2020/21 BUSINESS PLAN - scottishfuturestrust.org.uk · this Plan and what must be reprioritised....

Scottish Futures Trust | 20/21 Business Plan 1

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Scottish Futures Trust | 20/21 Business Plan 2 Scottish Futures Trust | 20/21 Business Plan 1

Impact of Covid-19Contents

SFT’s Business Plan was developed by theteam and considered by SFT’s Board beforethe full implications of the response toCOVID-19 across the public sector, theeconomy and all of society had becomeclear in particular with the “stay at home”advice issued on 16 March 2020.

Things will clearly change for SFT, for all our partners across the public and privatesectors, and for infrastructure planning,investment, delivery and infrastructure use as a whole.

Since 16 March, SFT has been working on three phases of activity:

1. The immediate response to theemerging issues for our sector and stakeholders

2. Maintaining our medium and longer-term business as usual, and

3. Commencing planning for a speedyinfrastructure recovery

We expect to deepen our engagement with our partners on the second, and in particular the third of these phases.

SFT is a resilient organisation and isfunctioning well with all staff working fromhome. We are able to continue to functionin a way that allows us to carry out ourbusiness as usual, while planning activitiesfor a speedy and ambitious infrastructurerecovery.

Given that the current high level ofuncertainty is set to persist for some time,we have decided to publish this BusinessPlan without specific workstream objectivesas some, but not all, will not be relevant,and some, but not all, of the approacheswe take will have to be reconsidered.

The SFT team will continue to work withkey stakeholders and partners to determinewhat planned business activity can be takenforward under the work streams set out inthis Plan and what must be reprioritised.

Front cover picture: Scotland’s first 4G infill mast in Strathconon in the Highlands

Impact of Covid-19 1

Introduction 2

Operating Context 5

Corporate Approach 10

Business Areas 16

Infrastructure Finance and Programmes 18

Development and Housing 21

Management and Investments 24

Construction Industry and Delivery 25

Infrastructure Commission for Scotland 30

Corporate Governance and Budget 32

Leadership Team


Introduction

Infrastructure connects peopleboth physically and digitally to their communities and toeconomic opportunities; it dealswith the energy, water and wasteneeds of daily life, and it keepsfamilies and public services safe,warm and dry in homes andpublic buildings. Increasinglyinfrastructure is also seen toencompass the natural assets of the green and blue spacesaround us which contribute somuch to the quality of our lives.High-quality infrastructure istherefore the underpinningelement of an inclusive Scotland,with a flourishing economy,vibrant places and a sustainableenvironment.

This, along with the direct economicbenefits from the jobs in asset constructionand maintenance, and the investmentunlocked through infrastructure financingand delivery, has been the case for morethan the decade that the Scottish FuturesTrust (SFT) has been at the forefront ofimproving public sector infrastructure across Scotland after being established by Scottish Government.

The past year has however been a momentous one for infrastructure. In October 2019, Scottish Government’sClimate Change (Emissions ReductionTargets) (Scotland) Act 2019 received RoyalAscent compelling Scotland to reach a net-zero emissions goal by 2045. This builton the Committee on Climate Change’sReport published only in May 2019. Withinfrastructure and the built environmentcontributing upwards of 70% of Scotland’sCO2 emissions and being responsible forprotecting the fabric of communities fromthe elements, it is clear that our sector must be at the forefront of both mitigation(reducing net emissions) and adaptation(dealing with climate change consequences)actions.

Infrastructure is a long game, so theplanning and implementation of ScottishGovernment’s response to the climateemergency will be a 25-year mission;accelerating, refreshing and building

on work which has already, in some cases,been decades in the making. It will beundertaken in an era of unprecedenteddigital advancement of all industries,requiring increasing connectivity, and with care to both maximise for Scotland the economic benefits which it presents;and, with all people and places in mind, to create a just transition to a net-zerocarbon economy.

In this context, the InfrastructureCommission for Scotland has set a 30-yearvision for infrastructure in its Phase 1 Reportand in the coming year the ScottishGovernment will publish its InfrastructureInvestment Plan. This sets 2020-21 as a year of change.

