By Catriona Stewart

Copyright scotsman

The SNP has been accused of “guillotining” college budgets as a bleak new financial analysis reveals a 20 per cent real terms cut in funding over the past five years. Audit Scotland’s latest report on the financial outlook of the sector has shown colleges are still providing a high level of services despite swingeing cuts. Staff have born the brunt of cost saving measures by colleges through redundancy programmes and restructuring while 30,000 fewer students were taught in the past year. Concerns have been raised that colleges will try to balance the books by offering courses that are cheaper to run but which don’t satisfy local need. One college principal said further education faced a “path of rapid managed decline with stark consequences” unless the government moves swiftly to inject cash into colleges. Principal of Edinburgh College, Audrey Cumberford, said: “It has been shown with absolute clarity that the sector is facing a path of rapid managed decline with stark consequences for students and the Scottish economy. “The alternative path is one that requires bold leadership and a commitment to transformation to ensure Scotland has a sector that is not only sustainable but is fit for the future, agile and responsive to the needs of our regions and the wider skills demands of our economy. “Each year that passes risks seeing more institutions fall away as running adjusted deficits becomes more widespread.” Ms Cumberford added it is “clear” the sector cannot “continue as is for much longer”. The college workforce shrank by more than seven per cent in 2023/24 as savings were sought through voluntary severance schemes. Despite this, seven out of 24 colleges reported a deficit in 2023/24. Two colleges also required emergency funding from the Scottish Funding Council to stabilise their finances. Scottish Liberal Democrat education spokesperson Willie Rennie MSP said: “This report shows that the SNP have guillotined college budgets over many years.” Stephen Boyle, Auditor General for Scotland, said: “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.” Audit Scotland’s report tells the Scottish Government it should issue clear guidance on its expectations of colleges within the next year. A real-term reduction of £1 in every £5 of investment since 2021/22 has led to colleges operating “in an extremely difficult financial landscape” the report says. It comes just days after a stark publication from the Scottish Funding Council (SFC) which warned most colleges are not financially sustainable within the current funding environment, and that some colleges are facing insolvency in this academic year. Gavin Donoghue, CEO of Colleges Scotland, said: “This is the second report in a week warning of the dire financial circumstances colleges are operating in. “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.” Audit Scotland’s report states that colleges are struggling to address higher priorities, such as emergency repairs. City of Glasgow College said its four-year capital plan outlines a need for £3 to 4 million spending per annum that exceeds its £1.3m allocation. North East Scotland College estimated its capital maintenance allocation was around half of what it requires. Colleges Scotland undertook a review of the college estate in 2022, which indicated that the cost to bring the college estate back up to baseline condition was £775m. The chair of the College Principals’ Group recently told MSPs that the cost to cover backlog maintenance costs and meet net zero emission targets is now estimated at close to £1 billion. The report also highlighted that fewer pupils from deprived backgrounds going to college and straitened budgets mean support services such as for mental health are being cut. Scottish Conservative shadow cabinet secretary for education and skills Miles Briggs MSP said: “Audit Scotland’s conclusions are a damning judgment on the SNP’s neglect of the college sector, which is vital for skills, jobs and growth. “The inevitable result of this mismanagement is jobs, courses and student numbers being slashed. “Despite the best efforts of colleges themselves, the situation risks spiralling further out of control unless there is a fundamental change in approach from SNP ministers.” A Scottish Government spokesperson said: “The Scottish Government recognises the vital role that Scotland’s colleges play in our economy and wider society. “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.” The SNP’s new higher and further education minister Ben Macpherson was criticised at Holyrood on Wednesday after he was unable to tell MSPs how much funding Scotland’s under-strain colleges will need to “survive”. On Friday, a Scottish Funding Council (SFC) report starkly warned “most colleges are not sustainable”. Several institutions have warned they could run out of money by the end of this financial year, with 22 out of 24 colleges expected to spend more than their income. But Mr Macpherson was unable to tell Holyrood’s education committee on Wednesday whether he was aware of how much the sector would need to avoid disaster ahead of crunch budget negotiations in the coming weeks and months. READ MORE: New Scotland college and university funding analysis shows ‘most colleges are not sustainable’ The SNP minister acknowledged the “deeply challenging financial outlook” that Scotland’s colleges faced. Mr Macpherson was pressed by committee convener Douglas Ross over the “dire financial straits” that many colleges in Scotland were facing, warning “they are not going to survive without transformation” and also additional funding. In response, Mr Macpherson insisted he “cannot discuss the specific circumstances of specific institutions”. He said: “There are a number of questions in terms of the current financial year and then preparation for the next budget.” But the minister warned those discussions would take place “internally within government”. He said: “There will be an internal dialogue process where, of course, ministers for education will advocate strongly for our portfolio.”