Five new skills training centres across South East Scotland are to be created with £25m of UK Government funding.
Announced 3 September, the investment is part of an overall award of £37.8m for Edinburgh and South East Scotland City Region from the UK Government's Local Growth Fund and will support future housing delivery, retrofit and green economy jobs in the region. Additionally, the funds will drive regional employability and business growth initiatives, while financing transport planning and research into the impact of AI.
The UK Government has now released £14.09m to Edinburgh and South East Scotland Regional Partnership after signing off on its locally designed three-year Local Growth Fund investment plan, which targets areas with the lowest household incomes to create jobs and boost living standards. Funding for Years 2 and 3 will be rolled out as the region progresses through its plans.
A partnership between the four regional colleges of Borders, Edinburgh, Fife, and West Lothian plans to train over 20,000 new entrants across the region over the coming decade as well as upskill existing workers.
South East Scotland is the fastest growing region in Scotland, with some of the highest housing demand for now and into the future. The new training hubs will be strategically important in the delivery of 40,000 new homes across the region’s seven strategic housing sites.
The training centre in the south of Scotland will also benefit from Scottish Government funding through the Borderlands Inclusive Growth Deal.
Scottish Secretary Douglas Alexander said:
"Today the UK Government is releasing more than £14 million to Edinburgh and South East Scotland partners who know their communities best.
"These funds will be crucial for addressing skills shortages, driving green innovation and removing barriers to local employment and infrastructure development.
"The UK Government is committed to empowering local communities by spreading power throughout the country. These funds will support local leaders throughout Scotland to create skilled jobs, help start up businesses and revive our local high streets."
Jim Metcalfe, Principal of Fife College said:
"Boosting modern skills for sustainable construction is a priority here in Fife and right across the East of Scotland. We're delighted to be working with our college sector colleagues, and dozens of construction industry partners across the region, to keep the east of Scotland building and growing sustainably."
Councillor David Ross, Leader of Fife Council, added:
"As we continue to see demand for new homes and work towards our net zero ambitions, having a skilled local workforce will be essential. These new training facilities will create opportunities for local people to gain valuable qualifications, access high-quality jobs and build rewarding careers in growing industries. Just as importantly, they will help ensure we have the skills needed to support sustainable economic growth and deliver the homes and infrastructure our communities need."
According to a report undertaken by the University of Edinburgh and West Lothian College, the region has a construction workforce of 57,000, of which 21,000 (34%) commute for work into the region from other parts of Scotland daily. The study identified that the region requires an additional 20,000 new entrants, upskilling roles and replacement construction workforce over the next 10 years.
Photograph: Jim Metcalfe, Principal of Fife College, and Aishling O’Sullivan, Head of Skills Street – Centre for Business, Advanced Technologies & Trade at Fife College, are pictured at the Skills Street site at the College’s Dunfermline City Campus, where Fife's new UK Government-funded Net Zero Accelerator Hub will be based.
The Local Growth Fund provides £140 million over three financial years (2026/27 to 2028/29) to drive growth and improve living standards across five Scottish regions.
Year 1 funding cleared to regional Accountable Bodies on or around 28 August 2026, allowing physical delivery and infrastructure procurement to commence immediately.
Funding for Years 2 and 3 will be rolled out as regions progress through their plans. Regions will work closely with the UK Government through regular updates and annual reviews to showcase their progress, demonstrate local impact, and ensure funding continues to flow smoothly to regional projects.
Methodology: Eligible regions were selected using objective data identifying local authority areas with the lowest Gross Disposable Household Income per capita. Funding was then allocated based on regional population proportions.
The Borderlands Inclusive Growth Deal, is a landmark cross-border investment partnership involving five councils: Cumberland, Dumfries and Galloway, Northumberland, Scottish Borders, and Westmorland and Furness. It aims to drive sustainable and inclusive economic growth across the South of Scotland and North of England.