This Business Plan sets out a bold andambitious course for how we will use SFT’sskills and resources as an infrastructurecentre of expertise in this year of change.This year in particular we will continue towork on the plans to make decarbonisingScotland’s infrastructure and builtenvironment an investable propositionwhilst moving towards delivery of net-zeroready public buildings. We will work withpartners to enable digital connectivity bothnationally and internationally. With industry,we will take action to improve commercialrelationships and the quality of the productand, with all our partners, we will deliverimproved outcomes through digitalisation

of the whole infrastructure life cycle, and sustainable investment in places across Scotland through a focus onunlocking strategic commercial andresidential opportunities.

We have a great team and have establishedclose working relationships with ournumerous public and private sector partnersbuilt up over many years. With theseresources we are well placed to progress the corporate objectives we have agreedwith Ministers, working towards our visionof ‘World-class infrastructure for thepeople of Scotland’ and in support of the national outcomes which describe thekind of Scotland we all wish to create.

Peter ReekieChief Executive, Scottish Futures Trust


Operating Context

Importance of Infrastructure

The importance of infrastructure isrecognised by Scottish Governmentthrough the National InfrastructureMission to increase Scotland’s annualinfrastructure investment until it is £1.5 billion higher by 2025 than it wasin 2019-20. During 2020, ScottishGovernment will publish the ClimateAction Plan as well as the nextInfrastructure Investment Plan andCapital Spending Review focusing onthree core, long-term outcomes ofinclusive economic growth, tackling the global climate emergency, andbuilding sustainable places.

The context in which infrastructureprioritisation decisions are taken, andassets are funded, financed, delivered,maintained and operated is everchanging. It is SFT’s job to evaluate andtake account of these diverse globaland local forces in our work with publicand private sector organisations acrossinfrastructure sectors and phases ofasset life cycles.

Key elements of the operating context forthis Business Plan are:

Infrastructure Commission for Scotland

In 2019, the Scottish Governmentestablished the Infrastructure Commissionfor Scotland (ICS) to provide Ministers withindependent, informed advice on a long-term infrastructure strategy to meet thecountry’s future economic growth andsocietal needs.

Published in January 2020, the ICS’ Phase 1:Key Findings Report - A blueprint forScotland sets out eight overarchinginfrastructure themes and 23 specificrecommendations for Scottish Governmentto consider. In advance of the Government’sresponse, SFT has sought to take account ofthe recommendations as appropriate in thisBusiness Plan.

The ICS will publish a final report during2020, making recommendations toMinisters on the future delivery ofinfrastructure across Scotland. SFT willcontribute to this second phase of ICS’swork as requested and be prepared to flex during the year to adapt to itsrecommendations.


www.robertson.co.uk/project/bertha-park-high-school

Overarching Considerations

In defining the future investment prioritiesand the nature of the investments whichwill need to be made, consideration will begiven to:

> Climate change: In October 2019,Scottish Government’s Climate Change(Emissions Reduction Targets) (Scotland)Act was passed with Scotland adoptingan ambitious path to net-zero carbon by 2045.

Responding to this ambition requireschange across all classes ofinfrastructure, and all phases frominvestment prioritisation, throughdelivery and in particular in the adaptionand management of the assets wealready have, which represent up to80% of those we will have in 2045. The need for infrastructure not only to be net zero but also to provideresilience in the face of changingclimatic conditions will be at theforefront of infrastructure design anddelivery. SFT will support the delivery of net-zero in all that it does and isworking on a number of specificinitiatives such as the Green GrowthAccelerator and piloting approaches todeliver net zero carbon public buildings.

> Place: The importance of place inpeople’s lives and the need forinfrastructure to meet the needs of boththe local population and businesses hasbeen at the forefront of recent policydevelopments. It is on that basis, thatthe Scottish Government and COSLAadopted the Place Principle in 2019.Within a place, public infrastructure(buildings and land) can be used in amore joined-up, collaborative way with a participative approach to servicedelivery across all sectors. This enablesbetter outcomes for people who livethere and increased opportunities forpeople and communities to shape theirown lives. This is a key theme within theICS report and reflected across SFT’swork programmes.

