Universities’ teaching budget at ‘tipping point’, MSPs warned

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Funding pressures on Scotland’s universities are at a “tipping point” after seeing a reduction in real terms over the last 12 years, MSPs have been told.

Speaking to the Scottish Parliament’s Public Audit and Post-Legislative Scrutiny Committee, Universities Scotland director Alastair Sim said the sector needs a recovery of sustainable funding in next month’s Scottish budget.

The session follows a report by Audit Scotland in July which revealed teaching and research is funded below cost.

“The sector, as a whole, is not generating enough surplus to enable universities to invest in, and maintain their estates, in the medium to longer term,” it warned.

Universities Scotland says 12 per cent real terms cuts since 2010/11 now mean institutions only receive 90 per cent of what it costs to teach publicly funded undergraduates, while research is under-funded at 86 per cent of what it costs to deliver.

Sim told committee he was “optimistic” after carrying out “creative discussions” with the Scottish Government and the Scottish Funding Council about the future of funding, but warned: “It’s essential to students, staff and the wider economy that Scotland has a diversity of truly excellent universities. We do not currently have a sustainable basis for this.”

Fears over the impact of Brexit were also raised, in particular on how it will affect the futures of international students and staff.  Sim said there was an “irony” in universities being told to exploit opportunities in Brexit while being threatened over immigration changes to students and staff.

Sim said all universities could do was tell them that they are valued.

Fears over the proposed restructuring of the Scottish Funding Council (SFC) were also aired at the meeting,

The body’s interim chief executive Dr John Kemp said the governing boards of the SFC, Scottish Enterprise, Highlands and Islands Enterprise and Skills Development Scotland were likely to be merged.

Sim suggested increased involvement of ministers represented a risk to academic independence.