Fears are growing over the future of a £10million Scottish Government fund used by businesses to provide vital training to workers.

College chiefs have demanded “clarity” from ministers amid “escalating concern” about the Flexible Workforce Development Fund (FWDF).

Business leaders have also urged the Government to think of the “long term consequences” before any decision is taken to withdraw or cut the “invaluable support”.

Since its introduction in 2017, the fund has enabled firms which pay the Apprenticeship Levy, as well as small and medium enterprises, to address skills gaps by utilising training at Scottish colleges, the Open University and independent providers.

Hailed as “vital”, the scheme has benefited thousands of businesses and tens of thousands of employees over the last five years.

However, there is still no sign of funding allocations for 2023/24, which colleges were expecting to be distributed in August.

In a letter to Holyrood’s education committee, Education Secretary Jenny Gilruth said last week that “no decision has yet been reached” on the fund for this year, while highlighting that “budget negotiations have been extremely challenging this year”.

A spokesperson for Colleges Scotland told The Scotsman: “There should be more clarity over the continued provision of the Flexible Workforce Development Fund (FWDF) for the current academic year 2023/24, and future provision from academic year 2024/25 onwards.

"There is escalating concern regarding the continued funding of FWDF, as allocations - and we are now in November - haven’t been made to colleges yet.

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