Scotland’s vote in the EU referendum reflected Scotland’s international outlook and the importance of the single market to Scotland’s economy. In order to help stabilise and stimulate the Scottish economy we will step up delivery of our 2016-21 Trade and Investment Strategy, taking further action to boost exports, maintain and attract investment and actively demonstrate that Scotland is open for business.

We will also widen and deepen our business engagement to shape our response to the EU Referendum and wider trade and investment activity. This will ensure that the Scottish Government effectively represents the distinct needs and priorities of Scotland’s businesses and investors. In particular, we will listen to and engage with businesses through existing engagement structures, sector specific international trade summits and a dedicated Investor Forum for our critical inward investment community.

We will also be delivering a comprehensive programme of Scottish Development International led trade missions and events and working with others to enhance and complement that programme as well as providing an additional £200k to help businesses help each other through pilot Local Export Partnerships in 4-6 areas across Scotland.

We have also announced the establishment of a Ministerial Trade Board which will provide advice to Scottish Ministers on the most effective ways to boost Scotland’s exports in the context of the outcome of the EU Referendum.

Whilst it is right for health boards to keep services under review to ensure they remain of the highest quality, no final decisions have been made about the future of Lightburn Hospital.

The board must now engage with the affected local communities, staff and other stakeholders on their proposals, so they can carefully consider their views. Part of this work will involve the board and its planning partners being clear about what alternative services they would offer, for the benefit of local people. This includes the development of a new community hub at the Parkhead Hospital site.

As one of the first exercises of devolved powers under the Scotland Act 2016, we will deliver strong and effective continuity of employment support services for those who need it most, whilst building towards a full Scottish programme of support from April 2018.

Consequently, newly devolved powers on employment support will be exercised from 1 April 2017 through the delivery of 12 month transitional services.

Through Work First Scotland, we will deliver employment support for up to 3,300 disabled people, working with the providers of existing services in Scotland, to help those seeking work to make the most of their skills and to access employment support services that help them progress towards work – and to stay in work. We expect contracts to be signed in November 2016.

Through Work Able Scotland, we have worked with Skills Development Scotland who will procure and manage up to 1,500 starts for eligible customers with a health condition who want to enter work. This support will be built on a supportive coaching relationship with a dedicated case manager and co-ordinated access to skills & health support. Skills Development Scotland will commence procurement for this service shortly via the Public Contracts Scotland portal.

Following the estimated 87% funding cut in employability services from the UK Government, this government have set aside up to £20 million of additional funding in addition to the £7m delivered through transfer of services from DWP, to support these transitional services in 2017.

This is a significant first step towards developing a Scottish approach to employability: an approach that reflects fair work and social and economic inclusion; that puts an emphasis on partnership delivery; and which treats service users with respect.

The Ministerial Review Group for the enterprise and skills review holds its first meeting today. The membership of the group is outlined below. Membership has been drawn from a wide range of key stakeholders, each of whom will bring an important level of perspective and challenge.

Membership:

Crawford Beveridge - Council of Economic Advisers

Frances Ruane - Council of Economic Advisers; ESRI

Ian Walker - Johnson and Johnson

Stephen Boyle - Chief Economist, RBS

Lynne Cadenhead - Bio ID Security; Women’s Enterprise Scotland

Ross Martin - SCDI

Liz Cameron - Chambers of Commerce

Susan Love - FSB

Grahame Smith - STUC

Jim Duffy - Entrepreneurial Spark

Hugh Hall - Chair, Colleges Scotland

Andrea Nolan - Convener-elect, Universities Scotland

Vonnie Sandlan - NUS Scotland President

Councillor Stephen Hagan – COSLA Spokesperson Development, Economy and Sustainability

Mhairi Harrington - Principal, West Lothian College

Professor Sir Ian Diamond - Principal, Aberdeen University

Suzanne Burns – HR Director, STV; Board member, Developing the Young Workforce National Employer Group

The remit of the Group, tabled for agreement at today’s meeting, is attached below. This remit will be published on the Scottish Government website: www.gov.scot/topics/economyGroup Remit.

The Ministerial Review Group will play a vital role in ensuring that the enterprise and skills review is robust, produces sound and evidence-based recommendations, and is driven forward with energy and creativity.

The board will meet three times in total: the first meeting will be on the 12 July 2016, the second and third are planned for 17 and 31 August 2016.

Throughout the review the board members will:

Provide a high level of informed debate and challenge which draws on members’ experience

Use their own networks to test assumptions and gather input and evidence to inform the work of the review

Consider findings and analysis of work and agree strategic direction and next steps

Meet at key stages to discuss the progress and direction of the review, ensuring it remains on track to deliver high quality, robust outcomes.

At the conclusion of this short life working group, the board will shape emerging conclusions and suggest ways in which those should be taken forward.

In conducting this review, the Scottish Government will follow these principles:

The review will be outcome-focused, and help us make a step-change in Scotland’s economic performance and productivity

It will be evidence-based, open and transparent, with an opportunity for everyone with an interest to contribute.

It will put service users at its heart and aim for increased clarity and user simplicity in a system of support designed to meet current and future challenges.

It will be robust and independent of any individual organisation.

It will benchmark nationally and internationally against best practice.

As responses, ideas and options for the way ahead start to emerge, we will take into account that a good outcome needs to ensure:

A common vision and performance framework for all to maximise economic growth and productivity and support more inclusive growth, with full geographical access

A modern system of support that is fit for the 21^st century, simple and clear for users to access, and supported by the right agency roles, services, skills and behaviours.

Affordability – Making the best use of all public resources, financial and other assets to impact on outcomes, with funding matching priority services and flowing through the minimum number of levels and organisations to the user.

Note - For these purposes, ‘user’ means all those who use or work within the Scottish system of enterprise and skills support - whether as students, businesses, service providers, partners - or those that use the services provided by our agencies or otherwise interact with them.

We are currently working with the UK Department of Health and HMRC on beginning the payment of the increased lump sums and annual payments via the existing UK support schemes (the Skipton Fund and MFET) as soon as possible. This requires extensive amendments to the existing agreements between the schemes and the UK Government, along with amendments to income tax orders. We are progressing this work, but it is not yet possible to indicate when we will start making the increased payments. However, our aim is still to ensure that payments can commence this year and the Cabinet Secretary for Health and Sport recently spoke to the Parliamentary Under Secretary of State for Public Health, Jane Ellison MP, to seek assurances from her that the UK Department of Health will prioritise this.

We are also working on delivery of the new Scottish scheme, which will be up and running in 2017.

We will allocate £750 million during the course of this Parliament through the Attainment Scotland Fund to tackle the attainment gap, targeting resources at those children, schools and communities most in need. The Scottish Government, through the Attainment Scotland Fund, already provides funding to those primary schools and authorities identified as having the highest concentrations of Scottish Index of Multiple Deprivation 1 and 2. I announced last week that we would extend our area based approach to two more local authorities so that there are now nine challenge authorities, and extend the scope of the challenge to secondary schools. Children are affected by poverty related disadvantage all over Scotland, therefore as part of the £750 million package, we will allocate an additional £100 million that will be raised each year as a result of our council tax reforms to schools, on the basis of the number of eligible children that meet the criteria for free school meals.