Colleges and Universities in Scotland Face Financial Crisis
A report by the Scottish Funding Council (SFC) warns that 22 of Scotland’s 24 further education colleges are expected to spend more than they earn this year. Cash reserves, which stood at £130 million in 2023, are projected to fall to £35 million by the end of this year and to slip into deficit by 2028. This raises the prospect of insolvency for some institutions. The report also highlights that rising costs have already forced colleges to cut teaching hours, increase class sizes and close courses with lower demand. Between 2024 and 2028, around 667 posts are expected to be lost.
A separate report reveals that Scottish universities are becoming increasingly reliant on income from international students. Eleven of the country’s 18 universities are forecast to run a deficit this year, with the total shortfall estimated at £12.9 million.
Experts stress that both higher education institutions and colleges urgently require a sustainable level of government funding. The opposition has blamed the financial troubles on what it calls “years of SNP mismanagement.”