> Inclusive economic growth:Designing infrastructure programmes to maximise the economic impact forScotland both during their developmentand in use is a key tenet of our work.Doing so in a manner which addressesinequality and promotes an inclusivesociety can be seen across Scottishinfrastructure programmes.

A key facilitator will be SFT’s work ondigital connectivity, both in boosting the infrastructure to support 4G and 5Gand in considering how interconnectedScotland is to the UK and the rest of the

world, with predictions that if Scotlandcapitalises on the 4G and 5Gopportunities by 2035, its GDP willincrease by £17bn.

> Demographic Change: Scotland’spopulation is at a record high of 5.44m.It is growing slowly, driven by migrationand ageing with the percentage of 65year olds and over, up from 14% to19% between 1983 and 2018. Thatage group is projected to reach onequarter of Scotland’s population by2038. The population is also movingwith 14 of Scotland’s council areas(mostly rural, island and in the west ofScotland) experiencing depopulation.Deprivation has a significant effect withthose from the 10% least deprivedareas spending 23 more years in good health than those in the mostdeprived 10%.

These changes are affecting whatinfrastructure we need and where we need it. Housing and socialinfrastructure provision for an ageingpopulation creates different needs andeconomic infrastructure is under greaterpressure where populations are rising. It can also improve connectivity to helpretain sustainable populations in thoseareas experiencing depopulation.

> Data analytics: The availability of data and technology to transform our planning, design, delivery andoperation of infrastructure will betransformational. Data helps inform the need and specification of buildings;it is seen as a key driver to bothoperational efficiency1 and also todesigning resilient, net zero carbonbuildings. Approaches to BuildingInformation Modelling and whole-lifecosting platforms continue to evolve,contributing to a productive, successful,Scottish construction industry. The path towards digital twins, wheremaintenance and use data collected by physical assets feeds back into digital models of single assets, networks and places is emerging.

This interaction between the physicaland the digital, which SFT is workingwith partners to progress, is seen bymany as having the potential totransform infrastructure outcomes forthe economy, society and environment.

1 KPMG Emerging Trends In Infrastructure, 2019


> Construction industry: The advent of new digital technologies andmanufacturing techniques aredramatically contributing towardsmodernising Scotland’s design,construction and related industries,improving productivity, quality and the speed of delivery while impactingpositively on resource efficiency and the circular economy. Not all thesetechnologies are right for allcircumstances and there is also a need for many smaller projects andprogrammes to meet net-zero targetswhich will require traditional skillsadapted in new ways to transformexisting assets. Many of these changeswill require investment, and newcommercial models which SFT will work with the industry and its publicsector clients to deliver.

The ultimate aim is for a vibrant,innovative and digitally-enabledconstruction and related industriesoffering fair work and with increasedproductivity delivering, maintaining and adapting a well-designed, high-quality built environment for a net zero Scotland.

In addition to these longer-termconsiderations, SFT and its partners mustcontinue to be responsive to current events.The full implications of Brexit after theimplementation period comes to an end,and the emerging international and theconsequences of COVID-19 will haveimplications for infrastructure planning,delivery and use. We will work withpartners to minimise negative impacts andmaintain progress with priority activities.

It is within this evolving landscape that our2020-21 Business Plan has been developed.


OUR VISION AND VALUES

In delivering our infrastructure programmes, our work is underpinned by a strong and aspirational vision; one that is shared among

all employees across the organisation:


OUR AIM

Our aim has remained the same since the day we first started. It is:

Corporate Approach

Bold

Believing in whatwe do, with

commitment andcourage to enable

successfuloutcomes

Collaborative

Sharingknowledge,

experience andworking in

partnerships toachieve more for

Scotland’scommunities

Dynamic

Acceleratingpositive outcomes

by promotinginnovation and

being a catalyst forchange

Ambitious

Striving to exceland inspire by

raising expectations

‘World-class infrastructure for the people of Scotland’

Working towards that vision our employees share four strong values:

