Ministers cannot afford to miss the opportunity to reform the way apprenticeships are delivered in Scotland, says business leaders.
The Federation of Small Businesses (FSB), Scottish Chambers of Commerce and CBI Scotland have raised concerns over the delivery of training.
The chambers and CBI are concerned about plans to switch responsibility for apprenticeships, while the FSB believes the system needs to be modernised as it is failing to deliver for many smaller employers, school leavers and older workers looking to upskill.
The Scottish Parliament will debate the Tertiary Education and Training (Funding and Governance) (Scotland) Bill on Thursday which could help reshape post-school training.
Guy Hinks, FSB Scotland chair, said: “The way apprenticeships are being delivered in Scotland simply does not work for many smaller employers. The system for providing training opportunities has failed to keep pace with the changing needs of the Scottish economy.
“One in five small businesses in Scotland was forced to reduce the services they offer customers in the last year due to staff shortages.
“Modernising the training system in a way that encourages smaller employers to hire apprentices would be an important step towards tackling the skills gaps, which are a big part of this problem.”
FSB research shows three-quarters of small businesses do not employ and have not employed an apprentice.
Mr Hinks added: “We can’t afford to miss the opportunity the Bill offers to ensure apprenticeships in Scotland work for the country’s small businesses and the needs of the wider economy.
“We are calling on the Scottish Government to take steps to increase the number of apprenticeships available. This should include statutory targets for incrementally increasing apprenticeship numbers and a new financial incentive to encourage small businesses to employ an apprentice.
“It is also important that apprenticeships are made more readily available to all ages and used as a mechanism for lifelong learning and upskilling, in order to meet the future needs of the Scottish economy.”
Call to reconsider transfer of responsibilities
The Scottish Chambers of Commerce and CBI Scotland have jointly urged ministers to reconsider the proposed transfer of apprenticeship responsibilities from Skills Development Scotland (SDS) to the Scottish Funding Council (SFC).
The two business groups warn that dismantling the current apprenticeship model risks undermining a system praised internationally for its flexibility and effectiveness. The OECD has described Scotland’s apprenticeship system as “one of the most flexible and wide-ranging systems in the OECD.”
SCC and the CBI argue that SDS should be strengthened and recognised as Scotland’s Workforce Agency, with a clear mandate to lead workforce planning and skills development.
They share the FSB’s concerns that, as drafted, the Bill fails to address Scotland’s persistent skills shortages and risks weakening employer involvement in apprenticeships.
Further, they say it raises serious doubts about whether the SFC has the operational capacity to deliver work-based learning at scale, especially given the current pressures facing the university sector.
Liz Cameron, SCC director and chief executive, said: “So far, the scrutiny of this piece of legislation has not been robust enough.
“We know that Scotland’s skills system needs to be refined – but shifting away from Skills Development Scotland, who have been praised by the OECD for their effectiveness, is not the answer.”
Michelle Ferguson, CBI Scotland director, said: “Closing the skills gap is one of the biggest levers we have to raise productivity and deliver sustainable growth. Employers know that Skills Development Scotland has the infrastructure, relationships, and insight to do this well.
“That’s why transferring responsibility for apprenticeships to the Scottish Funding Council is a retrograde step. It risks disrupting delivery at the very moment when businesses need more people trained and job-ready.
“Rather than dismantling what works, government should be strengthening SDS as Scotland’s workforce agency, giving it the mandate and resources to scale up apprenticeships, close the skills gap, and unlock the talent needed to power Scotland’s future economy.”
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