Commenting on the Scottish Funding Council’s report on the Financial Sustainability of Colleges in Scotland published today (Friday 26 September 2025), Gavin Donoghue, CEO of Colleges Scotland, said:

“Today’s report is incredibly stark. The SFC is rightly highlighting that most colleges are not financially sustainable within the current level of investment from the Scottish Government. This is why Colleges Scotland is calling for a step-change in funding at the next Budget. Further flat-cash funding, or even just an inflationary uplift, are not sustainable options.

“The SFC highlights the imminent risk that a number of colleges may be insolvent by the end of this academic year, without urgent action from Scottish Government. Many colleges are clearly in a perilous financial position, and this must be quickly addressed through a significant increase in core funding.

“The harsh reality is that chronic under-investment over many years in has led to college leaders having to consider deeply unpalatable decisions about courses, campuses, and curriculum, while at the same time people of all ages are increasingly looking for opportunities to upskill and reskill themselves at college, and employers are crying out for a skilled workforce. 

“This report makes clear colleges have done absolutely everything they can – including educating 12.4% less students, and reducing staff numbers by 8.7% since 2021 – in an effort to balance the books, but they cannot self-fund any further restructuring activity. 

“Colleges are Scotland’s skills engines, and important local community anchors which act as places of hope and opportunity to help move people out of poverty. Scotland’s people need and value colleges, and students who come to college have an overwhelmingly positive experience leading to good jobs and great careers. 

“It is now past time for proper investment to come to colleges, so they can continue to deliver world-class education and training to over 218,000 people in Scotland each year.”