Extra £15m for University of Dundee ‘will not touch the sides’, warns MSP

An extra £15 million announced for Dundee University “will not touch the sides” of the financial black hole faced by the institution, an MSP has said.

Labour’s Michael Marra raised the issue at Holyrood after the money was pledged by the Scottish Government on Tuesday.

Finance secretary Shona Robison said up to £15 million of financial transactions will be made available to the Scottish Funding Council (SFC) to help cash-strapped universities, recognising that Dundee faces an “immediate challenge”.

In November, it was revealed the institution faces a £30 million deficit and leaders said staff cuts would be “inevitable”.

Lecturers and other staff recently began a 15-day strike to protest against plans to reduce job numbers.

On Thursday, higher education minister Graeme Dey said he had recently met with senior managers at the university, recognising it is an “anxious” time for staff and students.

He said the SFC will examine the university’s recovery plan once it is finalised.

But Marra, a North East Scotland MSP, said: “What Parliament and the people in Dundee really need to know is the status of that £15 million loan that was set out by the Cabinet Secretary.

“Because I know from my engagement with the university that money is not going to touch the sides of the size of the black hole.”

He quizzed the minister on how the Government had decided on the £15 million figure.

Dey said it is currently difficult to be “definitive” around the way forward for the university’s finances.

The minister said the £15 million “will enable the SFC to help the University of Dundee through the immediate challenges it faces and afford breathing space to shape a recovery plan which is credible in delivery”.

A number of other higher education institutions are facing financial difficulties, with Edinburgh University facing a budget gap of £140 million – 10% of its annual turnover.

Last year, the Institute for Fiscal Studies warned Scottish university finances were facing a “perfect storm” amid higher costs and reduced income from international students.