Since 2007 the Scottish Government's overall purpose has been to increase sustainable economic growth. Progress towards the government’s purpose is measured through a number of targets and outcomes in its National Performance Framework (NPF). While all public bodies have a role in supporting economic growth, the Scottish Government expects its economic development agencies – Scottish Enterprise (SE) and Highlands and Islands Enterprise (HIE) – to have a principal role in delivering its economic outcomes.
SE and HIE support economic growth through a range of financial and non-financial support to businesses at an estimated cost of £380 million each year. There is little public awareness of what this money is spent on or what it achieves.
The audit will assess the roles of SE and HIE, including how they work with the Scottish Government to deliver outcomes in the NPF. The audit will not assess economic development activity by other bodies, such as councils (which are responsible for local economic development). It will provide an independent assessment of how well SE and HIE determine their priorities, make investment decisions and monitor impact. It aims to provide assurance that public money is being invested appropriately, ie in line with strategic priorities and where successful outcomes are most likely to be achieved.
Audit Scotland