By Grant Smith, education reporter

SCOTLAND’S 43 colleges are to receive more than £500 million for the coming academic year—but will have to show they are improving the quality and inclusiveness of their teaching and increase partnership working with schools.

The announcement of a £528 million funding package, plus another £88 million in capital investment, was welcomed by college chiefs, who said it would enable them to keep up standards for their 350,000 students.

The money is coming from the Scottish Funding Council, which is responsible for the bulk of spending on higher and further education. It follows a £1 billion-plus package for universities.

The sum represents an above- inflation 5% rise on the 2006/07 budget and includes £66 million in student support for bursaries, childcare and hardship funding to help poorer students and £18.5 million for projects to widen access.

The council has also decided to scrap a policy of penalising colleges for breaching limits on the number of full-time students.

Chairman John McClelland welcomed the funding.

Some funding aimed at targeting youths in the NEET category (not in education, employment or training) and for improving collaboration between colleges and businesses will be distributed later in the year.

Council chief executive Roger McClure said, “I am particularly pleased that we have again been able to target funds towards tackling the NEET agenda, developing colleges’ working with employers on skills and making a modest start on enhancing and expanding the college sector’s role in knowledge transfer.”

The council has estimated each college’s resources for teaching, based on its grant plus the fees that each institution should earn. These show Adam Smith College, with campuses in Kirkcaldy, Glenrothes and Leven, near the top of the list with a 6% rise to £26.4 million.

Arbroath-based Angus College also does better than average with a 5% rise to £8.7 million.

There are 4% rises for Dundee College to £22.6 million, Perth College to £7.2 million, Lauder College in Dunfermline to £11.6 million and Elmwood College in Cupar to £6.4 million.

Howard McKenzie, vice-chairman of the Association of Scotland’s Colleges, said, “Scotland is asking more from its colleges each year and we are seeing colleges increasing their training for adults, increasing language support for migrants, increasing school-college work, addressing the NEET group and building new links with business.

“All this work is happening in the face of very tight margins, but the funding council’s investment will allow colleges to maintain the quality of student provision while rewarding their staff and addressing the needs of their communities.”

He welcomed the lifting of restrictions on the number of students able to study higher national qualifications. This removed a layer of administration and gave institutions the flexibility to adjust the mix between further and higher education courses.

Mr McKenzie added that the association believed it would be possible for college participation rates to double from one in ten of the working population to one in five by 2012, but this would require extra investment.

Scotland’s Colleges Principals’ Forum convener Sue Pinder also welcomed the funding decisions but said that to adequately respond to the momentum of economic growth in Scotland, college provision needs to grow significantly.