25 Acknowledged

Audit Scotland also highlighted that six of Scotland’s universities had reported deficits every year since...

Conclusion
Audit Scotland also highlighted that six of Scotland’s universities had reported deficits every year since 2014–15; more than half of all Scottish universities were in deficit in 2017–18; and that the position was worse in 2018 than in 2014–15 for most modern and chartered universities.45 They found that this was due to various factors including sustained reductions in SFC funding (outlined further in paragraph 22), increased contributions to pension schemes (up to £23 million extra per year), the effects of EU withdrawal and major estate maintenance requirements.46 Audit Scotland found that, in July 2018, universities estimated that the total value of outstanding estate maintenance requirements was equivalent to 25% of annual income across the sector.47 The Scottish university estate is large and diverse. There are 1,856 buildings throughout Scotland, in 146 locations. [ … ] 6% of the estate was built before 1840 and 24% between 1840 and 1959. The value of the estate is just over £5 billion, with Edinburgh having 33% (£1.7 billion) of the total value.48
Government Response Summary
The government acknowledges the committee's observations on the financial health and estate challenges of Scottish universities, emphasizing that higher education is largely a devolved responsibility. It highlights ongoing close working relationships with the Scottish Government and its efforts to support the Scottish economy and universities.
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.
Source
Committee Scottish Affairs Committee
Inquiry Universities and Scotland
Report First Report - Universities and Scotland 28 May 2021 HC 54
View on Parliament website
Addressee Bodies
Scotland Office
Timeline
Recommendation age 5.2 yrs
Report published 28 May 2021