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This report examines the financial health and operational challenges faced by colleges across England. These institutions offer a broad spectrum of academic and vocational courses to both young people and adults. In the 2023/24 academic year, England's 218 colleges educated 1.6 million learners. Despite generating £6.9 billion in income and spending £6.5 billion in 2022/23, resulting in a sector-wide surplus of nearly £400 million, the financial landscape for colleges has seen significant shifts since 2010/11. Both income and expenditure have decreased by approximately one-third in real terms, largely due to substantial cuts in public funding, which constitutes 83% of college revenue. Funding for 16-19 education has fallen by nearly a quarter, and adult skills funding has been reduced by over half.