The Scottish further education sector has welcomed a suggested increase in funding that could provide more stability and help to keep colleges sustainable.

Last week, the government’s draft budget, revealed by finance secretary Derek Mackay, indicated that colleges would see an increase in funding of almost 3 per cent from £536.6 million in 2016-17 to £551.3 million in 2017-18.

Alongside that, college capital funding would rise, from £27 million this year to £47.4 million next year.

The budget document says that colleges provide a “modern, responsive and valued part of our education and training system”. It says the increase in funding would ensure that the sector continues to add value to the economy.

The draft would also commit the government to maintaining 116,000 full-time equivalent college places.

As part of the draft budget, the government also announced a new £10 million Workforce Development Fund - using some of the money raised through the new apprenticeship levy - from which colleges should benefit (see box, below).

The plan to increase funding comes at a financially challenging time for the sector. In a report in August, Audit Scotland said colleges’ financial health was “relatively stable”. But it stressed that there were colleges whose finances were of concern, following an 18 per cent drop in Scottish government funding to the sector between 2010-11 and 2014-15.

‘Greater opportunities’

And while the increase in funding would still leave the sector short of pre-cuts levels, Colleges Scotland said that the commitment was “very helpful” and would allow colleges to deliver in the government’s priority areas.

Hugh Hall, chair of the umbrella body, added: “This funding will help to deliver a skilled Scottish workforce and improve opportunities for people across the whole of Scotland.”

NUS Scotland president Vonnie Sandlan said the announcement was “a better budget settlement than we’ve seen in many years” but warned that its impact would depend on how much each college ended up receiving.

‘This funding will help to deliver a skilled Scottish workforce’

She said: “While this year’s budget doesn’t bring us back to previous levels of funding, I hope it does provide a much-needed stronger settlement for Scotland’s colleges going forwards - but the main proof of that will come through seeing where it eventually goes, and what it means for individual college’s allocations.”

She added: “It is absolutely vital we see at least some of this money being used to boost the financial support available to FE students, who continue to struggle by on an outdated discretionary support system.”

Even a small share of the extra funds could have “huge benefits” to boost bursary rates and other forms of help, Ms Sandlan added.

Pay demands

Unions also welcomed the draft budget announcement, stressing that the sector was now sufficiently funded to deliver on national bargaining - a process which has resulted in members of both unions taking strike action in a pay and conditions dispute.

A spokesman for the EIS teaching union said: “The EIS is clear that FE finances are suitably robust to allow colleges to meet in full the pay agreement that they entered into just a few months ago.

“Clearly, college management would not have entered into a pay agreement that was unaffordable to the sector. There has been rationalisation of staffing and provision across the sector in recent years, and this will not be reversed by the budget announcement, but there is clearly sufficient money within the sector to meet the standing commitments on pay.”

@JBelgutay