Education and Skills Systems

2. Create a World Class Entrepreneurial Infrastructure of Institutions and Programmes Providing a High Intensity Pathway for High Growth Companies

3. Attract and Retain the Very Best Entrepreneurial Talent from at Home and Abroad

4. Build an Entrepreneurial Mindset in Every Sector of our Economy

5. Establish a national Techscaler network to support start-ups and boost entrepreneurship in Scotland

Key deliverables to date

  • A redesigned online platform and resource pack has been launched to promote enterprise opportunities, with ‘starting your own business’ now positioned in the Young Persons Guarantee as a positive destination for 16–24-year-olds across Scotland.
  • Pathways for Women in Entrepreneurship report was launched, co-authored by Ana Stewart and Mark Logan, with key priority recommendations embedded across NSET.
  • The Scottish Teachers Advancing Computer Science (STACS) initiative completed its first teacher upskilling pilot, with 71 teachers (approximately 13% of computer science teachers in Scotland) from 27 local authorities taking part.
  • Mark Logan was appointed Chief Entrepreneur in July 2022, providing advice and guidance to the delivery of NSET Programme 1, including incorporating the Scottish Tech Ecosystem Review (STER) recommendations and relevant Pathways recommendations.
  • The blueprint for Entrepreneurial Campuses has been drafted and is moving through final approval stages, to be published alongside a Charter for Post-16 institutions to sign to indicate their endorsement of our vision for Entrepreneurial Campuses in Scotland.
  • First cohorts of Techscaler members have been formed to take part in courses delivered by education-provider Reforge (47 members, 17 companies) as well as Techscaler’s own ‘Start-up First Steps’ (74 members, from all regions).
  • A successful visit to New York, United States of America (USA) to connect Scottish start-up founders with USA-based investors and a follow-on visit to Scotland for a selection of USA investors with interest in exploring investment opportunities in Scottish start-ups.
  • A collaboration between Techscaler and NHS Innovation Test beds was launched to leverage NHS talent and infrastructure to build and scale tech start-ups.

Measures of success

Early stage entrepreneurial activity 8.0% (2021) 6.9% (2020)
3-year survival rates of newly born businesses 59% (2018) 58.5% (2017)
Number of high growth registered businesses 1,530 (2022) 2,050 (2021)

Despite a challenging global business environment, the latest data shows an increase in early-stage entrepreneurial activity and modest growth in the three-year business survival rate. While the number of high growth registered businesses has decreased by 520 between the latest two data points, it is important to note that there are lags associated with the turnover data used to measure high growth, such that, for the 2022 data, the underlying business turnover data will largely be from 2020 when turnover would have been much lower due to the COVID-19 national lockdowns and other restrictions that impacted trading conditions.

Future priorities

  • Publish Entrepreneurial Campuses blueprint paper; secure sign-ups to our Charter; agree programme funding with Scottish Funding Council and progress funding for an umbrella function to oversee the adoption of our vision across Scotland.
  • Implement key recommendations from Pathways report to widen participation and tackle current gender barriers to entrepreneurship.
  • Progress the roll-out of Techscaler education programmes and continue to build the profile of the network and embed Techscaler’s regional presence.
  • Adapt and review Scotland’s apprenticeship system to ensure availability for start-ups and early scale-ups to use.
  • Develop and align private sector incubators, focusing on bringing cohesion into the wider support offering in Scotland.
  • Attract the world’s best private sector accelerators to Scotland through an extended offer of high-quality services from tier one international accelerators which complement Techscaler, pre-scaler and pre-start-up network.
  • Series of engagement to build links with diaspora and key start-up programmes on the east coast of America.

Programme 2 New Market Opportunities

Our aim

Programme 2 aims to strengthen Scotland’s position in new markets and industries, generating new and well-paid jobs from a just transition to net zero.

