£2.5 billion estates investment required to secure future skills and economic growth
A new report has estimated that around £2.5 billion is required to keep college campuses maintained and to invest in estates and buildings for the future.
The College Infrastructure Investment Plan published by the Scottish Funding Council reports on the condition and potential investment needs of Scotland’s 24 colleges, 99 campuses and 270 buildings.
Growing challenges include ageing infrastructure, rising maintenance costs and the need to support future skills delivery, digital learning and net zero ambitions. The report notes that £1.3 billion is needed for maintenance and estate condition works, with a further £1.2 billion required for transformational projects.
Gavin Donoghue, CEO of Colleges Scotland, said: "Scotland's colleges are central to delivering the skilled workforce our economy needs. They are also valuable community anchor institutions, but many staff and students are often learning and working in estates that are ageing, increasingly costly to maintain and which no longer fully meet the needs of a modern learning environment.
“This Plan evidences the scale of the challenge, and makes a compelling case for investment to come forward quickly in order to ensure the college estate continues to be safe and compliant, and sustains our existing assets, while delivering essential transformation.
“The report makes clear that investment in the college estate needs to start in the next Financial Year. The Scottish Government’s draft 2027/28 Budget on 3 December will be the first opportunity to begin that investment. A flat cash settlement for college estates would barely allow some institutions to address their most urgent issues – statutory backlog and maintenance.
“The Plan shows the investment required in 2027/28 alone is £262m, whereas this year's capital investment was under £44m. There is clearly a distance to travel in reaching the investment required to truly transform Scotland’s college estates. We recognise that the Plan is clear that “current levels of public funding are insufficient to sustain or transform the college estate on its own.” ”
He added: “Colleges need modern, sustainable and digitally enabled learning environments if they are to continue supporting learners, employers and Scotland's ambitions for productivity, net zero and inclusive growth. Investing in colleges would be a key part of ensuring colleges have a firm future as civic anchors as the public sector reforms and changes in the coming years. Colleges should be modern, sustainable and digitally enabled learning environments if they are to continue supporting learners, employers and Scotland's ambitions for productivity, net zero and inclusive growth, all major priorities for this Government."
Colleges Scotland has called for significant investment into college estates over many years.
In September 2026, Audit Scotland noted in its annual report into Scotland’s colleges that despite the recent uplift in funding “this means that a significant gap remains between the funding available to colleges and that needed for estate repairs and transformation.”
The SFC also reported in its report, Financial Sustainability of Scotland’s Colleges (October 2026), that: “Estates issues are directly driving financial issues in many colleges. Issues such as extensive backlog maintenance, reinforced autoclaved aerated concrete (RAAC), and defective cladding are key drivers of costs in this area. However, the estates also require to be modernised and rationalised in some colleges to meet current teaching, curriculum and regional skills needs.”


