24 Acknowledged

Just as there are large disparities in the importance of different incomes streams to Scottish...

Conclusion
Just as there are large disparities in the importance of different incomes streams to Scottish universities, the same disparities exist—and have existed for a long time—in the financial health of institutions. Audit Scotland noted pre-pandemic that: While the sector overall is in good financial health, this masks significant variation across universities, and many sector-level indicators are disproportionately affected by the financial results of three of the four ancient universities. At an aggregate sector level, the operating position has remained broadly stable [between 2014 and 2018], but six universities reported deficits every year. Between 2014–15 and 2017–18, the underlying position for the sector improved, but the position was worse for six universities [of 18].44 41 Q4 42 Audit Scotland, Finances of Scottish universities, September 2019, page 9 43 Audit Scotland, Finances of Scottish universities, September 2019, p 13 ‘Exhibit 2’ 44 Audit Scotland, Finances of Scottish universities, September 2019, page 9 14 Universities and Scotland
Government Response Summary
The government acknowledges the committee's findings on the varied financial health of Scottish universities, reiterating that higher education is primarily a devolved matter. It highlights ongoing collaboration with the Scottish Government and the UK government's efforts to support the sector and the Scottish economy.
Government Response
Acknowledged
HM Government Acknowledged
While higher education remains a devolved responsibility of the Scottish Government the inquiry provides an important opportunity to consider how areas of reserved UK Government policy can have an impact on the sector. It will be important to continue our close and constructive working relationships with the Scottish Government as we look to support the sector and recover from the challenges posed by COVID-19. Scotland has a strong global reputation for higher education and research and we need to work together to ensure this continues. 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.
Addressee Bodies
Scotland Office
Timeline
Recommendation age 5.2 yrs
Report published 28 May 2021