Corporate Plan 2019-2024 - Scottish Futures Trust...Scottish Futures Trust | Corporate Plan 2019-2024 3 All of this has been delivered through both public and private financing, with

Corporate Plan2019-2024

Scottish Futures Trust | Corporate Plan 2019-2024 1

Scottish Futures Trust Corporate Plan 2019-2024

1. We have a clear picture of Scotland’sfuture economic and socialinfrastructure needs.

2. There is improved coherence, pace and placemaking across major privatecommercial, industrial and housingdevelopment.

3. Infrastructure investment is sustainableand affordable with an increased use of innovative funding and financingapproaches.

4. Internationally mobile capital is drawn in to invest in projects and places across Scotland.

5. Programme and project procurementand delivery is effective, with highlyskilled teams deployed where they are needed.

6. We have a vibrant, innovativeconstruction industry with increasedproductivity delivering well designed,high-quality products and fair work.

World class infrastructure for the people of Scotland

7. Public asset condition and performance is improved through more effectivewhole-estate management andmaintenance.

8. The public asset portfolio is effective andplace-based, driving collaborative servicetransformation with underutilised publicassets re-deployed to meet other policyobjectives or divested to stimulateeconomic activity.

9. We have innovative technology-enabledconstruction, asset management andusage optimisation at a place, portfolio,and network level as well as forindividual assets.

10. Infrastructure-related carbon dioxide and other greenhouse gas emissions are reduced, supporting Scotland’stransition to a low carbon economy.

P L A NAsset and place strategy development,especially where these span sectors or

organisations and are set within a wholesystem place-based approach at a local,

regional and national level

DRIV ING UNDERSTANDING, IMPROVING UPTAKE AND MAKING THE MOST EFF IC IENT AND BENEF IC IAL USE OF INFRASTRUCTURE TECHNOLOGY.

I N N O VAT EFunding, financing and delivery

innovation – to deliver additionality of investment where users or government

pays for infrastructure assets

D E L I V E REnabling private capital investment in places

Programme management across multiple deliverers

Procurement and delivery management

M A N A G EManaging complex commercial

arrangements and contracts

Making efficient and effective use of existing assets


All of this has been delivered through bothpublic and private financing, with over £3bn of finance raised from within Scotland, acrossthe United Kingdom and European Union.

The next five years covered by this, SFT’s thirdCorporate Plan, will see infrastructure deliveryas a high priority, building on the NationalInfrastructure Mission to increase investment so that it will be £1.5bn per year higher in2025-26 than in 2019-20.

Our team will work on the financing anddelivery innovation required to make the most of this investment for inclusive economicgrowth and the transition to a digitallyconnected and low carbon economy. Across this public investment there will be an increased focus on improved outcomes forthe construction and related industries whichrepresent around 6% of Scotland’s economy,and for the over 130,000 people who work in them.

Private investment in homes and inemployment opportunities is essential forsustainable communities and the team willfocus on enabling and improving investment,placemaking and development across Scotland.The team will also work with partners tomanage assets and contracts effectively,making the best of Scotland’s infrastructureassets and investments for the long term.

High quality infrastructure underpins inclusiveeconomic growth, sustainable communitiesand the effective provision of public services. In recognition of the importance of economicand social infrastructure to its purpose and outcomes, the Scottish Governmentestablished the Scottish Futures Trust (SFT) in 2008. SFT acts as an independent centre of expertise to deliver improvements in thepublic sector’s planning, innovation, deliveryand management of infrastructure, pursuingan overall vision of “World Class Infrastructurefor the People of Scotland”.

Over our first ten years of operation we havebuilt partnerships with organisations across the public and private sectors and grown ateam of specialist infrastructure professionalsto innovate and deliver investmentprogrammes across a wide range ofinfrastructure sectors. In social infrastructure,we have managed the Scotland’s Schools for the Future programme, delivering 117inspirational new schools for young peoplefrom Shetland to Dumfries. In housing, wehave been an innovator in blending public andprivate financing to deliver affordable homes,with over 2,100 now occupied. In economicinfrastructure, our Growth Acceleratorapproach was an enabler for the £1bninvestment in Edinburgh’s St. James Quarter,and rural connectivity is set to be improvedthrough the 4G mobile infill programme being delivered by our team.


Introduction

This 2019-24 Corporate Plan sets out theoutcomes we are seeking to achieve throughinfrastructure investment in support ofScotland’s National Performance Framework,the roles we fulfil working with others todeliver those outcomes, the characteristics of the organisation which will make ussuccessful and how that success can be measured.

