Colleges to reject more students than ever

Core funding for teaching in Scotland's 43 further education institutions will remain static next year, despite a record number of applications for places during last year's recession.

The Scottish Funding Council (SFC), which allocates money to colleges and universities on behalf of the Scottish Government, yesterday revealed next year's budget for individual colleges.

Colleges will share 402.7 million in 2010-11 for teaching, compared to 401.5m last year – a 0.3 per cent increase.

But with inflation running at 3 per cent, according to the Office for National Statistics, the near-freeze equates to a real-terms decrease in funding.

Linda McTavish, convener of Scotland's Colleges' Principals' Convention, described it as a tough budget, especially after ministers had recognised colleges as central to economic recovery.

She said: "It is disappointing that the Scottish Funding Council has not given the college sector the same priority (as ministers].

"Colleges will continue to play a role in developing skills and working with communities affected by the recession. However, this announcement will mean that colleges throughout Scotland will have to turn away more students than ever before."

She added that some colleges were "particularly concerned" about the decision to withdraw funding for young unemployed people.

• Scotland's student drop-out rates amongst worst in UK

However, the SFC said it was planning a further announcement in the next fortnight on how it will distribute 15.3m to provide places for such students.

Included is 6.9m from the European Social Fund which is targeted specifically to help deprived areas.

Rural colleges are to receive an increase in funding, as requested by the education secretary, Michael Russell, in his advisory letter to the SFC in January.

They will share 1m, allowing them to help small businesses dealing with "challenging economic circumstances".

In total, 690m is to be shared among the colleges including a 1m increase in student support – up to 5m from 4m last year.

That reflects the increasing proportion of full-time students, who are more reliant on funding support as they have less independent income than part-time students who can take on more paid work.

The college budget also includes 109m for the modernisation and maintenance of college buildings.

A fund to help communities where large employers close down, such as the Motorola plant in West Lothian or Diageo in Kilmarnock, has been cut by a half.

Last year, the Partnership Action for Continuing Employment (Pace) programme received 5m from the SFC, but will receive just 2.5m this year after poor uptake of the funding.

Mark Batho, SFC chief executive, said: "In this challenging economic climate, the council has given priority to maintaining core funding for teaching and student support to allow Scotland's colleges to continue to provide learning opportunities, develop skills and support communities across Scotland.

"The funding made available from the Scottish Government has allowed us to again increase our support funding to help students gain access to and, importantly, remain in college courses.

"That will benefit students themselves and will support the major contribution which colleges are making to Scotland's future economic prosperity."