Scotland’s economy needs ‘robust plan’ for wellbeing – open letter

More than 100 organisations from trade unions to charities to think tanks have called for a more “robust plan” for Scotland’s economy in an open letter to Nicola Sturgeon.

The signatories have demanded an urgent transition to a wellbeing economy – a system where the wellbeing of people and the planet are at the heart of the country’s economy.

The call comes ahead of the First Minister’s meeting with senior representatives of the Wellbeing Economy Governments partnership – a collaboration of national and regional governments promoting sharing of expertise – at the Wealth of Nations 2.0 conference next Tuesday.

Scotland is a founding member of the group, which includes New Zealand, Finland, Canada, Iceland and Wales.

The letter, sent ahead of the conference, urges Ms Sturgeon to strengthen Scotland’s wellbeing economy, which includes using devolved tax powers to share wealth more evenly, invest in social security, and to improve business support to prioritise enterprises that better wellbeing.

The paper said: “Too many people in Scotland are living in cold homes, skipping meals and falling behind on rent while Scotland’s 20 richest families own more wealth than 30% of the poorest citizens combined.

“In the most deprived 30% of Scottish areas life expectancy is falling.

“At the same time, there are growing fears that Scotland’s legal emissions reductions targets will be missed and the Intergovernmental Panel on Climate Change (IPCC) recently warned that the world faces a “brief and rapidly closing window to secure a liveable future.”

It went on: “We are concerned that progress isn’t happening fast enough to meet the very real and urgent challenges we face.

“To date, we have not seen substantive progress in redesigning our economy which continues to break planetary limits and create high levels of inequality.

“With its narrow focus on GDP growth, the national strategy for economic transformation is grounded in the same logic that has delivered decades of poverty, inequality and environmental degradation.

“What is required now is a robust plan to put the wellbeing of people and nature at the heart of our economy.”

Sarah Davidson, chief executive at Carnegie UK, one of the authors, said: “Scotland has been at the forefront of the global debate about developing an economy that works for everyone.

“But there’s an opportunity to turn that rhetoric into reality in Glasgow next week.

“That means ministers in Edinburgh changing how they measure success, ensuring that social, environmental, and democratic priorities are considered alongside economic goals.

“It means adopting policies that boost collective wellbeing. It means fast-tracking a new future generations commissioner to speak up for the people that will come after us.”

The Scottish Trades Union Congress’s general secretary, Roz Foyer, who also signed the letter, said: “The need has never been greater for the Scottish Government to step up to the plate and fundamentally redesign our economy for the benefit of working people.

“We cannot ever hope to have a ‘wellbeing economy’ whilst wealth is created and hoarded by those at the top.

“People throughout Scotland are suffering through a cost-of-living crisis not of their making and not of their choosing.

“It’s time, now more than ever, that Scottish Government action matched Scottish Government rhetoric, urgently prioritising wellbeing and welfare over wealth.”

Professor of wellbeing economy at the University of Glasgow, Gerry McCartney, said: “Redesigning the economy to serve the needs of people and planet, and to value what actually matters is an urgent task.

“Poverty is rising, life expectancy is stalling and the climate and nature crisis are posing an existential threat.

“We need a deep deliberative conversation across Scotland about the society we want and the economy that can support this. There is no alternative if we want a healthy planet for our children and grandchildren to live on.”

Signatories to the letter and statement include Carnegie UK, IPPR, STUC, Friends of the Earth, Poverty Alliance, Wellbeing Economy Alliance Scotland, Church of Scotland, NSPCC Scotland, Children in Scotland, Oxfam Scotland and Scottish Women’s Budget Group.

A Scottish Government spokesperson said: “Our vision is to transition to a wellbeing economy that serves people and the planet first and foremost, for current and future generations.

“This is why our Wellbeing Economy Monitor complements traditional metrics of economic success, such as GDP, to include health, equality, child poverty, levels of greenhouse gas emissions and fair work indicators.

“The Scottish Government is doing everything within existing powers to tackle poverty. The Scottish Child Payment doubled to £20 in April and increased again to £25 per eligible child per week from November 14, representing an increase of 150% in less than eight months. It is only available in Scotland.

“Working with public, private and third sectors and communities across the country, we are taking bold actions within the powers and budget available to us, to transform our economy and build a fairer, greener and more resilient country.

“We will continue to urge the UK Government to use all the powers at its disposal to tackle the cost-of-living crisis on the scale required, including access to borrowing, providing benefits and support to households, VAT on fuel, taxation of windfall profits and regulation of the energy market.”