SFC news published since 2018. See SFC archived content for earlier news articles.
Photos: UHI Inverness, Sabhal Mòr Ostaig, Dundee and Angus College, Royal Conservatoire of Scotland, Glasgow Caledonian University, University of Aberdeen
The Scottish Funding Council (SFC) has published its latest reports on the financial sustainability of Scotland’s colleges and universities. The reports form part of a new Tertiary Education and Training Act commitment for the Scottish Funding Council which comes into effect today.
Today’s reports acknowledge the challenges faced by colleges and universities as a result of factors in the wider financial climate. These include the high cost of energy, high interest rates and the continuing impact of RAAC on university and college estates. Universities are also subject to changes to visa and immigration controls and a fall in fees from overseas students.
The reports also point to increasing staff costs, partly driven by cost of living pay awards, as causing increased financial pressure across the tertiary education system.
The reports ring warning bells for some key measures of financial sustainability with adjusted operating deficits being widely forecast across both the college and university sectors.
Paul Devoy, Interim Chief Executive of the Scottish Funding Council, said:
“Scotland’s colleges and universities are operating in one of the most challenging financial environments the sector has faced for many years.
“These reports shine a clear light on the scale of that pressure, drawing on detailed analysis of accounts and forecasts. They are a snapshot in time, but an important one.
“SFC is working closely and actively with colleges and universities across Scotland to understand the pressures they face, strengthen financial resilience and support their short-term viability and long-term sustainability.
“The challenges are significant, but so is the opportunity. By working together with colleges, universities, the Scottish Government and partners, we can help build a stronger, more sustainable tertiary education system for the people, places and economy of Scotland.”
The reports, Financial sustainability of universities in Scotland 2024-25 to 2027-28 and Financial sustainability of colleges in Scotland 2024-25 to 2028-29, can be found on the SFC website.
