SNP/Green Budget Reversed To Renege on Education and Skills Promises - £46million taken back

6th May 2023

Fraser of Allender Institute this week highlights the Scottish Government taking back money for education that had been promised in the Scottish budget. The cuts hit two areas of the Higher and Further Education sector. Government funding commitments made only in April are now reversed leaving the SNP/Green budget trouble. It remains to be seen if other areas will see similar reversals.

This week also saw a cross-party summit on poverty, at which the First Minister made clear that tackling poverty was core to what he wants his government to focus on in the years ahead. He stressed the way forward being characterised by ‘prioritising those most in need' and making ‘tough choices' (you can read the press release here).

On the same day, there were headlines about the continuing struggles around the Scottish Government's finances, with a letter sent to the Education Children and Young People Committee to say that previously allocated monies to the Higher and Further Education sector were being taken back due to "new pressures on the Education and Skills portfolio since the 2023-24 Budget announcement". We saw something similar happen last year with money on employability being recalled. However, that happened much later on in the financial year. For it to happen only a month in is quite extraordinary and does raise questions about the completeness of the budget process.

As an aside, taking money out of the education sector, particularly further education, does not feel very joined up with efforts to reduce poverty. Indeed, further and higher education feature in last year's "Best Start, Bright Futures" child poverty action plan and will be particularly important for the young mothers priority group that the Scottish Government have identified as being core to efforts to meet the child poverty targets. No doubt, this recalling of funds falls into the ‘tough choices' category but perhaps falls short of ‘prioritising those most in need’. We can only hope the government took forward an impact assessment before making the decision so it at least internally understands the impact of its decision-making on government priorities.

Staying on Scottish Government decision making, this week the Finance and Public Affairs committee released a summary of discussions with former Ministers, Special Advisors, and civil servants held earlier this year as part of the Committee’s inquiry into effective decision making. It is clear that there are issues, many of which are longstanding. Processes are often "rushed, unclear and unstructured" with a "lack of consistency" on how policies are developed and decisions made. It’s well worth a read, and you can find it here.

Two letters set out the position
Sue Webber MSP
Convener, Education Children and Young People
Committee
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02 May 2023
Dear Convener,
In the 2023-24 Scottish Budget, the previous Deputy First Minister announced additional resource funding of £26 million for the college sector and £20 million for the university sector.
The Scottish Government and Scottish Funding Council (SFC) were considering utilisation ofthis funding to enable strategic change in the sectors. SFC therefore did not allocate this funding to individual institutions for Academic Year 2023-24 when they announced their
indicative funding allocations on 13 April 2023.
The Cabinet Secretary for Education and Skills has today written to the SFC to advise that, with regret, this additional £46 million has been identified as a necessary saving in Financial Year 2023-24. As set out by the previous Cabinet Secretary to the Committee on 22
February, we have had to make difficult choices in meeting new pressures on the Education and Skills portfolio since the 2023-24 Budget announcement. This means that funding for
colleges and universities in the current year will return to the previously announced Resource Spending Review flat cash settlement. A copy of the Cabinet Secretary’s letter to SFC is attached for the Committee’s awareness.
Ministers will continue to work closely with SFC and the college and university sectors to support financial sustainability.
Sincerely,
GRAEME DEY

Karen Watt
Scottish Funding Council
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02 May 2023
Dear Karen,
2023-24 BUDGET: FUNDING FOR STRATEGIC CHANGE
As you are aware, we currently face the most difficult public spending environment since devolution, which has required Ministers to make tough decisions about our priorities. I want
to place on record my thanks for the support provided by Scottish Funding Council (SFC) colleagues to my officials as we have considered the difficult choices we have to make.
It is with regret that I am writing to inform you that new pressures on my portfolio since the 2023-24 budget announcement have resulted in the additional £46m uplift for colleges and universities being identified as a necessary saving. This therefore means that funding for colleges and universities will return to the previously announced flat cash settlement in line with the Resource Spending Review.
The Scottish Government remains committed to the long-term success and sustainability of the tertiary sector and I look forward to working closely with you to support colleges and universities in achieving greater financial stability.
Sincerely,
JENNY GILRUTH

Source - https://fraserofallander.org/weekly-update-new-reports-recurring-issues-and-the-price-of-quiche/