Meeting of the Parliament 25 September 2025
I need to make some progress, but thank you.
At its core, the bill intends to make impactful changes to ensure that funding goes directly to where it matters most, supporting the skills, services and innovation that our economy needs to thrive. The bill is, of course, founded on evidence from James Withers’s review, and from Audit Scotland’s 2022 report. The Withers review was informed by extensive engagement with stakeholders, and it made a compelling case for change. That case for change has directly shaped the bill.
As a Government, we have kept engagement at the heart of developing the bill and, as I say, I intend to continue that proactively. Over the summer, ministers were out and about speaking to partners about the bill and how it can be shaped by those who know the system best, including a range of trade union organisations, business organisations and others who work in the economy. We have listened to their views on how we can make the most of this opportunity, and I am grateful that two of those organisations—the Federation of Small Businesses and the Scottish Training Federation—have come out in support of the bill, alongside Universities Scotland, which I mentioned, and Colleges Scotland.
The SFC has also undertaken its own extensive engagement on the bill, and its role in the consideration of the bill is obviously key. I want to be clear that the changes that are proposed in the bill would simplify the funding landscape and everything that would flow from that. The changes would require the SFC to evolve significantly in its structure, culture and role. The bill would not simply enable a merging of responsibilities. It would be a fundamental redesign of how we fund and govern tertiary education and training in Scotland. That enhanced body would lead to a unified, integrated sector that is better aligned to the needs of learners, employers and the economy, and a key part of that will be building strong, lasting partnerships with employers.
Apprenticeships must continue to reflect the needs of business and the wider economy, with significant input from, and collaboration with, business. It is important that apprenticeships are made more accessible to young people with disabilities and those facing other barriers. The bill also proposes putting apprenticeships on a statutory footing, which I believe is significant.
I want to address concerns that have been expressed about the risk of diluting apprenticeship funding. Let me be clear: we are absolutely committed to continuing funding for all types of apprenticeships. We have given careful thought to protecting the apprenticeship budget. Funding provided to the SFC under the bill would be used by the SFC only for that purpose. Funding allocations for further and higher education and apprenticeships are set in the Scottish budget process, but we will ensure that the funding priorities are clear.
In the evidence-taking process for the bill, we heard concerns about foundation apprenticeships. I reassure the Parliament that we greatly value the opportunities that they provide. The bill makes provision for work-based learning, which largely covers what is currently delivered through foundation apprenticeships. I am keen to work with the Parliament and stakeholders to address any genuine concerns about how those provisions will work in practice.
I appreciate that the committee raised reasonable and important concerns about costs in the financial memorandum, which I want to address directly. We have worked closely with SDS and the SFC to refine the figures and, with the latest information, I am pleased to emphasise that the upper cost estimate has reduced by around a third to around £22 million. Work is on-going to finalise costs, but I hope that the additional financial detail in the letter from my predecessor offers reassurance. I remain committed to keeping the Parliament updated as the analysis progresses.