Tripartite Alignment Group minutes: May 2025

Attendees and apologies

• Stuart Greig (Chair), Scottish Government 
• Liz Hawkins, Scottish Government
• Fraser Syme (Secretariat), Scottish Government
• Keira McCutcheon (Secretariat), Scottish Government
• Luise Siekman, Scottish Government
• Rebecca Manson, Scottish Government
• Jane Duffy, Scottish Government
• Francesca Osowska, Scottish Funding Council
• Lynne Raeside, Scottish Funding Council
• Richard Maconachie, Scottish Funding Council
• Graeme Jackson, Colleges Scotland 
• Andy Witty, Colleges Scotland
• Joanna Campbell (Glasgow Kelvin College), Colleges Scotland
• Angus Campbell (UHI), Colleges Scotland
• Alan Williamson (Edinburgh College), Colleges Scotland
• Simon Hewitt (Dundee & Angus 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.  

 

Work Priority 1: Alternative funding streams/ session with SDS 

There was discussion about the critical nature of this work and the need to make greater progress on it; with CS explaining that although the commercial hub element of their Invest to Save bid was removed, this is something that should be revisited in a different format.
SG advised that planning for a session with SDS in late May/early June is underway. 
SG advised that for the next budget round, it would be helpful if this Group can provide a clear plan of action demonstrating progress and commitment on diversifying funding streams; and it would therefore be helpful to understand what plans the sector has in this space, the barriers, and what enabling support it will might look for from SG and SFC.
There was agreement that ONS classification and compliance with SPFM make things more difficult. Specific issues such as year-end cash retention, and the impact of commercial income generation on credit funding were identified as  barriers which need to be considered. SG welcomed this level of specificity and SFC agreed to discuss the detail. 
There was discussion about a perceived nervousness in the sector that the encouragement to diversify funding streams could be due to a potential future reduction in public funding. This makes the framing of this work very important. 
There was agreement that this work priority is about encouraging and incentivising additionality of funding as part of increased collaborative work between colleges, employers and other partners. 
There was agreement that it would be helpful to understand colleges’ levels of non-public funding across the sector.
There was also agreement that it is for CS/Principals to take forward the design of an approach that could help build additional funding in the sector. This approach would recognise best practice across the sector; consider where expertise can be shared (the commercial hub model for example); recognise region-specific issues; and articulate how key stakeholders play into this work, such as SG SFC, SDS. 

 

Actions

 

• SG to continue planning for session with SDS in late May/early June. 
• College Principal made an offer to progress work on diversifying funding, and CS also indicated that they would take forward scoping/reframing of this work to present clear proposals for consideration at the next Group meeting.
• CS and SFC to discuss how to generate better, up-to-date information on non-SFC funds into the sector/institutions, and update group at next meeting.  

 

Work Priority 2: College Transformation Framework 

SFC were thanked for their work on this, recognising that it offers colleges the opportunity for increased flexibility, while appreciating that it will not be suitable for all colleges. 
SFC advised that there has already been considerable interest from colleges, with a number of them keen to use this framework, and others deciding that it will not be suitable for them currently.
There was agreement that feedback was needed from CS on behalf of the sector before the framework goes live, and that it may be helpful to share anonymised case studies of the types of action colleges are proposing. 

 

Actions

 

• CS to provide feedback to SFC on their framework paper.
• SFC to follow up with participating colleges with a view to sharing anonymised case studies to encourage engagement across sector.

 

Work Priority 3: Alternative capital funding models

There was agreement that SFC’s baselining work on assets and infrastructure highlights areas relevant to this Group’s work. 
SG advised that there is an outstanding action for SG and SFC to deliver a workshop for sharing lessons learned and best practice, including representatives from the university sector, and that this will be arranged at the earliest opportunity.
A college principal advised that their college is currently working on investment in infrastructure and has commissioned a large accountancy firm to look at available funding models. 

 

Actions

 

• SG and SFC to take forward planning for the workshop.
• College principal to share outputs of work with accountancy firm if helpful. 

 

Work Priority 4: Breadth and range of delivery

There was discussion around the read-across to CS’ work on the vision for the sector, with agreement that while some colleges have a clear vision of their purpose and ambition, others would like a clear steer from the Minister. 
CS advised they have done considerable work in this area, engaging with industry to understand what they will want from the sector in the future (industry roundtables for example); and believe that while different colleges are at different stages of generating their strategic vision, that the sector generally is getting a hold of this issue. 
There was agreement that while at a strategic/sectoral level, CS, SFC and SG/Ministers are critical partners in providing the authority required to finalise a purpose and vision for the college sector, CS need to continue to lead this work. 
CS were asked to consider each party’s role in this work and how best to bring them together, potentially to frame a scoping piece for a potential body of work on the future of colleges/college sector.
The read across from important observations and insights from the Breadth and Depth work to any future work on a college vision was reiterated.

 

Action

 

• CS to consider how to bring parties together to discuss respective roles of SFC/SG/Ministers in this work in order to discuss next steps, including, critically the scope of any further such work; and to invite SG and SFC to future engagement events. 

 

Invest to Save 2025-26

SG confirmed there is no update yet on the outcome of CS’ bid.

 

Action

 

• SG to share outcome with the Group when known.

 

College funding model and allocations – Update

There was discussion around the aspiration of having greater transparency in relation to the funding model and allocations, with SFC advising they are considering setting up two working groups to assist with that – one considering the vision for the sector and benchmarking; and the other considering the funding model itself and what more can/cannot be done in relation to it. 
There was agreement that the setting up of these groups would be welcome, and that the groups sharing their learning with each other would be vital.

 

Action

 

• SFC to set up the two working groups and update the Group on progress.

 

Proposed new work priority – Modern Apprenticeship (MA) Funding 

SG set out some of the current issues around MA funding, building on the work of CS’ MA Working Group – such as access to credits and percentages of fees paid to colleges by Managing Agents.
There was agreement that there is sufficient read-across to the work of this Group (such as increasing non-public funding in the sector, for example) for this work to be considered a new work priority for this Group. 
There was also agreement that by reporting progress to this Group, it increases awareness of these issues; allows for strategic discussion with key stakeholders; and provides an opportunity for regular updates and reporting to the Minister. 

 

Action

 

• SG Apprenticeship Team to provide an update at the next Group meeting

 

AOB

There was discussion around the possible National Insurance discrepancies which SFC are currently investigating with the sector. 
SFC advised that they have written to central finance regarding CDEL/RDEL.

 

Actions

 

• SG and SFC to pick up the National Insurance issue and provide an update once investigations are concluded.
• SG to follow up on CDEL/RDEL with central finance and provide an update.