Inclusive Growth Diagnostics

Regional and Local Inclusive Growth Diagnostics

The Inclusive Growth Diagnostic Tool

SCRIG is committed to providing access to relevant analytical tools to help stakeholders progress on the development and practical application of inclusive growth policies and action. Our inclusive growth diagnostic framework emphasises the need to consider an evidence-based approach to policy-making. This process starts with understanding local data and evidence to identify areas for further investigation, including acknowledging evidence gaps and working to improve them.

The Inclusive Growth Diagnostic is a six stage process which incorporates the evidence from the Inclusive Growth Dashboard. It supports the identification of constraints to inclusive growth and informs the development of policies designed to be more consistent with achieving the Inclusive Growth Outcomes within specific local areas and regions.

Inclusive Growth Outcomes Framework

Stage 1: Benchmarking

This stage uses the IG Dashboard to benchmark the chosen Local Authority on a range of indicators against neighbouring Local Authorities and the Scottish National average. This provides a high level overview of where the Local Authority is underperforming and performing well across the range of IG outcomes.

The Inclusive Growth Dashboard

The Inclusive Growth Dashboard is an interactive data tool which captures a balanced range of indicators for the Inclusive Growth Outcomes. The indicators are reliably and consistently updated with the most recent data. The data is currently available for Scotland’s 32 local authorities and this will be updated to include regional data in due course.

Access the Inclusive Growth Dashboard.

Stage 2: Identification of constraints

This builds on stage 1 by investigating the causes of the underperforming indicators for the IG outcomes. This is done by examining the external environment, local conditions and social factors which may be causing the underperformance.

A comprehensive list of constraints to inclusive growth can be created, which can be targeted to promote inclusive growth.

Stage 3: Vision Setting

This draws on the information gathered in stages 1 and 2 to set a vision for the relevant Inclusive Growth Outcomes.

Stage 4: Prioritisation

The prioritisation exercise ranks the identified inclusive growth constraints based on the interaction of two dimensions: impact and deliverability.

Impact – this is an evidence-based approach led by analysts and supported by policy makers that ranks constraints based on their relative importance in unlocking inclusive growth opportunities. The methodology takes into account an assessment of synergies and trade-offs and impact on key excluded groups.

Deliverability – this stage is a more qualitative assessment taking account of the preferences of policy-makers, local communities and the private sector, as well as a time dimension (how long it will take for the impact to manifest) and funding feasibility.

Stage 5: Operationalisation

The findings of the diagnostic are used to inform investment and policy decisions in the short, medium and long term to target the areas identified in stage 3.

Stage 6: Evaluation

This stage monitors progress against the inclusive growth outcome targets set in stage 3. This is done by repeating the diagnostic process to assess if there have been any changes in the inclusive growth indicators which may warrant reprioritisation of constraints to inclusive growth or a change in the policy approach.

Over the longer-term, the Scottish Government is committed to a wider programme of work to improve the availability of sub-Scotland (regional and local) economic statistics (via the Sub-Scotland Economic Statistics Group), that will help deliver better quality data at a disaggregated level.

North Ayrshire Inclusive Growth Diagnostic

 In 2017, the Office of the Chief Economic Adviser at the Scottish Government and North Ayrshire Council undertook a joint piece of work to assess what was holding back long-term sustainable inclusivity and growth in North Ayrshire. This pilot was used to refine the inclusive growth diagnostic approach, which has subsequently been applied in a number of other local areas and regions.

The work sought to identify those prioritised investment decisions with the potential to deliver long-term transformational change. The project was awarded the Policy Development Award at the Scottish Public Service Awards in December 2017.

More information on the Inclusive Growth Outcomes and Diagnostic can be found in the Inclusive Growth Outcomes Framework report which you can download below.