Scotland Boosts College Funding by £70M

This funding increase follows a period of intense financial strain for the sector, which saw a 20% real-terms cut in government funding between 2021 and 2025. These cuts led to an 8.7% reduction in staff, a 12.4% drop in student enrollment, and several colleges facing insolvency. In late 2025, sector body Colleges Scotland warned that another "flat-cash" budget settlement would be the worst-case scenario. Projections indicated such a settlement could have resulted in 11 of Scotland's 24 colleges running out of operational cash during the 2026/27 academic year. The new investment is part of a broader 10% increase to the college budget proposed in the draft 2026/27 budget. Gavin Donoghue, CEO of Colleges Scotland, welcomed the move as a potential "corner turned" but noted it does not fully restore the investment lost since 2021. The investment aligns with the Scottish Funding Council's strategic goals to support key growth sectors. National innovation priorities for colleges include advanced manufacturing, energy transition, health and life sciences, and digital technologies. Previous innovation funding has focused on creating "spinout" businesses from research and developing entrepreneurial skills for students. As public bodies, Scottish colleges adhere to procurement legislation and frequently utilize collaborative agreements set by Advanced Procurement for Universities and Colleges (APUC). This new funding will flow through these established channels, which prioritize value, transparency, and sustainability in purchasing goods and services. While this budget focuses on skills, capital funding for digital poverty provided in 2023-24 was not continued into the 2024-25 budget. The Scottish Government has separately invested in targeted device and connectivity provisions for disadvantaged households with children.