Scotland's 24 colleges face a critical infrastructure crisis, requiring £2.5bn in investment over the next decade to maintain and modernise their aging estate, according to a comprehensive assessment released by the Scottish Funding Council. The scale of the challenge has prompted warnings from sector leaders that without substantial funding, many institutions risk further deterioration and potential insolvency.
According to BBC News, the Scottish Funding Council (SFC) determined that £1.3bn is needed to maintain college buildings to an acceptable standard, with a further £1.2bn required for improvements and modernisation. The College Infrastructure Investment Plan (College IIP) found that the "condition, configuration and expense" of numerous further and higher education buildings had rendered them "no longer fit for purpose". The Scottish Funding Council published the ten-year College Infrastructure Investment Plan on 4 November 2026, following an extensive survey of college properties.
The assessment covers all of Scotland's colleges, which operate across 99 campuses and 270 buildings. The planning exercise collected around 83,000 data points from 270 buildings across 99 campuses, plus information on more than 1,000 digital infrastructure items, providing a detailed baseline of the sector's physical and technological needs. The investment plan spans a 10-year period between 2027/28 and 2036/37.
What is driving the funding gap?
Multiple factors contribute to the substantial investment requirement. Approximately £200m of the needed funding must address a backlog of deferred maintenance, while additional pressures stem from issues with Raac (reinforced autoclaved aerated concrete) and building cladding problems. Beyond these urgent repairs, many college buildings require modernisation to meet contemporary educational standards and digital learning requirements.
Colleges Scotland chief executive Gavin Donoghue emphasised the severity of the situation, stating that the report laid bare the "scale of the challenge" confronting the sector. He warned that investment needed in 2027/28 alone was estimated at £262m. The SFC cautioned that addressing only the most pressing investment needs would result in continued deterioration of college infrastructure, creating a cycle of declining facilities and reduced educational quality.
How does this compare to Scotland's universities?
Scottish colleges face a fundamentally different financial landscape than universities. Colleges are publicly funded, have no borrowing options, and depend heavily on grants from the SFC. Universities, by contrast, benefit from research income, international student fees, and private donations, providing them with greater financial flexibility. A previous SFC report warned that "insolvency remains an imminent risk" at some colleges, with only three currently forecast to break even.
This disparity reflects a broader funding crisis across Scotland's higher education sector. Scotland's colleges face mounting deficits as funding fails to keep pace with costs, with the sector recording a combined deficit of £5.6m in 2024-25, marking the third consecutive year of losses.
What are sector leaders saying about the funding outlook?
Donoghue stated that a flat cash settlement from the Scottish government's budget announcement on 3 December would "barely allow some institutions to address their most urgent issues". He stressed the necessity of investment to create "modern, sustainable and digitally enabled learning environments" if colleges are to continue supporting learners and employers while contributing to Scotland's productivity, net zero, and inclusive growth objectives.
Colleges need modern, sustainable and digitally enabled learning environments if they are to continue supporting learners, employers and Scotland's ambitions for productivity, net zero and inclusive growth. Investing in colleges would be a key part of ensuring colleges have a firm future as civic anchors as the public sector reforms and changes in the coming years.
Paul Devoy, interim chief executive of the SFC, acknowledged that the report underscores the necessity for systemic change. He indicated that the findings would form the foundation for collaborative work with colleges to identify "realistic, affordable and sustainable options for future reform that will deliver high-quality learning environments for future generations".
What is the Scottish government's position?
Tertiary Education Minister Alyn Smith recognised that a "significant transformation" is required across the college sector to guarantee its long-term viability. The government stated it is working with Colleges Scotland and the SFC to develop the "college sector of the future" designed to serve the next generation of learners.
Smith acknowledged the report's importance in documenting the extent to which the collective college estate requires substantially increased funding over the coming decade. He noted that the government provided a 10% uplift in core college funding to £764m in the most recent budget, though sector leaders argue this falls short of the investment needed.
What happens next?
The Scottish Government is due to consider whether to bring forward a revenue-funded programme for further education, subject to the plan's conclusions and an associated business case. The plan is intended to establish a baseline for considering future reform, including different ways to use, configure and share college estates. The coming months will determine whether the government commits to the substantial investment required or pursues alternative models for delivering college education across Scotland.
