Single Outcome Agreement

2008/09

Contents

Purpose of the Agreement

Scope of the Agreement

Area profile

National Outcome 1: We live in a Scotland that is the most attractive place for doing business in Europe

National Outcome 2: We realise our full economic potential with more and better employment opportunities for our people

National Outcome 3: We are better educated, more skilled and more successful, renowned for our research and innovation

National Outcome 4: Our young people are successful learners, confident individuals, effective contributors and responsible citizens

National Outcome 5: Our children have the best start in life and are ready to succeed

National Outcome 6: We live longer, healthier lives

National Outcome 7: We have tackled the significant inequalities in Scottish society

National Outcome 8: We have improved the life chances for children, young people and families at risk

National Outcome 9: We live our lives safe from crime, disorder and danger

National Outcome 10: We live in well-designed, sustainable places where we are able to access the amenities and services we need

National Outcome 11: We have strong, resilient and supportive communities where people take responsibility for their own actions and how they affect others

National Outcome 12: We value and enjoy our built and natural environment and protect it and enhance it for future generations

National Outcome 13: We take pride in a strong, fair and inclusive national identity

National Outcome 14: We reduce the local and global environmental impact of our consumption and production

National Outcome 15: Our public services are high quality, continually improving, efficient and responsive to local people’s needs

Ongoing development of the SOA

Governance

Performance management

Public reporting


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East Lothian Single Outcome Agreement

Purpose of the Agreement

The Single Outcome Agreement (SOA) signals the beginning of a new relationship between the Scottish Government and Local Government. The purpose of the Single Outcome Agreement is to identify areas for improvement and to deliver better outcomes for the people of East Lothian and Scotland, through specific commitments made by the Council and the Scottish Government.

Unlike many of the previous targets set for Local Authorities, the SOA focuses upon outcomes (i.e. the results for / impact on the community) rather than specific processes or initiatives. Fundamentally the SOA is an agreement between the Council and Scottish Government establishing what needs to be achieved, rather than how to achieve it.

The SOA is based upon commitments made in the Concordat between the Scottish Government and the Convention of Scottish Local Authorities (COSLA). The main principles of the Concordat include:

§  Shared outcomes

The Concordat contains the Scottish Government’s five Strategic Objectives and fifteen National Outcomes that form the National Performance Framework. The SOA will establish the specific contribution that the Council will make towards achieving the National Outcomes based on the circumstances of East Lothian. Should the principle of the SOA prove to be successful it will allow the Council more freedom in addressing local needs.

§  Mutual accountability and joint responsibility

Each party to the SOA is mutually accountable for the delivery of the agreed outcomes. Being mutually accountable means that each party will jointly take responsibility for their respective contributions to the agreed outcomes. Each party will also be able to hold each other to account for the delivery of specific commitments they make to enable the delivery of the agreed outcomes.

§  Reduced ring fencing

SOAs are supported by the consolidation of a number of previously ring-fenced revenue funding streams to Local Authorities. Reducing the amount of ring-fenced funding will allow the Council more freedom in determining how outcomes are achieved.

§  Reduced monitoring and reporting

The development of a new performance reporting system will replace the myriad of existing systems and provide regular, timely and transparent reporting to local communities and the Scottish Government. Self-assessment will be increased, which will lead to more focused and proportionate external scrutiny in accordance with the recommendations of the Crerar review of scrutiny.

§  Better partnership working

Subsequent versions of the SOA will cover all of the public sector organisations and Community Planning Partners in each Council area. Avoiding a proliferation of single-issue outcome agreements will help to ensure that all public sector organisations are trying to address the same limited number of outcomes.

Scope of the Agreement

This Agreement covers all local authority services in East Lothian, including those delivered by or with non departmental public bodies, agencies, businesses, the third sector and other partners. The current SOA does not include Community Planning Partners, although they will be included by 2009/10.

All of the Council’s services are incorporated within the SOA. The SOA also includes any Council services that are delivered by, or in partnership with, other organisations (for example the voluntary sector).

The SOA is based upon the Council’s Corporate Plan and the Community Plan. The Community Plan outlines the shared priorities of the public, private, voluntary and community sectors in East Lothian. Both the Corporate Plan and the Community Plan have recently been revised and reflect the main challenges faced by communities in East Lothian.

