COLLEGES in Scotland are saddled with multimillion-pound deficits for the third year running and the pressure on their finances is only increasing, auditors warned today.

Audit Scotland’s latest report shows that the country’s 19 colleges had a combined deficit of £5.6 million in 2024-25, up £1.9m on the year before, as Scottish government funding is outstripped by fuel and wage costs, despite bosses axing 11 per cent of jobs over the previous two years.

The watchdog detailed a real-terms cut of over 7 per cent in the five years to 2026-27, leading the Scottish Funding Council to class 14 colleges as at financially high or very high risk.

Auditor-general for Scotland Stephen Boyle said: “Financial pressure on Scotland’s colleges is increasing.

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

In a damning response, EIS-Fela union vice-president Dr Thora Hands slammed “long-term underinvestment, with weak governance structures, and lack of strategic leadership” in the sector, before taking aim at the cost-cutting options in the report.

She said: “Opinion of finance managers and business development network members that ‘associate trainers’ are one mitigation of national bargaining is quite shocking.

“This is shorthand for preference for employing agency staff on precarious contracts and inferior pay and terms and conditions than those they work alongside. 

“This is often for up to five years, with those workers consequently struggling to get a mortgage or plan for a family. 

“This is the human cost of cutting corners.”

Responding on BBC Radio Scotland, Tertiary Education Minister Alyn Smith insisted: “The college sector is really well placed to be nimble, to be agile, and I am really positive about Scotland’s colleges’ future.”