In order to deliver the aim, SFT works between policy and deliveryacross all sectors, geographies and stages of infrastructure life-cycle,

collaborating with Scotland’s public and private sectors to:

Plan

asset investment and managementeffectively across

sectors and places– doing the right

thing

Innovate

in approaches tofunding, financing

and delivery –maximising the

things we can do

Deliver

projects andprogrammes todrive life-cycle

value and vibrantconstruction and

related industries –doing things well

Manage

existing assets,estates andcontracts

productively –making the mostof the things we

have

“to improve the efficiency and effectiveness of infrastructure investment and use in Scotland by

working collaboratively with public bodies and industry,leading to better value for money and ultimately

improved public services.”


Our Team

Our success lies with the professionals weemploy. Recruited from both the public and private sectors, we have been able to attract, develop and retain the finesttalent from the infrastructure world.

The strength of the organisation lies inbringing together a mix of skillsets all underone roof. We have architects, surveyors, low carbon and telecoms specialists,designers, economists, engineers,accountants, lawyers, project managers,commercial property professionals andfinanciers, all of whom innovate and deliversignificant infrastructure programmes acrossScotland. Their leadership, expertise anddetermination has been instrumental inhelping many public bodies achieve theirown objectives. They are ably supported by our highly skilled corporate services and business support teams who providethe backbone of the company.

Our Corporate Outcomes

In 2018, Scottish Government published its updated ten-year National PerformanceFramework (NPF) setting out a series oflong-term outcomes with the aim ofcreating a more successful country withopportunities for everyone to flourishthrough increased wellbeing andsustainable, inclusive economic growth.

Infrastructure has a key role in facilitatingthese outcomes and in particular addressingthe climate emergency announced in 2019. Our corporate plan identified teninfrastructure outcomes that further thegoals of the NPF and to where all ourbusiness is focussed. These are:

1. We have a clear picture of Scotland’sfuture economic and socialinfrastructure needs

2. There is improved coherence, pace and placemaking across major private,commercial, industrial and housingdevelopment

3. Infrastructure investment is sustainableand affordable with an increased use of innovative funding and financingapproaches

4. Internationally mobile capital is drawn in to invest in projects and places across Scotland

5. Programme and project procurementand delivery are effective, with highlyskilled teams deployed where they areneeded

6. We have a vibrant, innovativeconstruction industry with increasedproductivity delivering well designed,high-quality products and fair work

7. Public asset condition and performanceis improved through more effectivewhole estate management andmaintenance

8. The public asset portfolio is effectiveand place-based, driving collaborativeservice transformation withunderutilised public assets re-deployedto meet other policy objectives ordivested to stimulate economic activity

9. We have innovative technology-enabledconstruction, asset management andusage optimisation at a place, portfolio,and network level as well as forindividual assets

10. Infrastructure-related carbon dioxideand other greenhouse gas emissions are reduced, supporting Scotland’stransition to a low carbon economy


Our Impact

For more than ten years, we and our manypublic and private sector partners havemanaged and delivered impactfulinfrastructure programmes right acrossScotland. For each of our first 10 years of operation, we published an annualsavings and benefits figure to reflect theimpact that work has had. Cumulatively,that figure stands at £1.36bn.

It is widely recognised that this approachdoes not fully capture or represent the

SFT Vision SFT Outcomes SFT Business Areas

PrimaryNational Performance

Framework LinkSecondary National

Performance Framework Link

1. Clear picture of future infrastructure needs Secretariat to Infrastructure Commission of Scotland

Economy

Communities

Health

Education

Culture

2. Improved coherence, pace & placemaking across majordevelopment

Development & Housing

3. Infrastructure investment is affordable with increased financinginnovation

Infrastructure Financing & Programmes

4. Programme and project procurement and delivery is effective Construction Industry & DeliveryManagement & InvestmentsInfrastructure Financing & Programmes

5. Public asset condition and performance is improved Development & HousingInfrastructure Financing & ProgrammesManagement & Investments

