All sis Holyrood political parties spoke at the Colleges Scotland hustings in Edinburgh
Scotland’s colleges ‘should be given borrowing powers’, a cross-party panel of MSPs has agreed.
Politicians from Holyrood’s six political parties were questioned on the financial viability and future of the further education sector.
A return to greater fiscal control for individual institutions “should be top of the agenda,” according to Labour MSP Paul O’Kane.
The hustings, held to launch the Colleges Scotland 2026 Election Manifesto, saw Paul Little, principal of City of Glasgow College, ask the panel if Scottish colleges should, like their English and Welsh counterparts, be allowed to borrow money and hold a surplus.
Each panelist agreed that the change should be made with further education minister Ben Macpherson saying the SNP government “should be open-minded to it”.
It is 13 years since the ONS reclassified colleges from quasi-independent bodies to public sector entities.
Funds held by incorporated colleges count as part of the Scottish government’s budget, and their spending from reserves counts towards annual budget limits.
The reclassification was intended to reflect the reality that colleges are predominantly publicly funded and accountable for spending taxpayers’ money.
However, it has limited colleges’ financial autonomy, for example in investment in estates and services.
College Scotland’s manifesto pushes the Scottish government to commit to sustainable, long-term funding.
New independent economic analysis by the Fraser of Allander Institute highlighted the significant role colleges play in reducing poverty and strengthening Scotland’s public finances.
The report stated that in 2026/27 colleges will deliver a £195 million net positive contribution to the fiscal balance.
It also said colleges will benefit 400,000 households – including 250,000 children – from the higher incomes earned by those with college-level education.
Launching the manifesto, Colleges Scotland’s CEO Gavin Donoghue said: “The independent analysis from the Fraser of Allander Institute and the Just Transition Commission are clear: colleges are a powerful part of Scotland’s anti-poverty infrastructure and are the skills engines of sustainable growth.”
“If the next Scottish Government commits to sustainable, multi-year investment and places colleges at the heart of regional skills planning, Scotland will be better equipped to tackle skills shortages, reduce poverty, and seize new economic opportunities.”
Mr Macpherson told an audience at Edinburgh College’s Sighthill Campus that the SNP wants to “get into a position in the sector where we're agreeing what resources require, not just to meet the demands of learners and the economy, but also to undertake the change that is necessary to make sure we have a college sector that continues to improve.”
Miles Briggs, the Scottish Conservative education spokesman, said the parliament must “be honest” that it has not prioritised funding for the sector. He also called for a funding review of colleges similar to that currently under way for universities.
Lib Dem education spokesman Willie Rennie said the sector must be prepared for the growing numbers of young people with additional support needs.
“That is a massive problem for future generations, and the school system is struggling to cope with it,” he said.
Ross Greer, education spokesman for the Scottish Greens, said his party had pushed for a budget uplift for colleges this year, supported by the Scottish Lib Dems.
However, he admitted that the Greens’ time in government had seen “missed opportunities” for the college sector.
Graham Simpson MSP represented Reform UK on the panel and was asked to set out his party’s approach to the college sector will be.
Mr Simpson declined to expand on his party’s college manifesto pledges, other than to “build links with schools” and instead chided the chair for not having “done your research better”.