Our programme of action

1. Build on Scotland’s strengths to win an ever-greater share of domestic and international market opportunities

2. Realise Scotland’s potential to be a leading hydrogen nation, delivering Scotwind and wider renewable energy developments, and supporting the development of Scottish green supply chains, laying the foundations of a Net Zero Industrial Strategy

3. Attract and deploy significant domestic and international private investment in Scotland

Key deliverables to date

  • Launched the first tranche of our hydrogen investment programme via the Emerging Energy Technologies Fund (EETF) Hydrogen Innovation Scheme. This funding scheme will provide up to £10 million to drive innovation in renewable hydrogen production, storage, and distribution in support of the Scottish Government’s ambition of 5GW installed hydrogen production capacity by 2030.
  • Achieved commitment to expand the value of our Green Investment Portfolio from £2 billion to £3 billion.
  • Expanded the reach and impact of our international networks, increasing the number of Trade and Investment Envoys from 6 to 11 and the number of GlobalScots to 1,200 across over 60 markets.
  • Developed and published Sector Export Plans for Tech, Life Sciences and Renewables in partnership with industry and our Enterprise Agencies.
  • Targeted Ministerial engagement with our top 50 leading investors to rapidly scale opportunities and understand the challenges investors face.
  • Commissioned a review of corporate governance structures to look at integrating measures to establish and manage companies for the public good.
  • Partnerships between Facility for Investment Ready Nature in Scotland (FIRNS) and NatureScot with Hampden & Co Bank and other private sector organisations was announced aiming to mobilise up to £2 billion to help support the creation of a nature restoration project pipeline and build sustainable capacity in the sector.
  • £25 million Low Carbon Manufacturing Challenge Fund launched to help Scottish manufacturing companies develop low carbon products, processes or services.
  • Crown Estate Scotland confirmed all 17 successful ScotWind applicants have option agreements in place, allowing projects to move into development stage.
  • Funding of more than £50 million announced through the Just Transition Fund to support transition of the North East and Moray towards a low carbon-economy.
  • Opened the National Manufacturing Institute Scotland (NMIS) flagship building in Renfrewshire, delivered through making Scotland’s Future Programme and a key part of our commitment to manufacturing.
  • Established the First Minister’s Investor Panel to attract global investors. The Panel will provide a set of recommendations, primarily around how we attract mobile capital investment to the physical infrastructure needed to support a just transition.

Measures of success

Level of capital investment £34.4 billion (2022) £31.4 billion (2021)
Exports (as a share of GDP) 22.0% (2022) 20.3% (2021)
Number of planned inward investment jobs 7,780 (2021-22) (2020-21)

Capital investment within the Scottish economy rose by 8.7% in 2022 despite the increase in the cost of borrowing from higher interest rates and uncertain economic conditions.

The value of annual goods and services exported overseas increased by around 20% in 2022 compared to the previous year, but overall exports as a share of GDP remained at around 21%. Latest data from the Purchasing Managers Index (PMI) survey indicates supply chain disruption has moderated over the year with supplier delivery times continuing to improve.

The latest HM Revenue & Customs (HMRC) statistics show that compared to the previous year, Scotland continues to outperform the UK when oil and gas are excluded. The value of Scotland’s international goods exports increased by 20.5% in 2022 compared to 2021, which is greater than the 13.3% increase for the UK.

Future priorities

  • The second tranche of the EETF hydrogen investment programme, the Green Hydrogen Fund, will be launched in 2023. This £90 million flagship fund is a multi-year fund designed to support the development of local and regional green hydrogen production projects needed to support the Scottish Government’s ambition of 5GW installed hydrogen production capacity by 2030 and commitment to reach net zero by 2045.
  • Innovation and Targeted Oil & Gas (INTOG) leasing round managed by Crown Estate Scotland Exclusivity Agreements.
  • Stage 1 Strategic Investment Model (SIM) proposals to be assessed and identification of proposals to be developed further for collaborative investment.
  • Publication of a Hydrogen Export Plan by the end of 2023, setting out how we will realise the opportunities from Hydrogen internationally.
  • Publication of metrics and evaluation reports on inward investment and export support in Scotland to inform prioritisation of next phase of delivery.
  • Showcase Scottish low carbon energy transition expertise at COP28 in Dubai in November 2023.
  • Deliver the Making Scotland’s Future Programme, outlining a revised set of actions towards manufacturing industry recovery.
  • Publication of Innovation Strategy, to include action on closing productivity gap and building clusters.

Programme 3 Productive Businesses and Regions

Our aim

Programme 3 aims to make Scotland’s businesses, industries, regions, communities and public services more productive and innovative.

