Trade body warns of dent in industry confidence if apprentice fund delays continue

A trade body has warned improving levels in confidence across the food and drink sector could “quickly dissipate” if delays in funding new apprenticeships continue.

Scottish Bakers, a membership organisation supporting the bakery trade throughout Scotland, has written to the Scottish Government to express dismay at the delay in confirming funding for new apprenticeships starts.

Last week, the Scottish Training Federation (STF) said thousands of young people across Scotland have been “left in limbo” as no new modern apprenticeships will be available “for the foreseeable future” due to delays with Scottish Government funding.

Every April, Skills Development Scotland (SDS) enters contracts with employers and training providers to deliver new modern apprenticeships.

But the Scottish Government has not yet agreed a budget or number of new modern apprenticeships with SDS, according to the STF.

Scottish Bakers chief executive Alasdair Smith said the organisation had identified 85 new apprentices to begin training with their members to start in April and May.

But Mr Smith warned the organisation has been “unable to move on these learners”.

In a letter to the Scottish Government, he said: “This is bad for them, it is bad for business, and it has a potentially devastating impact on our operations as a training provider.

“Businesses across the food and drink sector have endured one of the toughest trading years in memory last year with soaring energy and commodity costs.

“The volume of learners put forward to commence training reflects an improving level of confidence which will quickly dissipate if we must delay registration.”

Mr Smith said the organisation was “deeply concerned” the delay will be used as an excuse to cut the number of apprenticeships for the year.

He added: “We would be unable to withstand such an impact on our businesses finances and would have to evaluate our staffing requirement.

“Scottish Bakers are experts in delivering industry-standard training and we work hard with our members and the wider food and drink sector to deliver practical skills in businesses of all sizes.

“But we need action from the Scottish Government now to confirm funding for new starts without any further delay.

“Without action, our ability to preserve and pass on valuable craft and production skills will be compromised and countless businesses and apprentices will lose out.

“We therefore urge the Government to confirm funding without delay to help support our economy.”

Last week the Scottish Government said: “Skills Development Scotland has issued contract awards for 2023-24 for around 39,000 modern apprentices who are currently in training, providing ongoing support for businesses and individuals across Scotland.

“The apprenticeship structures are still in place, and there is nothing to stop employers progressing with apprenticeships that are critical to their business needs.

“There is significant pressure on the budget of the Scottish Government and its agencies as a result of rising costs. But we are working with our partners to finalise budgets and will set out more detail on modern apprenticeship starts later this month.”

Skills Development Scotland last week said: “SDS has issued contract awards for modern apprenticeship delivery for those currently in training for 2023/24.

“This is to continue to support around 39,000 apprentices currently in training, helping businesses and individuals across Scotland.

“We will set out more detail on our approach for new starts in April.”