16-05-2025
- Business
- Press and Journal
Exclusive: Joint plea to government reveals north-east ambition 'stifled' by missing £30 million
The future health of the north-east economy is being put at risk by a lack of funding from politicians in Edinburgh, according to a wake-up call warning from leading figures.
The direct plea – in a joint letter to the SNP Government – comes as training providers and employers grapple with a looming crisis for the future workforce unless opportunities are unlocked in new industries.
Among the signatories is Neil Cowie, principal of the Nescol college – with bases in Aberdeen, Peterhead and Fraserburgh – which is having to turn potential students away due to a lack of available places.
The college calculates it has been underfunded by around £30m over a decade.
The letter, seen by the P&J, states: 'What might we have done, how many lives could we have changed, with an additional £30m over the past decade?
'How many futures can we transform in the years ahead if we are funded appropriately?'
It adds: 'There is huge ambition in this corner of the country that you know so well, matched by powerful and effective collaboration. We have a wealth of great opportunities and a vision for how those can be embraced.
'Those aspirations are being stifled by a funding system that is significantly disadvantaging the people and employers of the north-east.'
The appeal warns says that with the government's help thousands more people in the region will have the opportunity to pursue careers in sectors including the energy transition.
Other industries that could benefit from increased college funding include life sciences, digital, hospitality, and health and social care.
More than a third (35%) of all school leavers in Aberdeen and Aberdeenshire chose Nescol as their next destination, underlining its importance to the region.
That rises to up to 60% of school leavers in the region's priority neighbourhoods, those which fall within the most deprived.
We revealed last month that Nescol's indicative budget settlement for 2025-26 shows a rise of just over 3%.
They were among the colleges to push the Scottish Funding Council to change how allocations are calculated.
But college chiefs say the changes 'completely ignored' a funding issue which has existed since Aberdeen College merged with Banff and Buchan College in 2013.
The previously separate Fraserburgh-based college used to get a 'rurality premium' to run more courses in areas with lower numbers.
But funding changes which took place the year the colleges merged means it now loses out on around £3m a year.
The letter states the proposed uplift in Nescol's budget in the year ahead represents less than 0.5% of its annual turnover and will be 'vastly outstripped by growing cost pressures'.
It has been signed by representatives from Aberdeen and Grampian Chamber of Commerce, youth employment group Developing the Young Workforce North East, energy safety and skills body Opito and charities CFine and Aberdeen Foyer.
A spokeswoman for the Scottish Funding Council said the recent changes aim to address the sector's concerns about funding comparability between learners on similar courses at different colleges and 'issues of transparency'.
She added: 'Nescol benefits from the change to the funding model and, taking into account the overall increase in the college teaching budget, will see an increase of 3.1% compared to a sector increase of 2.6%.
'We will continue to evolve the methodology further and are committed to engaging with the sector through this process. Nescol will see further benefits from the changes to the model as they are fully implemented over the next few years.'
A Scottish Government spokesman said: 'Nescol was allocated a 3.08% increase in their 2024-25 funding, higher than the sector average.
'We are aware of the vital role that Nescol has in providing education opportunities across that region and will consider the points raised in the letter to the minister and respond in due course.'
