The North East Scotland Investment Zone Joint Committee met on Tuesday 2 June 2026 to discuss and approve the Investment Zone Skills Funding Programme. The committee agreed to delegate authority for approving project funding under £250,000 to Aberdeenshire Council's Head of Service for Planning and Economy, and requested biannual updates on the programme's development.

North East Scotland Investment Zone Skills Funding Programme

The committee received an update on the North East Scotland Investment Zone Skills Funding Programme, which is allocated an additional £5 million from the Scottish Government over the lifetime of the Investment Zone. This funding is intended to support skills development related to the Investment Zone's focus on green energy and digital technology.

Kelly Wiltshire, Economic Development Service Manager at Aberdeenshire Council, presented the report, explaining that a Memorandum of Understanding (MoU) had been agreed with the Scottish Government outlining proposed projects and governance for the £5 million over the next 10 years. Delivery will be a collaborative effort involving Investment Zone Partners, the Regional Skills Partnership, and industry stakeholders.

The committee was recommended to:

• Note the contents of the Investment Zone Skills Memorandum of Understanding.
• Agree that the governance and approvals process for the skills programme would align with established governance arrangements.
• Delegate authority to Aberdeenshire Council's Head of Service for Planning and Economy, in consultation with the programme board, to approve project funding for skills projects under £250,000.
• Request that the programme office provide biannual updates on the development and delivery of the programme.

An amendment was made to recommendation 1.2.3 to ensure consultation with Aberdeen City Council officers. Councillor Christian Allard raised questions about the definition of the region for becoming a real living wage region and the current percentage of employment offering a real living wage, which Ms Wiltshire stated she would need to follow up on.

Following discussion, the committee agreed to the recommendations, with the noted amendment. The meeting then moved into a private session to consider other agenda items.

The North East Scotland Investment Zone Skills Programme aims to address critical workforce shortages in digital technology and energy transition, supporting the Regional Economic Strategy for the North East of Scotland. The programme is designed to deliver positive impacts for various protected characteristics and socio-economic groups, including younger and older age groups, those on low incomes, and individuals from deprived areas, by providing access to further education, training, and better-paid jobs. The Integrated Impact Assessment (IIA) for the programme highlighted positive impacts across these areas, with no negative impacts identified.

The funding for the programme is from the Scottish Government, with Aberdeenshire Council acting as the accountable body. The programme will operate within existing NESIZ governance structures, with proposals subject to scrutiny by the Programme Board and approval by the Joint Committee where required. All proposals progressing to delivery, other than pilot projects, will need to comply with the NESIZ Assurance Framework and the Five Case Model.

The programme's development will follow a three-stage approach: skills gap analysis, options appraisal, and business case development. The logic model for the programme outlines inputs such as funding and partner expertise, activities including skills gap analysis and business case development, outputs like an agreed skills evidence base and approved business cases, short-term outcomes such as improved coordination of skills activity, medium-term outcomes including increased supply of skilled labour, and long-term impacts such as a workforce capable of supporting Investment Zone investment and sustained economic growth.

The scope of the programme includes new or enhanced skills activity directly supporting IZ priority sectors and interventions, demonstrating additionality and measurable outcomes, and benefiting both Aberdeen City and Aberdeenshire. Business-as-usual provision and activity not linked to IZ delivery or outcomes are out of scope.

The proposed costs for the programme elements, as outlined in Annex A of the Memorandum of Understanding, include allocations for the Digital Skills Pipeline, Energy Pathways, Graduate into Business, Teacher Skills/Bursary Pilot, Foundation Apprenticeships, and Programme Management, Evaluation & Reporting.