The “disinvestment” facing colleges under the draft Scottish Budget must be reversed if the country is to capitalise on cutting-edge industries such as green energy, MSPs have been warned.

Andy Witty, Director of Strategic Policy and Corporate Governance at Colleges Scotland, told members of the Scottish Parliament’s Finance and Public Administration Committee that economic success would depend on the college sector’s ability to provide vital technical skills.

But he stressed that the role of colleges was being damaged by relentlessly falling budgets.

His comments came during a Scottish Budget evidence session today (Tuesday 17 December 2024) that focused on growing the economy and featured contributions from organisations including Scottish Financial Enterprise, Skills Development Scotland and Scottish Renewables.

They also follow the Scottish Government’s publication of its draft 2025/26 Budget, which proposes a 1.9% increase in college funding. This is well below the 3.2% inflation rate and less than half the £25 million required by institutions to address rising inflationary costs.

The proposals, if passed by Parliament, would leave colleges struggling with a persistent, real-terms funding cut of 17 per cent since 2021/22.

Asked to set out his concerns, Andy Witty told MSPs:

“Back in April, for the Public Audit Committee, we provided evidence of the risk if there was poorer, or a lack of, investment in the college sector, and an inability to help and support industry and what that needs.

“Unfortunately, we’re seeing that come to fruition with the draft Budget.

“That disinvestment in the college sector is going to be devastating. What’s clear from the written submissions from people around this table is the ambition but also the need for a skilled workforce, and the opportunities Scotland has through the investment that could come.

“But all of that ambition relies on a responsive college sector and, at the moment, there’s unmet demand for the college sector.

“So, at the point where the training of these high-end, technical skills is required, and we need to support industry to help them expand, and for Scotland and the economy to make the most of the opportunities, we’re actually being asked to do that on a falling budget, which has huge impacts.

“But with the right investment, colleges can do that. There are some great examples around the country of co-creation of courses, working with industry - but there’s so much more that could be done.”

Andy Witty also highlighted the bureaucracy around college reporting and the sector’s funding model as areas where reform could help free up institutions to meet the skills and training needs of communities.

He said:

“There are some great examples of where colleges are responsive locally – different regions require different elements. So, I think there’s some commonality of what needs to happen to increase it and help that even more.

“I think the ambition of the college sector needs to be matched by the ambition of Scottish Government and its agencies – and some of the shackles that colleges have to operate in need to be removed.”

Today's meeting of the Finance and Public Administration Committee can be accessed and viewed here.