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The Herald Scotland
06-07-2025
- Business
- The Herald Scotland
‘Eye-watering' salaries may mask bigger university problems
However, following a recent inquest into Dundee University's drastic financial decline and potential mismanagement, Ms Senior said that talk of excess at the top of the ladder is prolonging the sector's more fundamental problems. 'The eye-watering pay and perks for those at the top are really a massive distraction from the underfunding of the sector, and it makes it harder for us to make the case to government to bring in the funding that the sector actually needs.' Last year, The Herald revealed that public funding covers less than half the costs of teaching some courses, and universities have become increasingly reliant on an unreliable stream of income from international student fees. Additionally, the Institute for Fiscal Studies (IFS) found a 22% reduction in university teaching funding between 2013-14 and 2024-25. Ms Senior said that it is hard for stakeholders to lobby the government for more investment when high salaries create a 'misconception' that there is already money to spare. 'And one thing that Dundee highlighted is that, even when you pay people these six-figure sums, they can make appalling mistakes.' Sir Paul Grice, Interim Convener of Universities Scotland and principal of Queen Margaret University, said that university leaders are working with stakeholders to 'reflect on and respond to the wider lessons' for the sector that have come out of Dundee's situation. 'It has been helpful that both the Scottish Government and Funding Council have reconfirmed that the Code of Good Governance remains fit for purpose. 'That said, damage has undoubtedly been done, and we fully recognise there is a need for the rest of the sector to step up and provide robust reassurance in universities' governance and management.' And when asked if there are steps that university leaders can take to limit salaries and expenses, Universities Scotland Convener-elect and Principal of the University of the West of Scotland, Professor James Miller, stated that universities face challenges beyond their operational management. 'The primary challenge for the wider sector is one of financial sustainability, compounded by a decade of declining public funding for our teaching and research, not one of widespread failures in governance. 'If the latter misconception takes hold, it will become a distraction from the very real need to address the funding issues facing every institution, and the impact it has on their students and staff.' Prof Miller added that when it comes to trust in the sector, 'perceptions do matter' and senior staff have a role to play. 'I think there's a willingness amongst my peers to listen to opinions and look at the process and outcomes for principal and senior team pay, as part of a wider mix of issues, and that's something we are prepared to explore. 'However, that should not detract from the very real and pressing need to address the deeper funding challenges faced by the sector.' Read more Ms Senior said that today's top salaries, which she considers 'excessive,' are a relatively recent development and that 20 years ago, there was 'more of a relationship between the salary of the person at the top and the rest.' The University and College Union (UCU) sees this trend partly as a result of the fact that senior positions negotiate their pay separately from the national bargaining process for staff. UCU Scotland official Mary Senior said that principal salaries are diverting attention from the work of securing more investment for the university sector. (Image: Colin Mearns) As evidence for Holyrood's consideration of the Tertiary Education and Training (Funding and Governance) (Scotland) Bill, which proposes changes to the way post-school education is funded, the UCU suggested bringing all staff, including senior leaders, into the same pay spine. 'We think it's important those at the top are not seen as separate from other staff.' Each time the spotlight falls on the financial challenges facing Scottish higher education, the sector's top earners become easy targets for politicians and critics. This was most recently on display during the University of Dundee hearings at Holyrood in June. MSPs grilled university representatives and former employees about the circumstances which led to the university discovering a previously unreported deficit in November 2024 and needing an 'unprecedented' £62 million bailout from the government. The most sensational hearing involved former Dundee principal Professor Iain Gillespie, who faced hard questions about his tenure. An independent review of how Dundee handled its finances found that many of the university's problems were "self-inflicted" and raised concerns about Mr Gillespie's leadership style. Although MSPs grilled Mr Gillespie on how the situation deteriorated under his watch, a considerable amount of time was also spent discussing his pay. MSPs repeatedly asked questions about his reportedly £300,000 annual salary, a £150,000 payment he received upon stepping down in December 2024, and perks such as business-class flights for university business. Mr Gillespie is not the only principal to have his six-figure salary under the microscope, nor was his pay out of the ordinary for his position. At least two principals currently earn more than £400,000, and a six-figure sector average has been the norm for at least a decade. Read more These packages are what Ms Senior has branded 'embarrassing,' and part of what Prof Miller is referring to when he says principals are willing to explore questions about pay. MSP Willie Rennie, education spokesperson for the Scottish Liberal Democrats, clashed with Mr Gillespie over whether the former principal would return the £150,000 payment he received upon resignation. Mr Rennie emphasised that, even though £150,000 would not solve the university's problems, it would "certainly be a start" in sending a message that Mr Gillespie understood the gravity of the institution's situation. However, messaging is one of the significant challenges for stakeholders, both staff and employers, across the sector, who would like to see more investment but need to convince the Scottish Government not only that it is necessary, but that it will be put to good use.
