‘Crucial’ skills needs will not be met unless system changes, MSPs told

The skills needed to sustain and grow the Scottish economy will not be met unless changes to the system are made, industry leaders have told MSPs.

Holyrood’s Economy and Fair Work Committee was told that businesses are being “heard” but “not being listened to” when it came to pleas for a better-skilled workforce.

Paul Sheerin, chief executive of Scottish Engineering, criticised the Scottish Government for “smashing” the work of Skills Development Scotland (SDS) into the Scottish Funding Council (SFC).

Ministers previously announced that responsibility for providing national training programmes, including apprenticeships, will move from SDS to the SFC.

But Mr Sheerin warned that would mean efforts to fix the “worsening” issue of a “skills crisis” in Scotland could stall as “our eye is off the ball” during the transition.

Asked if he had confidence Scotland would meet its current need for skills, he said: “On the current path? No.”

Paul Campbell, employer engagement group chairman at the Scottish Apprenticeship Advisory Board, also said he was “not convinced” the current system would deliver the skills the country needs.

Asked if businesses were able to influence policy around skills, Mr Sheeran said the “current landscape for skills reforms” is “unclear to industry”.

He said: “I think today they would say that their views might be heard, but they’re not being listened to, and they’re certainly not being acted on.

“From all of the feedback consultation that we’ve put in since the start of this Skills Review I don’t think I can point to any one thing where there’s been an action which has reflected the input from industry, and that’s a great cause of frustration.”

Scottish Financial Enterprise chief executive Sandy Begbie, who also appeared before the committee, said “supply and demand” for skills and jobs was not being met in Scotland.

He said his industry had been “calling out for skills for years”, calls which he said had become even greater following the Covid pandemic.

He told the committee: “I’ve always viewed this as a supply and demand, almost, equation. The supply and demand are not aligned at the moment.”

He called for the Scottish Government to come up with a clear vision for skills in Scotland that would provide “clarity” to businesses and education.

“I think that direction is hugely important and it’s not what we have at the moment,” he said.

Jack Norquoy, director of public affairs and communications for Scottish Renewables, said the need for skills was crucial to the energy industry, as well as the wider economy.

He said: “Industry is willing to play our part, but we do hit the challenge when it comes to the public sector, in terms of apprenticeships, in terms of our colleges as well, who are absolutely key at this.”

Mr Norquoy said skills were the “key barrier” to business but also the “key opportunity” to grow the economy.

I think there is absolutely a need for the education and skills system to take into account the needs of industry better

He said the skills system must be more “agile and responsive” which will be “crucial” to the country’s economy.

He added: “I think there is absolutely a need for the education and skills system to take into account the needs of industry better.

“There are frustrations in that regard in terms of how effectively we can input our needs into the system so that we can create, as I say, that agile and responsive, particularly in regard to colleges.”

The Scottish Government has been approached for comment.