Tripartite Alignment Group minutes: January 2025

Attendees and apologies

 

• Graeme Dey, Minister for Higher and Further Education, and Minister for Veterans
• Stuart Greig (Chair), Scottish Government 
• Jess Dolan, Scottish Government 
• Elizabeth Mackin, Scottish Government
• Fraser Syme (Secretariat), Scottish Government 
• Harriet Luto, Scottish Government 
• Rebecca Manson, Scottish Government 
• Keira McCutcheon (Secretariat), Scottish Government 
• Lynne Raeside, Scottish Funding Council 
• Richard Maconachie, Scottish Funding Council 
• Martin Boyle, Scottish Funding Council 
• Graeme Jackson, Colleges Scotland
• Andy Witty, Colleges Scotland 
• Joanna Campbell (Dumfries & Galloway College), Colleges Scotland 
• Alan Williamson (Edinburgh College), 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. Scottish Government (SG) reiterated that the Group’s purpose is to make ‘real world’ progress on the agreed priorities, and that all members need to own the work and make progress between meetings. SG also asked members to be open and precise in their feedback and commentary.

Asset disposals / CDEL/RDEL updates

SG confirmed the Ministerial letter to colleges informing them of the new approach to the asset disposals process was issued on 28 January and that SFC guidance will be issued to the sector.

Work Priority 1: Alternative funding streams 

The Minister reiterated the need to maximise use of the public purse; utilising resources which already exist in the sector, such as regional collaborative approaches. SG presented a paper detailing three potential areas for exploration:

Energy efficiency/generation models

Scottish Funding Council (SFC) advised there is a need to ensure this work connects with their College Infrastructure Strategy (CIS) which has collected data on energy. There was agreement that analysis of this data may help target areas of need and highlight what can be done collaboratively, and should be carried out quickly.

Enhanced delivery of skills provision through working with employers

SG advised that Skills Development Scotland (SDS) is doing lots of work on this and that a session with them would be helpful; and that following the budget announcement of additional funding on 28 January, SG Economy colleagues will work with Colleges Scotland (CS) to work up proposal, with any business case requiring Ministerial approval.

Enabling conditions for engagement in commercial activity

It was agreed this area will be fully discussed under the agenda item on Invest to Save 2025-26. There was discussion around CS’ ‘Fundamental Review of the Funding Model’ paper and the level of flexibility suggested in the paper in relation to colleges’ ability to carry surpluses across financial years and access debt financing. SG noted that this level of flexibility would currently only be possible for unincorporated colleges; and indicated that a move to unincorporated status is not under consideration. A college finance representative advised they had an exploratory discussion with their bank about a loan – the bank said a loan may be possible for one-off purposes (such as voluntary severance or Reinforced Autoclaved Aerated Concrete for example); and it would have to be underwritten against the college’s assets, or have a government guarantee. SFC  are considering scope to enable increased flexibility at year-end, including development of revised reserves policy, and exploring if there may be a better vehicle than Arms Length Foundations (ALFs) for surpluses. The Minister welcomed this work by the SFC and it was agreed that focusing on surpluses and finding an alternative to ALFs would be a more fruitful area for the Group to focus on than debt financing.

Actions

• SG/CS to identify colleges to engage with on energy efficiency/generation and draw SFC into this work
• SG to arrange a special Tripartite session with SDS and Group members
• SFC to consider next steps on building flexibility on surpluses, and present options/ideas at the next meeting of the Group
• SFC to carry out analysis of data gathered through CIS and share with the Group
• college finance representative to draft a paper detailing their bank’s feedback on loans and share with the Group

Work Priority 2: Curriculum transformation funding 

SFC advised they now have an allocated member of staff working on this and provided an update on discussions with a small number of colleges about how this might work in practice; and about creating an application process. There was discussion around the balance between maintaining learning opportunities and the cost of transition; and the need for details of this work to be shared more widely across the sector to improve understanding.  Notwithstanding that, the Group’s view was that there is considerable interest across the sector. There was agreement that it would be helpful to create a package of the various tools and measures which may be available and communicate these to the sector – for example curriculum transformation funding, links with City Deals, the benchmarking exercise carried out by a number of colleges etc.

Actions

• SFC to meet a college finance representative to further develop thinking on this work and report back to the Group
• SFC to send CS an abridged version of their paper on this work to aid discussions at forthcoming College Principals Group meeting

Work Priority 3: Alternative capital funding models

SFC provided an update on this work and their plans for the second phase of this work which will involve working with individual colleges, particularly around utilisation of their estates. There was discussion around the merit of bringing colleges together in a workshop to focus on where there is a genuine opportunity to do something different.

Action

• SG and SFC to explore workshop idea, bringing together colleges working in this space, and possibly universities where lessons learned and best practice could be shared

Invest to Save 2025-26

SG advised that the fine details of this fund are not clear at this stage, but the expectation is for there to be up to 3 bids from across the Education portfolio. There was agreement that the best way forward will be to aggregate a number of suggestions brought forward by the Group into one or two bold, transformative proposals; with a need for robust modelling on the projected savings for each proposal. The Minister noted the need for proposals that will bring about cultural change in the sector, and that will stand out due to their transformative quality.

Actions

• CS to coordinate the development of an aggregated and well-evidenced bid across the sector, drawing in SFC and SG 
• bid guidance to be shared with CS/sector
• CS to discuss with College Principals Group extending invitation to SG staff

Work Priority 4: Breadth and range of delivery

College principals were thanked for their helpful contributions to recent meetings relating to this work, and it was agreed that this will be discussed fully at the next meeting of the Group. 

Any other business

There was discussion around the Terms of Reference of this Group as it is now considering longer-term pieces of work, and the need for a work plan so that its work can be supported between meetings. SG advised the Group that there is an understanding of the issue around National Insurance contributions, but there is no settled position with UK Government yet despite the Cabinet Secretary for Education and Skills writing to her opposite number in UK Government.

Actions

• SG to update the Minister regularly on the progress of the Group
• SG to establish a work plan/monitoring to help support progress between meetings