Our programme of action

1. Improve connectivity infrastructure and digital adoption across the economy

2. Upskill business and public sector leaders, pioneering novel approaches to driving productivity improvements

3. Realise the potential of the different economic and community assets and strengths of Scotland’s regions

Key deliverables to date

  • The Reaching 100% (R100) programme has connected over 25,000 premises to date, has delivered over 3,000 connections through its Scottish Broadband Voucher Scheme, and has successfully laid 16 new subsea fibre cables, delivering mainly gigabit capable connections (more than 30 times faster than the original commitment).
  • The Scottish 4G Infill (S4GI) programme has delivered 49 out of a planned 55 live masts as of April 2023, with the remaining expected to be complete in summer 2023.
  • Published the Second Strategic Review of the National Transport Strategy which set out key priorities for transport investment.
  • The Digital Productivity Lab pilot has built on the success of the DigitalBoost Grant (which invested almost £50 million to help digitalise over 5,600 SMEs, unlocking over £60 million of private sector match-funding) by helping SMEs and businesses to progress projects initially funded by the grant.
  • Funding for Financial Year 2023/24 was secured and announced for Productivity Clubs with Scottish Council for Development and Industry.
  • The Regional Economic Policy Review was completed, setting out 11 recommendations for the future delivery of regional economic development in Scotland. Work has started on two of these recommendations: the development of regional intelligence hubs and aggregated budgeting.
  • Draft Energy Strategy and Just Transition Plan (ESJTP) was published, consulting on the draft route map of actions planned to deliver a flourishing net zero energy system.
  • In line with the commitment set out in ‘Best Start, Bright Futures’, our Tackling Child Poverty Delivery Plan, the Community Wealth Building (CWB) Steering Group was established and consultation commenced on CWB legislation. Co-produced a Guide to support local authorities and partners develop their CWB action plans.

Measures of success

Productivity (GVA per hour worked) £37.92 (Q4 2021) £36.73 (Q4 2020)
Business R&D spend (£ million) £3,121 (2021) £2,927(2020)
Proportion of businesses innovative active 39.0% (2018-2020) 32.2% (2016-18)
Digital skills in businesses 21.0% (2021) 26.0% (2017)

Business confidence weakened slightly in March; however, remained notably higher than in the second half of 2022 reflecting that while conditions are challenging, there is a greater degree of resilience than previously forecast.

The latest data reports a marked improvement in the proportion of businesses that were innovation active in Scotland between 2018-20, however Scotland still lags behind the UK where 44.9% of businesses were innovation active.

Business R&D spend increased by 6.6% in 2021 and revisions in the methodology indicate that Scotland performs significantly better than previously estimated. However, further work is underway to test the robustness of the new estimates.

Future priorities

  • Launch a review of how to increase number of social enterprises, employee-owned businesses and cooperatives in Scotland.
  • The CWB Review, following the end of the CWB Consultation, is due to be published by the end of 2023, and will continue to develop our approach to reducing poverty, in particular child poverty, by taking a progressive approach to economic development.
  • Continue to deliver the S4GI Programme to ensure all 55 masts are built and energised, followed by a formal evaluation on the realisation of all benefits delivered for the investment.
  • Continue to deliver all elements of the R100 programme, connecting premises across Scotland to enable the benefits which digital connectivity bring. Build has been extended to deliver additional coverage.
  • Deliver Regional Intelligence Hubs to support Regional Economic Partnerships in priority setting and monitoring.
  • Recognising the importance of house building as both an enabler of economic development and a key economic sector, we will work jointly to improve delivery, capacity and efficiency.

Programme 4 Skilled Workforce

Our aim

Programme 4 aims to ensure Scotland’s people have the skills they need to have rewarding careers, grow their income, and meet the demands of an ever-changing economy.

Our programme of action

1. Adapt the education and skills system to make it more agile and responsive to our economic needs and ambitions

2. Support and incentivise people, and their employers, to invest in skills and training throughout their working lives

3. Expand Scotland’s available talent pool, at all skills levels, to give employers the skills pipeline they need to take advantage of opportunities

