Established in 2005, the Scottish Funding Council (SFC) - full name Scottish Further and Higher Education Funding Council - provides a strategic overview of tertiary education in Scotland to help secure a more coherent system of high-quality learning, teaching and research. It distributes about £1.5 billion in funding each year for teaching and learning, research and other activities in Scotland's colleges and universities.

The Council: (i) allocates public funding to colleges and universities for teaching and research, buildings and equipment, and for specific initiatives and strategic developments; (ii) promotes high standards of governance and administration; (iii) assesses and enhances the quality of learning programmes; and (iii) develops strategies for improving knowledge and skills, strengthening the Scottish research base and encouraging knowledge exchange with – and innovation in – the public and private sectors.

In carrying out these responsibilities, it is required by statute to have regard to: skills needs in Scotland; issues affecting the economy of Scotland; social and cultural issues in Scotland; achieving sustainable development; the UK and international contexts; and the educational and related needs of students and potential students.