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Exclusive: Joint plea to government reveals north-east ambition 'stifled' by missing £30 million
Exclusive: Joint plea to government reveals north-east ambition 'stifled' by missing £30 million

Press and Journal

time16-05-2025

  • 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.'

Is the university funding crisis spreading to North East Scotland College?
Is the university funding crisis spreading to North East Scotland College?

Press and Journal

time27-04-2025

  • Business
  • Press and Journal

Is the university funding crisis spreading to North East Scotland College?

The funding crisis hitting Scottish universities risks spreading to college campuses including Aberdeen, Peterhead and Fraserburgh. And while political focus is concentrated on fixing huge funding blackholes at high-profile universities, North East Scotland College principle Neil Cowie warns vital training providers like his are getting a raw deal. Students are already being turned away from a place at Nescol – which has bases across the three locations – because of a lack of funding at a time of rising demand. It is more keenly felt as the region prepares to shift away from oil, and workers try to retrain for new, renewable energy jobs. Nescol recently learned its funding will rise by just over 3% in 2025-26. Mr Cowie says that 'relatively modest uplift' will see around £240,000 added to its core teaching grant. But that proposed allocation still only covers half of the anticipated increase in costs for the college. It will take three years before the funding formula brings funding up to about £800,000 annually, thanks to a change in allocations. Mr Cowie said: 'We are naturally appreciative for any additional resource. However, our campaign for fairer funding is not at an end. 'Our unique catchment area, covering more than 2,500 square miles and with large city campuses as well as rural campuses in Fraserburgh and at the Scottish Maritime Academy, is not reflected in the approach to funding. 'Even with the welcome changes announced last week, we remain underfunded in comparison with large urban colleges. 'In comparison with small rural colleges, we remain significantly underfunded. 'Consequently, Nescol and our region will remain disadvantaged.' Mr Cowie warns demand continues to grow at the same time as the college suffers from a 'lack of investment by the Scottish Government'. The college boss warned in February how the college was having to 'turn people away'. He added: 'We are being asked by the UK and Scottish governments to support a just transition towards a low carbon future for the north-east. 'The reality of the current funding arrangements is we are given no additional support to meet those ambitions as part of our core teaching grant. 'Instead we have faced a succession of real-terms cuts.' 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. It is one of the largest providers of vocational education and training in Scotland, delivering courses to more than 20,000 full-time, part-time and distance learning students each year. The college operates from its main Aberdeen Altens, Aberdeen City and Fraserburgh campuses as well as the Scottish Maritime Academy in Peterhead and caters for around 6,000 full-time students each year. Nescol is among the colleges who pushed the Scottish Funding Council to change how allocations are calculated, claiming to have lost 'millions' of pounds previously. The pressure led to a change for next year which Mr Cowie says will help Nescol make up some lost ground. We previously detailed how the college lost millions intended to support rural communities since a funding model was introduced when 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. Those changes resulted in the loss of around £3m every year. A funding council spokeswoman said recent changes were made after requests to address 'issues of transparency and comparability' between learners on similar courses at different colleges. She added: 'This provides allocations based on updated profiles of activity using data provided by colleges and moves to addressing historical inequities in funding. 'Our approach has received support from many colleges across the sector.' A Scottish Government spokesman said SFC's indicative allocations provide the sector with a 2.6% increase in teaching funding compared with last year. He added: 'Colleges called for greater transparency and the ability to compare funding for students on similar courses across institutions, and the SFC has been able to meet that ask.'

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