Scottish colleges face £5.6 million combined deficit

A report from Audit Scotland reveals that Scotland’s 19 incorporated colleges faced a combined deficit of £5.6 million in 2024/25, a significant increase from the £1.9 million deficit recorded the previous year. Ayrshire College was specifically identified as facing a £1 million deficit, representing nearly a fifth of the total sector shortfall.

The report highlights that more than half of Scotland’s colleges are at high or very high financial risk. To manage costs, the sector has seen a 13 per cent reduction in the full-time equivalent workforce since 2019, with 282 staff leaving through voluntary severance schemes in 2024/25 alone, costing £7.2 million. Despite these cuts, staff costs rose to £553.7 million, accounting for approximately two-thirds of total expenditure.

Audit Scotland warned that these financial pressures could threaten teaching provision and lead colleges to prioritize less expensive courses over those meeting local needs. Additionally, there are concerns that short-term financial support from the Scottish Funding Council may be masking long-term structural issues. Scottish Conservative leader Russell Findlay criticized the SNP for failing to address the funding crisis, while the Minister for Tertiary Education, Alyn Smith, noted the report recognizes the sector's challenges.