Education Scotland: SNP ministers urged to rethink 'sucker blow' decision to axe £10m fund used to train thousands of workers

Open letter calls for revival of the flexible workforce development fund (FWDF)

The Scottish Government is being urged to rethink a controversial decision to axe funding for a £10 million scheme that helped to train tens of thousands of workers.

Colleges, businesses and trade unions have joined forces to call on ministers to save the flexible workforce development fund (FWDF). The Scotsman revealed in December the initiative was another victim of cuts in the SNP-Green Budget.

Since its introduction in 2017, the fund has enabled firms which pay the Apprenticeship Levy, as well as small and medium enterprises, to address skills gaps by utilising training at Scottish colleges, the Open University and independent providers.

PIC LISA FERGUSON 07/09/2023. College lecturers protest outside the Scottish Parliament.

The Scottish Government previously said the FWDF played a “crucial role” in Scotland’s National Strategy for Economic Transformation. However, it confirmed in December “this funding will not be available” for next year due to the “unprecedented financial challenges” facing the government.

Now, an open letter calling for a rethink has been backed by the Institute of Directors Scotland, Federation of Small Businesses Scotland, Scottish Chambers of Commerce, the Scottish Hospitality Group, the Open University in Scotland, and individual businesses, charities, and trade unions.

Shona Struthers, chief executive at Colleges Scotland, said: “Ministers still have time to rethink the Budget and bring back funding for the flexible workforce development fund. Scotland’s 24 colleges have delivered tens of thousands of training opportunities to firms and organisations using the fund. It is entirely short-sighted to remove it for 2024/25 – and possibly forever – when it provides such good value for money and so many great opportunities for businesses.”

Stacey Dingwall, head of policy and external affairs (Scotland) at the Federation of Small Businesses, said: “The feedback we receive from our members shows there is a clear need for support, which makes skills development and investment opportunities more accessible to employers, generating benefit for employer and employee alike.”

Stephen Montgomery, director of the Scottish Hospitality Group, said: “With no financial support in regards to business rates being passed on by the Scottish Government to hospitality in the Budget statement, losing the FWDF is another sucker blow for many hospitality businesses who used and relied on this fund to develop career paths for their employees.”