The Scottish Government

We will promote Scotland as a good place to live and work, with a high quality of life which is attractive to fresh talent from around the world.

Achieved and requires sustaining. Fresh Talent has been running since February 2004 and has £1.7 million funding for 2006-07. It includes the Relocation Advisory Service, the Fresh Talent: Working in Scotland Scheme, the Supporting International Students Challenge fund and the Scottish International Scholarships programme. Since October 2004, the Relocation Advisory Service has helped over 12,600 people directly, and over 480,000 indirectly via information about living and working in Scotland through scotlandistheplace.com. Over 3,000 graduates have applied successfully to live and work in Scotland for up to two years following graduation without needing a work permit.

We will work in partnership with business and trade unions.

Achieved and requires sustaining. The First Minister meets the Scottish Trades Union Congress General Council on a biannual basis and the Deputy First Minister regularly meets with business organisations.

We will support the establishment of a focused annual Business Forum, bringing together Scotland's businesses and Scotland's politicians to develop ideas and maximise the drivers for growth.

Achieved. The first Business in the Parliament Conference was held in 2004. The 2006 event was held on 2-3 November.

We will make sure that every pupil has the opportunity to learn entrepreneurial skills at school. We will expand the number of Scottish schools involved in Enterprise in Education from 10% to 100%.

Achieved and requires sustaining. Latest figures show enterprise in education - which aims to help Scotland's young people develop self confidence, self reliance and ambition in work and life - is happening in all our schools.

We will work towards our target for 40% of Scottish electricity generation to be from renewable sources by 2020 as part of our commitment to addressing climate change.

On track. Progress towards meeting the 2020 target has been excellent. We are on track to meet the interim target of 18% by 2010.

We will work with business to develop and implement a green jobs strategy.

Achieved. Going for Green Growth - the green jobs strategy was launched in June 2005. In 2005-06 to 2007-08 £22 million is available to be invested in implementing the strategy. Of this, £20.5 million has been allocated to a Clean Energy Fund to support developing areas of renewable energy.

We will significantly improve the skills base of Scotland to be better prepared to meet the demands of the knowledge economy. We will increase the apprenticeship programme to 30,000 places.

Achieved. The training capacity of the Modern Apprenticeship programme was increased to 30,000 by May 2004 - two years early.

We will continue to increase funding to improve the quality and effectiveness of further and higher education within Scotland. We will increase the proportion of graduates in the workforce.

Achieved and requires sustaining. In real terms we have increased funding by 21% for further and higher education, providing an extra £393 million for learning, teaching and research, and an extra £276 million for buildings and facilities. The proportion of graduates in the workforce has increased from 19% in 2001 to 22.5% in 2005.

We will review the eligibility criteria for student bursaries with a view to increasing the family income ceiling and review the maximum amount available.

Achieved. The review was completed in 2005, and students received the new payments in October 2005. In 2005-06 more than 3,000 extra students are now receiving the bursary (an increase of almost 10%), with approximately 8,000 more students receiving the maximum amount (an increase of more than 50%).

We will support a higher threshold for repayment of student loans across the UK.

Achieved. From 2005 the loan repayment threshold has increased from £10,000 to £15,000.

We will make sure that the benefits of economic growth are shared by all of Scotland's communities. We will reduce the gap in unemployment rates between the worst 10% of areas and the Scottish average by 2006.

Achieved and requires sustaining. Since 2001 unemployment in the worst 10% of areas has fallen, from 14% to 12.9% in 2003 and to 11.7% in 2005. The Scottish average fell from 4% in 2001 to 3.8% in 2003, and to 3.2% in 2005. Over the period the gap fell from 10% to 8.5%.

We will streamline the support and practical help government offers to business and extend the one stop support for business throughout Scotland through the Business Gateway.

Achieved. Duplication in services has been removed. Business Gateway has been rolled out across the Scottish Enterprise area, and a single entry point developed for the Highlands and Islands Enterprise area.

We will ensure that the work of Scottish Enterprise is focused on business development and skills training.

Achieved. The Enterprise network's strategy Smart Successful Scotland was refreshed in November 2004 and now provides a clearer focus.

