Tertiary Education and Training (Funding and Governance) (Scotland) Bill - Business and Regulatory Impact Assessment (BRIA)

Section 5: Next steps and implementation

Preferred options

160. The Scottish Government decided to proceed with proposal 2 based on both an analysis of the consultation responses and the findings of the Outline Business Case. This decision was announced on 22 January 2025, accompanied by publication of the supporting evidence: the OBC, consultation report and consultation responses.

161. The Bill supports delivery of proposal 2 or 3, so the relative merits of either proposal for change are outside the scope of this BRIA.

162. The preferred options and approach taken are as follows (in summary):

NTPs, apprenticeships and work-based learning

• The SFC will be responsible for securing the delivery of NTPs.
• The SFC will be responsible for securing the delivery of all apprenticeship provision – foundation, graduate and modern. The Bill establishes, for the first time, a statutory framework for apprenticeships in Scotland and confers responsibility for securing provision onto the SFC.
• Foundation apprenticeships will sit under statutory functions for the SFC to fund and secure the delivery of work-based learning.

Other functions

• The Bill extends the duty to provide the SFC with such information as it may reasonably require to exercise its functions to those receiving SFC funding to deliver NTPs, apprenticeships and work-based learning.
• The Bill places a duty on post-16 education bodies to notify the SFC of certain matters set out by Ministers in subordinate legislation.
• The Bill expands the matters to which the SFC must have regard in carrying out its functions, to include: protecting and promoting the interests of current and prospective learners; and promoting knowledge exchange and innovation from the research of, and among, colleges and universities.
• The Bill gives the SFC the power to issue guidance to the persons and bodies to which it provides funding.
• The Bill expands the scope of efficiency studies into fundable bodies to encompass the needs and interests of learners, and creates a power for the SFC to issue recommendations to a fundable body following a study into its performance. The Bill also expands the SFC’s responsibilities to include monitoring financial sustainability.

Governance

• The Bill gives Ministers the flexibility to reappoint a Council member several times for shorter periods, should that be appropriate. Duration will continue to be limited to eight years total by the Ethical Standards Commissioner’s Code on Ministerial Appointments to Public Bodies.
• The Bill expands the range of potentially relevant skills and experience of Council members to cover apprenticeships and work-based learning.
• The Bill facilitates a shift away from appointing Council members who are actively employed or engaged in the college or university sectors, whilst retaining flexibility to ensure relevant expertise.
• The Bill gives the SFC the power to co-opt Council members (subject to Ministerial approval) in order to access particular expertise.
• The Bill requires the SFC to put in place a new mandatory apprenticeships committee.

Implementation plan

163. Subject to the will of the Scottish Parliament, it is anticipated that the Bill will receive Royal Assent in spring 2026. For modelling purposes, the Financial Memorandum assumes that all the provisions in the Bill will come into force on 1 October 2026. In practice, it is likely to be necessary to bring the Bill provisions into force in tranches linked to a phased implementation programme. The modelling assumes an 18-month transition period which begins on 1 October 2025 (a year in advance of commencement) and ends on 31 March 2027 (six months after commencement).

164. To implement the Bill in full will require significant work to develop the detailed policies, procedures and subordinate legislation. Much of this will require consultation and engagement with stakeholders. In parallel, there are complex administrative preparations required to move the staff, assets and systems needed to deliver the apprenticeship programme from SDS to the SFC.

165. Preparatory work will begin in this Parliamentary session. Decisions around the completion of the transition period, the subordinate legislation and commencement will be taken by the new Scottish Administration after the Scottish Elections of May 2026.

166. As part of the preparatory work, a detailed implementation timetable will be developed. This is likely to prioritise certain Bill provision and subordinate legislation for implementation in 2026 and set out the remaining steps to give full effect to the legislation.

167. SDS and the SFC are the primary stakeholders and will be heavily involved in preparations for implementation. Additionally, the fundable bodies and other education bodies, independent training providers and employers will be engaged in policy development and decisions that affect them. There will be appropriate consultation on proposals for regulations made under powers in the Bill.

Post implementation review

168. The Bill is a first step in the ten-year programme of reform and continuous improvement of Scotland’s post school education and skills system. It enables new approaches to the delivery of National Training Programmes, apprenticeships and work-based learning programmes. This should lead to better outcomes for learners and employers, and greater efficiency in the use of public money.

169. During the transition and following implementation, Scottish Government officials will be engaging with the SFC, SDS, higher education institutes, colleges, other education bodies and training providers, employers, student and apprentice representatives and unions to ensure that there is no drop in service standards and that the legislation is delivering the intended outcomes.

170. The Bill, implementation and other projects in the reform programme will be subject to review and evaluation to ensure that, collectively, they are delivering the vision and outcomes as set out in the Purpose and Principles. Implementation will be monitored by the reform programme board.

171. The Scottish Government has developed logic models for the Purpose and Principles which provide an overarching assessment framework for evaluation. The Scottish Government has yet to determine the scale and scope of evaluation and this will inform data capture requirements. It will be for the next Scottish Administration to set out how and when these evaluations will be taken forward.

172. Subordinate legislation made under the powers in the Bill can be modified (subject to appropriate Parliamentary procedure) should there be a need to do so. The Bill also has limited powers to amend primary legislation this be necessary (for example in relation to the definition of an apprenticeship, again subject to Parliamentary procedure).

173. The expectation is that the Bill will put in place the foundations to build the flexible, agile and responsive post-school education, skills and research system that is vital to meet Scotland’s changing needs.