Scotland’s Economic Strategy Gary Gillespie Chief Economist Scottish Government.

Scotland’s Economic Strategy

Gary GillespieChief Economist

Scottish Government

Scotland: economic recovery consolidating; over two years of continuous expansion

But mixed results below headlines……

www.gov.scot/economicstrategy

Scotland’s Economic Framework

Key Priorities And Focus

Innovation and Competitiveness

Innovation and Investment in R&D

Innovation and Internationalisation

Innovation and Inclusive Growth• Innovation, in itself, can

increase inequality though its distributional impacts

• Growing movement to support “inclusive innovation”

• Possible to have both? Some evidence of broad relationship between innovation and less inequality

Hopkin et al, (2014)

OECD evidence: tackling inequality– Growing disparities are bad for long term growth.

• Rising income inequality in the UK estimated to have reduced GDP per capita growth by 9 percentage points between 1990 and 2010.

– Recent publication “In It Together: Why less

Inequality Benefits All” identifies key policies:• Improving job quality• Investment in education and skills• Reducing gender gaps• Design of taxation and welfare

Scotland’s regional patterns – GVA per head

Edinburgh

Aberdee

n City &

Aberdee

nshire

Glasgo

w City

Shetl

and Isl

ands

Perth &

Kinross

& Stirlin

g

Invern

ess, M

oray &

Baden

och

West

Lothian

South Ayrs

hire

Angus &

Dundee City

Orkney

Islan

ds

Loch

aber,

Skye

, Arra

n & Argy

ll

Falki

rk

South La

narksh

ire

North La

narksh

ire

Invercl

yde &

Renfre

wshire

Dumfries

& Galloway

Scottish

Borders

Eilea

n Siar

(West

ern Isl

es)

Clackm

annan

shire

& Fi

fe

East

Lothian

& M

idlothian

Caithness

& Su

th. & Ross

& Crom.

Dunbartons, H

elensb

urgh &

Lomond

East

& North Ayrs

hire0

5000

10000

15000

20000

25000

30000

35000

40000

45000

GVA

per h

ead

(£)

Scottish Average

Share of datazones in each LA in the 15% of most deprived datazones in Scotland

Scottish Average

Gla

sgo

w C

ity

Inve

rcly

de

Du

nd

ee

City

We

st D

un

ba

rto

nsh

ire

No

rth

Ayr

shir

e

No

rth

La

na

rksh

ire

Re

nfr

ew

shir

e

Cla

ckm

an

na

nsh

ire

Ea

st A

yrsh

ire

So

uth

La

na

rksh

ire

Fife

So

uth

Ayr

shir

e

Ed

inb

urg

h, C

ity o

f

Fa

lkir

k

Ab

erd

ee

n C

ity

Arg

yll &

Bu

te

Du

mfr

ies

& G

allo

wa

y

Stir

ling

We

st L

oth

ian

Ea

st R

en

fre

wsh

ire

Hig

hla

nd

Sco

ttish

Bo

rde

rs

Pe

rth

& K

inro

ss

Mid

loth

ian

Ea

st L

oth

ian

Ea

st D

un

ba

rto

nsh

ire

An

gu

s

Ab

erd

ee

nsh

ire

Eile

an

Sia

r

Mo

ray

Ork

ne

y Is

lan

ds

Sh

etla

nd

Isla

nd

s

0

5

10

15

20

25

30

35

40

45

Sh

are

of d

ata

zon

es

in e

ach

Lo

cal A

uth

ori

ty in

the

15

% M

ost

De

pri

ved

Da

ta

Zo

ne

s in

Sco

tlan

d

Source: SIMD

Scotland’s Economic Strategy - regional and local focus

– Delivering a business environment that supports business growth, with well-designed regulation and planning, and providing support for entrepreneurs and businesses across business sectors and across Scotland (Business Gateway);

– Tackling root causes of inequality, with investments in early years, childcare, education,

health and social care.

– Supporting locally-focused and community-based approaches to economic development, including through local government, the Third Sector, and the work of our Enterprise Agencies;

– Supporting investment in infrastructure, transport and digital, to improve accessibility and connectivity across Scotland;

– Building on the use of community benefit clauses in procurement. The approach set out

in the strategy puts an increased focus on local communities and considers how they connect into supply chains; and,

– Strengthening the success and resilience of Scotland’s cities, towns and rural areas

through the work of Scottish Cities Alliance and key initiatives such as City Deals, the Rural Development Programme and the Community Empowerment Bill.

Next steps

• Continued engagement

• Policy and delivery– Business Pledge– Fair Work– Trade and Investment Strategy/International Framework– Scottish Business Development Bank

• Updates available at www.gov.scot/economicstrategy