Union: Highland colleges unfairly starved of cash

Colleges in the Highlands and Islands are being unfairly starved of cash risking jobs and courses, according to GMB Scotland.

The union, one of the biggest in the sector, warned almost 40 redundances looming at Inverness College has exposed how University of the Highlands and Islands (UHI) funding must be overhauled urgently.

GMB said the 35% slice of student income - around £13 million a year - taken by UHI, the umbrella body overseeing seven colleges to pay for central services is too high and more of it must reach campuses.

Keir Greenaway, GMB Scotland senior organiser in the public sector, urged action to deliver greater financial support to colleges across the Highlands and Islands under huge financial pressure. 

UHI Inverness recently launched a redundancy scheme aiming to shed 38 jobs and save £2m a year while executives estimate the UHI “top slice” costs the college £4m a year.

Greenaway said: “The situation in Inverness is only the most recent and graphic illustration of a broken funding system that is unfit for purpose and demands to be overhauled urgently.

“Every centralised function of UHI must be transparent and justified and the default position must be that money is directed to the campuses where students are being taught.

“Colleges in Scotland have for years been forced to make real-time cuts because funding has failed to match inflation.

“Across the Highlands and Islands those financial pressures are even more damaging because of an unfair funding system that feeds the centre and starves the campuses.

“The system is not working for colleges, staff or, most importantly, students. It needs to change.”

UHI oversees colleges - including Inverness, Greater Argyll, Moray, Perth, Shetland, Orkney and the the North, West and Hebrides – from headquarters in Inverness with more than 250 staff.

Earlier this month, Stephen Boyle, Auditor General for Scotland, warned Scotland’s 19 colleges faced a £5.6 million deficit in 2024/25 up from £1.9m the year before while funding had fallen almost 8% in five years.

He said: “The financial pressure on Scotland's colleges is increasing, and their situation remains extremely challenging.

“Without urgent and successful reform of the sector, it's not clear if colleges can continue to deliver for students and employers.”

ENDS