Chamber and committees

Let us wind back to—

But why have we not delivered on it? We have not delivered on it because of the change in the financial and economic climate that we all exist in. I mentioned the challenges that exist in transport, for example, in delivering big capital investment in infrastructure. The exact same challenges are faced in education at the current time. We had to respond to that.

I do not think that anyone around this table could have predicted, for example, the impact of Liz Truss’s mini-budget. That had a devastating impact on the Scottish Government’s ability to spend money.

We have been able to increase funding for colleges. I am sure that Mr Macpherson will want to say more on that, but I am conscious that he was leading for the Government on a bill until after 9 o’clock last night, so I will say a little about the uplift for colleges.

The budget delivers a combined increase of £70 million in resource and capital funding, which is the equivalent of a 10 per cent uplift on last year’s budget. That takes the total investment in the core college funding settlement up to £764 million.

That budget uplift has been broadly welcomed by the sector. An ask was made of us, and I met Colleges Scotland, along with Mr Macpherson, towards the end of last year, to hear about colleges’ challenges. I am sure that we will come on to the detail of this, but a number of institutions are facing challenges at the current time. As ministers, we are very alive to those challenges and to how we might meet that ask. I made it clear in budget negotiations with the Cabinet Secretary for Finance and Local Government that we needed additionality for the college sector to help to support those institutions, and she was receptive to that ask.

I do not know whether Mr Macpherson wants to say more on that point.

No, because the instability that we have seen across the sector has grown in the past year.

Let us trade quotes, then. That is fine.

Based on my discussions with officials, it is my understanding that the funding that we have secured through the budget will create stability across the sector in the year ahead. However, that is predicated on reform, so we have to work with the sector on that. Mr Macpherson wants to come in on that point.

I have seen some debate about that played out in the press, and the issue is mentioned in the committee’s public papers. I will check again with officials to make sure, but I think that the issue is referred to in table 3 in your public papers. I see Shirley Laing nodding, so that is good.

The 2026-27 budget sees an uplift of £69.6 million in resources, which is a 10 per cent uplift to the total core college funding settlement. That includes £61.4 million, which is a 9.3 per cent increase, for resource, and £8.2 million, which is 24 per cent increase, for capital. The capital spend on the new Dunfermline learning campus is excluded from that, and it is fair to say that there has been some debate about that.

I have sought clarity from officials on that point and have been assured that that is the way in which the figure has been calculated. We need to be mindful that the DLC is now complete, so there is a fluctuation as that project essentially comes to an end. However, that £70 million is quite separate from the funding for the Dunfermline learning campus. That is set out in table 3, on page 7, of the committee’s public papers, so I am sure that members can all look at and address that.

I am sorry, Mr Mason, but that is not my understanding. We need to be really clear on this point, because it is the point on which SPICe was to-ing and fro-ing with my officials. Again, I direct members to table 3 on page 7 of your public papers, which makes it very clear. It shows a £69.6 million increase—a 10 per cent uplift. That comes from the £61.4 million, which is a 9.3 per cent uplift for resource, and £8.2 million for capital. That is separate from the DLC fund. Those are two separate budget lines. We must not try to put them together, which I think is where the confusion has arisen.

I accept from the exchange here today, convener, but also from the press reports today, which I do not think are helpful, that we need to reflect on ways in which we communicate the budget. Bluntly, there is no point in my going in to bat with the Cabinet Secretary for Finance and Local Government for extra college funding if you then look at tables like this one and conclude that that is not what is happening, or that there is ambiguity around the sector. It is not helpful to me, as cabinet secretary, either, so I think that we, as a Government, need to learn how to better present those figures.

I see Shirley Laing nodding. Mr Mason has an assurance from me that my understanding is not what he set out today. The DLC fund is quite separate, and core college funding is, in its totality, at £70 million, a 10 per cent uplift. That is what the Cabinet Secretary for Finance and Local Government announced in the budget last week. The DLC fund is not part of that.

We need to reflect on that and on how we communicate extra funding that the Government puts in. I accept Mr Mason’s points in that regard.

Yes, I hear that.