6. Effective public assets driving transformation or re-deployed

Development & Housing

7. Technology-enabled construction, asset management and usageoptimisation

Construction Industry & Delivery

8. Internationally mobile capital is drawn in to invest Infrastructure Financing & Programmes International

Economy9. Innovative construction industry with increased productivity,

quality & fair workConstruction Industry & DeliveryInfrastructure FInance & Programmes Fair Work & Business

10. Infrastructure-related carbon dioxide emissions are reduced Infrastructure Finance & ProgrammesManagement & Investments EnvironmentW

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Infr

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Table illustrating where the workstreams/business focus aligns with SFT’s ten corporate outcomes and the National Performance Framework

Our Strategic Priorities

In support of these outcomes, we havedeveloped three strategic priorities for2020-21 that resonate across the whole of our business, and are as follows:

> Reducing infrastructure-related CO2 emissions

> Seeking opportunities to deliveradditional investment through financing innovation, and drawing in internationally mobile capital

> Develop and deliver opportunities,selected for their potential contributionto reducing emissions, inclusive growthand progressed using a place-basedapproach

We also expect to be working closely across the organisation with ScottishGovernment on the development of the next Infrastructure Investment Plan and implementation of the InfrastructureCommission for Scotland recommendations.

widespread benefits being delivered by usand our many partners, captured within the infrastructure related outcomes notedabove. For the duration of the 2019-2024corporate plan, we set out a new approachto recognise the positive impact our actionsand infrastructure programmes have had across Scotland. Each year we will publish an updated report outlining theperformance, with specific examples ofwhere our interventions and actions havehad the greatest impact in delivering theabove outcomes.


Our core business is structured around fourkey business areas with a fifth area relatingto secretariat support for the InfrastructureCommission for Scotland due to becompleted during the summer. The business areas are as follows:

> Infrastructure Finance and Programmes

> Development and Housing

> Management and Investments

> Construction Industry and Delivery

> Infrastructure Commission for Scotland

Having these distinct business areas allows us to improve collaborative workingacross the organisation to secure positiveoutcomes across sectors, while maintainingstrong stakeholder relationships andincreasing the value brought throughcontinuity of the specialist knowledgewhich individuals have built up.

Business Areas


We are working on deliveringand managing a wide range of infrastructure and financeprogrammes that supportScottish Government’s NationalInfrastructure Mission and can inform policy ambitionsfor decarbonisation andinclusive growth.

Infrastructure Finance and Programmes

Scottish Government’s commitment tosignificantly increase annual infrastructureinvestment by £1.56bn by 2025/26 throughits National Infrastructure Mission underpinsthe activities across our InfrastructureFinance and Programmes business area. The global climate emergency; boostingconnectivity; supporting the inclusivegrowth agenda and seeking opportunitiesto draw in additional investment throughfinancing innovation, all drive our BusinessPlan for the year ahead.

Using our technical expertise and deliveryfocus, we will continue to work with our public sector partners, investors andindustry to inform strategy and policy; plan,innovate and structure programmes andprojects; and facilitate the delivery of them.The Infrastructure Finance and Programmesteam therefore, supports new investment in low carbon initiatives, the learning estate and digital areas.

Low Carbon Infrastructure

Scottish Government’s Programme forGovernment clearly sets out its commitmentto raising the country’s decarbonisationambition in light of the climate emergencywe face. We will continue our work indriving change focusing on some of the keyareas where we can make a real difference.

For example, prioritising our work on energyefficiency and heat decarbonisation (bothnew build and retrofit).

Recognising the importance of tackling heatdecarbonisation in conjunction with surfacetransport, we will continue to work closelywith Transport Scotland on future deliveryoptions for electric vehicle charginginfrastructure. One way we will facilitatechange at scale is through our work withothers, developing delivery models tosupport the demonstration, deployment and commercialisation of low carboninfrastructure.

Learning Estate Infrastructure

Following the launch of the Learning Estate Strategy and Scottish Government’scommitment to invest £1bn in the learningestate, SFT, as programme manager isworking with partners in central and localgovernment to progress a new outcomesfunding model and support the projects inPhase 1 of the Learning Estate InvestmentProgramme.

