From the Fraser Commentary - Scotland's domestic policy agenda

18th April 2019

From the Fraser of Allender Blog.

One consequence of the Brexit debate is that it has left little room for discussions of the emerging structural challenges and opportunities our economy is facing.

So what are these big policy questions?

First and foremost, the sustainable growth challenge is arguably still something that remains inadequately addressed in the political discourse in Scotland.

For all our economy's documented successes, the backdrop is an economy that has grown slowly for the best part of a decade.

We have clear strengths in sectors and firms across the Scotland, from food & drink, financial services, energy and tourism. Our workforce is highly skilled with our university sector world class.

But we also know that our export base is too narrow and that our levels of R&D activity and entrepreneurship lag behind the UK as a whole (which in turn lag behind key OECD economies).

For all the talk about ‘inclusive growth', nearly 1 in 4 children in Scotland continue to live in poverty. Indeed, the policy response in support of this asserted vision remains opaque at best.

And despite record levels of employment, for many being in work is no longer providing the security and prosperity it once did. In-work poverty is on the rise, with over 50% of those in poverty now living in a household where there is at least one working adult.

In some areas, such as renewables and climate change, the government has overachieved on the ambitious targets that they set themselves. But on the major ‘macro' targets - such as the 2007 ‘Purpose Targets’ - most have been missed.

Last year we highlighted the ‘cluttered landscape’ here in Scotland, with numerous strategies, advisory boards, action plans, agencies and small-scale initiatives. It would appear that little has changed.

But this is not just a challenge for the Scottish Government. In November 2017, and as part of their Industrial Strategy, the UK Government announced a review of how UK and Scottish Government agencies could better collaborate to support businesses. Nearly 18 months on, this review has yet to offer any insights, recommendations, or even any evidence of having got off the ground.

The lack of evaluation and scrutiny of the effectiveness and value of policy initiatives remains - in our view – the weakest aspect of the devolution policy landscape.

To read more of this Fraser of Allender Blog go to -

https://fraserofallander.org/fai-publications/fraser-economic-commentary/from-the-fraser-commentary-scotlands-domestic-policy-agenda/