Scotland's National Strategy for Economic Transformation: stakeholder engagement analysis

4. Views from third sector

4.1 Challenges

• Scotland has high proportion of people on benefits and low productivity. Entrepreneurship is generally not sufficiently supported or recognised.
• Greater need for interventions to encourage gender equality – for example childcare needs limit women's ability to enter the labour market and access development opportunities, the gender pay gap has yet to be addressed and many jobs at risk of future automation are carried out predominantly by women.
• Disability employment gap and not enough entry level jobs for young people.
• COVID-19 has amplified existing inequalities – particularly around fair work and for certain groups (e.g. young people).
• Issues around education. There is a general mismatch between education and needs of industry. This causes issues with recruitment and may harm entrepreneurship – some perceived a gap between number of young people who wanted to start a business, and those who have skills to do so.
• Underuse of skills.
• Net zero presents challenges and opportunities. Current lack of public understanding on climate change.
• Good quality housing plays a large role in economic transformation – but availability of good quality housing is an issue.
• Scottish business owners may lack ambition to expand companies – selling businesses on means Scotland loses R&D and assets.
• There are regional disparities in public sector funding.
• Fiscal framework – lack of borrowing powers limits capacity of SG to realise economic policy objectives.

4.2 Opportunities / priorities

• New ways of working – e.g. more flexible jobs, renewed focus on fair work, etc. but needs action to maintain these benefits. For example improved digital connectivity, local job hubs, actions to protect town centres etc.
• The third sector's role in providing or complementing the public and private sector should be recognised and capitalised on.
• Planning – a more strategic approach is needed to meet the needs of various sectors and encourage job growth. Close working with unions, investors and infrastructure providers is needed to develop place-based solutions.
• Education sector – sector has a key role in meeting future job needs – closer working between government and industry needed.
• Embedding entrepreneurship in education and the curriculum.
• Digital connectivity is key for economic transformation post-COVID. Some of the positives of COVID-19 (e.g. remote working) should be retained and there is need for investment to support this.
• Net zero presents many opportunities e.g. circular economy, including circular economy supply chains, greater use of renewable energy, development of new jobs. But also presents challenges in terms of transition and support needs for workers in affected industries.
• Climate emergency – involve all citizens in the decisions on responding to climate emergency.
• Opportunity to renew and enhance role of wellbeing economy – e.g. by giving wellbeing measures parity with GDP.

4.3 Examples of Ideas to transform the economy

• Targeted skills programmes should be developed to identify and assist marginalised groups (such as woman and the young). The Youth Guarantee and Developing Young Workforce Programmes Scotland's colleges and universities were seen to be well placed to assist with this due to strong links with industry.
• Invest in child and social care to promote women's labour market equality.
• Create a ladder of entrepreneurship in school education through primary and secondary education.
• New ways of working – common suggestion was move towards a 4 day working week (with no loss of pay) and the creation of local job hubs to allow for more flexible working.
• Some suggested greater devolution of power, from Holyrood to local authorities.
• Respondents suggested various strategies that should be consulted (e.g. Social Renewal Advisory Board, A Fairer Scotland for Woman, etc.)
• Trial of universal basic income.
• Reform agricultural payments to ensure better alignment with climate change and land use goals.
• Deliver innovation-based City Deals 2.
• Creation of a National Infrastructure Company to ensure a strategic and sustainable approach to construction.