As well as improving the condition andsuitability of the estate, programme fundingis linked to achieving ambitiously lowenergy use targets in the new buildings for an energy efficient estate; digitallyenabling the estate; and supporting localeconomic growth.

Digital Infrastructure

The government agendas of climateemergency, inclusive growth and sustainableplaces provide the strategic focus for ourdigital workstream where our work willcontinue on supporting future-proofed 4G and 5G mobile infrastructure, multi-sector collaboration, project delivery andknowledge sharing supported by the new Scotland 5G Centre.

We will work with Scottish Government on its approach to strategy and policydevelopment with the datacentre andinternational connectivity industry toencourage new investment in sustainableScottish data hosting facilities that unlockseconomic growth and supports wider digitalobjectives such as 5G, the internet of thingsand artificial intelligence.

Mutual Investment Model

Scottish Government has a range ofinfrastructure investment delivery models atits disposal. Following our work last year toassess options for revenue funded deliveryroutes, Scottish Government has includedthe Mutual Investment Model (MIM) as apart of the range of its investment tools.Central government procuring bodies areconsidering the potential to use MIM todeliver their infrastructure priorities.


We are working to attractinward economic investmentinto Scotland’s towns, citiesand communities that willdeliver housing, improve public service delivery,economic benefits andcontribute to Scotland’s net zero carbon target.

The Development and Housing team works across the public sector supportingthe development of new homes, economicinvestment, the effective use of the publicestate and the disposal of public sites. The team assists in the development ofinfrastructure while also contributing to the place, net zero carbon and inclusivegrowth agendas. The work of the team for 2020-21 is outlined below.

Developmentand Housing

Housing

In the year ahead the team will continue to support Scottish Government in itscommitment to deliver 50,000 affordablehomes by March 2021. We will do this by working with our partners to deliverhomes through ‘Edinburgh Living’ and the ‘National Housing Trust’ (NHT) and by working hard to retain homes due to exit the NHT programme for long-term affordable rent.

Given the wider context of ScottishGovernment establishing a new vision for housing to 2040, we will develop newways of delivering housing across Scotland.As well as creating a new approach tofinancing the construction of low carbonhomes for mid-market rent, we will developinnovative approaches to unlocking stalledsites, enabling investment in housing, bothon a strategic scale and within small towns.

To address the challenges of escalatingconstruction costs, skills shortages and theneed for improved energy efficiency, we will work with the Scottish Government,local authorities and industry to identifybusiness models that could promote themainstreaming of off-site construction for the delivery of affordable homes inScotland. This will drive investment in thesector, deliver value for money and helpdecarbonise housing development.


Economic Investment

This year the team’s focus will be to supportScottish Government and local authorities in developing and delivering the GreenGrowth Accelerator programme and tosupport them in delivering other majorinvestments that will boost regionaleconomies and the Scottish economy as a whole. In this work we will prioritisethe climate response and the practice ofadopting the Place Principle to ensure these investments drive inclusive growth.

Asset Strategy

The team is working across the public sector promoting how a collaborativeapproach to service delivery can supportdelivering climate and economic benefits.This will be achieved by applying ScottishGovernment’s Place Principle to delivereffective public assets and drivingtransformation across the sector.

This year will also see us building on ourearlier role in helping to develop a CentralEstate Strategy by working directly withScottish Government and other publicbodies to support and guide theseorganisations towards improved outcomes through a more effective use and management of their assets.

Land

In the year ahead our work will focus on the effective use of the public assetportfolio – divesting underutilised propertiesto stimulate economic activity and, in someinstances, redeploying assets to meet otherpolicy objectives.

We will build on established relationshipswith partners including the NHS, the furthereducation sector and Police Scotland andengage with potential new partners aroundemerging pipelines of future asset disposals.In support of the economic investmentagenda, we will use our commercialexpertise to work with public and privatesector partners to help deliver significantland or property development projects,releasing land for inward investment inboth, the commercial and residentialsectors.