Parties to this Agreement confirm their commitment to fulfil legal and policy obligations upon them in relation to Community Planning, Best Value, equalities and sustainable development.


East Lothian area profile

East Lothian Council’s priorities are detailed in the Corporate Plan 2008-2012. The Core Priorities are:

§  Increase the supply of affordable housing

§  Keep our environment clean and green

§  Help build safer communities

§  Raise educational attainment

§  Encourage enterprise and skills

§  Promote healthy living and social care

The priorities of the Council reflect the social, environmental and economic circumstances of East Lothian. The main factors influencing the choice of these priorities are outlined below.

The main challenges for East Lothian

East Lothian offers a very appealing quality of life. From the numerous beaches to the fertile arable land and the Lammermuir Hills, East Lothian’s countryside is among the most attractive in Scotland. Sites of historic and cultural interest, renowned golf courses and opportunities for enjoying outdoor pursuits are abundant. Good transport links add to the attraction by offering residents and visitors easy access to employment and amenities in Edinburgh and central Scotland.

East Lothian’s location offers a natural advantage that the Council is keen to nurture and protect. Residents also enjoy comparatively low crime levels, better health, higher levels of income and higher qualifications than the average Scot. However, the desirability of East Lothian as a place to live brings with it a rapidly growing population. One of the key challenges for the Council is managing the increased demands on infrastructure and services brought by a growing population.

Population projections for Scotland as a whole forecast a growth in population of approximately 5% between 2006 and 2031. Over the same period the population of East Lothian is predicted to grow by around 21.2%. 15% of this growth is expected to be due to migration into the area rather than from natural change (i.e. births and deaths). East Lothian is predicted to have the third highest level of population growth in Scotland.

High population growth places extra demands upon infrastructure and housing. Scarcity of affordable housing is one of the most significant problems threatening sustainable growth in East Lothian. House prices are fuelled by the prosperity of Edinburgh and are the third highest among Scottish Local Authorities. Many people earning more modest incomes and working in key services or sectors cannot now afford housing. Such a scarcity of affordable housing has the potential to create labour market shortages, which reduces economic growth. High housing costs also increase debt and the burden on public services, being, for example, a major contributor to homelessness.


Much of East Lothian’s housing market is part of a wider area known as the ‘Edinburgh City Region’. The City Region reflects the reality that economic and functional linkages transcend Local Authority boundaries. Much of East Lothian’s growth and development in recent years can be understood in the context of the City Region and the success of Edinburgh’s economy. Indications of the area’s role within the City Region include the high proportion of the population that commute into Edinburgh for employment, the development of good east-west transport links and the proportion of the population concentrated in the west of the area.

While being part of a successful City Region undoubtedly confers benefits for East Lothian, it is not without problems. Becoming a dormitory for Edinburgh would jeopardise the viability of local services and reduce the vibrancy of East Lothian’s communities. Defining a role for East Lothian that both recognises the realities of the City Region and helps to diversify the local economy is vital for sustainable growth.

Jobs density is particularly low in East Lothian at 0.57 jobs for every person of working age compared to 0.84 for Scotland as a whole. Low jobs density is a reflection of the amount of people that commute to Edinburgh for employment. More than 40% of the people in western parts of the area commute out of East Lothian. There is huge unexploited potential of retaining many of the professionals who currently travel outside the County for work by providing quality office space in or near our town centres. This, in turn, will provide added revenues that can reverse declines in town centre retail business and move it further towards the kind of recreational / specialist shopping that characterises success.

Despite East Lothian’s overall prosperity, inequality remains a problem. The Scottish Index of Multiple Deprivation (SIMD) shows that East Lothian is one of the least deprived areas of Scotland although areas of Prestonpans and Tranent are within the most deprived 20% of data zones in Scotland. This inequality is borne out by measures relating to health, education and employment, which are also worse in these parts of the county than in other areas.

Inequality in health is created by a multiplicity of factors, but is strongly related to income and educational attainment within East Lothian. Access to services, information and resources need to be provided for people from lower income groups to allow them to live a healthy lifestyle. However, income is not the only dimension of inequality. Some inequality is related more to gender, sexuality and ethnicity, and services also need to think about how access by these groups can also be improved. Particular attention needs to be paid to ensuring that people living in less accessible parts of the area are not unduly disadvantaged by their circumstances.