We are committed to ideas and businesses grown in Scotland and will encourage their expansion through continued use of Regional Selective Assistance; through the Scottish Co-investment Fund; and through a new Business Start Up Fund.

Achieved and requires sustaining. Regional Selective Assistance ( RSA) has continued to play a key role. Since January 2003 businesses in Scotland have accepted 597 offers of RSA totalling more than £228 million. These offers relate to projects with planned investment of over £878 million with the aim of creating or safeguarding more than 31,700 jobs.

Just under £45 million (including £25 million from the European Regional Development Fund) has been allocated to the Scottish Co-Investment Fund, for investing in a range of new and existing private sector-led equity funds addressing the funding gap of up to £500K. 98 businesses have received £22.4 million, with over £53.4 million leveraged from the private sector.

A new business start up fund for young people was established in 2004, initially as a pilot until March 2006. The Fund was extended for a further year to March 2007 and over 7,000 young people have been helped to date.

We will work with agencies supporting business to manage the transition to the new Structural Fund landscape post 2006.

On track. The current Structural Funds arrangements will end at the end of 2006. To manage the transition the Executive has been preparing the Operational Programmes for public consultation, which started in October 2006. The final programmes will be submitted to the European Commission for negotiation in 2007. To address the late start to programmes a limited 'shadow' round of Structural Funds will be held to support particularly vulnerable organisations in early 2007.

We will also continue to encourage investment from overseas through the work of Scottish Development International.

Achieved. Since 2003 Scottish Development International has secured over 4,500 high value jobs through inward investment and supported over 2,000 organisations to participate internationally.

We will use the network of commercial sections in British embassies across the world to look for international partnerships and support Scottish business.

Achieved. Scottish Development International ( SDI) has established an integrated global sales force, supporting Scottish business, that complements and works closely with the UK embassy network. In some cases SDI staff are co-located with embassy and consular staff. SDI delivers the full range of UK Trade and Investment programmes in Scotland, and works with UKTI to ensure our respective services can complement each other better.

We will freeze business rates for 2003-4 and limit increases to no more than inflation for the following two years. We will maintain our new small business rate relief scheme.

Achieved and requires sustaining. In 2003-04 the rate was frozen. The 2004-05 rate was increased by 2.1% (inflation was 2.8%). The 2005-06 rate increase was 2% (inflation was 3.1%). The gap with England was halved in April 2006, and poundage will be fully equalised in April 2007. The small business rate relief scheme has been maintained and in 2006-07 72% of properties were eligible. We promote rating harmonisation across the United Kingdom.

We will support the construction industry by working in co-operation with the trade groups to create a strategy that secures the supply of relevant skills; improve safety and quality of the industry; combat rogue traders with a quality mark scheme; and consider a construction licensing authority for Scotland. We will include a construction strand in the apprenticeship scheme.

Achieved. The Executive established the Modernising Construction Strategic Group in October 2002. The Group reported to Ministers in August 2003 with recommendations in four main areas: procurement, workforce development, image and awareness and best practice. The three prime recommendations of the Group have been delivered with the establishment of the Scottish Construction Forum in February 2004; the introduction of the Infrastructure Investment Plan in February 2005; and the confirmation by Scottish Enterprise, in November 2006, of funding to establish the industry Centre for Innovation and Excellence. In addition Scottish Enterprise continues with a £35 million Construction Skills Action Plan which supports the industry's training and skills requirements. Construction remains the most popular strand of the Modern Apprentice Programme with over 7,000 people in training. The Executive also supports the efforts of the industry-led Construction Licensing Executive which is addressing the issues of rogue traders and quality standards within the industry.

We will work with tourism businesses to improve tourism marketing and infrastructure, including the network of Area Tourist Boards, and make full use of the British Tourist Authority.

Achieved. In March 2004 we announced the merging of the Area Tourist Boards with VisitScotland, which was implemented in April 2005. At that time extra funding for marketing was announced, and a further 28% increase in funding announced in 2004 was extended to 2008. VisitScotland continues to work closely with VisitBritain to raise the profile of Scotland, particularly in emerging markets.