We are working to maximisethe benefits of the public sectorbuildings we have invested into ensure they are maintainedproperly and are being usedeffectively across differentpublic sector organisations.

Within Management and Investments, the team is focussed on OperationalContract Management; the delivery of thehub programme as well as management of SFTi’s investment portfolio. Further detailsof the activities of each of these teamsduring 2020-21 are provided below.

Operational Contract Management

Across Scotland there are over £6bn ofassets delivered and managed throughpublic private partnerships including the SFT managed hub and Non-ProfitDistributing programmes, as well as legacy Private Finance Initiative deals.

The Management and Investments team works across Scotland to supportpublic bodies manage complex contractarrangements thereby ensuring the servicesthe public bodies receive meet the requiredstandards and support an efficient andeffective estate. We work alongside HealthFacilities Scotland and seven regional groups

to share best practice and provide specificsupport on complex issues such asvariations, commercial negotiations and end of concession arrangements.

hub

The hub programme celebrates its 10thanniversary in 2020 and over that time hasdelivered £2.2bn of operational projectswith a further £0.6bn in construction and£0.5bn in development. Completed projectsinclude a diverse range of communityinfrastructure ranging from health centres to schools and pharmaceutical services to council headquarters.

The hub programme is delivered throughfive hub companies (hubCos) which are jointly owned by our private sectorparticipants, Scottish Futures Trustinvestments (SFTi) and public sectorpartners. Our hub team works with thepublic sector and the hubCos to facilitatejoint planning and the successfulcompletion of their projects.

SFT investments

The hub programme has delivered 41revenue-funded projects which SFTi has invested in alongside the procuringauthorities and private sector participants.SFTi earns interest from these investmentswith the performance being managed by a SFTi nominated director.

We are working across thepublic sector and with industryto support the achievement of improved outcomes for theconstruction industry as a keypart of Scotland’s economy,and an improved product overthe whole asset life cycle for public sector customers.This work will focus on thefollowing outcomes andcontribute to the delivery of an inclusive net zero carbon economy.

The team is seeking to progress:

> Programme and project delivery by theScottish public sector, which is efficientand effective, and outcomes focused,with highly skilled teams deployedwhere they are needed

> A vibrant, innovative, and digitallyenabled construction and relatedindustries offering fair work and with increased productivity delivering,maintaining, and adapting a well-designed, high-quality builtenvironment for a net zero Scotland

> Improved transparency, quality, and safety

The team is working at a national level, aswell as with individual organisations, acrosssectors, and with programmes, and locallywith projects, to progress these ambitions.This involves working with the constructionindustry, other private sector interests,Scottish Government, and public bodies.And we engage at UK level andinternationally to share and learn innovation and practice.

Our engagement with the constructionindustry includes involvement on theConstruction Leadership Forum, and itsfocus groups, working on activities withindustry trade bodies, professional bodies,and industry innovation centres, andcontinual liaison with other keyorganisations, and individuals.

The profile of our activities ranges acrossthe planning, development, procurement,and construction of public sectorinfrastructure focusing on improvingperformance. And we will continue todevelop and implement programmes,projects, and activities with partners that assemble and define the agenda forchange, develop new tools, techniques,processes and systems, lead and enablechange to happen on the ground, drive a whole life approach, and share learning.

Management and Investments Construction Industry and Delivery


Improving Construction Delivery

Two areas of focus in our improvingconstruction delivery workstream whichattract a lot of attention are the provision of project development support and,supporting the improvement ofconstruction quality.

The purpose of working in partnership withpublic bodies during project development, is to support the development of the rightproject and help them with setting projectsup for success. It is at the early stages of aproject where the opportunity to add valueand understand key strategic risks is thegreatest. And we seek to help public bodiesfind the best possible approaches andsolutions for designing, building, financing,procuring, operating and management. It provides support which encourages taking an outcomes focused approach,whole-life planning, making best use ofexisting resources, community involvement,comprehensive appraisals and impact

assessments for projects and independentassurance and validation

The role also adds significant value whenSFT is acting as an independent broker and helping facilitate joined-up planning of social infrastructure and cross bodyapproaches to project formation and delivery.

