Watchdog warns Scotland’s colleges face increasing financial pressure

Stephen Boyle, Auditor General for Scotland, said: “The financial pressure on Scotland’s colleges is increasing, and their situation remains extremely challenging.

“Without urgent and successful reform of the sector, it’s not clear if colleges can continue to deliver for students and employers.”

Boyle added that the recommendations he made in 2025 remained important but were “still in the early stages of being addressed”.

He warned: “”The Scottish government, Scottish Funding Council and colleges need to take action to implement them at pace.”

Gavin Donoghue, chief executive of Colleges Scotland, said the report “recognises the extremely challenging financial position colleges continue to operate in”.

He said: “During 2024-25, an increasing number of colleges needed to rely on short-term support to balance the books.

“This is a clear sign of a sector still under considerable financial pressure.”

Keir Greenaway, of the GMB Scotland union, said: “The auditor general is ringing another alarm bell over college funding but too many have been ignored for too long.

“The sector should be driving economic prosperity but without support or strategic planning, is struggling to deliver for students or Scotland.”

Scottish Labour tertiary education spokeswoman Jenny Young said: “These stark figures lay bare the pressure Scottish colleges are under as a result of SNP cuts.

“Colleges can be engines of opportunity and growth, but the SNP has cut them to the bone.”

The Scottish government has been contacted for comment.