Colleges across Tayside are facing significant financial challenges according to a new report from Scotland’s national spending watchdog.
Perth College UHI and Dundee and Angus College both welcomed the report from the Auditor General which warns that colleges across the country are facing a multi-million-pound shortfall.
Capital funding has been cut for 2019/20 while the 1% increase in funding from the Scottish Government is only expected to cover a rise in staff wages.
The report warns the majority of colleges are forecasting deficits in the next five years as the gap between their income and expenditure continues to widen.
Despite these financial challenges student numbers have increased and the sector continues to exceed its learning activity targets.
Caroline Gardner, the Auditor General for Scotland, said: “Colleges are increasingly dependent on public funding to cover their costs, and it is likely that the gap between their income and spending will continue to widen without action.
“Tighter budgets make financial planning even more important.
“Colleges and the Scottish Funding Council (SFC) need to do more to ensure they are as well-prepared as possible to deal with ongoing pressures.”
Grant Ritchie, Dundee and Angus College Principal, said: “Colleges have faced reduced funding for learning and teaching for many years now.
“At the same time Dundee and Angus College have increased student numbers and we have achieved the best results in Scotland for full time learners.
“The report also highlights the need for increased capital funding for the sector and we very much agree with that.”
Perth College UHI Principal, Margaret Cook, also agreed with the findings of the Auditor General.
Ms Cook said: “Like other colleges in Scotland, Perth too is facing increasing financial pressures.
“Difficult decisions will require to be taken to ensure continued efficiencies.
“The recent decision to close the learning centres and identify alternative locations and delivery approaches within our communities has been an impact of this situation.
“Alongside this however, the experience of our students are important to us and the report highlights a third highest student satisfaction rate in Scotland at 96.2%, with 85.2% of our students achieving positive destinations.”
Liz Smith, Scottish Conservative shadow education secretary, said the report showed the extent of the “financial difficulties facing the college sector under the SNP”.
She said: “It tells us the gap between colleges’ income and expenditure is widening with the prospect of that worsening in the years ahead and that the college estate needs maintenance well beyond the current government spend.”
Richard Lochhead, Further Education Minister, argued that since 2007, the Scottish Government has invested more than £7 billion in colleges, with over £600 million this financial year.
Mr Lochead said: “Audit Scotland finds that the college sector reported a small, but improved, underlying financial surplus in 2017-18.
“The SFC assists colleges with their medium and long term financial planning and provides support as required.
“We are also working with the sector to diversify income streams.
“The SFC will produce a medium term capital investment strategy for the college estate which will provide valuable evidence to determine future investment.”