Scotsman
20-05-2025
- Business
- Scotsman
How Labour could make Scotland's university funding crisis even worse
Sign up to our daily newsletter – Regular news stories and round-ups from around Scotland direct to your inbox Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Economic growth is the holy grail for this and every government, and an essential factor in achieving that is education. But in Scotland, as across the rest of the UK, the policies of Keir Starmer's government are creating an increasing challenge for our universities. Of course, much of that is the result of the funding structure created by Holyrood. But the pressure on their finances has been ratcheted up several notches by the increases to employers' national insurance contributions, and by confusion surrounding immigration proposals, which if they go ahead would undermine their ability to attract international students. Advertisement Hide Ad Advertisement Hide Ad A clarification late last week suggested Scotland might be spared this blow, despite the fact that was never mentioned when I raised it in parliament. All fingers will be crossed, hoping to avoid a bill which Universities Scotland estimated at £85 million a year. Universities are vitally important to the economy and are facing difficult times financially (Picture: Chris Radburn) | PA International students in love But even without it the picture is challenging. Dundee University recently announced 300 redundancies – down from an original figure of 700 – while the University of Aberdeen has warned of around 70 job losses because of a £5.5m hole in its finances. International income is vital not just to Scottish but to all British universities. The ability to attract international students is both an indicator of an institution's reputation and a vital source of finance, particularly with the difficulties faced with the current funding model in Scotland. When I began my time as a university teacher, I had two foreign students in a class of 30. Ten years later, that number was approaching 50 per cent of a larger group. Advertisement Hide Ad Advertisement Hide Ad In my career, I have also come across doctors, scientists, industrialists and entrepreneurs who came to study at our world-renowned universities, fell in love, either with our country or an individual, and then went on to make significant contributions to our economy and culture. Following my calls for a visa route to be established for Americans who no longer want to live under a Trump presidency, I have received numerous emails from US residents who have degrees from Scottish universities, and who told me how they put their education into practice in our country. How they paid their taxes, and became part of their communities. Damaging UK's reputation and economy Labour's immigration proposals would undermine our potential to continue to attract those young people, the best and brightest of their generation, by putting a price tag on their heads for our educational institutions. If universities in any part of the UK cannot afford to teach them, they will find it difficult to afford to teach those who attend from here. Their loss will undermine our international reputation, our scientific and medical research potential and also our economy. Advertisement Hide Ad Advertisement Hide Ad The income from international students is now greater than that from domestic students. The funding model is broken, but to punish both students, teachers and the institutions as a whole is not a solution. If education is the communication of knowledge, then it is naïve at best to think we do not need to learn from those beyond our own borders. Tony Blair once famously spoke of the three most important priorities of his party as being, 'education, education, education'. His successors might benefit from going back to school.
