MSPs alleged that the Scottish Government has failed to give Scotland's colleges the guidance they need to survive an increasingly challenging financial climate.

Scotland’s college sector dominated floor discussions at the Scottish Parliament for the second day in a row.

MSPs from all parties participated in a debate organised by the Scottish Conservatives around a motion from MSP Liam Kerr, which called for a change in the Scottish Government’s funding strategy to address the “existential threat” facing the sector.

“Scotland’s colleges are the linchpin around the future of which Scotland depends,” he said.

He referenced The Herald’s series on the state of Scotland’s colleges, citing colleges' contributions to Scotland’s economy.

Read more: New pay offer expected for college support staff this week

According to a Fraser of Allander Institute report, colleges contribute £52 billion to the economy over the working lives of its graduates, including £72,000 per graduate and hundreds of thousands of jobs over a 40-year period.

“Colleges add huge value, much more than they cost,” Mr Kerr added.

“The government must act to address the present and future of our colleges now. Or in a hollowed out sector, who does the minister think will step up to tackle economic downturns, to upskill and reskill, to mitigate skills gaps and support lifelong learning.”

He also pressed Minister for Further and Higher Education Graeme to consider some of the non-financial recommendations for improving and reforming the college sector, including reforms to the national bargaining system, which an independent report found suffers from a “debilitatingly low level of trust".

Mr Kerr said that colleges need government action, referencing a March 2023 education committee report that warned that colleges are attempting to navigate a challenging financial climate “without clear overarching strategic direction from the Scottish Government".

Read more: How The Herald has shone a light on The State of Scotland's Colleges

Minister for Further and Higher Education Graeme Dey repeated what has become a regular refrain in recent weeks, saying that any calls for more funding for colleges should also include suggestions for where in the budget the government should make cuts to afford a boost to colleges.

“Last week I acknowledged that there are challenges facing colleges and I also accept that there’s a gap between what colleges would have at their disposal now if funding had risen in line with inflation over the last few years.”

He added that diminishing funding from the UK Government is forcing the government’s hand.

As a solution, Mr Dey said he is working with colleges to increase apprenticeship opportunities and keep them in line with industry needs. Work is also underway to help colleges access more government funding for apprenticeships.

“It’s important that decisions to fund Scotland’s college sector are made looking forwards. That’s going to require thoughtful leadership from across the sector and beyond,” he said.

He suggested that a new minister may take his place following new First Minister John Swinney’s ministerial decisions.

“Regardless of who holds this post when the ministerial reshuffle which is underway, I know the Scottish Government will remain committed to that close working, which I believe will lead to the shaping of a college sector which can deliver local and national priorities.”

He said that it is in everyone's interests that colleges are allowed to thrive, and simplifying the funding landscape – including reducing the number of funding pots – will be a key priority for any reform.

Pam Duncan-Glancy, Labour’s shadow cabinet secretary for education, referenced an Audit Scotland report. The watchdog found that the Scottish Government and Scottish Funding Council (SFC) “urgently need to build on their ongoing work with colleges and help them become sustainable now".

Read more: Seven things we learned about The State of Scotland's Colleges

She said that Mr Dey should negotiate with college staff, trade unions, and employers to end the industrial dispute before colleges break for the summer.

“Colleges can’t afford another day of inaction from this government or a lack of leadership from this minister.”

She asked him to provide a timeline for a new college funding model and an emergency funding package to avoid redundancies.

Conservative MSP Sue Webber said Scotland’s colleges provide unique opportunities to its most vulnerable citizens. As reported in The Herald, roughly one-third of college students come from Scotland’s most deprived communities.

“The SNP’s chronic underfunding of Scotland’s colleges has forced them into a precarious financial position, impacting their ability to support learners and grow the economy.”

She called on every member of the parliament to visit the colleges in their constituency to better understand the impact of “the unsung heroes of our education sector.”

Conservative MSP Roz McCall closed the debate by outlining the financial review at UHI Perth, which puts student services, the library, certain courses and jobs at risk. She said risks to childcare and education services compromise policies meant to combat poverty, especially among children.