Modern universities hit hardest by 'incredibly challenging' Scottish Government funding cuts

Blow for West of Scotland, Heriot-Watt, Abertay, Napier and Robert Gordon universities

Modern universities in Scotland have been plunged into an “incredibly challenging” financial position after being hit hardest by Scottish Government funding cuts.

Newly-released figures suggest several of the nation’s “post-1992” institutions face greater reductions to their teaching grants than many older universities, following a double-whammy blow linked to a cut in places for Scottish students as well as the axing of £4.8 million for pensions.

The University of the West of Scotland is facing a 10 per cent cut in its teaching budget, while Heriot-Watt University’s is down by 5.8 per cent, Abertay University’s reduction is of 5.4 per cent, Napier University’s grant is to be decreased by 5.2 per cent, Robert Gordon University’s is down by 4.9 per cent and Queen Margaret University’s by 4.7 per cent.

GLASGOW, SCOTLAND - SEPTEMBER 19: Lecturers and other staff attend a rally in Buchanan Street as strike action continues at five Scottish universities on September 19, 2023 in Glasgow, Scotland. The action by the University and College Union (UCU) is part of a long-running dispute over pay and working conditions. (Photo by Jeff J Mitchell/Getty Images)

In contrast, Strathclyde University’s teaching grant is being reduced by 1.4 per cent, Stirling University’s by 1.9 per cent, Dundee University’s by 2.1 per cent and Glasgow University’s by 2.3 per cent.

It comes as the higher education sector warns it faces “by far the toughest funding settlement”, following a £28.5 million cut.

There are fears it could lead to fresh job losses and course closures, with Universities Scotland convener Iain Gillespie warning: “Universities will find it increasingly hard to manage these cuts whilst continuing to offer the high-quality education and wider experience that our students deserve and country needs.”

A 3.6 per cent reduction to the higher education budget was announced in December, with it later being confirmed that funding would be withdrawn for more than 1,200 places for Scottish students that were introduced following the exam results fiasco during the Covid-19 pandemic.

The Scottish Funding Council revealed a breakdown of the budget allocations by university on Thursday.

Glasgow Caledonian is the only one of the post-92 institutions, which became universities after a 1992 rule change, to receive a significantly below average cut of 0.8 per cent.

Aberdeen, Edinburgh and St Andrews face a larger reduction than the other older universities, of 4.7 per cent, 5.2 per cent and 4.2 per cent respectively.

However, if research and innovation funding is included, Aberdeen University is the only one of the four ancient universities to see a decline.

It is understood many in the sector were taken aback on Thursday when they were told of the removal of £4.8m for pension contributions.

A Universities Scotland spokeswoman said: “The pensions contribution is one of the casualties in the Government’s cuts to universities.

"This will be incredibly challenging for the post-92 universities which are in the Scottish Teachers Pension Scheme, as employer contributions rose by 3 per cent on 1 April, to 26 per cent, forcing those institutions to meet this increased cost.

"Late last year, we asked the Scottish Government to increase this fund, in anticipation of rising costs, so the fact that the fund has been cut entirely will put even more financial pressure on them and further impede their ability to deliver on many of the Government’s own priorities.”

Mary Senior, Scotland official for the University and College Union (UCU), said: “Following on from 10 years of real terms cuts to university finances, this year’s cuts to the sector will cause real hardship for and damage to students, staff and universities.

"UCU had asked the higher education minister to support post-92 universities with increasing pension costs. But instead, the pension contribution fund for post-92 institutions is being removed altogether.

"This is a slap in the face for post-92 universities and the vital widening access work they do. With several Scottish universities currently looking to cut jobs, the Scottish Government and Scottish Funding Council need to be doing more to protect Scottish higher education.”

Another reason why several more modern universities have been hit harder is understood to be linked to the removal of funding for more than 1,200 places for Scottish students.

While it was expected that the places were to be axed, the way the decision would impact individual universities was not clear until Thursday.

The level of cuts have been confirmed just weeks after Robert Gordon University announced it was opening a severance scheme to cut up to 220 posts, as part of plans to save £18m, while neighbouring Aberdeen University has also tabled controversial proposals to axe modern languages degrees.

Professor Gillespie, the Dundee University principal, said: “This is by far the toughest funding settlement universities have faced, as £28.5 million of Government cuts had to be found from next year’s teaching budgets.

"After a decade of real-terms erosion of university funding, the funding council has been forced to make some very difficult choices.

"Every university faces a cash cut to their resources to support students’ learning. There is no way that this trajectory of public funding in university teaching is sustainable.”

A spokesman for the University of the West of Scotland said: “As Scotland’s leading university for widening participation in higher education, we are very disappointed with the indicative settlement, particularly given the increase in applications to UWS this year.

“We have continued to be the highest provider of widening participation opportunities by some distance in Scotland, including articulating students from colleges, since reporting began nine years ago.

“Whilst our unwavering commitment to transforming lives – and the communities we serve – remains undeterred, Today’s disappointing announcement of a disproportionate reduction in funding significantly undermines our ambitions.”

While teaching funding was cut by £28.5m, or 3.8 per cent, research and innovation funding for universities has increased by £12.6m, or 4.2 per cent, while capital funding is up by £2.6m, or 10.2 per cent.

The SFC said the removal of 1,289 places would not impact opportunities for Scottish students because there are more funded places available now than before the Covid period, mainly due to EU students no longer being funded.

SFC Chief Executive Karen Watt said: “This has been a particularly challenging funding round. While we recognise that universities are operating in a difficult financial environment, managing a range of different pressures, the funding package we are announcing today will ensure that more opportunities are available for Scottish students than pre-Covid.

"We are also increasing investment in university research and innovation given its vital importance to new discoveries and making research useful for social and economic benefit.”

A Scottish Government spokesperson said: “Our universities play a pivotal role in Scotland’s economy and society – and despite facing the most challenging budget since devolution, the Scottish Government will continue to invest over £1 billion on teaching and research, including an increase in research and innovation funding in the coming year.

“This is over and above the investment in ensuring we maintain free tuition – which has saw the number of Scottish students entering university increase by 31 per cent since its implementation.

“We are seeing record numbers of young people aged 19 and under securing a university place including record numbers of students from our poorest communities as a result of Scottish Government investment in our universities – and ministers are determined to ensure the sector continues to thrive.”