Today, Thursday 1 October, the Scottish Funding Council (SFC) published its financial sustainability report for universities 2024-2027.
Commenting on the report, Claire McPherson, Director Universities Scotland said:
“Universities continue to face some of the most significant and serious financial challenges in their history. The Funding Council’s report shows that around half of institutions are expected to operate in deficit over the next three years, underlining the scale of the challenge facing a sector that is fundamental to Scotland’s economy, public services and future prosperity. The report rightly highlights the challenging external factors the sector has faced and shines a light on the steps that many are taking to help improve their financial position. However, the missing context from the report is the systematic and significant reduction in funding the sector has received from the Scottish Government over the last decade.
“Universities have had to make difficult decisions in a challenging financial climate, but they have done that whilst also facing real-time funding cuts to their central financial settlement from the Scottish Government. Last year’s report served as a warning shot about the trajectory of university finances. Since then, the first report of the co-owned Future Framework for the Sustainability and Success of Scotland’s Universities has shown that the gap between income and expenditure has widened significantly since the pandemic, reaching almost £200 million by 2023/24.
“The evidence is now clear. Without action, the financial pressures facing universities will continue to intensify. As the Scottish Budget approaches, ministers and parliamentarians must recognise that investing in Scotland’s universities is not simply support for a sector under strain, but an investment in the country’s economic growth, research excellence, skills pipeline and global competitiveness. While the Future Framework is focused on securing the long-term sustainability and success of Scotland’s universities, immediate action is also required. The Scottish Government must act now to provide the stability and investment needed to safeguard the sector’s future.”