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Where does Forth Valley College’s funding come from?

The college's latest accounts show a shortfall of more than £4m.

Forth Valley College's Stirling campus is located on Drip Road. Image: Google Street View
Forth Valley College's Stirling campus is located on Drip Road. Image: Google Street View

Established in 2005, after the merger of Falkirk and Clackmannan Colleges, Forth Valley College has been providing further education in Stirling, Alloa and Falkirk for 20 years.

Around 13,500 students attend Forth Valley College (FVC), and it is a popular place of study for many people living in and around Stirling.

The Courier recently analysed the finances of the area’s other main higher education institution, the University of Stirling, which reported a turnover of £179.2 million and profits of nearly £7m in 2023-24.

FVC’s latest available accounts date back to the financial year 2021-22.

During that period, the college recorded a turnover of £42m, with a deficit of just over £4.6m.

Its biggest expenditure was staff costs, which came in at £32.4m in 2021-22.

Here’s a closer look at where Forth Valley College gets its money from.


Public cash – 75%

The Scottish Funding Council invests around £2 billion of public money per year in Scotland’s 19 universities and 24 colleges, including Forth Valley College.

During the financial year 2021-22, it received just over £31.4m (the vast majority of its income) from this non-departmental public body.

The Scottish Funding Council says its grants are intended to be used for “learning and teaching, skills development, research and innovation, staff, buildings and equipment.”

The body is expected to hold the colleges, universities and other institutions it finances to account for their delivery of required outcomes.

Tuition fees and education contracts – 21.8%

Though many students enrolled at FVC are eligible for funding support, tuition fees make up a substantial proportion (£9.1m) of its income.

International students are charged £8,000 per year to undertake Higher National Certificate (HNC) and Higher National Diploma (HND) courses.

During 2021-22, UK and EU students paid a total of £138,000 in further education fees, while non-EU students paid £5,000.

Education contracts brought in £1.5m for the college.

Now First Minister John Swinney pictured on a visit to Forth Valley College in 2016. Image: Andrew Milligan/PA Wire

Other grant income – 0.9%

A small proportion of FVC’s income, totalling £389,000, came from miscellaneous grants in 2021-22.

This included £148,000 in revenue and £60,000 in capital from the Forth Valley College Foundation charity.

The UK Government’s Job Retention Scheme, intended to assist employers with salary, national insurance and pension costs for staff furloughed as a result of the Covid pandemic, provided £7,000 to the college.

Other operating income – 1.8%

Money generated by the college’s residences, catering services and conferences during 2021-22 totalled £419,000 of its £781,000 “other” operating income.

Its financial statement does not elaborate on where the rest of this income came from.

Grant from FVC Foundation – 0.5%

Finally, in 2021-22, FVC received a £208,000 grant from the aforementioned Forth Valley College Foundation.

The college’s list of expenditures notes that it also made a donation of £1.5m to the foundation during the same financial year, which contributed substantially to FVC’s £4.6m deficit.


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