Fit for the Future: developing a post-school learning system to fuel economic transformation

Chapter 1: Context

The purpose of the Review

1.1 I was asked by Scottish Ministers to undertake a Review of the Skills Delivery Landscape in August 2022. The purpose of the Review was set out for me in Terms of Reference (ToR) published by the Scottish Government on its website^[1]. This asked that I make recommendations on how the skills delivery public body and advisory landscape should be adapted to drive forward the Scottish Government's ambitions for a skilled workforce as set out in its National Strategy for Economic Transformation (NSET)^[2] and the work it is undertaking to respond to the Scottish Funding Council's (SFC) Review of Coherence and Sustainability^[3] – namely, the development of a Purpose and Principles for the Post-School skills and education system. There is also a specific requirement for me, within those recommendations, to be clear about what I think should be the future functions, remit and status of the national, public body that is currently Skills Development Scotland (SDS).

1.02 It is clear from the ToR that my focus was not to be on the past performance of public bodies, but instead on how the landscape needs to change in order to give Scotland the best chance of delivering on its ambitions. This is a structural question about what we need in the future, not how we improve the individual processes or organisations that we have now. As such, I have not started my considerations from the basis of merely tinkering with what is here, but on a vision of what success could look like and the pillars that would need to be in place to deliver that. As a result, the recommendations that I am making in this report principally address the questions of 'who' and 'what' rather than the 'how' of future delivery. Where I think there is a need for the processes underpinning delivery to also be refreshed or adapted, I am signalling this in my recommendations but do not consider, given the timescales for the Review and the scope of my remit, that I have the information to make specific, detailed recommendations in this respect.

The scope of the Review – what is the landscape?

1.03 Although the focus of the Review has been on the 'skills functions' of national public bodies and related advisory groups, to inform my perspectives on this I have had to build an understanding of the system or wider landscape in which those bodies operate. It might be helpful for me to define my interpretation of the 'landscape' in this context, which I use in this report to talk about the system of actors, structures and processes that are in place to enable the smooth operation of Scotland's post-school learning and training provision. I am purposefully taking a wider view here than just the specific aspects traditionally associated with 'skills development' on the basis that it is a fundamental tenet of this report that there is no separate 'skills system' and 'education system', just a single post-school learning system within which skills and knowledge are developed through the learning experiences that take place throughout our lives.

1.04 I should caveat the above by noting that, although the focus of my ToR is on 'post-school' (defined as learning and training for learners who are no longer members of the school community), this, in itself, isn't a simple division and there are parts of the existing landscape that currently or naturally stretch into schools. For the purposes of this Review, in particular, I have considered Foundation Apprenticeships (FAs) within scope on the basis that they are currently considered to be part of the 'apprenticeship family' and their current funding and delivery structures involve post-school agencies. This is despite FAs being a senior phase qualification that is only available to learners who are enrolled members of a school community. Similarly, careers services which don't happen exclusively in schools, but where schools comprise an important, formative setting, are within the scope of this Review, given the considerable resources within SDS dedicated to them and their key role in informing learner choices at all stages of their lives.

1.05 This is undoubtedly a complex system, more so than I had anticipated when I commenced my work. There are a lot of different stakeholders, groups and interests involved in the development and delivery of post-school learning, and there are multiple users of the system whose needs and wants are diverse. It is also a system that is highly vulnerable to external pressures from changes in the social, political or economic contexts as well as technological and societal advances.

1.06 The ToR includes a set of specific functional areas on which I have been asked to make recommendations in relation to agency roles and responsibilities. I believe that my recommendations fulfil this aspect of the ToR, but it has been challenging, at times, to reconcile the level of detail required to settle on a specific action with the information that has been available. This is because there are areas where I struggled to find any individual or organisation with a complete, objective picture of the activity or structures that are already in place. Indeed, there were often conflicting views on the current roles, responsibilities and purposes of different organisations and activities.

1.07 Organisations and individuals have, perhaps naturally, tended to focus on their own role in delivery or part of the landscape rather than looking across the system for solutions or opportunities. This approach can be indicative of systems that are fractured or have gaps in the clarity of roles, processes or individual parts. This means that, whilst the engagement process and evidence gathered have been critical to developing my recommendations, I am mindful there is no overwhelming consensus as to what should change, only that change is required. On the one hand, the complexity of the system creates a sense of confusion for many and a consensus for change. On the other hand, the same complexity makes it difficult for stakeholders to identify remedies. As such, what follows is very much my interpretation of what I have seen and heard, and my judgement on the – sometimes significant – changes that I believe are required if the skills delivery landscape is to be optimised and its impact maximised.

