SALISBURY College is set to hit a £1m deficit this year and might have to cut courses to balance the books.

The deficit has built up over the past two years, despite cost-cutting attempts.

The courses most under threat are those that attract just a few students.

There could also be a reduction in tutors' teaching time as part of a new package of economies.

But principal Gill Brain was upbeat about the future of the college - which serves some 20,000 students - and vowed to make it break even by July 2003.

Mrs Brain said she and the board of governors and senior management team must find ways to improve efficiencies.

She emphasised that priorities included protecting full-time staff.

But in a newsletter to staff, she warned that measures were "likely to be unpleasant and unpalatable".

The newsletter revealed that earlier cost-cutting measures had not been successful, leaving the college heading for a £1m debt by the summer.

Much more severe measures were needed now, it stated.

Mrs Brain said no decisions had been made on how to cut costs but various options were being considered.

A reduction in tutors' teaching time was one, which could mean students learning more through computers.

Non-replacement of staff was another area the college would scrutinise.

Mrs Brain said posts had not automatically been filled for the past two years as the deficit had begun to grow.

"We are now upping that a gear," she said.

"Replacement would only be for hugely important posts."

The college is likely to reduce teaching by part-time and session tutors, to save costs.

Courses that attract only a handful of students could be cut and efforts made to focus on growth areas, such as health and care, in order to meet demands more effectively, Mrs Brain said.