The Scottish Conservatives will today (Monday) outline their
plans to tackle Scotland's skills gap by increasing the number of
apprenticeships – and ensuring they better meet employers' needs.
On a visit to Edinburgh College, leader and shadow education
secretary will call for a ‘demand-led'
system, so that enough young people are emerging from colleges
with the specific skills employers require to grow their
businesses and Scotland's economy.
The Scottish Conservatives say change is desperately needed
because the SNP government have failed to pass on over
£170million of funding that was intended for apprenticeships,
while providing around 10,000 fewer places than learning
providers have requested.
That has created a skills gap that is holding back young people
and businesses alike, and stifling the economic growth needed to
fund frontline public services.
Under the SNP, colleges have seen funding cuts of 20 per cent
over the past five years, resulting in job losses and a reduction
in student numbers.
Hospitality, construction, engineering and care services are
among the sectors most acutely affected by the skills shortage.
added that the failure to keep
pace with other parts of the country when it comes to training
places is putting Scottish firms at a disadvantage, with more
than half saying there is a skills shortage and one in five
saying it has curtailed their activity.
Scottish Conservative shadow cabinet secretary for
education said: “The SNP's
savage cuts to college funding have robbed young people of
opportunities and created a skills shortage that is holding back
growth.
“That's the very definition of a false economy.
“The Scottish Conservatives' plan is to deliver more
apprenticeship places – and, crucially, in those sectors where
the skills shortage is most acute for businesses.
“This demand-led approach will provide young people and Scottish
firms with the skills that are crucial in a host of sectors,
putting right years of SNP neglect.
“The financial mismanagement of John Swinney's government has
resulted in a failure to invest in the training and skills
essential for future prosperity. Unless the skills gap is
addressed and growth becomes the government's central priority,
essential services will be unaffordable.
“We are proposing bold and practical measures to invest in
colleges, fix Scotland's broken apprenticeship system, address
skills shortages and allow local employers to shape training that
matches their workforce needs.”
Notes to editors
Audio from MSP is attached to accompany
the release.
The Apprenticeship Levy is a UK-wide tax on employers and
is collected by HMRC. It came into force in 2017
and is set at 0.5% of an employer's annual wage bill. It's
collected across the whole of the UK, but the way 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. (Apprenticeships Scot,
Accessed 14 November 2025, link; Ascento,
Accessed 14 November 2025, link).
The SNP Government used £171 million from the
Apprenticeship Levy to plug holes in its own
budget. HMRC data show at least £875 million was
raised by Scottish employers under the Apprenticeship Levy
between 2020 and 2024. However, £704m on graduate, foundation and
modern apprenticeships across three quangos: Skills Development
Scotland, Scottish Funding Council and Student Awards Agency
Scotland (SAAS). This means that £171 million has been taken from
the fund and diverted elsewhere. (Telegraph, 24 August
2025, link).
In 2024-25, there were 25,507 new Modern Apprenticeships
in Scotland. However, during the same period,
learning providers requested around 34,000 places. (Skills
Development Scotland, 13 May 2025, link; Audit
Scotland, October 2025, link).
Scotland's colleges have experienced a 20% real terms cut
in funding over the last five years. The college
workforce shrank by over seven per cent in 2023/24 as savings
were sought through voluntary severance schemes. Despite these
cost-cutting exercises, seven out of 24 colleges reported a
deficit in 2023/24. Two colleges also required emergency funding
from the Scottish Funding Council to stabilise their finances.
(Audit Scotland, 2 October 2025, link).
A majority of businesses are reporting a skills shortage
in Scotland. The 2025 Open University Business
Barometer Report stated that 56% of Scottish businesses are
experiencing skills shortages. Only 35% have specific initiatives
in place to recruit, retain, or train under-25s. (STV
News, 24 June 2025, link).
