Scottish colleges on the brink as budget cuts force student numbers down

Scotland’s colleges have entered an “extremely difficult financial landscape” after suffering a 20 per cent real-terms funding cut, a watchdog has warned.

Audit Scotland said “good services” continue despite the loss of £1 in every £5 this parliamentary session.

Institutions were found to be “delivering less teaching to fewer students to balance their books”.

But the sector cannot carry on without further change in response to the financial pressures, it is claimed and, responding to the findings, Colleges Scotland is calling on the Scottish Government to “stop the decline”.

Audit Scotland’s paper comes days after a similar publication by the Scottish Funding Council. 

Chief executive of Colleges Scotland Gavin Donoghue said: “This is the second report in a week warning of the dire financial circumstances colleges are operating in. Taken together, these two reports show very clearly the acute damage being done to colleges by cutting government investment by 20 per cent.”

The net resource allocation for Scotland’s 24 colleges was set at £675.7m in 2023-24. That sum had been set for three consecutive years, and there was a drop of more than 30,000 students (12 per cent) compared with 2022-23.

Audit Scotland reports a reduction in the college workforce of more than seven per cent in the last financial year as part as savings measures. But despite these, two institutions – UHI Moray and New College Lanarkshire – required emergency support worth a combined £6.6m from the Scottish Funding Council over the period. Another seven reported a deficit.

There is now a risk that colleges may prioritise courses that are cheaper to deliver, rather than those which meet local needs, the watchdog said.

And while there are high satisfaction rates, colleges are unable to meet the student and employer demand for some courses and apprenticeship programmes.

Auditor General for Scotland Stephen Boyle said: “Scotland’s colleges are providing good services despite facing ongoing financial pressures. 

“Funding has reduced and the demands on the sector are changing, with fewer older students enrolling, increasing competition from universities, and the impact of digital technology on delivering teaching. 

“If those pressures continue, colleges will need to change how they operate rather than trying to deliver more of the same with decreasing resources.” 

Donoghue said: “Reducing college funding by a fifth has directly led to less students being able to access a world-class college education, unsustainable cuts to staff numbers, inadequate estates maintenance, and reductions in courses on offer.

“Audit Scotland is, however, right to highlight that overall college student satisfaction remains very high at over 90 per cent. This is testament to the hard work of college staff who continue to deliver education and support to their students within ever-diminishing resources.

“Colleges are a vital anchor institutions in our local communities, and skills engines of our regional economies, delivering the upskilling and re-skilling required to lift people out of poverty and deliver sustainable economic growth.

“Colleges Scotland is calling for a step-change in approach at the next budget to halt the decline and bring back a sustainable level of investment for our crucial college sector.”

Scottish Labour education spokesperson Pam Duncan-Glancy said: “The SNP has systematically hollowed out Scotland’s colleges and robbed Scots of all ages of opportunities.

“This damning report lays bare years of punishing budget cuts and a total lack of leadership from this SNP government.

“College staff are doing a fantastic job of supporting student in the face of SNP failure, but their jobs are being cut by the day.”

The Scottish Government said it “recognises the vital role that Scotland’s colleges play in our economy and wider society”.

A spokesperson said: “This report notes a number of high-level pressures facing the sector. The Scottish Government will consider the report’s recommendations and will work closely with colleges to ensure a successful and sustainable future.”