In common with the values established by our team, the outcomes are ambitious and will require bold action in collaboration withpartners across the public and private sectorsto deliver. The future is, as ever uncertain, and SFT’s highly skilled people are optimistic,dynamic and well placed to take advantage of the many opportunities ahead to make the most of Scotland’s infrastructure forinclusive economic growth and the transition to a low-carbon economy.

Ian Russell Peter ReekieChairman Chief Executive

PLAN assetinvestment andmanagementeffectively acrosssectors and places –doing the rightthing

INNOVATE inapproaches tofunding, financingand delivery –maximising thethings we can do

DELIVER projects andprogrammes to drivelife-cycle value andvibrant constructionand related industries– doing things well

MANAGE existingassets, estates and contracts productively– making the mostof the things wehave

The Scottish Government has developed aNational Performance Framework to describethe kind of Scotland it aims to create. The 11outcomes in the framework underpin theGovernment’s purpose, “to create a moresuccessful country with opportunities for all ofScotland to flourish through increasedwellbeing, and sustainable and inclusiveeconomic growth.”

Infrastructure forms the fabric of the economyand society and hence many of the nationaloutcomes require a strong infrastructurebackbone for their achievement. There is nosingle outcome for which infrastructure is thefocus so SFT has developed a set ofinfrastructure outcomes which are supportiveof the national outcomes in the framework.

Over this five-year corporate plan period, wewill work with public and private sectorpartners to deliver these 10 infrastructure-ledoutcomes to underpin the aspiration of being aglobally connected, low-carbon and inclusiveeconomy, with decent and affordable homesfor all Scotland’s people with joined-upeffective public services for sustainablecommunities:

1. We have a clear picture of Scotland’s futureeconomic and social infrastructure needs.

2. There is improved coherence, pace andplacemaking across major privatecommercial, industrial and housingdevelopment.

3. Infrastructure investment is sustainable and affordable with an increased use of innovative funding and financingapproaches.


4. Internationally mobile capital is drawn in to invest in projects and places acrossScotland.

5. Programme and project procurement anddelivery is effective, with highly skilledteams deployed where they are needed.

6. We have a vibrant, innovative constructionindustry with increased productivitydelivering well designed, high-qualityproducts and fair work.

7. Public asset condition and performance isimproved through more effective whole-estate management and maintenance.

8. The public asset portfolio is effective andplace-based, driving collaborative servicetransformation with underutilised publicassets re-deployed to meet other policyobjectives or divested to stimulateeconomic activity.

9. We have innovative technology-enabledconstruction, asset management andusage optimisation at a place, portfolio,and network level as well as for individualassets.

10. Infrastructure-related carbon dioxide andother greenhouse gas emissions arereduced, supporting Scotland’s transitionto a low carbon economy.


Outcomes

VISION

World class infrastructure for the people of Scotland

VALUES

BOLDBelieving in what we do, with commitment and courage to enable successful outcomes

AMBITIOUSStriving to excel and inspire by raisingexpectations

We have developed a vision and values to guide the team in working towards that aim:

In order to deliver the aim, SFT works between policy and delivery across all sectors, geographiesand stages of infrastructure life-cycle, collaborating with Scotland’s public and private sectors to:

1 https://nationalperformance.gov.scot/

COLLABORATIVESharing knowledge, experience and working in partnerships to achieve more for Scotland’s communities

DYNAMICAccelerating positive outcomes by promotinginnovation and being a catalyst for change

Purpose

“to improve the efficiency and effectiveness of infrastructure investment anduse in Scotland by working collaboratively with public bodies and industry,leading to better value for money and providing the opportunity to maximisethe investment in the fabric of Scotland and hence contribute to the ScottishGovernment’s overarching purpose to increase inclusive economic growth”

The aim established by Scottish Government for SFT is:

The National Performance Framework is linkedto the United Nations Sustainable DevelopmentGoals (SDGs), and one SDG in particular has an infrastructure focus: Goal 9 – Buildresilient infrastructure, promote inclusive and sustainable industrialization and foster innovation.

