22
Not Addressed
Audit Scotland found that although Scottish Government funding to the SFC for universities increased by...
Conclusion
Audit Scotland found that although Scottish Government funding to the SFC for universities increased by 0.1% in cash terms from £1.116 billion in 2014–15 to £1.117 billion in 2017–18, this equated to a real terms reduction of 5%.38 Taken together with a 7% reduction between 2010–11 and 2014–15, this represented a real terms reduction in Scottish Government funding of 12% over seven years.39 Alastair Sim, Director of Universities Scotland, told us that with teaching funded at about 90% of the actual cost of provision for Scottish students, and with research projects typically funded at 80% or under of the cost of doing the project, universities are entirely reliant on entrepreneurial activity, principally international activity, to fill that gap and enable universities to do those things at the core of supporting the common good and the charitable mission.40 In the view of Professor James Conroy, University of Glasgow: 34 Audit Scotland, Finances of Scottish universities, September 2019, p 13 ‘Exhibit 2’ [Note: lighter shading indicates public funding] 35 The Scottish Parliament (Research Briefings), ‘The impact of Coronavirus (Covid-19) on university funding In Scotland’, accessed 24 January 2021 36 Q60 37 Q60 38 Audit Scotland, Finances of Scottish universities, September 2019, para 21 39 Audit Scotland, Finances of Scottish universities, September 2019, para 21 40 Q2 Universities and Scotland 13 It is unsustainable to have fee levels where they are at the moment. To put it in perspective, in a previous incarnation I was dean of the faculty of education, where we got at the time £8,400 roughly per capita. It is £2,000 less today, and that is something like 12 years later. The present levels of funding are unsustainable to maintain a world-class university system.41
Government Response Summary
The government states that higher education in Scotland is largely a devolved responsibility and emphasizes its continued engagement with the Scottish Government. It also highlights its International Education Strategy and the Graduate Route to help universities diversify income, but does not directly address the Scottish Government funding reductions.
Government Response
Not Addressed
Government Response
Not Addressed
HM Government
Not Addressed
Higher Education in Scotland is, for the most part, a devolved responsibility. We recognise that the whole of the UK benefits from stability across Higher Education. We appreciate the importance of continuing to work closely with the Scottish Government as we recover from the COVID pandemic. There has been and continues to be engagement at ministerial and official level with the Scottish Government (and the other devolved administrations) to exchange information and policy developments across a range of issues facing education systems in the UK. Furthermore, the UK Government has been working tirelessly to support businesses and the economy in Scotland including our universities. 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.
Source
Committee
Scottish Affairs Committee
Inquiry
Universities and Scotland
Report
First Report - Universities and Scotland
28 May 2021
HC 54
Addressee Bodies
Scotland Office
Timeline
Recommendation age
5.2 yrs
Report published
28 May 2021