University principal calls for review of sector amid financial challenges

A leading university principal has said there needs to be a review to look at the “shape and size” of the sector in Scotland.

Professor Sir Anton Muscatelli, principal of the University of Glasgow, said it is “imperative” the sector does not “stumble from year to year” and it is important to consider how it will be resourced.

Scotland’s universities are facing financial challenges which have led to strike action at some institutions and fears of job losses.

Dundee University is seeking to cut up to 300 full-time jobs as it addresses a £35 million deficit, and the University of Edinburgh is looking to make £140 million of cuts as it tries to plug a £140 million black hole.

Sir Anton retires this autumn after 16 years as principal of the university, where he is also vice-chancellor.

He told the BBC: “It really is imperative that we don’t stumble from year to year, [but] think about how this is going to be shaped or resourced.

“We need a strategic plan as a country, which is why I suspect after 2026 there will need to be a look at the shape and size of the Scottish [university] sector.

“I hope this is done in a rational way. I strongly believe in a publicly-funded sector, I hope that can be achieved, but let’s start with the question: what sector does Scotland need?”

Business minister Richard Lochhead was questioned about university funding in an interview on BBC Radio Scotland on Thursday, and he said the Scottish Government is “very open to discussing with the sector future funding models”.

He was asked about a study by Professor David Bell of Stirling University which found Scottish Government funding for university students had fallen 22% between 2019-20 and 2023-24.

With inflation pushing up the cost of educating students, Mr Lochhead was asked whether the Government needs to either match that or perhaps look at not funding all Scottish university students’ education.

Mr Lochhead said: “We’re very open to discussing with the sector future funding models. Of course, there’s another budget coming up shortly in the Scottish Parliament, once we know what the UK Budget is in the next few weeks.

“But in terms of the pressures on our higher education sector, in particular if you look at the UK immigration policies – the immigration policies that they are broadcasting to the rest of the world are putting off international students coming to Scotland.

“That’s hugely damaging to our universities. Overseas students are extremely valuable to our economy in Scotland.”

Mr Lochhead said some UK Government policies such as the rise in national insurance contributions are making life difficult for Scottish universities.

He said: “We as a Government in Scotland have to continue our conversations with the sector over our funding model.

“But of course, other policies from outside of Scotland are causing huge damage as well.”

A UK Government spokesperson said: “While net migration must come down, we have been clear that genuine international students will always be welcome to study in the UK, and we strongly value the contribution they make to our economy, education institutions and society.

“Where education is a devolved matter, governments are encouraged to investigate support available to higher education providers to move towards a more secure financial footing.”