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Course cuts and job fears at Dundee and Angus College as bosses reveal £2.5m budget blackhole

Staff have been told even a 1% pay award could add roughly £350,000 to the deficit.

The Gardyne Campus at Dundee and Angus College. Image: Kris Miller/DC Thomson.
The Gardyne Campus at Dundee and Angus College. Image: Kris Miller/DC Thomson.

Dundee and Angus College is facing a £2.5 million black hole in its budget, a leaked letter has shown.

The letter, which was sent out to staff at the college, claims that £2.5 million worth of savings and cuts need to be made ahead of the next financial year.

It comes after the management at the college held talks with the Scottish Government and Scottish Funding Council (SFC) to discuss next year’s finances.

While funding is yet to be officially allocated, the letter claims that the government will not be providing enough to keep up with rising costs or provide staff with a pay rise.

Cash strapped college will struggle with staff pay increase

Staff have been told that for every 1% pay is increased, the college’s deficit will grow by about £350,000.

The letter reads: “Despite significant efforts across the college and the savings exercise undertaken last year, a number of cost increases and other factors continue to challenge us, and the sector as a whole.

“In particular, the increased likelihood that any pay award for this year and next will be unfunded by the Scottish Government/SFC.

“I want to be completely clear; this isn’t about whether staff should receive a pay increase, you absolutely should and completely deserve it given the challenges over the past few years.

The college has been left with a £2.5 million budget deficit. Image: Supplied.

“The challenge for us is that we aren’t being given any additional funding from Scottish Government/SFC to cover the increased costs.”

Bosses at the college now plan to undertake a review of “all areas” to see where money can be saved.

The letter also explains that the college may cut some courses in the next academic year due to a 20% drop in its “activity targets” – the amount of credits it must award students in a year.

It follows similar cuts last year, when job and course cuts were announced to meet a £1.5 million deficit.

The letter adds: “This is important given we continue to struggle, like the rest of the college sector, with an ongoing reduction in full time applications.”

College principle ‘frustrated and angry’ about budget squeeze

Despite £26 million of additional funding for colleges being announced in the Scottish government, Principal Simon Hewitt says funding fears remain.

He added: “I am frustrated and I am angry that the contribution that our sector makes has once again been overlooked.

“We understand the pressure on public finances but nevertheless we will continue to fight for better budgets in every way we can.

“Staff deserve a pay increase. That is not disputed given the challenges they have faced in recent years.

Dundee and Angus College principal Simon Hewitt
Dundee and Angus College principal Simon Hewitt. Image: Mhairi Edwards/DC Thomson.

“The issue is how it is paid for given there is no additional help coming from the Scottish Government, unlike what we have seen recently in some other areas of the public sector.

“We will keep talking to staff and we will also keep pushing MSPs for increased support for the college sector.”

Higher and Further Education Minister Jamie Hepburn said: “Despite a very challenging financial context, the college sector 2023-24 resource budget increased by £26 million in cash terms compared to 2022-23.

“This demonstrates the government’s commitment to the sector.

“We will now work with the Scottish Funding Council and colleges to ensure best of use of that money to support our learners.”

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