Announcement comes amid mounting financial pressure facing colleges sector
Two Scottish colleges are to develop a business case to look how they can collaborate closer and ensure that the institutions are “fit for the future.”
Edinburgh College and Forth Valley College will draw up the case examining the potential for closer working arrangements, which could include pooling expertise and “aligning activity” in key growth sectors.
The Scottish Funding Council (SFC) has approved funding for the business case, although both colleges stressed that no decisions have been made about future partnership arrangements.
At least 11 colleges are forecasting operating deficits for this year. The SFC, which funds colleges and universities in Scotland, said the overall deficit for colleges is forecast to grow from £8.3 million in 2026/27 to £31.9m by 2028/29.
Aubrey Cumberford, the principal of Edinburgh College, has described the situation facing the college sector as “dire,” and stressed the need for “fundamental reform.
Last November, meanwhile, the principal of Forth Valley warned that the sector was facing a “critical juncture,” with colleges “fighting for survival as individual institutions.”
Read more: Financial outlook of Scotland's college funding model leaves future unknown
Kenny MacInnes told the Just Transition summit in Edinburgh that although colleges will be key to supporting businesses and public services to reach their net zero targets, it was time for them to be aligned with the economy portfolio, adding: “We cannot asset strip to survive.”
The announcement of the SFC funding follows an announcement in June that the boards of both colleges had agreed to explore whether stronger collaboration could deliver additional benefits for learners, staff, employers, and their respective communities.
The colleges said the development of the business case, due to be completed by next spring, represented the “evidence-gathering stage” of that process, and emphasised that the work would recognise the “distinct identity, strengths and local roots” of each institution.
Mr MacInnes said: “This funding enables us to undertake the detailed work needed to understand properly both the opportunities and implications of closer collaboration with Edinburgh College.
Read more: Scotland's colleges suffer a near-200% increase in fiscal deficit
“Our priority is to ensure that any potential future proposals are supported by robust evidence and demonstrate clear benefits for learners, staff, employers and the communities we serve.”
“Please be assured that no decisions have been made about what any future arrangements might look like. Staff and student engagement will be central to the process, and we are committed to being open and keeping our college community informed as the work develops.”
Ms Cumberford said: “It’s great news that the SFC have recognised the potential of this project and our ambitions and have given us the backing to make progress with it. Along with the Scottish government there is a clear appetite to explore reform in the sector and ensure that we have colleges that are fit for the future.
She added: “I can’t wait to get the process underway and continue the dialogue with staff, students and stakeholders about the potential benefits collaboration between our two colleges could bring.”
Earlier this month, tertiary education minister, Alyn Smith, said colleges can “innovate their way” out of a funding shortfall.
“Everybody in the sector knows that we need to change what we're doing,” he said. “I want to see more innovation. I want to see more commercial partnerships. I want to see more collaboration across institutions.”