First of all, as you mentioned, convener, it is 10 years since the national performance framework was launched. It sets out a vision of national wellbeing for Scotland and charts progress towards that vision through a range of social, environmental and economic indicators.
Over the past 10 years, a considerable amount of change has occurred, and we recognise that it is time to update the performance framework. We have consulted widely with citizens of Scotland and asked them about the kind of country that we want to be. The result of that conversation is the proposed framework that I am here to discuss.
Some elements will stay the same. For example, progress on the national outcomes will continue to be available to everyone through our Scotland performs website, and some of the indicators that were present in the 2007 version will remain in the NPF.
However, there have been significant changes and improvements. The refresh has resulted in a streamlined NPF that illustrates clearer alignment and tracking with the United Nations’ sustainable development goals. We have also reviewed the purpose statement and included 11 national outcomes with 79 indicators. We have introduced new indicators on gender balance, child wellbeing and happiness, and contractually secure work. Our aim was that the revised outcomes would not only reflect current strategies and policies, but reflect what matters to stakeholders—hence the extended consultation.
“Scotland’s Economic Strategy”, which we published in 2015, set out the goal of achieving inclusive growth, and was supported by two mutually reinforcing pillars: boosting competitiveness and tackling inequality. We have also recognised that there is an economic case for many of our key social interventions—which goes back to the convener’s question about specific changes that have taken place over the years—such as tackling poverty, increasing attainment in schools and significantly increasing childcare provision. The refreshed NPF sees the purpose of the Government move in line with that vision. In addition to focusing on opportunities for all to flourish through sustainable economic growth, the updated purpose at the heart of our refreshed NPF acknowledges the importance of wellbeing and ensures that growth is inclusive.
The ambition of Scotland’s economic strategy is captured in the national outcomes and their indicators. They include the two outcomes that are linked directly to my portfolio, which we will discuss today, and other outcomes, including that
“We live in communities that are inclusive, empowered, resilient and safe”.
That now includes an additional indicator on social capital, which we know is important for supporting people in all aspects of life, including employment.
Part of the economic strategy is to encourage progressive employment practices and the promotion of fair work. We see our trade unions as partners that have an important contribution to make to our strategy, so I welcome the inclusion of a new indicator on the employee voice in workplaces, which sits under the outcome that
“We have thriving and innovative businesses, with quality jobs and fair work for everyone”.
It is important to note that the work does not mean that there have been wholesale changes to the framework. For example, a key part of our approach is to support the living wage. That will continue to be a key focus, as evidenced by the indicator that employees should be paid the living wage being retained under the same national outcome. Changes and new indicators reflect the consultation process. They also reflect our changed view, based on our experience over the past number of years, which is what the convener asked about.
The other national outcome that is directly related to my portfolio is that
“We have a globally competitive, entrepreneurial, inclusive and sustainable economy”.
That includes indicators on innovation and research and development, as well as overall income inequality, and measures that reflect our commitment to environmental sustainability. By aligning the whole public sector around the process, we hope that we can deliver lasting collaboration and partnership working.
The NPF also provides a transparent mechanism to monitor the performance of Scotland across a range of outcomes. I welcome the views of the committee and individual members on the updated framework for my portfolio. I know that the committee is interested, of course, in measurement and performance of the economy across a range of measures. I highlight, for instance, that our focus on inclusive growth has helped to achieve considerable results.
Scotland currently outperforms the United Kingdom in terms of dealing with income inequality, and in female and youth labour-market measures. Scotland remains the best-performing of all four UK countries, with the highest proportion of employees being paid the living wage or more. Between 2007 and 2016, Scotland’s productivity growth was higher than that of any other country or region of the UK, including London. I am also pleased to see additional indicators in the updated NPF that reflect the breadth of my portfolio.
In addition to changes that have happened over the past 10 years through the two reviews, the committee will have seen the appointment of a minister with specific responsibility for youth and female unemployment—there have been other ministerial appointments—as well as initiatives in the economic area, such as the growth scheme and many others. Those things have been done in response to our ambition to achieve the outcomes that were set out in the original NPF. It is also true to say that the changes that we are now proposing are reflective of our experience.