A decision to give millions of pounds to colleges and universities has been reversed by the Scottish government.

A total of £46m was due to be spent on the Scottish college and university sector however it has now been identified as an “essential saving”.

The money, which is distributed by the Scottish Funding Council (SFC), had been voted through by MSPs.

Colleges Scotland members were “deeply dismayed” while Universities Scotland said it was “extremely disappointed”.

The money was pledged by former finance minister John Swinney in the budget last December.

The college sector has been due to receive £26m and the university sector £20m.

They were told the reversal was “to meet other [Scottish government] priorities”.

In a letter to the education committee, Higher and Further Education Minister Graeme Dey said: “The cabinet secretary for education and skills [Jenny Gilruth] has today written to the SFC to advise that, with regret, this additional £46m has been identified as a necessary saving in financial year 2023-24.

“As set out by the previous cabinet secretary to the committee on 22 February, we have had to make difficult choices in meeting new pressures on the education and skills portfolio since the 2023-24 budget announcement.”

The move follows pay settlements for teachers and health workers.

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