Crime rates are generally low in East Lothian. However, incidents of crime and anti-social behaviour are more prevalent in the deprived areas and in our town centres. Crime, fear of crime and anti-social behaviour potentially undermines the community cohesion that is so important to quality of life in East Lothian. Creating safer communities will therefore remain a priority in spite of the relative safety of East Lothian in comparison to other areas.

Educational attainment and ensuring that all children have the best start in life underpins the achievement of all of our priorities. Although educational attainment is relatively good in East Lothian, inequalities still exist that closely reflect levels of deprivation. Differences also exist between the attainment of looked after children and others, which need to be reduced.

National Outcome 1 6

National Outcome 1: We live in a Scotland that is the most attractive place for doing business in Europe

Local Context

East Lothian’s economy displays some evidence of specialisation in construction; tourism; health and social work; community, social and personal services; and public administration and education. This mix of industry reflects the current role of East Lothian within the City Region, with many residents commuting to Edinburgh to work in knowledge based industries, banking and finance.
East Lothian offers an attractive quality of life and environment, and access to employment opportunities in a successful and dynamic city. Consequently the area’s ability to attract and retain talent is a notable strength. The success of the Region has lead to strong population growth over the past 20 years, and this is expected to continue. Population growth in East Lothian is projected to be 12% between 2002 and 2018 as opposed to a 2% drop for Scotland as a whole.
East Lothian benefits from its position in the City Region as the growth in short break city tourism has proven attractive to cash rich, time poor tourists. The close proximity of East Lothian’s coast and countryside also adds to the attractiveness of Edinburgh as a destination. However, we need to attract a greater share of this market. Development of tourism and businesses based on East Lothian’s environment, cultural assets, leisure and recreation is, therefore, one of the main ambitions for economic growth.
The effects of the City Region are not all beneficial. High levels of out-commuting mean that East Lothian has a low daytime population. The area is served by good east-west transport links including the A1 and the East Coast Mainline, which contribute to the high proportion of the population commuting into Edinburgh. Strong growth in the eastern sector of the district suggests that the commuter zone has expanded along the A1 and into rural areas. Despite good east-west transport links, East Lothian is not well served by north-south links.
Although commuting into Edinburgh helped to lessen the impact of industrial decline in the late 20th Century, it has also brought problems. Out commuting reduces the vibrancy of town centres and contributes to high levels of retail and service expenditure leakage. Over dependence on commuting strains the transport infrastructure and contributes to a weak local economy that has limited opportunities for lower skilled workers. Local businesses also struggle to compete with the wages on offer in Edinburgh. In order to mitigate these problems local job creation is one of the Council’s priorities.

Employment in East Lothian is dominated by small and micro-businesses; there are very few large employers, mostly in the public sector. The Council is encouraging small business growth as there is little appetite for large-scale economic development that might have a negative impact on quality of life and the environment. Productivity growth in small businesses across the UK has also exceeded that in large firms since 1998 and most small businesses have ambitions to grow (BERR ‘Enterprise: Unlocking the UK’s talent’).

Productivity in Scotland as a whole will benefit from an increase in the number of businesses and jobs in East Lothian. Encouraging small business in the area should also help to foster sustainable economic growth in the City Region, reducing demands upon infrastructure and providing a business environment that is not available in the city of Edinburgh. However, fears about the economic slowdown and the effects of the ‘credit crunch’ will need to be taken into account when setting targets to increase business growth.

Required actions / commitment by local partners for these outcomes
§  Develop Tourism with a greater focus on golf; wildlife; heritage & outdoor pursuits
§  Promote and facilitate professional small business within our town centres
§  Promote the marketing of East Lothian’s excellent natural produce locally
§  Develop specialist local retail initiatives
§  Increase the business start-up rate
§  Develop the East / Midlothian Chamber of Commerce
Scottish Government required action / commitment to support delivery of local outcome
More robust measures for tourist expenditure need to be developed. These measures should enable comparison between different Local Authority areas.

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