19 Accepted

There are six main income sources for Scotland’s universities: • Tuition fees; • Funding grants;...

Conclusion
There are six main income sources for Scotland’s universities: • Tuition fees; • Funding grants; • Research grants; • Investment income; • Donations and endowments; and • Other income (including commercial)31
Government Response Summary
The government acknowledges the importance of diversified income streams for universities, focusing on international students as a vital source while recognizing the risks of over-reliance. It highlights the existing International Education Strategy and the Graduate Route as measures to attract international students and ensure sustainable, diversified recruitment.
Government Response
Accepted
HM Government Accepted
International students bring fresh ideas and new perspectives and in doing so help challenge thinking, making for an enriching learning environment for all students, including those from the UK. For our young people, this cultural exchange helps build life-long friendships, as well as laying the foundation for future networks, and important business, political and diplomatic bridges. International students also help stimulate demand for courses, add to the UK’s impressive research capacity and have the potential to contribute invaluably to the UK skills base—particularly in key subjects where they benefit the UK economy by filling a number of sectoral skills shortages, for example engineering, technology, health and social work. Universities are aware of the possible risks associated with dependence on a single source of funding, whether that is from a single organisation or from a single nation. Ensuring student recruitment is from a diversified base, in order for growth to remain sustainable in the longer term remains a key strategic priority—our commitment to this is set out clearly in the International Education Strategy. As part of this strategy, which was launched last year and will be updated this year, we also announced the Graduate Route, among several other measures to attract new international students. The UK Government’s International Education Strategy and recent update make clear that the internationalisation of our higher education sector cannot come at any cost – universities must ensure they have appropriate processes in place to manage risk. We will look to work closely with colleagues in Scotland and the other DA’s to continue to work on this aim.
Addressee Bodies
Scotland Office
Timeline
Recommendation age 5.2 yrs
Report published 28 May 2021