THE Scottish Government must “renew itself to remain relevant”, a think tank claims – and the group says it has the six policies that can overturn “discontent about the risk of stagnation and a perceived lack of ambition”.

In the preview to its new Renew report, which is revealed today exclusively in The National, the Common Weal think tank says the SNP administration was elected “in a swell of optimism” but questions are now arising over its abilities and agenda.

The paper cites the results of last week’s General Election as evidence, in which the first minister’s party lost 21 Westminster seats after a hurried campaign that saw opponents focus on devolved issues like education.

It is also backed by key party figures including Inverclyde MP Ronnie Cowan and one-time deputy leader candidate Tommy Sheppard, as well as party veteran Jim Sillars and former health secretary Alex Neil, who said: “I am delighted at Common Weal is bringing forward these new ideas, which are badly needed to invigorate the debate about the way forward for Scotland. We cannot rest on our laurels as a government.

“We must keep driving forward economic and social change in Scotland. These proposals are exciting and imaginative and should be given serious consideration.”

Suggestions include using scrapping the proposed air passenger duty cut and using that money – around £150 million – to expand and improve nursery and childcare provision, as well as setting a property tax at 4p in the pound to raise £500m a year.

The paper also suggests establishing a Scottish National Investment Bank and using it to finance an era of “green reindustrialisation”, with a focus on renewable energy.

The introduction states: “The Scottish Government has been in power for ten years. It has also just faced an election in which there were some clear signs of discontent about the risk of stagnation and a perceived lack of ambition. All governments must renew themselves if they wish to remain relevant. The Scottish Government is no exception.

“It swept to power in a swell of optimism and has, until now, strengthened and consolidated its position by continuing to talk the language of hope and progress. However, people may be beginning to question whether there has been sufficient progress to sustain their hope.

“The Scottish Government requires an eye-catching refreshed agenda to persuade them that their hope remains well placed.”

Scottish Independence Convention co-convenor Elaine C Smith said there was no point in tweaking the system when you can take real steps to change it.

She said: “It’s refreshing to see the momentum building for these ideas which could visibly transform Scotland and they’re things we can start working on right now.”

Now in its third term, the SNP administration holds 63 Holyrood seats to 31 Tory MSPs and 24 Labour members after capturing more than 1 million constituency votes – something never achieved by any party before.

However, Rory Steel, vice convener of the party’s youth wing, said: “It is vital now that the SNP reinvigorates the passions of the independence movement through a set of bold new policies.”

Cowan said: “I believe more than ever that we must define the Scotland we want to be part of. If we can share not just a vision but the practical steps to achieve our common goal then it is my view that the citizens of Scotland would rally round it.

“All organisations, political or not, that have a valid input must be encouraged to engage in the democratic process and their input must be heard, respected and when appropriate acted upon.”

Responding, the Scottish Government said it shares its ambitions on housing and education, adding that a £1.7 billion investment in new homes was announced this week.

Hailing improvements in crime, health and employment, the statement said: “We recognise that there is much yet to do and we will always consider contributions to the debate about the best ways to make Scotland fairer, safer, and more prosperous society than ever before.”

Half a dozen CW ideas to revitalise the Scottish Government’s agenda

1 CREATE a publicly-owned Scottish National Investment Bank to fund housebuilding, schools, hospitals and boost renewables. The report says this, worked out with help from the New Economics Foundation, “can form the core of a strategy to reindustrialise” the country. It goes on: “People want to believe that Scotland can create and sustain a high-skill, high-productivity, high-pay economy, but live within a dominant UK economy which is moving in the opposite direction.

“Scotland needs to break the low investment, low productivity cycle.”

2 BUILD more quality housing, increase opportunities for self-building and cooperative and collective ownership and reverse town centre decline. The report states: “Few things touch people’s lives more than the houses they live in, the infrastructure they rely on and the centres of community of which they are part. When people feel that progress is being made on these issues, they feel like progress is being made in improving their lives and the state of their nation.”

It goes on: “People will not reward governments who preside over the decline of the towns in which they live and will seek out those who offer alternatives. Managed decline is not an option.”

3 AXE the plan to scrap Air Passenger Duty to free up £150 million a year to improve and expand nursery care, with a child development curriculum based around play.

The report says too many people fear the Scottish Government’s plans in this area, which includes more provision for two-year-olds, are under-funded. Meanwhile, it calls for a Swedish-style system using highly qualified staff and the availability of more wrap-around care options for working parents.

It states that the funding gap for this “is not enormous and it could be bridged if the Scottish Government rethought the ill-considered subsidy to the airline industry which the Air Passenger Duty reduction represents.”

4 TAKE democracy “seriously” by designing a new local governance system and establishing a commission on the creation of a new second Holyrood chamber staffed by citizens.

Calling for MSPs to “set a goal of making Scottish citizens the most powerful citizens in the world”, the report says: “Scotland has arguably the most centralised and unresponsive system of local government in the developed world.

“People want to believe that their view matters and that their country is run with their consent. A government which redistributes power and sends out the message that it is interested in its citizens will generate trust and respect.”

5 SEND out “the right signals” by banning fracking, reversing education reforms, investing in arts and culture and progressing land reform.

This sections calls for a full review of the implementation of the Curriculum for Excellence, which it says has led to “clutter and confusion”, and increases of key staff in libraries and IT support.

It goes on: “Land reform may not be an issue which is prominent enough for enough people to be one of the big agenda-setting programmes for government, but it matters to a lot of people.”

6 EMBRACE local tax reform for revenue raising and redistribution by replacing the council tax with a property charge that also covers land values to raise more funds but still “leave 75 per cent of households better off”.

This, it is argued, should be phased in, with the report explaining: “This policy would... fix an unfair system and send out the message that the Scottish Government is willing to act against austerity and underinvestment. It would raise substantial sums to invest in education and other priorities.