The Scottish Government has employed a National Performance Framework since 2007, continually strengthening its focus on well-being outcomes over time. Scotland is also committed to transitioning to a Wellbeing Economy focused on equality, sustainability, prosperity and resilience, and was one of the founding members of the Wellbeing Economy Governments group.
Scotland’s National Performance Framework and efforts to build a Wellbeing Economy
Abstract
Context
In 2007, the Scottish Government introduced the outcomes-based National Performance Framework (NPF) to underpin the delivery of its policies and to set out its “ambitions, providing a vision for national well-being across a range of economic, social and environmental factors”. The NPF was put into law in 2015 and has gone through multiple revisions of its scope and priority outcomes, strengthening its focus on well-being over time. To better achieve the well-being outcomes enshrined in the NPF, the Scottish Government (led by the Chief Economist’s department) has also undertaken efforts to shift the country’s economic focus from traditional measures of prosperity to environmental sustainability and well-being, or in other words, to transition to a Wellbeing Economy. Complementary indicator dashboards have been developed to monitor progress for the NPF and the Wellbeing Economy.
Description and key outcomes
The National Performance Framework can be considered Scotland’s well-being framework. It sets out a vision for achieving national well-being in Scotland that is elaborated at several levels: an over-arching Purpose, setting out the direction and ambition for Scotland; the Values that guide governmental actions; National Outcomes, describing what the Government wants to achieve in more detail; and Indicators for monitoring progress. In addition to setting out a national vision, the NPF is also the way Scotland has localised the United Nations Sustainable Development Goals (SDGs). All sectors of society are encouraged to contribute towards the National Outcomes through their work.
In 2015 the concept of the National Outcomes was enshrined in law as part of the Community Empowerment (Scotland) Act 2015 ("the Act"), which requires the Scottish Government to review its National Outcomes every five years and to regularly report progress towards them. It also sets out consultation requirements, including with the Scottish Parliament. The Act requires that public bodies, or those that carry out public functions must "have regard to" the National Outcomes in carrying out their devolved functions. The Act requires that Scottish Ministers consult the people of Scotland on the outcomes and report on how they are meeting these outcomes.
The current version of the NPF (last refreshed in 2018), has the Purpose of focusing on “creating a more successful country with opportunities for all of Scotland to flourish through increased well-being, and sustainable and inclusive economic growth” through Values of “kindness, dignity and compassion, respect[ing] the rule of law, and act[ing] in an open and transparent way”. Its 11 National Outcomes relate to reducing poverty; supporting resilient and safe communities; child well-being; education and skills; inclusive productivity and fair, quality jobs; health; environment; creativity, cultural heritage and diversity; protection of human rights and freedom from discrimination; building a globally competitive and sustainable economy; and ensuring international connectedness and openness. There are 81 indicators used to monitor progress towards these outcomes. In 2023, a consultation was undertaken to refresh the Framework, and a revised version will be released in 2024.
In 2022, Scotland’s Chief Economist’s department released the National Strategy for Economic Transformation, setting out priorities for Scotland’s economy as well as the actions needed to maximise the opportunities of the next decade to achieve the vision of a well-being economy. The five key areas of action set out in the Strategy are: entrepreneurial people and culture, new market opportunities, productive business and regions, skilled workforce, and a fairer and more equal society. To track the country’s progress in realising this goal, Scotland developed the Wellbeing Economy Monitor. The 2022 Monitor approaches well-being through the four capitals framework – natural, human, social and produced/financial – and features 14 indicators such as wealth inequality, biodiversity and community ownership. The Strategy and accompanying Wellbeing Economy Monitor are intended to be complementary tools to the NPF and its associated indicators.
As part of its efforts to build a Wellbeing Economy, the Scottish Government has been instrumental in establishing the Wellbeing Economy Governments (WEGo) group, a cross-governmental cooperation initiative. In addition to Scotland, membership of the group currently involves the governments of Iceland, New Zealand, Wales and Finland, with Canada actively participating.
Policy relevance
Together, Scotland’s National Performance Framework and efforts to build a Wellbeing Economy provide a comprehensive underpinning for guiding policy priority-setting, design and implementation that are more focused on improving well-being outcomes. The NPF National Outcomes and the Wellbeing Monitor together provide a broad evidence base for informing policy discussions.
Further information
Scottish Government, Wellbeing Economy Governments (WEGo) website, https://www.gov.scot/groups/wellbeing-economy-governments-wego/ (accessed October 30 2023)
Scottish Government (2023), National Outcomes review 2023: consultation information pack, https://www.gov.scot/publications/national-outcomes-review-2023-consultation-information-pack/
Scottish Government (2022), Scotland’s National Strategy for Economic Transformation, https://www.gov.scot/publications/scotlands-national-strategy-economic-transformation/
Scottish Government (2022), Wellbeing Economy Monitor, https://www.gov.scot/publications/wellbeing-economy-monitor/pages/2/
Scottish Government (2019), Scotland’s Wellbeing – Delivering the National Outcomes, https://nationalperformance.gov.scot/sites/default/files/documents/NPF_Scotland%27s_Wellbeing_May2019.pdf
WHO (2023), “The well-being economy in Finland, Iceland, Scotland and Wales”, in Deep dives on the well-being economy showcasing the experiences of Finland, Iceland, Scotland and Wales: summary of key findings, Copenhagen: WHO Regional Office for Europe, https://www.who.int/europe/publications/i/item/WHO-EURO-2023-7033-46799-68216
OECD resources
OECD (2023), Economic Policy Making to Pursue Economic Welfare: OECD Report for the G7 Finance Ministers and Central Bank Governors, May 2023, Japan, OECD, Paris, https://www.oecd.org/economy/G7_Beyond_GDP_Economic_policy_making_to_pursue_economic_welfare_2023.pdf