We will build on our cities' many attractions and the natural resources of our countryside to turn Scotland into a year round destination.

Achieved and requires sustaining. The overall aim is to increase tourism revenues by 50% by 2015. VisitScotland market our cities as great places to visit and to experience the rich culture and nightlife that they offer. A key theme is the ease of enjoying a rural break and a city experience during one trip to Scotland. The promotion of city breaks is in addition to a range of activities VisitScotland undertakes to promote rural breaks throughout Scotland and to experience activities such as wildlife, walking, golf, and activity holidays.

We will ensure that tourist offices and agencies promote the opportunities for outdoor recreation across the country.

Achieved and requires sustaining. VisitScotland has developed the 'Scotland - Europe's adventure capital' brand as part of the promotion of outdoor recreation across the country. VisitScotland works to increase the coverage of Scotland as an active outdoor destination through promotional activities like brochure launches and building on the potential of new emerging adventure activities.

We will work with the tourism sector to introduce an industry-led national tourism registration scheme to guarantee quality service and facilities across Scotland.

Achieved and requires sustaining. We have invested £3 million over two years to strengthen and broaden VisitScotland's range of Quality Assurance ( QA) schemes. VisitScotland have worked with the industry to increase participation amongst accommodation providers and visitor attractions in QA schemes from 80% to 90% by 2008 and are working to double the membership of the Green Tourism Business Scheme. By 2004-05 7,479 accommodation providers, 298 holiday parks, 1044 visitor attractions, and 136 hostels were participating, an increase of 7% compared to 2003-04. The Green Tourism Business Scheme has 537 members, the largest membership of such schemes in Europe.

We will build on the success of the financial services sector, particularly in Edinburgh and Glasgow, and work with the industry to improve provision for the skills and training in the areas they need most.

Achieved and requires sustaining. The Financial Services Strategy Group was established in September 2003 and published its joint Strategy for the Financial Services Industry in Scotland in March 2005. The Financial Services Advisory Board, chaired by the First Minister, is implementing the Strategy. It aims to deliver an 'innovative, competitive and thriving international financial services industry in Scotland, underpinned by world-class infrastructure and universally recognised as a leader on the world stage'.

We will pursue the creation of centres of excellence in industries such as aerospace.

Achieved. The Executive has contributed £3 million (£1 million per annum for next three years) towards the Scottish Manufacturing Advisory Service ( SMAS), combining with European and Scottish Enterprise funding to provide total funding of £7 million over three years. To date SMAS has dealt with over 260 enquires for manufacturing advice and intervention, delivering over £1 million added value already. A centre of excellence in aerospace has been established and will support the wider interests of aerospace and defence related activity in Scotland.

We will work with businesses to increase their investment in research and development to match more closely our competitors in the OECD.

On track. The Executive has been working closely for a number of years with Scottish Enterprise to develop a 'pipeline of support' from idea to marketplace. Whilst Scotland has historically had a very low base compared with our OECD competitors, progress is now being seen.

We will support the productive link between research and product development, maximising the potential of the Intermediary Technology Institutes in Aberdeen, Dundee and Glasgow.

Achieved. We have committed £450 million over 10 years to develop market-focused research institutes on sectoral areas in which Scotland has potential competitive advantage - Energy, Life-Sciences and Tech-Media. By end 2006 the ITIs had committed over £104 million to 18 research and development projects.

We will stimulate new product development and spin-outs in Scotland by supporting the translation of ideas into marketable products through our unique Proof of Concept Fund and by encouraging academics and developers to be proactive in the commercial exploitation of their work.

Achieved. Since inception the Proof of Concept Programme has supported or currently supports 172 groundbreaking projects worth over £28 million and has already created over 400 new jobs. Completed projects have attracted significant additional private investment and the programme is integrating well with other support measures in taking innovation to the marketplace.

We are committed to extending broadband connectivity for every area of Scotland to ensure Scotland's competitiveness, both internally and internationally, in both public and private sectors.

Achieved. Every telephone exchange area in Scotland now has access. The very last exchange, enabled as part of the 378 funded by the Executive's 'Broadband for Scotland's Rural and Remote Areas' initiative, was delivered in summer 2006 in Foula.