How the Review was carried out

1.08 Since the inception of the Review in September 2022, over 80 engagement meetings have been carried out, with many hundreds of individuals and organisations from across the system – all of which have greatly aided my understanding and the subsequent development of my recommendations. This included engagement with key delivery bodies such as SDS, SFC, and the Scottish Qualifications Authority (SQA) to understand their existing roles and responsibilities, but also with further and higher education providers, businesses, enterprise agencies, other public bodies and individuals with a keen interest, and expertise, in post-school learning.

1.09 I wanted to ensure that the report and recommendations could have, as much as is possible, consensus or buy-in across the political spectrum. As such, I wrote separately to the relevant parliamentary committees, and all of the political parties, and was particularly grateful to those representatives who met with me to share their views.

1.10 Additionally, a Call for Evidence process went live in October until December 2022 asking for views on the specific areas identified in my ToR. This has provided a solid evidence base across the different functional areas and the delivery landscape more widely. Alongside this, I also asked my Secretariat to host eleven webinars, aimed at specific audiences, that looked for views on what was working well within the current system and what needs to change. I greatly valued the number and breadth of people and organisations who contributed and the thoughtful way in which views were outlined.

1.11 Of course, I was particularly mindful that the future skills landscape must work for the people of Scotland and, therefore, I also connected with users of the system who provided invaluable insight into what works well, what could improve, their own aspirations for the system and other key areas to consider.

1.12 To help understand and collate the findings from the Call for Evidence and in accordance with the Scottish Government's Procurement Strategy^[4], Craigforth Consultancy and Research were contracted to analyse the 164 call for evidence submissions and the online notes of the webinars. Their full analytical report and the responses to the call for evidence are being submitted to Ministers alongside this report.

1.13 Everyone with whom I engaged during the course of the Review knew that they were participating and, in doing so, have been deemed to have provided informed consent to my drawing on the content of our discussions to inform my recommendations. However, to protect identities and ensure anonymity, the analysis and report do not attribute views to specific individuals or organisations. Submissions to the call for evidence were asked to identify if they were happy for their responses to be published, and the analysts were asked to ensure that direct quotes were only used from those who had indicated this permission.

1.14 Furthermore, I have read a variety of written documents including papers, strategies and reports directly relating to the operation and purpose of the key public bodies falling within the scope of the Review. Many of these are referenced throughout this document and have been pivotal in aiding my understanding of the challenges and opportunities facing Scotland's post-school learning system, linkages to other reviews and reforms, and the learning we can take from systems in other countries.

1.15 In this latter respect, it is clear that Scotland is not alone in its considerations of how to address the challenges facing the economy and labour market. There are examples of post-school education and skills reforms already underway in other UK nations which reflect the desire to adapt systems to better respond to the evolving needs and demographic and industrial challenges. Beyond the UK there are many countries that have long-established philosophies and principles that support post-school learning pathways into the labour market. In particular, countries like Germany and Switzerland where there is a much clearer focus on vocational offers or Singapore which looks to support 'skills mastery' - a continual mindset to strive towards greater excellence through knowledge, application and experience^[5].

1.16 While it has been important to learn about these varying approaches, I have remained conscious that Scotland has its own unique structures and culture that have determined how its post-school learning system has evolved and which mean I am wary of the feasibility to 'lift and shift' approaches from elsewhere. As such, I have focused my recommendations on what I think is right for Scotland, rather than seeking to replicate international examples.

1.17 Further detail on my methodology can be found in Appendix A.

What does good look like for Scotland's skills delivery landscape?

1.18 The task I was set, in conducting this Review, was to ensure that the delivery landscape is fit for purpose for meeting Scottish Government ambitions for a skilled workforce to support the NSET and the development of the Purpose and Principles for Post-School Education, Research and Skills^[6]. Given the forward-looking nature of these strategies, I have taken a long-term perspective. I have asked myself the following questions: in ten years' time, how will we know that we have a successful skills delivery landscape? What will it look and feel like to government, delivery agents and, most importantly, users?