The work continuing with improvingconstruction quality includes supportingindividual organisations and their projectsand with a wide spectrum of industry andpublic sector representatives, developing asector wide initiative for improvement. Thisis significant piece of work and during thecoming year is intended to take a stepforward.

New areas are also in development and thisyear will see further activity on exploringopportunities in Scotland through demandled innovation for pre-manufacture andsupply chain development.


Infrastructure Technology

Our leading-edge infrastructure technologyactivity continues to grow, supporting asset performance in infrastructure, and increasingly, connecting with widerbuilt environment opportunities.

We continue to provide leadership inBuilding Information Modelling (BIM) across the public sector in Scotland. A newStandard Information Management Plan isin development to support adoption andupskilling and creating a renewed approachto information management. This includessupporting improved performance throughthe asset operational stage by way of a newformat for digital operation andmaintenance information.

We will continue to support innovative use cases in the application of data andtechnology to support the improvedperformance of our assets and constructionindustry. We are for example, working withpartners to showcase the value of digitalmodels in the education and arts andculture sectors. This learning will becaptured and shared through ourInfrastructure Technology Navigator.

The use of 3D models is evolving and bylinking them to live real world data willenhance insight and value. This concept ofthe Digital Twin will be developed throughresearch, engagement with industrypartners and demonstrator projects.

We are also leading on behalf of ScottishGovernment a new research initiative intoinnovative technologies to support theplanning system.


The Infrastructure Commission for Scotland(ICS) was established by Scottish Ministersin early 2019 to provide independent,informed advice to Scottish Government on the vision, ambition and priorities for a 30-year infrastructure strategy to meetScotland’s future economic growth and societal needs.

The ICS’ Phase 1: Key Findings Report - A blueprint for Scotland was published in January 2020 and sets out eightoverarching infrastructure themes and 23 specific recommendations for ScottishGovernment to consider. During thiscoming year, the ICS will provide guidanceto Scottish Government on how best toconsider the 23 recommendations.

In addition, the ICS will publish a finalreport during 2020-21, makingrecommendations to Ministers on the future delivery of infrastructure acrossScotland, including the possible creation of a Scottish infrastructure company.

Infrastructure Commission for Scotland


Leadership Team

P E T E R R E E K I E

Chief [email protected]

C H R I S TA R E E K I E

Director, Development and [email protected]

C O L I N P R O C T O R

Director, Construction Industry and [email protected]

K E R RY A L E X A N D E R

Director, Infrastructure Finance and [email protected]

CAROLINE WHYTESIDE

Corporate Services [email protected]

T O N Y R O S E

Director, Infrastructure [email protected]

V I V I E N N E C O C K B U R N

Director, Management and [email protected]

Operationally, SFT is managed and led by a seven-strong Leadership Team:

Infrastructure Finance and Programmes£3.9 million

Development and Housing£2.9 million

Management and Investments £1.95 million

Construction Industry and Delivery £1.1 million

Infrastructure Commission for Scotland £0.25 million

Scottish Government Core Grant£4.1 million

Scottish Government Programme Grant£4.6 million

Net Investment Income£1.2 million

Other income£0.2 million

The budget split across our fivebusiness areas is:

Our operational budget for 2020-21 is £10.1mand comes from the following sources:

Our Board

Our Board is chaired by Ian Russell, and together with five experienced non-executive directors as well as our chiefexecutive, leads the organisation in theachievement of its aim, while maintaining a clear focus on supporting long-terminclusive and sustainable economic growth.

Corporate Governance and Budget

Our sole shareholder is the ScottishMinisters and our activity is overseen by the Cabinet Secretary for Finance.


Scottish Futures Trust1st Floor, 11-15 Thistle Street, Edinburgh EH2 1DF

www.scottishfuturestrust.org.uk

@ SFT_Scotland

2020/21 BUSINESS PLAN - scottishfuturestrust.org.uk · this Plan and what must be reprioritised....

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Transcript of 2020/21 BUSINESS PLAN - scottishfuturestrust.org.uk · this Plan and what must be reprioritised....