SE faces drastic cut in powers if Labour wins May elections

Published on 28/08/2006 00:48

LABOUR will strip Scottish Enterprise of its training, skills and learning functions if it is returned to power after May's elections, it emerged last night.

Party sources revealed that Labour's manifesto would include a commitment to reduce the size of the controversial enterprise quango by about a fifth, cutting its budget by 100 million and transferring all responsibility for training to a new agency.

The plan for such a huge reduction in its responsibilities follows the recommendation of an influential group of business leaders, council bosses and education chiefs.

They were asked by Nicol Stephen, the Enterprise Minister, to consult on the future of Careers Scotland, after it was announced then it was being separated from Scottish Enterprise.

The group recommended splitting up Scottish Enterprise, and now Labour sources have revealed that the party will take this idea on board.

A party spokesman confirmed yesterday that the new careers agency will become "one of the first commitments" of a new Labour administration, should it be elected next year.