Scottish business urges MSPs to rethink Education Bill

Scotland’s leading business organisations have written to MSPs, urging them to reconsider the Tertiary Education and Training (Scotland) Bill, particularly the proposal to transfer apprenticeship responsibilities from Skills Development Scotland (SDS) to the Scottish Funding Council (SFC).

The call comes jointly from the Scottish Chambers of Commerce (SCC) and CBI Scotland in response to the Tertiary Education and Training (Scotland) Bill, due to be debated by MSPs on 25 September.

Representing thousands of employers across Scotland, SCC and CBI Scotland warn that dismantling the current apprenticeship model, which is underpinned by strong employer partnerships and the proven delivery capacity of SDS, 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.”

Business leaders 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 highlight that SDS has built trusted relationships with employers and has the infrastructure and insight needed to attract and develop the talent required for Scotland’s economic transformation, including the energy transition and life sciences.

The organisations highlight that the Bill, as drafted, fails to address Scotland’s persistent skills shortages, risks weakening employer involvement in apprenticeships, and 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. SCC and CBI Scotland call for reforms that enhance, rather than disrupt, a system critical to Scotland’s growth and opportunity. They urge MSPs to ensure that employers remain at the heart of workforce development and to consider solutions that strengthen SDS’s role, rather than opting for structural changes that risk diluting focus and effectiveness.

Dr Liz Cameron CBE, Scottish Chambers of Commerce 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.

“Removing SDS from the system risks undermining this successful model of employer-led skills development and jeopardizing the strong business partnerships that underpin it.

“We hope that MSPs share our view that the future of Scotland’s workforce should be driven by those who understand the needs of the market, and urge them to deliver a constructive resolution that fits the needs of Scottish business.”

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, a system praised by the OECD for its flexibility and effectiveness. From Scottish Apprenticeship Week and the Awards to My World of Work, SDS has consistently engaged people of all ages and backgrounds, helping them into the right training and careers.

“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.”