"College funding in Scotland is in a perilous state. Two recent reports – one from Audit Scotland, another from the Scottish Funding Council (SFC) – underscore the urgency of bringing forward investment in these valuable public institutions. The draft Budget for 2026/27, coming to the Scottish Parliament in January, will be an inflection point for the government and parliament.

The shrinking investment in the college sector in real-terms is stark. We are a quarter of the way into a new century, where the desire for upskilling and reskilling has never been greater, and the projections of skills need are only increasing. But colleges – Scotland’s skills engines – have faced a 20% real terms cut in funding since 2021/22, according to Audit Scotland, and are having to turn away potential students.

This situation seems non-sensical when employers regularly cite skills shortages as holding back economic productivity. Skills Development Scotland projects needing 344,000 skilled people to fill roles in 14 key industries in the next nine years, and inter-generational poverty continues to stalk some our most deprived communities.

Colleges bring great value for money for the public purse. The Fraser of Allander Institute found that the Scottish economy is £52 billion better off cumulatively over the 40-year working life of college graduates and that every college graduate creates an additional £72,000 boost to productivity for the Scottish economy

Colleges also produce strong pass rates, and very high positive destination and student satisfaction scores. Even in this challenging funding climate, student satisfaction remains very high – 92% – a resilient statement from learners on their positive experience at college and a testament to dedicated college staff."

A budget to save Scotlands colleges - A call for strategic investment