Chancellor Rachel Reeves says University of Dundee's £35m financial crisis 'must be a one-off'

The chancellor has said it is “imperative” that the Scottish Government works with the University of Dundee to address the educational institute’s £35m financial crisis.

On Friday, Rachel Reeves called on SNP ministers to ensure the situation is a “one-off” which doesn’t affect other universities around the country.

The University of Dundee announced on Tuesday that it plans to cut over 600 full-time jobs to address a £35m deficit.

“Significant” restructuring is set to take place, resulting in a loss of around 20% of the university’s 3,000-strong workforce.

It will also look at selling off intellectual property rights and parts of its estate.

It may have to approach Holyrood, the Scottish Funding Council or banks to fund redundancy payments.

Reeves told STV News that the Scottish Government must work with the university to “limit the impact of these cuts”.

“There are obviously some specific issues at Dundee University, my thoughts are with that community at the moment and with the staff and the students who are concerned about their future,” Reeves told STV News.

“It is now imperative that the Scottish Government work with both Dundee University, but also with other universities across Scotland, who have seen cuts in their budgets to make sure that this is a one-off and doesn’t affect other universities around Scotland, whilst also working with Dundee University to limit the impact of these cuts.”

Reeves did not accept that UK immigration policies are to blame for the issues at the University of Dundee. She said there are still “huge numbers” of international students coming to UK universities.

“I was at Glasgow University with the vice chancellor yesterday, where a large amount of their income comes from international students, and they have a large number from countries right around the world,” she said.

First Minister John Swinney assured concerned staff and universities on Wednesday that discussions are ongoing between the Scottish Funding Council, which acts on the government’s behalf, and the University of Dundee to address the “very severe” financial issues facing the school.

Swinney said it was important that the Government works closely with the Scottish Funding Council to support the financial sustainability of universities. However, he said from time to time “changes have got to be made in their operation”.

“The situation at the University of Dundee is a particularly acute example of what has got to be faced,” he told STV News.

“For that reason, the Scottish Funding Council will work closely with the University on the Government’s behalf.”