Ian Hughes, strategic director Scotland at CITB, discusses the opportunity for a more flexible and accessible skills system for the construction industry
THE Tertiary Education and Training (Funding and Governance) (Scotland) Bill, which will simplify the funding landscape for post-school education and training in Scotland, went in front of Parliament for the first time (recently). This is a pivotal moment for the future of post-school education and skills training in Scotland and will provide positive opportunities for the construction sector, which contributes 6% to Scotland’s GDP, supports over 210,000 jobs, and is powered by 13,000 micro, small, and medium-sized businesses across the country.
By simplifying the funding landscape and increasing transparency, the Bill has the potential to strengthen the delivery of a skilled, competent, and inclusive construction workforce. CITB’s Construction Workforce Outlook (CWO) finds that Scotland’s construction industry must recruit 17,950 additional workers by 2029 to meet demand. A more streamlined and responsive skills system, underpinned by this Bill, can help ensure the right people are in the right roles at the right time.
The Bill also presents a timely opportunity to improve how skills and training are procured and delivered. Prioritising investment in Modern Apprenticeships (MAs), which deliver strong economic, social, and environmental returns, will build a workforce that is not only larger, but also more resilient, inclusive and sustainable.
Scotland’s skills and training landscapeÂ
At our recent Skills and Training Conference in Perth our CITB executive team and advisors, along with construction employers, industry federations, training groups, training providers and Tier 1 contractors, were joined by Graeme Dey, MSP, the then minister for higher & further education to discuss the importance of construction skills and training for Scottish construction businesses.
It was agreed that construction and related Modern Apprenticeships are performing well in the current skills and training system. The latest statistics from Skills Development Scotland (SDS) demonstrate that construction and related occupational grouping accounted for 25.6% of starts in 2024/25. This means that over a third of all Modern Apprentices in training are in the construction and related occupational grouping (33.7%). The occupational grouping had an achievement rate of 78.4%.
However, as the minister acknowledged at the conference, we must do more – and the Tertiary Education and Training (Funding and Governance) Bill presents an opportunity for a more flexible and accessible skills system, supporting multiple routes to competence.
The consolidation of apprenticeships and skills programmes provides an opportunity to reintroduce funding for upskilling and reskilling, with priorities set by industry, as well as helping to secure increased employer engagement and decision-making.
Sufficiently supporting employer engagement with the skill system
For construction employers, this Bill could be a real game-changer. It’s not just about tidying up the funding system; it’s about giving those who train and employ apprentices a proper seat at the table.
As the primary financiers of construction MAs and training, representatives of employers should be given greater decision-making ability on how construction and related MAs are designed, delivered, and allocated within these structures. Therefore, provisions to co-opt advice or challenge on particular topics on a limited-term basis and the requirement to establish a new apprenticeship committee would be welcomed by industry.
Annually, it costs £91 million of funding commitment to support Scotland’s Construction MA programme, with CITB’s commitment being 78% of this total. The reforms present an opportunity to bring the decision-making structures in line with the priorities of those who primarily fund and are consumers of construction MAs.
Why the Scottish construction industry needs change to the skills and training system
There are big opportunities in both the present and future for the Scottish construction industry. This year alone, Scotland’s construction output is expected to rise by 1.7%, following expansion of 4% in 2024. The Housing Emergency Action Plan includes a new commitment to invest up to £4.9 billion over the next four years, delivering around 36,000 affordable homes by 2029-30. The Scottish Government has a wider target of delivering 110,000 affordable homes by 2032, and the Construction Pipeline Forecast Tool contains 1,192 construction projects valued at over £18 billion to be delivered by 2035.
To be able to achieve Scotland’s construction ambitions, and fulfil industry demand, we need a skills system that’s flexible, accessible, and built around real industry needs. That means supporting multiple routes to competence, reintroducing funding for upskilling and reskilling, and making sure employers have a say in how training is delivered. Attracting and retaining talent has never been more critical. If the Bill delivers on its promise, it could be the foundation for a stronger, smarter, and more resilient construction workforce that is ready to build Scotland’s future today.