SFT’s infrastructure outcomes link directly tothe National Performance Framework and theUN SDGs as shown in the table to the right:

Scottish Futures Trust | Corporate Plan 2019-2024 6 Scottish Futures Trust | Corporate Plan 2019-2024 7

Contribution

2 https://www.un.org/sustainabledevelopment/sustainable-development-goals/

SFTVISION

SFTOUTCOMES

PRIMARYNPF LINK

SECONDARYNPF LINK UN SDG LINK

1. Clear picture of future infrastructure needs.

Economy

Communities

Health

Education

Culture

9. Industry, innovation &infrastructure

8. Decent work and economic growth

12. Responsible consumption and production

11. Sustainable cities andcommunities

10. Reduced inequalities

17. Strengthen the meansof implementation

2. Improved coherence, pace and placemaking across major development.

3. Infrastructure investment is affordable with increased financing innovation.

5. Programme and project procurement and delivery is effective.

7. Public asset condition and performance is improved.

8. Effective public assets driving transformation or re-deployed.

9. Technology-enabled construction asset management and usage optimisation.

4. Internationally mobile capital is drawn in to invest. International

Economy6. Innovative construction industry

with increased productivity, quality and fair work.

Fair work and business

10. Infrastructure-related carbon dioxide emissions are reduced. Environment 13. Climate action

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Efficient and effective use of existingassets

Driving the most cost effective, beneficial andenvironmentally efficient use of existing assets,principally land and buildings. This is especiallyacross multiple organisations, geographies,sectors and asset classes, where changing theuse of assets can catalyse changes in ways of working and improve outcomes. It includesthe responsibility for asset stewardship toeffectively maintain condition, suitability andperformance over an asset life cycle. It alsoincludes recycling assets for different policyobjectives, potentially for economic activity and maximising pace and benefit received.

Infrastructure technology

Driving understanding, improving uptake and making the most efficient and beneficialuse of technological innovation and datamanagement in support of improvinginfrastructure delivery and performance.

M A N A G E

M A N A G E

A L L S T A G E S

Programme management across multipledeliverers

Management of programmes of investment in similar infrastructure assets delivered across multiple authorities to maximise value - including managing budget allocations,benchmarking, best practice sharing,programme level industry engagement,programme information gathering andreporting to improve outcomes for both publicauthority clients and the delivery industries.

Procurement and delivery management

Procurement strategy development, markettesting, requirement briefing, commercialstructuring, procurement, assurance anddelivery, programme and project managementof infrastructure acquisition where the scope /scale is outside the normal business of anauthority or spans multiple authorities.

Managing complex commercialarrangements and contracts

Commercial management of complexpartnership or contractual arrangements where the public sector has a stake or is the customer to maximise value and managechange by taking a role in governance,managing contracts or supporting others to manage contracts.

SFT works across all public infrastructuresectors, all Scotland’s regions, and all phases ofasset life cycles. We undertake a range of keyactions, working collaboratively with partnersacross the public and private sectors to deliverthe infrastructure-led outcomes identified.These actions, detailed in our annual businessplans based on current priorities and resources,can be summarised across the phases ofinfrastructure life cycle as:

Asset and place strategy development

The development of assets and place strategiesand investment priorities to meet policyobjectives, especially where these span sectorsor organisations and are set within a wholesystem place-based approach at a local,regional and national level.

Funding, financing and delivery innovation

Infrastructure (social, economic and housing) is paid for either by government or otherpublic-sector bodies from their budgets, or by customers – users, occupiers or privatedevelopers. Where customers pay, andgovernment has a policy aspiration, SFT’s role is to understand the underlying commercialposition, develop, model, structure and testapproaches to allow assets to be financed anddelivered on a commercial basis potentiallyincluding incentivisation, regulatory, or otherpublic-sector interventions. Where the publicsector pays, SFT develops and implementsinnovative approaches to funding, public or private financing and delivery ofinfrastructure assets to deliver additionality of investment capacity.

Enabling private capital investment in places

SFT’s role is to coordinate activities acrosspublic and private sectors and assessinvestment viability. We match potential publicsector interventions with public / private sectorfunding and financing approaches to make aplace investable. We engage with investor,developer and other commercial markets tobetter understand deliverability constraints, and build on that understanding to deliver the actions required to unblock developmentand draw in capital investment.


Actions

I N N O V A T E

P L A N

D E L I V E R

D E L I V E R

Governance

SFT is a company, classified as a non-departmental public body, owned by ScottishGovernment and its activity is overseen by theCabinet Secretary for Finance, Economy andFair Work with whom the Board and chiefexecutive meet regularly.

The Board consists of a non-executivechairman, five non-executive directors and the chief executive. The role of the Board is to lead SFT in the achievement of its aim ofimproving the efficiency and effectiveness ofinfrastructure investment and use in Scotlandby working collaboratively with public bodiesand industry, leading to better value for moneyand ultimately improved public services, whilemaintaining a clear focus on supporting longterm inclusive and sustainable economicgrowth.

The Board publishes an annual Business Plandetailing the organisation’s activities and use of resources for the coming year as well as an annual report covering financial andoperational performance.

