Politics

Scots colleges on ‘brink’ of financial collapse after budgets slashed by 20 per cent

By Chris McCall

Copyright dailyrecord

Scots colleges on 'brink' of financial collapse after budgets slashed by 20 per cent

Scots colleges are on “the brink” of financial collapse after a 20 per cent real terms cut in their budget, the SNP Government has been warned. A report by Audit Scotland out today found there has been a reduction of £1 in every £5 of investment since 2021/22, leaving the further education sector operating “in an extremely difficult financial landscape”. Auditors warned that without changes to baseline funding “colleges will have to deliver even less to remain sustainable at a time when demands from students and employers are not being met”. Scottish Labour accused the SNP of “hollowing out” colleges and depriving Scots of all ages opportunities as a result. Several institutions are already unable to meet demand from students and employers for some courses and apprenticeship programmes. It comes despite many colleges facing an overall decrease in the number of applications for places each year. The Audit Scotland report comes just days after a separate study by the Scottish Funding Council (SFC) found most colleges face unsustainable losses over the next three years – and several are warning they could run out of cash by April next year. Pam Duncan-Glancy, Scottish Labour spokeswoman, 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. “Colleges are at the heart of our communities and our economy, and Scottish Labour will make sure they are able to thrive.” Stephen Boyle, the Auditor General, 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.” 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. “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. “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. “We are 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.” Miles Briggs, Scottish Conservatives education spokesman, 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. “Swingeing Nationalist funding cuts have left too many colleges on the brink financially, with two requiring emergency bailouts. The inevitable result of this mismanagement is jobs, courses and student numbers being slashed.” A Scottish Government spokeswoman 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.” To sign up to the Daily R ecord Politics newsletter, click here