Key deliverables to date

  • Independent review of the Skills Delivery Landscape was launched, which focussed on the skills functions of Scotland’s national public bodies and Skilled Workforce Programme Board established.
  • An Interim publication of the Purpose and Principles plan was published, setting out topics for further discussion and debate on how to support Ministers, Non-Departmental Public Bodies and other decision makers to deliver the reform necessary to secure a sustainable future.
  • Shared Outcomes Assurance Group established for delivery of the Shared Outcomes Framework Regional Pathfinder projects and first work package completed. The Regional Pathfinders project on data and analysis around current skills provision and unmet demand has concluded and a report of the outputs has been published.
  • The South West Educational Pathways pilot (a collaboration between Dumfries and Galloway College, the University of the West of Scotland and Dumfries and Galloway Council) has developed an integrated degree pathways in Cyber Security and Business for senior phase learners in the region.
  • Strathclyde and Warwick Universities research on the definition of green jobs, a key step in defining the scale of the challenge and recognising the opportunities for the transition to net zero for workers and employers.
  • In line with the shared commitments across NSET and Best Start, Bright Futures, we progressed commitments to support adults to develop their skills. The National Strategy on Adult Learning was published, outlining how the Scottish Government aims to create new and better opportunities for community-based adult learning.
  • Lifetime upskilling and retraining offer developed, evaluating current training programmes and developing a clearer picture of the barriers and opportunities for change.
  • Provided upskilling and reskilling support to individuals via Individual Training Accounts and to businesses via the Flexible Workforce Development Fund, and a Flexible Workforce Development Fund Evaluation was published.
  • Rural visa pilot proposal for remote and rural communities was endorsed by the Scottish Parliament and submitted to the UK Home Office, taking important first steps towards expanding Scotland’s available talent pool by addressing the distinct needs of our diverse geographical areas.
  • Established a talent attraction and retention programme, targeting the skills shortage needs of our industries across the UK through the Industry Advisory Group on rUK talent attraction, international talent through the Student Retention pilot, and the Skills Recognition Scotland project to allow employees with international skills to get formal recognition of their expertise and experience.

Measures of success

Skill shortage vacancy rate 3% (2020) 6% (2017)
Percentage of young people (16-19) participating in education, training or employment 92.4% (2022) 92.2% (2021)
Percentage of adults (16-64) with low/no qualifications (SCQF Level 4 qualifications or below) 9.1% (2021) 9.7 (2020)
Proportion of establishments reporting at least one employee whose skills are under-utilised 33% (2020) 35% (2017)
Percentage of people in employment aged 16-64 (excluding full-time students) receiving job related training 25.5% (2022) 23.5% (2021)

The Scottish labour market has continued to remain robust, with near-record low unemployment rates. The number of vacancies within the economy are still estimated to be significantly higher than pre-pandemic levels, and recruiters still face recruitment difficulties in key sectors of the economy. There is also evidence that the number of people economically inactive due to long-term sickness has risen relative to before the pandemic.

Future priorities

  • Set out our approach in response to the Withers Review and through the final Purpose and Principles for post school education, research and skills.
  • Policy options for system changes for the lifetime upskilling and retraining offer to be considered and reported on ensuring tackling child poverty remains central to its development.
  • Continue the development of the seven pilots for the Regional Pathfinders project on good emergent practice for the tertiary education system on skills planning and delivery, and move onto testing phase with delivery of new course provision and pathways.
  • The Scottish Government will publish an update to the Climate Emergency Skills Action Plan (CESAP) later in 2023 to set out the progress made so far in embedding green skills into the system, and the approach that we intend to take with partners to support priority sectors, including those developing Just Transition Plans, to ensure they have a pipeline of skilled workers for a net zero future.

Programme 5 A Fairer and More Equal Society

Our aim

Programme 5 aims to reorient Scotland’s economy towards fair work, delivering higher rates of employment and wage growth, significantly reducing structural poverty, and improving health, cultural and social outcomes for disadvantaged communities.

There is a close link between actions set out in Programme 5 and actions to support parents to increase their earned income in Best Start, Bright Futures, and further detail on these shared commitments is set out in the Tackling Child Poverty Delivery Plan Progress Report 2022-23.