Funding

The majority of our work is grant funded byScottish Goverment, with a further significantproportion of funding coming from returns oninvestments we hold in infrastructure projects.

People

Our success lies with the team we have built.Recruited from both the public and privatesectors, we have been able to attract anddevelop the finest talent in the infrastructureworld drawing on a range of experiencedpeople from a wide range of professions. Thestrength of the organisation lies in bringing allthese infrastructure specialist skill sets togetherin a single place. They include architects,surveyors, low carbon and telecoms specialists,designers, economists, civil engineers,accountants, lawyers, project managers,commercial property professionals andfinanciers, all of whom are supported by a strong and professional corporate team.

SFT brings the following skills and attributes to its work:

• Infrastructure expertise – The teamretains technical skills and understanding of infrastructure systems and economics,social infrastructure design, costing and briefing/development, housing andcommercial property development, assetand facilities management, digital and lowcarbon infrastructure, space planning,programme and change management.

• Commercial / financial acumen – Theteam includes many senior individuals with 10-20+ years each of experience ininfrastructure related debt and equityfinancing, financial advice and structuringacross the public and private sectors,commercial deal structuring and legaldocumentation, transaction management,investment decision making andgovernance, corporate governance,

commercial contract understanding andmanagement and approaches to disputeresolution.

• Cross sectoral reach – The team has aunique view across infrastructure sectors(economic and social, public and private). It also has a span across Scotland and hasclose relationships with the infrastructureand related teams in all local authorities andhealth boards and most public bodies alongwith many construction, infrastructure andrelated advisory businesses and professionalbodies active in Scotland.

• Public sector ethos and understanding –Fundamentally SFT has a public sector ethoswith a deep commercial understanding. The team brings an understanding of the breadth of policy objectives and theconstraints and rules across the publicsector combined with a strong commercialfocus and financial / investmentunderstanding.

• Partnership building – Because of SFT’sposition as a central body operatingindependently from Scottish Government, it can act as an impartial and trusted brokerin the formation of partnerships betweenpublic organisations and between publicand private organisations.

The organisation’s size, structure andprofessional culture allows it to be flexible and nimble and it is these attributes that willremain important in allowing SFT to maintainfocus and optimise the skills and expertise of its people.


Organisation

Scottish Futures Trust | Corporate Plan 2019-2024 12 Scottish Futures Trust | Corporate Plan 2019-2024

SFTVISION

SFTOUTCOMES INDICATORS

Clear picture of future infrastructure needs.

Economy Indicators:> Capital investment in private

development> Value of innovative finance of public

infrastructure> Inward capital investment> Employment opportunities from new

development and investment

Environment Indicators:> Infrastructure related CO2 reduction> Increased investment in energy

efficiency

Construction Indicators:> Construction industry productivity> SME engagement> Reduced defects> Enhanced worker satisfaction

Programme Indicators:> Enhanced organisational satisfaction

with assets> Enhanced user benefit> Enhanced community impact

Improved coherence, pace & placemakingacross major development.

Infrastructure investment is affordablewith increased financing innovation.

Programme and project procurement and delivery is effective.

Public asset condition and performanceis improved.

Effective public assets drivingtransformation or re-deployed.

Technology-enabled construction assetmanagement and usage optimisation.

Internationally mobile capital is drawnin to invest.

Innovative construction industry withincreased productivity, quality and fairwork.

Infrastructure-related carbon dioxideemissions are reduced.

Measuring Performance

SFT’s performance will be measured over theperiod of the Corporate Plan by the extent to which the outcomes we have set out are achieved. The range of sectors andprogrammes SFT is engaged with make directmeasurement of outcomes delivered by SFTchallenging. We do not deliver any outcomeson our own, always working in collaborationwith other public and private sectororganisations across Scotland.

The pace at which outcomes are delivered, andthe range of activities undertaken under theroles which SFT has the skills to take on set outin this plan depend on the funding we receive,and investment decisions made by others.

The table on the right sets out an initial set of indicators of our performance to beimplemented over the Corporate Planningperiod. These will be refined based on annualbusiness planning, and every year we willpublish a report on the performance deliveredwith specific examples of where ourinterventions and actions have led to improved outcomes.

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Scottish Futures Trust1st Floor11-15 Thistle StreetEdinburgh EH2 1DF

www.scottishfuturestrust.org.uk

Corporate Plan 2019-2024 - Scottish Futures Trust...Scottish Futures Trust | Corporate Plan 2019-2024 3 All of this has been delivered through both public and private financing, with

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