Dundee University's revised recovery plan rejected amid £35m black hole

A troubled university has had its revised financial recovery plan rejected.

The University of Dundee is facing a £35m blackhole, which led the institution to consider cutting hundreds of jobs.

Managers have come under fire for decisions taken leading up to the financial crisis.

A report, conducted by former Glasgow Caledonian University principal Professor Pamela Gillies, found former principal Professor Iain Gillespie, who has since resigned, ex-interim principal Professor Shane O’Neill, and previous chief operating officer Jim McGeorge had acted as a “triumvirate” amid the financial turmoil.

It led to a number of people in top posts resigning, with the university searching for its fourth chief finance officer in less than a year, after Chris Reilly left the role after just eight days earlier this summer.

In June, the Scottish Government announced it would give Dundee University £40m in an “unprecedented bailout” over the next three years – however education secretary Jenny Gilruth said how the money is spent will be closely monitored.

‘Different direction proposed’

Now a recovery plan, submitted to the Scottish Funding Council last week, has been rejected, with the organisation outlining “longer term strategic planning informed by constructive engagement with staff and students” instead.

A Scottish Funding Council (SFC) spokesperson said: “We received the University’s proposed recovery plan on August 11 and our teams have developed a response as a matter of priority.

“The University of Dundee is a world-leading institution with a rich heritage in delivering excellent student outcomes and world-leading research. As such, the University is of significant importance to Scotland and also internationally. We are committed to supporting its return to a position of financial health that will ensure this continues for future generations.

“It’s important that the foundations for this are solid. This is why we are prepared to fund the University over a defined period of fundamental longer term strategic planning informed by constructive engagement with staff and students.”

A spokesperson for the University of Dundee said the “different proposed direction” highlighted by the SFC will be considered “at the earliest opportunity.

A Scottish Government spokesperson said: “We understand that the SFC has written to the University to outline an alternative approach and that is now for the University to consider. We would encourage the University’s leadership to engage with the wider university community, students, staff and trades unions as it does so.

“The clear focus of ministers is to protect the interests of students and see the University of Dundee continue to operate and thrive into the future, and the Scottish Government will continue to do all we can to support this.”