The Herald Scotland
15-05-2025
- Business
- The Herald Scotland
Minister pressed on fears over £85million tax bill
'I know in my constituency of Edinburgh West, the wellbeing of our four universities in Edinburgh are vital not just to the economy but to the livelihoods of many of my constituents. 'International students in turn are vital to the wellbeing of those universities, and Universities Scotland say that the measures proposed this week by the Government on immigration could cost universities in Scotland £85 million a year in terms of the levy (as reported in The Herald). READ MORE: Scottish universities face £85m bill from new UK tax on international students Ministers to consider writing off domestic abuse victims' council tax debt Swinney under fire over '£1bn SNP ferry fiasco' as costs and delays mount 'There's a great deal of concern about this, so can the Leader arrange for me to have a meeting with the relevant minister to see how we can address this issue and perhaps reassure our university sector?' Commons Leader Lucy Powell replied: 'Look, it's important to say that international students play a really important part to our country and bring with them skills and make a great contribution to our country. I think that's why (Universities UK) said this week that actually our measures will keep us very competitive in these areas, but I do take on board what she's saying.' Under a proposal unveiled on Monday as part of the UK Government's drive to curb immigration, a new 6% tax would be imposed on universities on their income from foreign students. Calculations by university sources in Scotland based on the number of overseas students at 19 institutions in the sector north of the border during 2023/24 estimated the bill would come to around £85m a year if the tax is introduced north of the Border. The additional potential cost comes on top of existing acute financial challenges and major job losses at a number of Scottish universities. Claire McPherson, Director of Universities Scotland, told The Herald last night the international students tax could exacerbate budget problems in the sector and urged the Prime Minister to reconsider its introduction. 'We urge the UK Government to think carefully about the impact that a levy on international student fees will have on universities and the attractiveness of the UK as a study destination," she said. "Universities' financial and operating environment is already very challenging. We cannot understand the logic behind a levy that would move resource away from universities. It risks making a bad situation worse.' She also called for the UK ministers to allow the Scottish Government to decide whether to introduce the levy. 'Within the UK, we'd hope to see the UK Government defer a decision on the applicability of any levy in Scotland to the Scottish Government, reflecting the fact that university funding is devolved," she said. "We'd then hope that the Scottish Government will see this as an opportunity to differentiate Scotland's higher education sector from the rest of the UK, in terms of strengthening Scotland's appeal when recruiting internationally. That would be one way to create an opportunity for Scotland from amongst a suite of immigration policy measures that Scotland does not otherwise have the powers to control.' Scotland's higher education minister Graeme Dey said he was 'as a matter of urgency" seeking clarity from the UK government on whether "the proposed levy on international students is intended to only apply to universities in England." A UK Government spokesman told The Herald last night: 'We will fully consult all the devolved governments, including the Scottish Government, on the implementation of the international student levy and will be setting out more details around this in the Autumn Budget. 'The analysis we've given so far of the potential impacts is based on the levy applying to English higher education providers only.'
The Herald Scotland
15-05-2025
- Business
- The Herald Scotland
Minister pressed on tax after report in The Herald
'I know in my constituency of Edinburgh West, the wellbeing of our four universities in Edinburgh are vital not just to the economy but to the livelihoods of many of my constituents. 'International students in turn are vital to the wellbeing of those universities, and Universities Scotland say that the measures proposed this week by the Government on immigration could cost universities in Scotland £85 million a year in terms of the levy (as reported in The Herald). READ MORE: Scottish universities face £85m bill from new UK tax on international students Ministers to consider writing off domestic abuse victims' council tax debt Swinney under fire over '£1bn SNP ferry fiasco' as costs and delays mount 'There's a great deal of concern about this, so can the Leader arrange for me to have a meeting with the relevant minister to see how we can address this issue and perhaps reassure our university sector?' Commons Leader Lucy Powell replied: 'Look, it's important to say that international students play a really important part to our country and bring with them skills and make a great contribution to our country. I think that's why (Universities UK) said this week that actually our measures will keep us very competitive in these areas, but I do take on board what she's saying.' Under a proposal unveiled on Monday as part of the UK Government's drive to curb immigration, a new 6% tax would be imposed on universities on their income from foreign students. Calculations by university sources in Scotland based on the number of overseas students at 19 institutions in the sector north of the border during 2023/24 estimated the bill would come to around £85m a year if the tax is introduced north of the Border. The additional potential cost comes on top of existing acute financial challenges and major job losses at a number of Scottish universities. Claire McPherson, Director of Universities Scotland, told The Herald last night the international students tax could exacerbate budget problems in the sector and urged the Prime Minister to reconsider its introduction. 'We urge the UK Government to think carefully about the impact that a levy on international student fees will have on universities and the attractiveness of the UK as a study destination," she said. "Universities' financial and operating environment is already very challenging. We cannot understand the logic behind a levy that would move resource away from universities. It risks making a bad situation worse.' She also called for the UK ministers to allow the Scottish Government to decide whether to introduce the levy. 'Within the UK, we'd hope to see the UK Government defer a decision on the applicability of any levy in Scotland to the Scottish Government, reflecting the fact that university funding is devolved," she said. "We'd then hope that the Scottish Government will see this as an opportunity to differentiate Scotland's higher education sector from the rest of the UK, in terms of strengthening Scotland's appeal when recruiting internationally. That would be one way to create an opportunity for Scotland from amongst a suite of immigration policy measures that Scotland does not otherwise have the powers to control.' Scotland's higher education minister Graeme Dey said he was 'as a matter of urgency" seeking clarity from the UK government on whether "the proposed levy on international students is intended to only apply to universities in England." A UK Government spokesman told The Herald last night: 'We will fully consult all the devolved governments, including the Scottish Government, on the implementation of the international student levy and will be setting out more details around this in the Autumn Budget. 'The analysis we've given so far of the potential impacts is based on the levy applying to English higher education providers only.'
