ALMOST half of Scotland’s colleges are in deficit, auditors warned today as they called on the Scottish government to provide “clarity” on funding.

The latest report on the sector from Auditor General Stephen Boyle shows that, following years of cuts and despite almost 500 staff being lost through voluntary redundancy schemes in 2022-23 alone, 11 of of the 14 colleges lost money in that year — three more than the year before.

And the financial outlook shows no sign of improving, as a freeze on SNP Scottish government funding at £675.7 million over the last three years, a time of high inflation, has given way to a cash cut to £643m this year. 

Mr Boyle went on to warn that workers, whose wages account for 70 per cent of costs, could bear the brunt once more, leaving colleges unable to offer the present levels of course diversity or support for students.

Calling on the SNP Scottish government to engage with the sector and set out its priorities as the cuts take hold, he said: “The college sector is facing huge challenges.

“But to plan effectively for the future, colleges need a much stronger steer from the Scottish government on what parts of their role to prioritise.

“The Scottish government also needs to respond quickly to the results of its consultations on post-school reforms to provide the college sector with more certainty.”

Backing the report’s calls, Colleges Scotland’s Shona Struthers said: “Colleges are public bodies and could play a bigger part in helping the Scottish government deliver its top priority of eradicating child poverty, but there hasn’t been sustainable funding available to do this fully — a missed opportunity.

“College education gives people opportunities to gain qualifications [and] progress to university and [it] supports industry with upskilling and retraining, so clearly reducing funding at this scale can only harm that prospect.”

A Scottish government spokesperson said ministers were working “to improve the current funding model, including delivering greater flexibility.” 

They added: “We have also committed to introducing a Bill to deliver the simplification of the funding body landscape for universities, colleges, apprenticeships and student support.

“We are currently consulting on proposals to deliver this, with the consultation due to close this week.”