We will build on the Scottish Executive's 'Determined to Succeed' report, to develop an enterprising attitude and understanding of the world of work.

Achieved and requires sustaining. We have built on Determined to Succeed with 120 staff at local authority level now in place to make it happen. We have exceeded our target of 2,000 school/business partnerships and are supplementing this local activity with strategic contributions aimed at embedding enterprise education within the framework of Scottish education.

We will encourage universities to offer business and entrepreneurial experience, making use of sandwich years and 'buddy' schemes.

On track. The Executive is negotiating with a range of partners to develop and deliver innovative approaches to enterprise education in Scotland's universities and colleges. Through funding directed through the Scottish Funding Council, we support the work of the Scottish Institute for Enterprise which works across the sector on issues relating to student and graduate entrepreneurship.

We will encourage local authorities to give school pupils the opportunity for 'hands-on' enterprise initiatives and will continue to promote manufacturing and engineering to our young people through initiatives like ' Make It In Scotland'.

Achieved and requires sustaining. The widespread implementation of enterprise education in Scottish schools has meant that more and more young people have had the chance to participate in experiential entrepreneurial activities often involving mini-businesses in schools, the success of which is now celebrated in discrete categories in the annual Scottish Education Awards. Meanwhile ' Make It In Scotland' is delivered by Careers Scotland and provides hands-on experiences of manufacturing to around 60,000 pupils every year.

We will legislate on personal bankruptcy and diligence to modernise the laws of personal bankruptcy and diligence to strike a better balance between supporting business risk and protecting the rights of creditors.

Achieved. The Bankruptcy and Diligence (Scotland) Act 2006 completed its Parliamentary stages in late November 2006. It is expected to receive Royal Assent in January 2007.

We will support the development of wave, tidal and solar energy and support the development of technologies to promote the greater use of fuel from wood and other energy crops.

On track. In May 2006 we announced over £20 million for Clean Energy - marine, biomass and hydrogen development. The European Marine Energy Centre in Orkney continues to lead the way on wave development. We are progressing with plans to amend Renewables Obligation Scotland ( ROS) to support wave, tidal power and 'bridge gap' until UK wide amendments are introduced. Marine and hydrogen funding schemes have been launched in 2006 and a biomass scheme is open to expressions of interest.

We will press the UK Government and electricity companies to strengthen the electricity grid.

On track. We have continued to work with the UK government and electricity companies. In response to the UK Government's Energy Review we invited DTI to consider strengthening the capacity of the interconnector with England. The new British Electricity Transmission and Trading Arrangements ( BETTA) came into force in April 2005 and ensures that the costs of upgrading the grid will be shared by consumers across Great Britain. Following the introduction of BETTA the Scotland-England assets are now part of the GB transmission network. In June Ofgem announced that Scotland's transmission companies are expected to invest more than £75 million over the next five years in the transmission networks. This is part of a £5 billion UK programme, which includes an additional £500 million to support renewable generation.

We will encourage participation in renewable energy projects by communities and local authorities.

On track. The Scottish Community and Householder Renewables Initiative was launched in October 2003. £3.7 million will be invested in 2006-07 and £3.7 million in 2007-08.

We will create significant opportunities for new products manufactured from waste by tasking Scottish Enterprise to assist the development of such facilities.

Achieved. The Waste Resources Action Programme ( WRAP) and Remade Scotland receive support from the Executive to develop markets for recycled products. In 2006-07 WRAP will receive £3 million for capital grant schemes. The Executive's Green Jobs Strategy, published in June 2005, clarifies the role of the enterprise networks in supporting new business opportunities.

We will assess economic development policies against their impact on targets set through the Scottish Executive's sustainable development indicators.

Achieved. All new policies and programmes are assessed for their impact on sustainable development. In tracking progress against A Smart Successful Scotland, carbon emissions are now included as a sustainable development indicator and the relationship between this and GDP is specifically commented on.

We will return vacant and derelict land to productive use, opening up opportunities for businesses and communities.

