The draft Scottish Budget for 2026-27 has been published. The key highlights for skills and training are:
- A 10% increase in funding for colleges
- A slight reduction in funding for Skills Development Scotland which funds the majority of Modern Apprenticeships
- A slight increase in funding for Employability support programmes through NOLB.
Colleges
The increase in funding for colleges has been welcomed by Colleges Scotland. College budgets have fallen by 20% in real terms over the last five years making this increase a positive change in direction.
Apprenticeships
The Skills Development Scotland (SDS) budget has been reduced from £204.8m to £201.5m. SDS delivers national training programmes including apprenticeships, delivery of the Scottish Government’s national redundancy service (PACE) and Scotland’s careers information advice and guidance services.

Employability
The Employability budget has been increased from £101.7m to £104.6m. This budget represents a continuation of investment in all-age devolved employability services delivered through the No One Left Behind approach.

Scottish Budget 2026-2027 (PDF)
Scottish Budget level4 workbooks 2026-27 (XLS)