Robert Gordon University (RGU) Principal Professor Steve Olivier has issued a stark warning about the “major existential threat” facing Scottish universities amid significant funding challenges and mounting financial pressures.
Speaking at a Scottish Labour conference event in Glasgow, Professor Olivier revealed that universities have suffered a devastating 22% real-terms cut in teaching funding over the past decade.
Professor Olivier emphasised the wider impact, noting that while Scottish universities contribute approximately £11 billion annually to the economy, the sector faces unprecedented challenges:
“Over 80 universities in the UK are facing deficits of between £10 million and then north of £50 million. They have made job losses all over the place, Cardiff 400 to 500, Durham 200. All universities are feeling the pinch.”
“We are around £2,500 on average short of what English universities get per student, we are significantly underfunded.”
The crisis has already forced RGU to implement drastic measures, including opening a voluntary severance scheme targeting up to 220 job cuts as the institution seeks to address an £18 million budget shortfall. The university is also considering restructuring its academic schools.
Russell Borthwick, chief executive of Aberdeen & Grampian Chamber of Commerce, described the situation as a “perfect storm” and called for urgent government action.
“We need UK Government to urgently review its position on welcoming overseas students and dependent families to the UK, remove impossible visa thresholds and to keep in place the post-study visa scheme,” he stated.
The crisis extends beyond universities. Neil Cowie, principal of North East Scotland College, reported similar pressures in further education, with his institution facing an impact from funding cuts. He commented:
“We’ve been hit with a succession of flat cash settlements that have been fundamentally real terms cuts.”
“Last year that impacted the college to the tune of around £2.7 million. For a £50 million organisation that is significant.”
“We’re constantly being asked to do more with less, and that is simply not sustainable.”
A Scottish Government spokesman defended their position, stating they will invest in university teaching and research, while noting that UK migration policies and increased employer national insurance contributions are estimated to cost Scottish universities up to £45 million:
“Both the Scottish Government and Scottish Funding Council engage closely with universities and we value the important contribution they make to the economy and wider society.”
“We have listened closely to the sector in the development of this year’s Budget and is why we will invest over £1.1 billion in university teaching and research.”
“There are further factors impacting universities, including UK migration policies and the UK Government’s increase to employer national insurance contributions which is estimated to cost Scottish universities up to £45m.
“The Scottish Government has continued to invest more than £2bn a year in colleges, universities and the wider skills system, recognising the vital role they play in both education and the economy.”
