Consultation response: Scotland's Innovation Strategy

The David Hume Institute responded to the Scottish Government’s call for evidence on Scotland’s Innovation Strategy.

Our response is based on common themes from one to one interviews and a roundtable conducted in line with the Chatham House Rule in June 2022. Participants were from different backgrounds and areas of expertise. The response also draws on previous research conversations from the Action Project, see appendix 1 of the submission.

Key recommendations

1. Think long term and be brave

2. Have clarity of purpose

3. Lead by Example

4. Ensure data and facts underpin decision making

5. Play to our strengths but there is more than one game

Read the full submission to find our the detail of our recommendations.

DHI responds to Resource Spending Review Framework

The Scottish Government recently launched its first multi-year Resource Spending Review since 2011, outlining proposed spending plans on administration and the day-to-day delivery of services and programmes, such as school meals, concessionary bus passes and most public sector staff salaries.

In publishing the review framework, Scottish Government pledged to take an outcomes-focussed, evidence-based, and consultative approach to the review process, which it aims to complete by May 2022.

The David Hume Institute responded to questions on the spending priorities indicated by the review, the primary drivers of public spending, the public sector workforce, equality, and achieving value from public sector spending. 

About our submission
DHI welcomed the opportunity to contribute to the review and our response drew on a number of our recent research projects. Broadly, we call on the Scottish Government to:

• More clearly situate the Review Framework and its priorities within the overall context of Scotland’s existing National Performance Framework to focus on long term change

• Prioritise cross-government collaboration including focusing on tackling tensions between different policy areas in addressing the Scottish Government’s priorities 

• Ensure demographic change is factored into resource spending and planning, including better recognising the contribution older people make to society and the economy 

• Revise its modelling of the impact of rising inflation, which is now likely to exceed previous estimates

• Include climate change as a key driver of public spending, as well as being a resource spending priority

• Use public procurement and planning policy as a means of prioritising long term gains to maximise the impact of public spending

• Take action to radically shift to preventative spending, as suggested over 10 years ago by the Christie Commission

• Improve equality by reforming local taxation

DHI recognises that the challenging economic conditions mean tough choices will need to be made. There is a need to be transparent about priorities and trade-offs. A mature debate will ensure that political point scoring doesn’t increase polarisation in society and negatively impact on the economy. We welcome the pragmatic cross-party approach and look forward to further conversation.

Blog: Another strategy launch, will it make a difference?

Blog by Susan Murray, Director, David Hume Institute

2 March 2022

It seems to be the time of year for governments to announce strategies.  However, as our hearts and minds are drawn to events in Ukraine, it can be hard to focus on domestic policy.

Cabinet Secretary Kate Forbes acknowledged world events at the start of the launch of the National Strategy for Economic Transformation (NSET) yesterday.  After months of meetings and consultations, there is a “laser focus on delivery” of Scotland’s new economic strategy.

This is good news but what will be different this time from previous economic strategies?  The biggest difference I observed is the focus on the interconnectedness of different policies and action, along with the role of women.

More women were involved in the development of the strategy and it's clear the government is keen to power up The Double X economy.  What does this mean?  It's not one action but lots of small ones to address structural inequality such as investor bias.

Linked to NSET is another Scottish Government strategy the David Hume Institute has been looking at in partnership with Open Data Scotland.  Our briefing paper on Open Data, released later this week, highlights a 2015 strategy with good intentions but a subsequent lack of delivery.

Lack of open data is a barrier we keep coming up against in our research and, from our conversations, we know that others are too.  Open data is a driver of economic activity estimated to be worth over £2bn to the Scottish economy.  It is fast becoming as much about data as mindset and culture in a country. It is an opportunity but one Scotland is failing to grasp and risks being left behind on.

Open data should be viewed as part of having a global outlook.  It is part of the UN Sustainable Development Goals which are the central operating principle underlying the National Performance Framework.

The UNSDGs are now a common operating language across the world for all sorts of organisations and the good news is the Welsh Assembly and the UK Government are signed up to them too. However, the UK Government Levelling Up strategy only had one mention of them - which seems like a missed opportunity for collaboration on shared goals across the UK.

A recent Westminster environmental audit committee evidence session looking at aligning the UK’s economic goals with environmental sustainability feels very relevant.  It is well worth watching both evidence sessions, including the hard hitting evidence from our partners, the Institute and Faculty of Actuaries.

The content of the evidence session was not new - what feels fresh is that the discussion is at the heart of Westminster at a time when business as usual is not an option. Whether it's the Levelling Up Strategy or National Strategy for Economic Transformation nothing works in isolation as we live in a deeply interconnected world.

So while the many policy brains wade through the reams of paper making up these new strategies, will they make a difference?

The answer to that lies with people – all of us make choices every day that impact on others both at work and in our personal lives.

What’s clear from reading Poles Apart by Ali Goldsworthy, is that everyone reading the strategies is doing so with a lens looking for confirmation of what they already believe. How many of us will change our actions and behaviours at a result of a new strategy - perhaps only time will tell?

Scottish Government consultation response: tax policy and the budget

In autumn 2021 the Scottish Government sought views on the overarching approach to tax policy, through Scotland’s first framework for tax.

Our consultation draws on:

• The largest multi generational research project in Scotland in the last five years, The Action Project. In 2020-21 we brought together people from across Scotland to consider the actions needed to move faster towards a more prosperous, sustainable, inclusive and fair country.  Over 5,000 people from across Scotland told us their actions to help Scotland build forward better.

• We worked with partners to reach people of all ages and backgrounds across Scotland.  These included U3A, the Scottish Youth Parliament, the Children’s Parliament and local organisations like InspirAlba in Campbeltown and Resonate Together in Alloa. By listening to the many voices and then analysing themes and patterns, WhatsYourAction.scot presents the findings and encourages others to have their say.

• Our 2021 briefing paper on multi-year budgeting, explains how a new agreement on multi-year budgeting between the Scottish Government and Scottish Parliament will help long-term thinking and support a more open conversation about spending plans and investment choices.

• David Hume Institute events and discussions such as Talking Tax with Charlotte Barbour and Dr Arun Advani last year.

Summary

• DHI welcomes the framework.  The clear, accessible language is critical to create more understanding about the important role tax plays in society. Research conversations as part of the Action Project emphasised the lack of understanding of Scotland’s tax powers.

• Having a coherent narrative that joins up tax policy with the National Performance Framework and Climate Change Plan helps businesses and investors plan for the medium term direction of travel.

• Simplification and public understanding are rightly identified as important factors to underpin a fair tax system and are critical to accountability. The framework’s movement away from language like “tax burden” is important for a fresh conversation.

• DHI welcomes the proposed Citizen Assembly on council tax - this is an area that is widely recognised as needing reform but has become highly political. It came up consistently in Professor Duncan Maclennan’s work A Scotland of Better Places. Continuing the status quo indefinitely should not be an option and this work should be expedited.