Ayrshire College recorded a £1million deficit in 2024/25, with Audit Scotland warning that financial pressures across Scotland’s colleges could affect teaching provision and the courses available to students.
The shortfall was £664,000 higher than the previous year and represented just under a fifth of the £5.6million deficit reported across Scotland’s 19 colleges. Ayrshire College operates campuses in Ayr, Kilmarnock and Kilwinning.
Audit Scotland warns of pressure on courses
Audit Scotland said college deficits could threaten current levels of teaching provision. It also identified a risk that colleges may prioritise less expensive courses rather than programmes that best meet local need.
The report said workforce numbers across Scottish colleges continued to fall as institutions used voluntary redundancy to reduce staff costs. At Ayrshire College, nine staff took voluntary redundancy during the past year, at a cost of £384,000.
Colleges have now reported a collective deficit for the third consecutive year. The Scottish Conservatives have called for urgent action, while the report highlighted the wider financial challenges facing the sector.
Political reaction and government response
Russell Findlay MSP, the West Scotland MSP and Scottish Conservative leader, criticised the Scottish Government’s approach to college funding and called for additional support for Ayrshire College.
“The SNP has been short-changing Ayrshire College for years and they are effectively stealing the future of its students.”
He also said employers needed a modern workforce with the right skills and argued that Ayrshire’s young people deserved better support. Findlay called on John Swinney to recognise the impact of funding decisions and restore what he described as fair funding for the college.
Minister for Tertiary Education Alyn Smith said the report recognised both the difficulties facing colleges and their economic contribution. He said the Scottish Government was redesigning colleges through its College Sector of the Future programme to make them more sustainable, resilient and able to meet Scotland’s economic and social needs.
“We are actively supporting the sector by increasing the college budget by 10 per cent this year, alongside supporting a range of measures that strengthen colleges' financial sustainability and operational flexibility.”
Smith said the government had also worked with the Scottish Funding Council and colleges to provide greater flexibility, including support for workforce costs. He added that funding had enabled the Scottish Funding Council to support business cases for transformational capital investment projects.
College explains Ayrshire deficit
Ayrshire College said its reported deficit reflected several factors, including investment in facilities, infrastructure and workforce development, as well as continued repayments on historic borrowing connected with the Kilmarnock Campus.
“The college has continued to operate within its overall funding allocation while investing in the skills, facilities and services needed by students and employers across Ayrshire.”
The college said it remained focused on long-term financial sustainability and on providing learning and skills that support economic growth and local communities.
Some 77 per cent of the cash available to Scotland’s colleges comes from the Scottish Funding Council, which is funded by the Scottish Government.