1.19 In order to build any system, a vision is essential; the 'north star' for which we should be aiming. The vision in the NSET is 'to create a wellbeing economy: a society that is thriving across economic, social and environmental dimensions, and that delivers prosperity for all Scotland's people and places'^[7]. The Interim Purpose and Principles translates this into a vision for the post-school learning system 'to ensure that people, at every stage in life, have the opportunity and means to develop the skills, knowledge, values and attributes to fulfil their potential and to make a meaningful contribution to society.'^[8]

1.20 Both visions recognise the importance of individual outcomes within the context of wider societal outcomes. To that end, my interpretation of success is that: Every individual in Scotland has equitable access to the learning opportunities required to reach a positive destination in their working life, collectively ensuring Scotland's economy and society can flourish.

1.21 It is important to note that I am using a wide conception of what a working life might be. This is not solely focussed on paid employment but also embraces activities such as volunteering in the community, child-rearing and unpaid caring responsibilities; in short, all the ways in which individuals contribute to society.

1.22 Likewise, by a positive destination I do not mean the set of destinations considered as positive by government^[9]. Rather, it will mean different things to each individual and should not be defined by government or by societal attitudes or norms, no matter how engrained. However, there are certain fundamentals which may be common to many peoples' interpretations of success; fair reward for fair work, opportunities to apply a current skillset and develop others, a sense of achievement and impact.

1.23 A commitment to equitable access to opportunities requires a post-school learning system that enables universal access to the information or support needed for any individual to make informed choices. This includes information to help them to assess what success means to them, whilst also understanding what it means for local communities and economies, and support to help individuals identify their strengths and understand how these might be used on their journeys to, and through, work.

1.24 To achieve such a vision, we also need a revolution in how we think about learning. Learning is not just a process that happens at a specific point in our lives. It is the lifelong journey of acquiring skills and knowledge. At various points in our lives, we will need to access a formal learning system to support our personal and professional development. This formal learning will take place for us all in a school, and then in a variety of settings throughout our lives – in a college or university, in a workplace or community setting, or online. Wherever the learning takes place, it must be delivered with the core purpose of equipping the individual with the skills and knowledge required to help them reach a positive destination in their working life.

1.25 As our economy and society continue to transform, as we respond to changing technology, a changing climate, and changing demographics, a diversity of roles will both be created and continue to exist, all of which will need to be fulfilled. Businesses and government will need to be key partners in ensuring that the workforce needs and opportunities of the economy are clearly identified and widely understood. If improved productivity is a key goal, then we need to know and communicate where the development opportunities and possible destinations are, and, critically, ensure the learning system delivers the broad range of learning opportunities and pathways that will make those journeys a reality.

1.26 This means a culture founded on a core principle: all learning that contributes to a positive destination has parity of esteem. This culture must pervade every facet of our post-school learning system. There is no 'golden pathway'; no learning journey that is more worthy than another. For too long, we have fostered a culture in which going to university is seen as the ultimate post-school achievement with all other options being considered varying degrees of second-best. It is possible both to recognise the extraordinary value of our university sector in Scotland whilst at the same time stating that that culture must now end.

1.27 Culture does not shift easily. But government, education providers and businesses must work collectively to embrace this way of thinking and support the development of a post-school learning system which reflects this vision for success. It will be pivotal to Scotland and its population in achieving its potential and critical to developing the diversity of workforce that will fuel our future economy and communities.

Structure of the Report

1.28 The following section of the report, Chapter 2, sets out my analysis of the system as it is against the vision above of 'what good looks like'. Following that, in Chapter 3, I set out my take on the 'pillars for a successful landscape'. These are essentially the components that I think are critical if the Scottish Government and its partners are to be able to get the best from its post-school learning system.

1.29 I have used these pillars to develop and inform my recommendations which are set out together with their rationale in Chapter 4. It is important to re-emphasise that these represent my interpretation of the best solutions and that, through the call for evidence and insight gathering, there is no overall consensus on how change can be achieved, only that change is an imperative. This reform is about making the current system fit for the future and, given the transformation in Scotland's economy that will transpire over the next decade, it can be of no surprise that the delivery landscape must transform too.

1.30 Finally, Chapter 5, is my attempt to set my recommendations in the context of the other reviews and reforms that are underway to evidence how I have considered those aspects and to add weight to the case I am making for structural reform as well as helping to inform the potential next steps for implementation.