On track. Estimates show that by March 2006 over 250 hectares of vacant and derelict land had been remediated in Glasgow, North Lanarkshire and Dundee through the Vacant and Derelict Land Fund ( VDLF), well in excess of the original target of 100 hectares. Through the VDLF, land has been returned to use in some of the most deprived areas in Scotland, for housing developments, community facilities, landscaping and greening, construction of business facilities and job creation.

We will not support the further development of nuclear power stations while waste management issues remain unresolved. Where decommissioning of nuclear power stations occurs, we will aim to use and develop best practice in decommissioning and high energy technologies.

Achieved. This policy remains unchanged. The recent UK Energy Review recognises that the building of any new nuclear power station in Scotland would require consent from Scottish Executive Ministers.

We will develop partnerships between educational institutions and business to offer more apprenticeships and training opportunities.

Achieved. We worked with the Enterprise Networks and Sector Skills Councils to re-engineer Skillseekers provision ( SCQF Level 5), introducing pilots to link with vocational learning in schools, to address core skills and provide better progression routes to Modern Apprenticeships ( MAs) or further education. This work led to a consultation which looked at proposals to improve the MA programme, the results of which we are now considering. There are now more than 5,300 more Modern Apprentices than there were in 2003. There are also more than 6,000 more employers engaged in the MA and Skillseeker programme since 2003.

We will introduce an improved version of the Individual Learning Account and offer Business Learning Accounts to help small businesses provide training opportunities for their employees.

Achieved. The new version of the Individual Learning Account was introduced in December 2004. Business Learning Accounts have been piloted, allowing small businesses to provide training opportunities. An evaluation report was published in October 2006.

We will use the Future Skills Scotland Unit to identify the needs of business and we will focus on education and training services and the career guidance service to meet them.

Achieved. Future Skills Scotland is part of Scottish Enterprise and Highlands and Islands Enterprise and has a key role to play in analysing the Scottish labour market to inform policy-making in Scotland and further afield. Their work has improved the availability, quality and consistency of labour market information and intelligence across Scotland and they have developed a key strategic partnership with Careers Scotland ( CS) to ensure that CS is fully up to date with the latest labour market information in order that they can provide their client group with the guidance they need to make informed choices.

We will provide childcare support in areas of high unemployment in order to help those in work, training or education.

On track. Projects have been running in 20 local authority areas and the Executive has provided £15 million towards these. A final report on the projects is due in March 2008, and so far over 5,800 parents have been helped.

We will continue to work in partnership with trade unions on learning initiatives.

Achieved. Funding to the Scottish Union Learning Fund has been increased and we have continued to work with trade unions to promote lifelong learning. To date the Executive has funded 69 projects from 25 unions.

We will increase the higher and further education budget by 16% by 2006.

Achieved. Additional funding was allocated in the 2004 Spending Review, taking the overall investment in higher and further education to over £1.6 billion annually by 2007-08.

We will merge the Higher and Further Education Funding Councils and charge them to have regard to the future skills needs of Scotland.

Achieved. The new body, the Scottish Further and Higher Education Funding Council, was established in October 2005.

We will not support the introduction of top-up tuition fees.

Achieved. Top-up tuition fees have not been introduced in Scotland.

We will support the aspiration of the UHI Millennium Institute for University status.

On track. The UHI Millennium Institute applied for university title in September 2006. The Executive has actively engaged with Highlands and Islands Enterprise ( HIE), the Quality Assurance Agency and the Scottish Funding Council to support UHIMI in its application.

We will set up a Lifelong Learning Forum to develop lifelong learning.

Achieved. The first meeting of the Lifelong Learning Forum took place in December 2003. Now an annual event, the 4th meeting took place in Glasgow in November 2006.

We will work with academic institutions to promote research links, education and student exchanges and to build global networks.

Achieved and requires sustaining. A range of initiatives have been undertaken, including Fresh Talent, student exchange schemes and funding for transatlantic collaboration. In December 2006 the Executive announced funding of £750,000 to enable Scottish Development International to provide additional international support for colleges and universities.

We will support improvements in the emphasis of the Research Assessment Exercise and ensure robust funding for Higher Education research.

