A stark warning has been issued as the Scottish Government prepares to outline its financial priorities for 2025/26, with Scotland’s colleges urgently requiring a significant funding increase in the draft Budget to avoid jeopardising critical investments in health, social care, energy, and other key sectors. 

Funding for colleges has declined by 17% in real terms since 2021/22, leaving colleges under significant strain at a time when college graduates are essential to Scotland’s workforce. Skilled professionals are urgently needed in industries such as healthcare, childcare, construction, digital innovation, and renewable energy.

Dr Graeme Jackson, interim CEO of Colleges Scotland, speaking from a gathering of international college leaders in Belfast, emphasised the direct link between college investment and Scotland’s prosperity. He said: “Investing in colleges is investing in Scotland’s people and our collective future. With continued funding cuts there is harm to colleges, and also a risk of undermining the success of other vital sectors which depend on a skilled workforce.”

“Bolstering the NHS’s resilience depends on college-trained professionals in wards, labs, IT, and health administration, while the social care sector relies on colleges to train much-needed new staff and upskill the existing workforce. The construction sector is short of thousands of skilled workers crucial to building energy-efficient homes, while the events industry, hospitality, digital, and Scotland’s climate commitments also hinge on specialised, up-to-date skills only colleges can provide.”

Dr Jackson called for urgent action in Wednesday’s announcement, adding: “Scotland’s 24 colleges are agile, community-centred powerhouses of education and training. Their role in delivering economic growth cannot be overstated. Yet millions of pounds have already been removed from college budgets, which has led to a loss of staff through redundancies. This draft Budget must reflect a stronger commitment to rebuilding and empowering colleges to meet Scotland’s workforce needs and unlock our economic potential. A clear commitment to fair, multi-year funding is essential.”

He concluded with a plea for political consensus: “Colleges improve people’s chances to move into good jobs and great careers, and help to build community wealth and local opportunities. Employers across Scotland deserve confidence that colleges can continue delivering skilled workers to meet economic demands. I urge all parties to recognise the transformational potential of colleges and prioritise investment in the upcoming Budget.”

You can read Colleges Scotland’s draft Budget submission.