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Finance challenges for Scottish colleges.

Finance challenges for Scottish colleges.

The financial challenges facing Scotland's colleges are intensifying, according to the public spending watchdog.

Audit Scotland says most colleges are forecasting deficits in the next five years.

The Scottish government says it has invested heavily in colleges.

Last week colleges warned that an improved pay offer to settle an industrial dispute would need to be paid for by cuts and savings.

The watchdog said an increase in government funding to colleges would cover only the costs of making staff pay and conditions consistent across the sector.


Tighter budgets

Caroline Gardner, the Auditor General for Scotland, said: "Colleges are increasingly dependent on public funding to cover their costs, and it is likely that the gap between their income and spending will continue to widen without action.


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