Scottish universities are grappling with significant financial challenges, with many institutions facing deep deficits, job cuts, and the looming threat of bankruptcy. As cuts escalate, the question becomes: where are these institutions headed?
The Strain on Scotland’s Higher Education Institutions
For decades, Scotland’s universities were seen as somewhat protected from the economic turbulence that has plagued their counterparts in England. But recent developments suggest this perception may no longer hold true. Institutions like Robert Gordon University and the University of Dundee are grappling with significant financial losses. The announcement of redundancies and large deficits is just the tip of the iceberg, as more universities prepare for tough times ahead.
- Robert Gordon University in Aberdeen has announced up to 135 potential job cuts due to a shortfall in student numbers.
- Dundee University has revealed a £30 million deficit, leading to fears of further cost-cutting measures.
- The University of Edinburgh’s voluntary redundancy scheme could soon be followed by even more job cuts, as the institution struggles with rising financial pressures.
These developments indicate that Scottish universities are not immune to the systemic issues plaguing the UK higher education sector. But what’s behind this crisis?
The Impact of Marketisation and Austerity on Higher Education
The shift in the UK’s higher education model from public funding to a more market-driven approach has played a significant role in the current crisis. Universities were once primarily funded by the government, but today, they rely heavily on tuition fees, particularly from international students. This shift, which began under New Labour, was designed to position universities as key players in the ‘knowledge economy’. However, this market-driven model has created significant inequalities, with smaller, less selective universities facing financial pressures while elite institutions continue to thrive.
The numbers tell a grim story:
- Between 1993/4 and 2022/3, real income for higher education institutions in England nearly doubled, reaching £44 billion per year.
- However, the proportion of funding from the government has dropped significantly. In 2005/06, government funding accounted for 39% of university income; by 2022/23, it had plummeted to just 12%.
- Tuition fees, which were introduced by New Labour, now account for over half of university funding, reflecting a growing reliance on student fees.
The financial instability exacerbated by the pandemic and the Ukraine War has left universities scrambling for alternative revenue streams. International students, once a reliable source of income, are now in shorter supply due to changes in visa policies and a declining interest in the UK as a study destination.
Scottish Universities: A Distinct Challenge
While Scotland’s higher education institutions were initially seen as somewhat sheltered from the UK-wide financial woes, they too are now feeling the strain. The Scottish government has historically provided funding for university places, but this support has become increasingly inadequate over the years.
The Scottish funding model differs from the rest of the UK, particularly with its policy of no tuition fees for Scottish students. However, the overall public funding available to universities has dwindled. The Institute for Fiscal Studies found that in 2023/24, the teaching grant per student in Scotland was almost a fifth lower than in 2012/13.
- Scottish universities also face the additional burden of offering a four-year degree, which increases the cost per student.
- Seven of Scotland’s universities rely on non-EU students for over a quarter of their income, a situation that has left them vulnerable to fluctuations in international student enrolment.
As a result, Scottish universities are increasingly dependent on international students to fill the financial gap. However, as enrolments have dropped in 2023/24, these institutions face a £100 million funding shortfall.
Financial Losses and Structural Cuts: What’s Next?
In the wake of rising deficits, some Scottish universities are being forced to make difficult decisions. The University of Glasgow, for instance, is closing its Social and Public Health Sciences Unit in 2025, leading to job losses. The change in the funding model from the UK Research and Innovation Medical Research Council (MRC) has left the unit without the financial backing it once relied on.
At the same time, the broader economic environment has made it increasingly difficult for universities to balance their budgets. The UK government’s reduced funding for higher education and rising inflation have made it even harder for universities to stay afloat.
The situation could worsen, as many institutions are now looking at potential job cuts and restructuring to deal with their financial challenges. The recent Scottish budget, which includes another real-terms cut, has only added to the pressures on universities.
The Rise of Activism and the Push for Change
Despite the bleak financial outlook, there has been a noticeable rise in activism across Scottish campuses. Students and staff alike have taken to protesting against job cuts, university closures, and austerity measures. From the ongoing protests against the Israeli-Palestinian conflict to campaigns against rising student fees and conditions for staff, the political climate on Scottish campuses is charged with energy.
The student movement has recently gained significant traction, with the election of Palestinian medic Ghassan Abu-Sittah as the University of Glasgow’s Rector in 2023. This victory has become a symbol of the growing political engagement of students, who are now calling for a wider movement to defend education as a public good, rather than a financial commodity.
- Trade unions, such as UCU, have been at the forefront of strikes and protests, advocating for better pay, conditions, and funding for universities.
- The Scottish Labour Party and student groups are now pushing for a complete overhaul of the funding model, which would provide free and publicly funded education for all.
The time is ripe for a shift in political thinking. Activists argue that if the government can find money for defense spending, then it should prioritize investing in public services like education.
