College sector needs ‘significant support’, funding body tells MSPs

Scotland’s college sector is “going to require significant support”, MSPs have been told, with action needed amid a risk that four colleges could be in a cash deficit next summer.

Tiffany Ritchie, acting director of finance at the Scottish Funding Council – the body which funds colleges and universities, said the situation is “urgent”.

But she came under fire from MSPs on Holyrood’s Education Committee as she refused to say exactly how much cash is needed from the Scottish Government to prevent colleges from having to close.

Ms Ritchie said: “We’ve set out the situation in academic year 2025-26 where there are a number of colleges looking at a potential cash deficit.

“So the situation is urgent and material support is required.”

She appeared before the committee after a report from the SFC last week warned “most colleges are not sustainable”.

Ms Ritchie added: “In our report we identify four colleges where there does appear to be a risk that there could be a cash deficit at the end of this academic year, so that would be summer next year.”

Speaking about the sector, she added: “The risks we have set out are material, and it is going to require significant support.”

Warning the “operating environment may continue to be challenging for some time”, she stressed that “radical and long-term transformation is needed” in the sector.

This will “require some degree of funding”, she said, adding the Scottish Government should also provide cash to help institutions cope with inflationary pressures.

However committee convener Douglas Ross complained: “You will not tell the Scottish Parliament’s Education, Children and Young People Committee how much money additionally the Scottish Government should be allocating to colleges to keep them afloat.

“We need you to tell us what the colleges need.

“How much would they need in an ideal world to keep them afloat, particularly given the precarious situation so them are facing in a matter of months?”

Ms Ritchie said while the SFC is continuing “to advise ministers on the budget for 2026-27”, that “advice itself is privileged” and therefore could not be stated publicly to the committee.

When asked directly how much money colleges need to “keep them all afloat”, she said: “The quantum of the budget is a matter for the Scottish Government and would then be approved by the Parliament.

“The role of the funding council is to ensure that funding is allocated transparently and fairly.”

Higher and further education minister Ben Macpherson was also pressed on whether he had been given a “quantum figure” of how much cash colleges need to remain afloat.

He told MSPs this is an issue the Government is in “significant and regular dialogue” with the funding council on.

He added: “We will continue to work collaboratively with the body, as an independent entity, on how do we support our important college sector in these challenging times.”

He said the Government “will consider these matters” after last week’s report from the SFC, but added: “The situation on a figure is a live discussion, and we are seeking advice from the SFC on a range of matters, including supporting our colleges.

“These are live discussions and I don’t want to breach the confidence of the discussions.”