To ask the Scottish Executive what progress it has made with the introduction of business learning accounts; how many companies have participated in the scheme, broken down into small, medium or large businesses; how many employees have participated in the scheme, broken down by size of company and Local Enterprise Company (LEC) area; whether it will provide a breakdown and overall totals of the grants awarded; what outcomes such grants have achieved or are expected to achieve; whether there have been any complaints about the design or delivery of the scheme; which LEC areas are covered by the scheme; what budget has been allocated to the scheme in each of the financial years in which it has been operating; how much has actually been spent in each financial year; what budget has been set aside for the scheme in 2006-07; how many consultants have been involved in the scheme in each LEC area; what the total cost of these consultants has been in each financial year; whether the scheme has been evaluated and, if so, what the outcome was; who undertook any such evaluation and at what cost, and what the Executive's plans are for the future of the scheme.
Business learning accounts(BLAs) were piloted for a two year period from autumn 2003 to autumn 2005. The enterprisenetworks are not currently offering any new BLAs but those companies which havealready been awarded a BLA are able to continue implementing training plansuntil the end of March 2006.
There were four BLA pilots, twosectoral and two geographic. The two geographic pilots covered the Ross andCromarty LEC area and the Clyde Valley area - including Renfrewshire, Glasgow andDunbartonshire LECs. The two sectoral pilots were open to businesses in the Manufacturingand Tourism industries and as such, were available across all LEC areas. InApril 2005 BLAs were extended to all LECs in the Highlands and Islands Enterprisearea.
Five hundred and seventysmall businesses have participated in BLAs by undergoing a Training NeedsAnalysis (TNA). Three hundred and forty-four have gone on to be approved forBLA funding. BLAs are only available to small businesses with less than 50employees.
The information requested onnumber of employees which have participated in BLAs is provided in thefollowing tables. It has not been possible to provide a breakdown by LEC area forScottish Enterprise (SE) pilots, however a breakdown by pilot has beenprovided. A breakdown by Highlands and Islands Enterprise (HIE) LEC area has been provided.
Pilot | Number of Individual Employees |
Tourism ( SE Network–wide) | 534 |
Geographic (SE Renfrewshire; Glasgow; Dunbartonshire) | 425 |
Manufacturing (SE Network – wide) | 625 |
Total | 1,584 |
Number of IndividualEmployees Participating In Blas By HIE LEC Area
LEC | Number of Individuals |
Ross and Cromarty | 560 |
Caithness and Sutherland | 40 |
Orkney | 53 |
Shetland | 100 |
Lochaber | 52 |
Skye and Lochalsh | 26 |
Argyll and Islands | 29 |
Western Isles | 14 |
Moray | 4 |
Inverness, Nairn, Badenoch and Strathspey | 54 |
Total | 932 |
The information requested onthe total funding awarded by pilot and by LEC area is provided in the followingtables.
BLA Funding Awarded for OriginalFour BLA Pilots
Pilot | Funding Awarded |
Clyde Valley | £144,734 |
Ross and Cromarty | £230,000 |
Manufacturing | £179,353 |
Tourism | £75,414 |
Total | £629,501 |
Funding Awarded by HIE LEC Areasince April 2005
LEC | Funding Awarded |
Caithness and Sutherland | £36,100 |
Orkney | £22,000 |
Shetland | £53,500 |
Lochaber | £15,500 |
Skye and Lochalsh | £18,500 |
Argyll and Islands | £34,700 |
Western Isles | £17,750 |
Moray | £14,500 |
Inverness, Nairn, Badenoch and Strathspey | £30,320 |
Total | £242,870 |
It is not been possible toprovide data on the return on investment at this stage. A final independentevaluation is due to complete shortly which will identify benefits derived forthe businesses and individuals participating.
We have not had any formalcomplaints about the design or delivery of BLAs. The interim evaluation, whichreported in December 2004, identified some operational issues which may limitthe success of BLAs. These issues were addressed at the time of the evaluation.Informationon the number of contractors is provided in the following table.
Contractors Used in the Deliveryof BLAs by LEC
LECs | Number of Contractors Used |
Ayrshire | 1 |
Grampian | 1 |
Glasgow, Renfrewshire, Dunbartonshire (Geographic pilot) | 3 |
Lanarkshire | 2 |
Fife | 3 |
Tayside | 3 |
Dumfries and Galloway | 1 |
Edinburgh and Lothian | 3 |
Forth Valley | 2 |
Ross and Cromarty | 5 |
Caithness and Sutherland | 1 |
Orkney | 2 |
Shetland | 1 |
Lochaber | 2 |
Skye and Lochalsh | 1 |
Argyll and Islands | 2 |
Western Isles | 2 |
Moray | 2 |
Inverness, Nairn, Badenoch and Strathspey | 3 |
It has not been possible tobreakdown the cost of contractors by LEC area. However the following tableshows the totals spent in the Scottish Enterprise and Highlands andIslands areas.
| 2003-4 | 2004-5 | 2005-6 |
Highlands and Islands Enterprise | £17,000 | £34,000 | £150,220 |
Scottish Enterprise | £3,375 | £168,750 | £128,250* |
Note: *2005-06 figures areestimated as final expenditure will not be known until April 2006.
The information requested onthe budget and actual spend by the Scottish Executive on BLAs is provided inthe following table.
Budget Allocated and Actual Spendby Scottish Executive on BLAs by financial year.
| 2003-4 | 2004-5 | 2005-6 |
Budget Allocated | £264,000 | £736,000 | £1,000,000 |
Actual Spend | £264,000 | £730,000 | £930,000 |
The Scottish Executive hasnot set aside any budget for BLAs in 2006-07.
An independent evaluation isbeing undertaken by Cambridge Policy Consultants. An interim evaluation waspublished in December 2005 and can be found on the Scottish Executive website
www.scotland.gov.uk/library5/enterprise/ell17-00.asp.We are currently awaiting a final evaluation report and we expect to publishthis in early 2006. The total cost of the evaluation will be £88,000.BLAs are expected toencourage small businesses which do not traditionally invest in training torecognise the benefits of training linked to business growth. It is thereforehoped that businesses will continue to invest in training after receivingsupport through a BLA. The final evaluation report will give us an indicationof what BLAs have achieved.
We are awaiting the finalevaluation report before we take any decision on the future of BLAs.