Achieved and requires sustaining. The Scottish Funding Council is a full partner in a revised system for assessing the quality of University research through the next research assessment exercise in 2008. Robust funding for research has been provided by the Executive with an overall 20% increase in real terms by 2007-08 compared to 2004-05.

We will encourage recognition by business and education providers of the Scottish Credit and Qualification Framework ( SCQF).

Achieved and requires sustaining. The SCQF is now widely used and recognised in all sectors of education and training. Our mainstream qualifications delivered by schools, colleges and higher education institutions have been placed in the SCQF and we are working to include other qualifications. Learner achievements are often expressed in terms of the SCQF, for example, SQA's Scottish Qualifications Certificate shows learners achievements in terms of the SCQF points. By placing Scottish Vocational Qualifications and the most popular Modern Apprenticeships in the SCQF, business is beginning to see how the framework is relevant to the world of work. An Employers Representative Group has been established to develop a strategic approach to embedding and communicating the SCQF more widely.

We will give students in Further and Higher Education the right to refer matters to the Ombudsman when institutional mechanisms fail them.

Achieved. The remit of the Scottish Public Services Ombudsman was extended in October 2005 to include colleges and universities.

We will work with universities and colleges to promote greater transparency and the use of the Nolan principles in the appointment of Principals.

Achieved. The Executive has worked with the Scottish Funding Council to promote greater use of the Nolan principles in the appointment of college and university principals. The Higher Education sector has signed up to a UK-wide guide, including Nolan, and has confirmed its commitment to adopting the principles.

We will realise the potential of our great cities, working with Glasgow, Edinburgh, Dundee, Aberdeen, Inverness and Stirling and their neighbours, to prepare growth strategies that maximise the unique characteristics and opportunities of each city.

Achieved and requires sustaining. Each of Scotland's six cities prepared ten year city vision from 2003-13 in consultation with community planning partners and neighbouring councils. The Cities Growth Fund, for which £173 million in funding is being provided over the period 2003-08, is intended to help turn each city vision into reality. An independent interim evaluation study on the first phase of the Fund (2003-06) has been commissioned and is due to report in January 2007.

We will work with local authorities to establish Business Improvement Districts.

Achieved and requires sustaining. The Executive has made £500,000 available to fund development work in six Business Improvement District ( BIDs) pilot areas in 2006-07. Primary legislation to provide for BIDs has been approved by the Scottish Parliament and secondary legislation will be laid in time to complete its passage by April 2007.

We will work with local authorities to establish Urban Regeneration Companies ( URCs).

On track. Three Pathfinder URCs are now well established and delivering change in Craigmillar, Raploch and Clydebank, and a further two Pathfinder URCs in Inverclyde and North Ayrshire were announced in the context of the Executive's Regeneration Policy Statement. The local partners leading the Clyde Gateway initiative are working with our support to establish a URC by January 2008.

We will regenerate those communities where there are persistently high levels of unemployment.

On track. Regeneration is a long term process and we are unable to fully assess progress at this stage. Early statistical evidence suggests tangible progress in terms of employment, health and the local environment in Scotland's most deprived neighbourhoods. However, as yet there is no marked improvement in educational attainment. Our overall approach to regeneration was set out in our Regeneration Policy Statement and is supported by a wide range of activities such as the £318 million (2005-08) Community Regeneration Fund and Urban Regeneration Companies.

We will pilot a scheme in Scotland's rural communities to allow public sector workers to test out good business ideas while retaining security of employment.

On track. Western Isles Council has agreed to pilot such a scheme with a view to launch in early 2007.

We will continue our commitment to government job dispersal to benefit all of Scotland.

Achieved. Decisions have been taken to locate over 3,000 public sector jobs outside of Edinburgh as of December 2006. Under the Small Units initiative, small satellite units have been established in fragile and remote rural locations, including Tiree, Kinlochleven and Dingwall.

We will improve the promotion and provision of advice on co-operative development and we will establish a Co-operative Development Agency following consultation.

Achieved. Co-operative Development Scotland was established in January 2006 as a subsidiary of Scottish Enterprise with £3 million funding over next three years.