Scotland's Economy

Council of Economic Advisers: Second Annual Chair’s Report

May 29, 2014 by Crawford W Beveridge CBE No Comments | Category Economy

I am pleased to present my second Report as Chair of the Scottish Government’s Council of Economic Advisers (CEA).

Since reconvening in 2012, the Council has focused on three priority areas – Recovery and Jobs; Internationalisation; and Economic Levers. The Council has made good progress over the last year, taking forward a challenging programme, and I am very grateful to Council members for their considerable efforts and valued contributions.

During 2013, the Council has devoted considerable time to issues central to rebalancing the economy and delivering sustainable economic growth over the long term. These are all the more important as the Scottish and global economies recover from the significant difficulties and challenges of recent years.

The work of the Council has been wide-ranging.

For example, as part of its work around Economic Levers, the Council considered the potential impacts that could arise from a transformational change in childcare provision in Scotland. All members of the Council firmly believe that childcare has the potential to support major economic and social improvements in Scotland and we have been pressing the Scottish Government to prioritise their efforts and resources in this vital area.

We were supported in our work by Professor Ailsa McKay, who presented at our meeting in August 2013. I would like to extend my personal condolences to her family following her untimely death in March this year.

Childcare is an important area for policy development in Scotland, and one where I feel the Council has played a substantial role in shaping the debate. I have been pleased to note the interest generated by our work on this topic. The Council will consider this issue further in the course of our work on the wider economic opportunities for women in Scotland which will be a key feature of our programme over the next 12-18 months.

In its discussions, the Council has also revisited long-standing challenges for the Scottish economy, such as levels of entrepreneurship. We have also focused on areas of international potential for Scotland such as the low carbon economy, and on opportunities from showcase events such as the 2014 Commonwealth Games. The latter is an area that the Council has paid particular attention to, including through engagement and updates with officials.

We received a final update on progress in our recent meeting in March of this year and I am delighted that the Council has been able to contribute to what promises to be an exciting year for Scotland. I have been impressed with the quality of planning being made by everyone involved in delivering a business and economic legacy for Scotland from the Games and other major 2014 events.

The Council, through the Fiscal Commission Working Group, has also advised on important technical economic issues around the development of a macroeconomic framework for an independent Scotland. This has been a major focus for some members of the Council over the last year and I am especially grateful for the time and dedication they have given to this work.

Their input has led to the publication of four comprehensive reports, covering a range of topics including the macroeconomy and the public finances.

The Working Group’s reports and technical input also informed the Scottish Government’s economic assessment, of the policy opportunities under alternative constitutional structures, as set out in Building Security and Creating Opportunity. While the views contained in this report are those of Scottish Ministers, I am pleased that the Working Group was able to shape the thinking of government on key issues, including the role of inequality in society, the role of internationalisation and opportunities around re-balancing the economy and boosting economic resilience.

I look forward to continued engagement between the Working Group and the Scottish Government in the months ahead.

I trust that readers will find this report to be of interest. My colleagues and I on the CEA look forward to continuing to work with and to challenge the Scottish Government over the coming year.

Crawford W Beveridge CBE

Read the report: Council of Economic Advisers: Second Annual Chair’s Report – May 2014

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