Yahoo
20-03-2025
- Business
- Yahoo
Scottish universities warn they are ‘dangerously reliant' on foreign students fees
Scotland's universities have warned they are 'dangerously reliant' on income from foreign students to survive after the total fell by more than 10,000 last year. Official figures disclosed overseas student numbers have dipped from an all-time high of 83,975 in 2022/23 to 73,915 last year - a drop of nearly 12 per cent. The sharpest fall occurred at post graduate level for masters courses, with an average drop of 25.7 per cent between 2022/23 and 2023/24. International undergraduate numbers fell by 3.8 per cent and the average fall across all levels of study was 20 per cent. Universities Scotland, a representative body, estimated this had cost the higher education sector £150 million and institutions were 'in a hugely exposed position'. Its director, Claire McPherson, highlighted 'chronic underfunding' over the past decade. The Scottish Government pays universities £1,820 for each Scottish student to cover the 'free' tuition each year but institutions have warned this does not nearly cover the cost of providing courses. Scotland's universities have been keen to recruit international students to help plug the financial black hole, as they charge them up to £40,000 per year in fees. However, the new figures showed the number of European Union students in Scotland fell by half as Britain left the organisation in 2020 and it has continued to fall in the current figures, down to 10,430. The Higher Education Statistics Agency (HESA) statistics showed students from India fell from 12,235 to 9,950 and Nigerian students dropped from 9,415 to 5,985. The figures were published after a series of Scotland's most eminent higher educational institutions warned of cuts, with Edinburgh University stating it needs to make urgent savings to plug a £140 million budget gap. First Minister John Swinney has promised to 'engage constructively in discussions about university finances' but has continued to back providing free university tuition, even to those families who can afford to pay for it. Ms McPherson said: 'It is both the scale and the suddenness of the fall that has been incredibly challenging for many institutions to manage. 'Scotland's model of funding Scottish students and university research has become dangerously reliant on cross-subsidy from international students over the last decade because of chronic underfunding. 'That puts institutions in a hugely exposed position, as today's official statistics show for the sector, and for some institutions more acutely than others.' She highlighted evidence given to a Holyrood inquiry earlier this week by John-Paul Marks, the Scottish Government's permanent secretary, in which he confirmed that university finances had been given a 'high' rating on the official risk register. In a direct challenge to Mr Swinney, Ms McPherson added: 'There is a very pressing need for a different kind of strategic conversation with the Scottish Government about short-term stability and long-term solutions for the sustainability of our universities.' The figures showed Dundee University, which is dealing with a £35 million budget black hole, saw its foreign student numbers reduce 27 per cent in one year, from 4,570 to 3,335. The University of Glasgow's foreign student population fell from 15,200 to 12,935 while Edinburgh University saw overseas students rise from 16,625 to 17,020. Robert Gordon University saw the biggest dip of any institution in the country, nearly halving its overseas student numbers to just 2,365. Graeme Dey, the SNP Higher Education Minister, said: 'We recognise the issues raised by the sector around a decline in international student numbers and damaging UK migration policies which is why we have proposed a 'Scottish Graduate Visa' which would allow us to retain international students after they graduate from Scottish institutions.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