Our programme of action

1. Tackle poverty through fairer pay and conditions

2. Eradicate structural barriers to participating in the labour market

Key deliverables to date

  • Announcement of Fair Work conditionality on grants as the default position so that all grant recipients will be required to pay at least the real Living Wage and provide appropriate channels for effective workers’ voice.
  • Strengthened approach to conditionality through Fair Work First for which we have already applied to some £4 billion of public funds since 2019 and published updated Fair Work First guidance for this new requirement.
  • Advert (contract notice) published for the National Civil Engineering Framework, a flagship procurement programme demonstrating Scottish Government commitment to the real Living Wage.
  • Existing commitments to sectoral agreements are being pursued in Social Care and National Care Service, through the Retail Strategy as well as other sectors, and will be test cases for the broader initiative around Fair Work Agreements.
  • The Scottish Government Response to the recommendations in the Business Purpose Commission’s report was published.
  • Best Start, Bright Futures: tackling child poverty delivery plan 2022 to 2026 was published, outlining Scotland’s actions towards delivering on Scotland’s national mission to tackle child poverty.
  • Launched the new Anti-Racist Employment Strategy and published the refreshed Fair Work Action Plan: Becoming a Fair Work Nation by 2025. The plan aligns actions across Fair Work policy areas, taking an intersectional approach where appropriate, while continuing to focus on discreet issues for and barriers experienced by disabled people, the over 50’s workforce, women and racialised minorities.
  • Successful implementation of No One Left Behind Phase 2, moving towards an employability system which is flexible, joined up and responsive.
  • Fair Start Scotland services continued to deliver well with high volumes of referrals coming from Jobcentre Plus. Across the year we gained approval to extend contracts which will now accept referrals to March 2024.
  • Published the Ethnicity Pay Gap Strategy, to consider and address the issues that are driving disparities and the role that pay gap reporting can play.
  • Initial advice, evidence, and recommendations to address the challenges around economic inactivity in Scotland presented to Ministers and Cabinet as part of a wider agenda item on Child poverty.

Measures of success

Percentage of employees aged 18 or over earning the real living wage or higher 91.0% (2022) 85.5% (2021)
Employment rate (16-64) 75.3% (Jan – Mar 2023) 75.5% (Jan – Mar 2022)
Gender pay gap for full-time employees 3.7% (2022) 3.0% (2021)
Employee voice 35.4% (2022) 36.4% (2020)
Proportion of employees in contractually secure employment 94.1% (2022) 95.0% (2021)

Average pay growth continues to lag behind inflation, reducing the real purchasing power of households. Although inflation has begun to fall, prices are expected to be around 20% higher by the end of 2023 than they were in 2020, meaning that household finances will continue to face significant pressures. The Scottish Government continues to encourage employers to adopt Fair Work practices and pay the Real Living Wage. In 2022, 91.0 per cent of employees in Scotland were paid at least the real living wage, increasing over the year and continuing the longer-term upward trend seen since 2018 (80.6 per cent).

The employment rate remains close to a record high and the young people’s (16-24) employment rate was estimated at 57.9 per cent in 2022, increasing by 4.0 percentage points from the previous year. In 2022, the median Gender Pay Gap for full time employees increased slightly to 3.7 per cent but it has remained below the UK gap (8.3 per cent).

Future priorities

  • Conditionality on grants for Fair Work and Sectoral Fair Work agreements to be implemented from July 2023.
  • Award the Civil Engineering Framework (demonstrating Scottish Government commitment to the real Living Wage).
  • National Stakeholder discussion events planned in the Summer of 2023 to feed into plans to publish the No One Left Behind Strategic Plan in late 2023, setting out our critical path to 2026, followed by the next phase of No One Left Behind due to begin in April 2024.
  • Labour market participation plan to be published, with action to improve the wider support system for people looking to enter the labour market and stemming the flow of individuals leaving work prematurely.
  • Implementation of actions within Fair Work Action Plan on positive employment outcomes for women, disabled people and ethnic minorities, assessment of how conditionality can be applied further as a mechanism to nudge change, and further development of sectoral agreements.
  • Scoping widening of lived experience panel to ensure more accurate representation of user groups to collaborate and co-produce policy and delivery approaches.
  • Scale delivery of employability support for parents, together with our local authority partners.
  • Continue to not only build on learning from Parental Employability Support Fund, but crucially drive better links between employability and other key services that parents require to support their journey towards employment, including childcare and transport as outlined in Best Start, Bright Futures, delivered through the No One Left Behind approach.

Programme 6 A Culture of Delivery

Our aim

Programme 6 aims both to ensure successful delivery of all other NSET programmes and change the delivery culture to support the economy across the public sector. We will work to create a culture of accountability and delivery, with objectives clearly allocated and accepted across the public, private and third sector.

