On Tuesday, college and university leaders were informed that £46 million earmarked for further and higher education organisations is now no longer available from the Scottish Government.

While public spending is a very tight envelope for ministers to manoeuvre in, this is a counter-intuitive decision which will lead to poor results for everyone.

Colleges have been working since the Budget was announced in December on what the £26m for colleges could mean for our sector. Colleges train and educate more than 213,000 students each year, with colleges providing around a quarter of all higher education in Scotland.

Colleges are the engine-room of the Scottish economy, providing people with cutting-edge skills, knowledge and practical experience that keep vital industries staffed and growing. College graduates are the skilled technicians creating Scotland’s EV network, the talented chefs and hospitality managers supporting the food and drink industry, and the heating engineers installing heat pumps and solar panels up and down the country tackling the climate emergency. College graduates are the hairdressers, engineers, cyber security experts and healthcare professionals who are a key part of our economy.

Colleges also have a vital role in Scottish society. Our students are often from more deprived areas, can start their college journey far from the labour market, and need additional help, in a learning environment close to home. Coming to college gives people confidence, support and a connection in their community which lasts a lifetime.

Read more: Scottish Government claws back £46m budget uplift for education

The Scottish Government with a new Cabinet in place should take stock and have a moment of reflection on what could happen if there isn’t a sustainable, reliable landscape for colleges to operate in. Even without the promise – now deleted – of additional funding to help the sector transform, college funding is being cut in any case. The flat cash offered to colleges for 2023-24 is a real terms cut because of inflation, rising utility bills, increasing staff costs and the constant asks on colleges to do more with less. In this incredibly difficult operating environment, colleges have through sheer hard work and creativity been able to offer students exciting and relevant opportunities to learn, and to thrive as individuals.

All ministers should look at their portfolios and consider if it is possible to deliver net zero goals, improve our health service, or create a growing economy, if colleges remain in an unsustainable financial position. While losing a promised £26m is a real moment of dismay for our members, the bigger picture is that without clear connections to all the ambitions of the Scottish Government on equality, opportunity, and community, supporting people move out of poverty and into a career simply become harder and harder to deliver.

Colleges are a key part of the answer to the fundamental question of how Scotland increases productivity and achieves economic growth. Colleges deserve a fair and stable funding environment allowing them to grow, offer more, and do more. When colleges thrive, Scotland thrives. More thoughtful decision-making would benefit everyone.

Shona Struthers is CEO, Colleges Scotland