There is need for improvement in how regional economic policy is designed and delivered in Scotland.
• There should be the development of a strategic economic function within the Scottish Government which places productivity enhancement and economic growth at the heart of the Scottish Government. Its first priority should be to develop an Economic Growth and Industrial Strategy for Scotland, which sets out clearly how devolved policy levers are to be utilised to achieve the Scottish Government’s growth aims.
• The prioritisation of economic growth in Scotland needs to be led from Bute House. The next Scottish Government should consider the creation of an Economic Growth/Productivity Cabinet Sub-Committee, chaired by the First Minister with participation by the Economy and Finance Cabinet Secretaries to oversee delivery of the economic and industrial strategy. The SubCommittee’s remit should be focussed squarely on economic and productivity growth, with the regional dimensions of this considered in its workplan. This Cabinet Sub-Committee should be empowered to monitor all dimensions of an ambitious economic development and growth agenda, from people/skills to private investment, to infrastructure needs.
• Scotland’s larger cities should be able to access the level of policy flexibility and power as available elsewhere in UK – devolving beyond Holyrood - and both governments should articulate what will now come next after City / Growth Deals. Without this, a devolution gap will widen as regional authorities in metro England are empowered to a greater extent.
• There should be the development of a strategic economic function (drawing on the expertise of the Office of the Chief Economist, Director General Exchequer and Director General Economy) within the very centre of the Scottish Government to place economic growth and productivity enhancement at the centre of the organisation.
• Alongside this, policy making and investment delivery should come with enhanced accountability. The Scottish Government, and its delivery partners, could consider developing improved appraisal model that reinstates (and reinforces) value for money and high quality economic appraisals throughout the commitment of public resources. This should include mandatory appraisals where a significant policy initiative is proposed, to be published pre-implementation, with a commitment to transparent evaluation milestones following delivery.