Colleges: Tripartite Alignment Group minutes - 21 November 2024
- Published
- 4 February 2025
- Directorate
- Lifelong Learning and Skills Directorate
- Topic
- Education
- Date of meeting
- 21 November 2024
- Date of next meeting
- 29 January 2025
Minutes from the meeting of the group on 21 November 2024.
Attendees and apologies
- Stuart Greig (Chair), Scottish Government
- Liz Hawkins, Scottish Government
- Fraser Syme (LLS Secretariat), Scottish Government
- Keira McCutcheon (LLS Secretariat), Scottish Government
- Claire McGrath (Economy), Scottish Government
- Lynne Raeside, Scottish Funding Council
- Richard Maconachie, Scottish Funding Council
- Martin Boyle, Scottish Funding Council
- Simon Hewitt (Dundee and Angus College), Colleges Scotland
- Andy Witty, Colleges Scotland
- Joanna Campbell (Dumfries and Galloway College), Colleges Scotland
- Angus Campbell (UHI), Colleges Scotland
- Alan Williamson (Edinburgh College), Colleges Scotland
- Graeme Jackson, Colleges Scotland
Items and actions
Welcome/note of last meeting
Attendees confirmed they are content with the note of the last meeting so it can be published.
Work priority 1: Alternative funding streams
Colleges Scotland (CS) presented a paper detailing the amount of non-public funding generated by colleges (c.5.5% of the sector’s overall income); the potential additional staff costs required to achieve the aspiration of growing non-public funding by 25%; and case studies of best practice in the sector.
CS outlined barriers such as geographical variation of large-scale industry across regions; population variation across regions; potential appetite for commercial risk in the sector; and the uncompetitive cost of the college workforce compared to private training providers.
CS were thanked for providing a useful paper to start discussion.
There was agreement that one size would not fit all and that despite the barriers, there are opportunities for growth, with discussion around the investment required to achieve this.
There was discussion about the impact of college industrial action on industry’s confidence in colleges’ ability to effectively deliver what they require; and examples of industry not using colleges for training because it could not be delivered at the pace required.
There was agreement that if colleges could win contracts for greater delivery of apprenticeships that would greatly benefit commercial funding in the sector.
There was discussion about the potential benefit of regional or national specialisms being developed collaboratively which could limit the need for colleges to introduce individual, bespoke commercial units.
There was discussion around colleges’ classification as public bodies and its possible effect on their ability to take out loans; the appetite there may or may not be in the sector to take out loans; and colleges’ ability to pay loans back.
CS suggested Scottish Government (SG) could create a ‘colleges first’ policy so that government departments go to colleges first for training rather than going elsewhere.
Actions:
- SG to set up a small focus group including CS/colleges, Scottish Funding Council (SFC), Skills Development Scotland (SDS) to explore what could potentially be achieved in this space and develop a paper setting out options for sector growth; and explore the possibility of a roundtable with the Minister
- SG to look into the Scottish Public Finance Manual (SPFM) implications for colleges taking out loans
- a college finance representative to approach a bank about a potential loan for their college to see what options they would have
- CS to draft a paper on their suggested ‘Colleges First’ policy with examples of where government could draw on colleges where they can provide good value for money
Work priority 2: Curriculum transformation funding
SFC advised they aim to have this process in place for Academic Year (AY) 2025/26.
CS noted that the proposed arrangements will not suit all colleges and would like to see it sit alongside a ‘toolkit’ of options, but are supportive of the proposed process for colleges which will benefit from it.
SFC summarised the considerations related to the next phase of work on the funding model including the use of credits for currently prohibited areas of delivery; and whether changes may be required to the premia and price groups etc.
Action:
- SFC to provide an update on progress at the next meeting of the group
Work priority 3: Alternative capital funding models
SG confirmed that discussions are ongoing through the SFC’s Infrastructure Delivery Group, and there was discussion that it would be helpful to understand what changes to the system are required to enable colleges to access funding.
There was some discussion around the models which could be utilised (such as Mutual Iinvestement Model (MIM)) and what the barriers might be to using these.
Action:
- SG to work with the SFC further on this to enable a more in-depth discussion at the next meeting of the Group
Work priority 4: Breadth and range of delivery
SG provided an update on the letter and survey issued to college principals on 1 November and reiterated the Minister’s desire to receive diverse views from across the sector rather than only a collated picture.
CS advised they aim to also provide a collective view but have advised principals to also respond individually should they wish to.
It was agreed that the Group will have a substantive discussion on this work priority at the next meeting.
Action:
- SG to collate responses and prepare paper for the next meeting of the Group
Asset disposals update
SG summarised current position and the principles of the new asset disposals process, providing clarity that the £1m de minimus value relates to the net value, and that the 70/30 split relates to anything over and above that value.
There was discussion about the need for agreement on circumstances where the 70/30 split would not apply – these will need to be detailed in the guidance.
There was agreement that the new process should be applied if possible for colleges selling assets currently i.e. before the new process is officially in place.
Actions:
- SG to work with the SFC to finalise the guidance for issue in January 2025
- all to provide by correspondence views on circumstances where the split would not apply – deadline set one week from this meeting (COB 28 November)
- SG to explore enabling current sales to benefit from the new process
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