The Scottish Government has axed funding for a £10 million initiative that has benefitted tens of thousands of workers.
The Flexible Workforce Development Fund (FWDF) has emerged as another victim of the Budget unveiled by finance secretary Shona Robison on Tuesday.
The Scotsman previously highlighted growing concerns about the future of the funding pot, after the money was not allocated to colleges as planned. It has now been confirmed “this funding will not be available” due to the “unprecedented financial challenges” facing the Government.
The loss of the FWDF represents a fresh blow to colleges, after Budget papers showed their resource grant is set to fall by £58.7m, or almost 8.4 per cent, in the coming year.
Before the Budget, business leaders had warned ministers to think of the “long-term consequences” before any decision was taken to withdraw or cut the “invaluable support” offered by the FWDF.
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.
The Scottish Government has previously said the FWDF plays a “crucial role” in Scotland’s National Strategy for Economic Transformation.
