Publication: Scotland's colleges 2026 - Audit scope

Scotland’s colleges play a significant role in our post-school education and skills sector, providing a skilled workforce to meet local and national demand and supporting Scotland’s sustainable economic development.

Our Scotland’s colleges 2025 report highlighted the increasingly challenging landscape in which the college sector operates. Colleges have faced a 20 per cent real‑terms reduction in funding over the past five years, a declining workforce, and ongoing curriculum and estate rationalisation to make savings.

Colleges are heavily reliant on public funding, with only a small proportion of income generated from tuition fees, commercial activity, and other grants. Opportunities to identify new income streams vary, and while colleges can benefit from income generating activity, this comes with a degree of risk that must be managed effectively.

This report on Scotland’s colleges will evaluate the financial sustainability and overall performance of the sector. It will assess how income generating activities are supporting financial sustainability of colleges. It will examine how stakeholders are demonstrating effective leadership through the implementation of previous Audit Scotland recommendations. The audit will make recommendations where necessary. Publication is scheduled for September 2026.