Colleges feeling impact of funding cuts

Scotland’s colleges face major changes in how they operate as funding pressures continue to mount.

According to the Auditor General, colleges have suffered a 20 per cent real-terms cut in funding over the past five years. While the sector managed to record a small surplus in 2023/24, this came at a cost — with thousands fewer students taught and hundreds of jobs lost across the country.

The report, Briefing – Scotland’s colleges 2025, warns that colleges are already delivering less teaching to fewer students and may be forced to prioritise cheaper courses over those that meet local demand. Student numbers are down and some apprenticeship places are going unfilled, despite high demand from employers.

Staffing levels have also been hit, with the college workforce shrinking by over seven per cent in 2023/24. Seven colleges reported deficits last year, and two required emergency funding from the Scottish Funding Council to stabilise their finances.

In Renfrewshire, West College Scotland – which operates campuses in Paisley, Clydebank and Greenock – reflects the national picture. The college posted a surplus of just £0.1 million, equal to 0.2 per cent of its income, in 2023/24. Its financial position was described as “worse” than the previous year, despite holding cash reserves of £13.8 million.

Staff numbers at West College Scotland dropped by 12 full-time equivalent posts, with 21 staff leaving through voluntary severance, costing almost £400,000. Like other institutions, it has adjusted its curriculum to cut costs. Sector-wide, this has meant larger class sizes, reduced teaching hours and cuts to English for Speakers of Other Languages (ESOL) classes, even though demand remains high.

Anne Campbell, Principal and Chief Executive of West College Scotland, said the college remains determined to serve local communities and industries despite the difficult climate.

She said: “West College Scotland is committed to meeting the needs of our communities and key industries across Renfrewshire, Inverclyde and West Dunbartonshire. We play a critical role in helping to address local, regional and national priorities including tackling child poverty, boosting economic growth, social mobility and efficient public service delivery.

“Audit Scotland’s briefing – Scotland’s colleges 2025, alongside the Scottish Funding Council’s Financial Sustainability of Colleges in Scotland 2022-23 to 2027-28 paints a stark picture of college sector finances. We continue to work with colleagues across the college sector to highlight to the Scottish Government the increased funding challenges we collectively share – including the need for substantial expenditure in ageing infrastructure and for ambitious new facilities.

“There is no doubt, however, that further flat-cash funding or inflationary uplifts at the next Scottish Budget will mean that West College Scotland, like many other colleges, may need to take unpalatable decisions. We must see a significant increase in our core funding if we are to lift people in our communities out of poverty and deliver skilled people in key areas for our economy such as defence and engineering, construction and renewables, digital and health and social care.”

Auditor General Stephen Boyle said colleges were “providing good services despite facing ongoing financial pressures” but warned that, without reform, they could not continue to deliver more with less.