Edinburgh University boss raises spectre of tuition fees amid financial turmoil

The principal of Edinburgh University has raised the spectre of the re-introduction of tuition fees amide financial turmoil in higher education.

Professor Sir Peter Mathieson spoke as his institution has been forced to cut £140 million and Dundee University wrestles with management issues and a £35 million deficit, calling for a “radical re-wiring” of a system he claimed was “broken”.

Universities, he claimed, were “nearing, or toppling into, an economic abyss”.

There have been plenty of warning signs: my fellow sector leaders and I have been sounding the alarm for years

Sir Peter said Scotland’s universities had been over-reliant on foreign students to boost revenue, but a shifting international picture has made such a move in the future uncertain.

Writing in Scotland on Sunday, he said: “Whilst the finances are admittedly complex and the symptoms many, the diagnosis is as plain as day: our system is broken and requires a radical re-wiring to survive.

“There have been plenty of warning signs: my fellow sector leaders and I have been sounding the alarm for years.

“When you consider the rising costs of wages, food, housing, energy bills over the past eight years, in all that time the funding we receive to teach undergraduate students from Scotland and the rest of the UK remained stagnant.

“This left us over-reliant on increases in international student numbers, which has proven an unstable model as geopolitics grow increasingly volatile and the UK’s attractiveness has declined.”

Sir Peter referenced a letter from Scottish Labour leader Anas Sarwar, in which the MSP said the status quo in universities was “not working”, but gave his “iron-clad” support to keeping tuition free for Scottish students.

The Edinburgh University principal welcomed most of the letter, but appeared to doubt the wisdom of continuing free tuition.

“In a recent letter from Scottish Labour Leader Anas Sarwar, I was pleased that the urgent need for reform was recognised,” he wrote.

“I hold less hope for the ‘iron-clad’ promise of so-called free, ie taxpayer-funded, tuition for all in Scotland, but I am keen for us in the sector to work together with politicians across all parties to develop a solution that is both sustainable and fair.”

The principal urged those in the sector and in Government to “pull in the same direction” as they “respond to the dire issues”.

Higher and further education minister Graeme Dey told Scotland on Sunday: “The sector is aware we are open to exploring the future funding model of universities, but I have been clear this Government will not reintroduce tuition fees.

“Access to higher education must be based on the ability to learn, not the ability to pay.

“Indeed, the latest Ucas data shows our continued investment in free tuition means record numbers of Scots are securing a university place, including record numbers from the most deprived areas.

“Scottish Funding Council indicative allocations announced last week increase the investment in teaching per Scottish student and include a 3.6% increase in core funding for research and innovation, meeting a direct ask from the sector which will benefit Scottish universities.

“Clearly there remain broader financial pressures facing the sector, including the UK Government’s migration policies, while its increase to employer National Insurance contributions is estimated to cost Scottish universities more than £48 million.

“The Scottish Government and SFC will continue to work closely with the sector and its representative body, Universities Scotland, on its sustainability into the future.”

The SFC allocations announced this week referenced by the minister also showed 17 of Scotland’s 19 universities were facing a real terms cut to their teaching budgets.