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It has been reported that £875 million has been raised from the apprenticeship levy, but that only £704 million has actually been spent by Scottish Government agencies on apprenticeships. Does the minister recognise those figures?

It is important to note that Conservative, Labour and Liberal Democrat members are trying to achieve a framework that provides more transparency. The minister has not outlined whether he would take that forward with us, so I will move amendment 123, and I hope that at stage 3 we can improve on it.

Amendment 123 moved—[Miles Briggs].

The minister suggested earlier that amendments were criticising the Scottish Funding Council. I do not agree with that characterisation. This group of amendments—lodged by Pam Duncan-Glancy, Daniel Johnson and me—is more about concern for the delivery and expansion of apprenticeships and the potential for those to be lost in translation through the bill.

Amendment 197 is straightforward. During the committee’s evidence sessions, it became clear that major concerns were being expressed about the financial implications of the transfer of responsibilities under the legislation. Amendment 197 would create a new part on transitional measures, after section 17, which would require the Scottish ministers to provide the Parliament with financial transparency about the implementation of the legislation. As soon as is reasonably practicable after royal assent, the ministers would have to lay before the Parliament a statement outlining the financial implications of any transfer of functions resulting from the legislation.

That, and other amendments, could ensure that the Parliament is fully informed of the financial impact of moving 59 responsibilities to the SFC. It would also, I hope, provide a check for the Parliament to ensure that there are not any unintended consequences or potential reductions in the delivery and facilitation of apprenticeships—which should be our greatest concern. I am concerned that the bill could create more of a pause in our apprenticeship system as it comes to terms with the changes. That is why I have lodged amendment 197, which I will move.

Amendments 129, 130 and 131 add training providers to the list of organisations that can be required by regulation to notify the Scottish Funding Council about specified matters. It means that, alongside post-16 education bodies, training providers involved in delivering apprenticeships or work-based learning could be brought under the same notification requirements by the Scottish ministers. That widens the consultation duty to cover all organisations involved in apprenticeships, work-based learning and national training programmes, and not just post-16 education bodies. The amendments would ensure that such organisations are formally included in the consultation process. I welcome Ross Greer’s amendment 128.

I welcome the minister’s acceptance of amendment 145, and I also welcome my colleague Stephen Kerr’s amendments and the work that has been done to ensure that these various important aspects are covered. The Scottish Conservatives cannot support amendment 47, as we do not think that it is a welcome step forward; indeed, the Scottish Funding Council must be independent of ministers and not influenced by their priorities. We will support amendment 16.

I press amendment 145.

Amendment 145 agreed to.

Section 11, as amended, agreed to.

Section 12—Consideration of skills needs and socio-economic issues

I am grateful for that clarification. I hope that any further conversations about making it easier for councils to do so will take place ahead of stage 3, and that the minister and his officials will look at that.

I know of some really good work taking place in my region in Edinburgh to look at shortages of adult carers. That work is led by different organisations—Edinburgh College as well as the City of Edinburgh Council. There is a need to make that work more streamlined. Who would be the best lead on it? It should not always be the college; that role could sit in the council as well.

I am happy to have conversations with the minister on any inclusion of that approach in the bill at stage 3, so I will not move amendments 151 to 171, which I am sure members will be glad to hear.

I worked with Colleges Scotland on the amendment, and 75 per cent is the capacity that it would expect to be able to deliver, leaving 25 per cent for other providers in the sector. There would be a transfer of additional apprenticeship work. I hope that there will be a growing capacity. On a number of visits—especially to parts of the economy here in Edinburgh—I have heard about the opportunity for more collaboration between businesses. Other amendments that I have lodged would provide additional funding for colleges to supplement that. For example, the construction sector is crying out for more people to be trained.

Edinburgh College told me that it could take three times the number of people it is currently training, which the sector is desperate for. The amendment would provide for a minimum level of 75 per cent, and I would hope that the college sector could raise additional opportunities.

I realise that I have a lot of amendments in the group, so I will try to make a bit more progress.

Amendment 110 would change the definition of “training provider” from “a person” to a

“registered company or accountable body”.

Amendment 111 would create a mechanism for colleges to act

“as a lead delivery partner for ... Scottish apprenticeships and work-based learning in”

their region when they receive funding under proposed new section 12J of the Further and Higher Education (Scotland) Act 2005.

Taken as a package, the amendments would ensure that our colleges are formally enabled, and required, to act as lead delivery providers, securing their role rather than leaving management wholly to training providers. The minimum percentage floor would therefore ensure that a guaranteed share of modern apprenticeships is anchored in our college sector, thus preserving capacity, aligning the college infrastructure to what is needed and maintaining local access.

My amendments 104 to 107 deal with the role of SMEs in providing training opportunities and with the provision of dedicated access to grants, loans and other payments to allow them to deliver Scottish apprenticeships. The amendments would provide that regard must be had to the economic priorities of Scottish ministers and to the skills needs in different industries.

There are a number of amendments in relation to reporting requirements around transparency and accountability.

I have listened to what the minister has had to say about all the amendments in this group. It is quite telling that all colleagues have tried to highlight in their amendments different aspects of what we had hoped would be in the bill, and I still believe that the bill is missing a vision for our college sector. I am happy not to move my amendments now, but we really need to see that vision from Government as we move towards stage 3, and I am happy to have more conversations on that matter.

Amendment 95 not moved.

Amendments 30, 96 to 102 and 31 not moved.

Amendment 11 moved—[Ben Macpherson]—and agreed to.

Amendments 32 and 103 to 108 not moved.

Amendment 109 moved—[Pam Duncan-Glancy].

Similarly to what Pam Duncan-Glancy outlined in speaking on behalf of Daniel Johnson, I lodged my amendment 123 to secure greater transparency in relation to the apprenticeship levy. Money that is raised through that levy from businesses in Scotland is not easy to follow through our training system.

The apprenticeship levy is a United Kingdom-wide tax and is collected by His Majesty’s Revenue and Customs. It came into force in 2017 and is set at 0.5 per cent of the employer’s annual wage bill. The way in which the funds are used differs. In Scotland, levy receipts go to the Scottish Government via the block grant. However, in England, levy-paying employers access their own digital accounts to spend funds directly on apprenticeships. That is an interesting model that we could have pursued.

HMRC data shows that, between 2020 and 2024, at least £875 million was raised from Scottish employers under the apprenticeship levy. However, the data shows that only £704 million has been spent on graduate, foundation or modern apprenticeships in Scotland by either Skills Development Scotland, the Scottish Funding Council or the Student Awards Agency Scotland. That means that £171 million has been taken from employers in Scotland to fund apprenticeships but has been diverted elsewhere.

I have nothing further to add, except to say that I am happy to press amendment 132, with the proviso that there will be some tidying-up amendments at stage 3.

Amendment 132 agreed to.

Amendment 13 moved—[Ben Macpherson]—and agreed to.

Section 8, as amended, agreed to.

After section 8

Amendment 133 not moved.

Section 9—Financial sustainability of post-16 education bodies

Amendments 134 and 135 not moved.

Amendment 14 moved—[Ben Macpherson].