Colleges Scotland funding ask was ‘unrealistic’, says minister

Scotland’s colleges minister has said the body representing further education institutions put forward an “unrealistic” budget ask.

Colleges Scotland, in a submission to the Government last year, called for £853.3 million in resource funding and £775 million in capital.

On December 4, Finance Secretary Shona Robison announced colleges would receive £656.2 million in resource funding and just £64.8 million in capital.

Colleges Scotland hit out at the decision in its submission to Holyrood’s Education, Children and Young People Committee, describing it as “deeply disappointing” and saying it could have “far-reaching implications for Scotland’s economic recovery”.

The cut in capital funding – a cash terms drop of 23.6% – was also described as “alarming” as colleges continue to deal with issues in their estates.

But speaking before the committee on Wednesday, Education Secretary Jenny Gilruth agreed with comments from the First Minister that the funding was enough.

“I do agree, I was in the chamber and I heard the exchange you cited,” she said under questioning from convener Douglas Ross.

“The Budget sets out more than £656 million in the next financial year to support their delivery of high-quality education and skills.”

Graeme Dey, the Government’s further education minister, referenced the body’s budget demands.

“I think context is everything,” he said.

“The position that Colleges Scotland adopted at the outset of this was to make a budget ask that I think many people would have considered to have been unrealistic by any judgment.

“The capital ask represented 178% of the overall capital budget at our disposal, the revenue ask showed a very significant increase as well.

“So that was their starting position, so therefore they would regard the settlement as being somewhat falling short of that.

“If you look at the trend for funding colleges… the funding for colleges in 2025-25 compared to 2019-20 is up by £50 million.

“We all know inflation at one point in that peaked at 10% so I recognise challenges here.”

A spokeswoman for Colleges Scotland said: “The 2025/26 draft Budget means that colleges will receive a settlement below inflation.

“Ministers have pledged less than half of the £25 million required to address rising inflationary costs, leaving Scotland’s 24 colleges struggling with a persistent 17% real-terms funding cut since 2021-22, according to Audit Scotland.

“An increasing number of colleges are also now forecasting deficits.

“Alarmingly, the Budget neglects critical issues, such as replacing crumbling Raac concrete in seven colleges, reinstating a vital employer training scheme, and investing in improved classrooms and digital resources for students.

“The capital ask in the Budget submission to Scottish Government reflects the need for Raac repairs at seven colleges – which ministers have declined to fund – and investment to keep Scotland’s colleges wind and watertight, a basic tenant of providing a public service.

“Students deserve to learn and staff deserve to work in spaces that are fit for purpose.

“Despite falling funding, college leaders have moved quickly to work with employers and other partners to maintain the excellent experience that students have at college.”