Our programme of action

1. Strengthen accountability and transparency

2. Transform the way support is delivered to people and businesses across Scotland

3. Measure success

Key deliverables to date

  • NSET Delivery Plans published, setting out a delivery framework for the NSET strategy focussed on 6 programmes of action.
  • NSET Accountability Framework published, providing clarity on roles and responsibilities of the wide range of partners delivering NSET.
  • A robust governance structure to oversee the successful implementation of NSET is now up and running, including an NSET Portfolio Board and NSET Delivery Board – co-chaired by Barry White and Cabinet Secretary for Wellbeing Economy, Fair Work and Energy, drawing on business and academic leaders.
  • Logic Models for five out of six programmes have also been developed to ensure activities are linked in a clear roadmap to outcomes, with the final logic model in development.
  • Programme and Project Management (PPM) tools and processes have been established to embed delivery culture into NSET programmes including programme plans and portfolio and programme level dashboards to plan and delivery activities,
  • monitor and challenge progress, and manage and escalate key programme risks.
  • Work with delivery plans and business has identified early opportunities around data about businesses, and the “front door” to make it as easy as possible for businesses to access the support for which they are eligible.
  • The establishment of A New Deal for Business Group co-chaired by Dr Poonam Malik, Head of Investments at the University of Strathclyde, and Wellbeing Economy Secretary Neil Gray, which will deepen links with the private sector, focusing on: economic conditions and performance; ensuring the best environment to do business; and the transition to a wellbeing economy.
  • The Joint Regulatory Taskforce brings together the Scottish Government, Convention of Scottish Local Authorities (COSLA), business organisations and regulatory bodies to improve the way we develop new regulations and ensure the cumulative impact on businesses is understood, and any unintended consequences can be mitigated.
  • Established a Centre of Expertise in Equality and Human Rights to work with external partners to build capacity, skills and knowledge and embed equality and human rights in the economic policy-making process. The Centre has put in place an internal infrastructure, including a policy network of Scottish Government officials and representatives of the enterprise agencies, to provide peer-to-peer support, share good practice and drive continuous improvement.
  • Wellbeing Economy Monitor and Toolkit published which brings together a range of indicators to provide a baseline for assessing progress towards the development of a wellbeing economy in Scotland.

Ambition indicators

Income inequality (Palma ratio) 18% (2019-22) 20% (2018-21)
Regional inequality in GDP per head 0.26 (2019)
Real GDP 4.9% [2022] 8.4% [2021]
Income tax receipts £12.1 billion (2020-21)
Working age population 3,443,973 (Dec-Feb 23) 3,431,594 (Dec-Feb 22)
GHG emissions -58.7% (2020) -51.5% (2019)
Natural Capital Asset Index 102.8 (2020) 102.6 (2019)

The Scottish economy grew by 4.9% in 2022, following growth of 8.4% in 2021 as the economy continued to adjust following the pandemic and the impacts of the inflationary shock exacerbated by the war in Ukraine. The pace of growth slowed sharply over the course of the year, with growth largely confined to the first quarter of 2022. Latest data shows the Scottish economy grew by 0.4% in the 3 months to Feb 2023.

Income inequality in Scotland has reduced, with the top ten percent of the population in 2019-22 having 18% more income (before housing costs) than the bottom forty percent combined. This compares to 33% more income of the top ten percent in 2007-10, the period with the highest income inequality in this time series.

Future priorities

  • Develop new Target Operating Model for Business Support in Scotland.
  • Develop a common approach to business identification as part of the wider target operating model.
  • Implement the Master Customer Record programme across the Business Support Partnership, to make better use of the data we already hold about businesses across the public sector and make it easier to target support at those who need it.
  • Development of NSET Evaluation Framework to allow shorter term measurement towards outcomes.
  • The Centre of Expertise in Equality and Human Rights, following a recommendation from the National Advisory Council on Women and Girls, will have a specific focus in its initial work on mainstreaming gender equality and embedding intersectional gender competence. The Centre will continue to design and deliver a programme of learning & development to offer to economy officials in partnership with experts outside of government. The Centre will also develop mechanisms that support the involvement of stakeholder and academic expertise in the development of policies to implement NSET.
  • A New Deal for Business which will deepen links with the private sector, focusing on: economic conditions and performance; ensuring the best environment to do business; and the transition to a wellbeing economy likely to include a particular focus on parents given the links to our critical mission on tackling poverty, in particular child poverty.



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