‘Tragedy’ if universities shut over funding crisis – Edinburgh principal

The principal of Edinburgh University has said it would be a “tragedy” if a crisis in funding led to the closure of Dundee University and other education institutions.

Sir Peter Mathieson said the Scottish Government must come up with radical solutions in how they fund higher education students.

It comes as several universities are facing budget cuts and redundancies over a lack of cash.

Edinburgh University is planning cuts worth £140 million – around 10% of its annual turnover.

Sir Peter said there would be a “radical re-writing” in how the institution operates, with fewer courses available and less complexity and duplication.

Dundee University is expected to cut as many as 700 staff amid its funding crisis, partly due to a rapid fall in the number of foreign students.

Sir Peter said it was a “tragedy” that Dundee’s interim principal said the closure or break up of the university was possible.

“It would be a tragedy for Scotland if other universities were to get themselves into a similar situation,” Sir Peter told BBC Scotland. “What we’re doing here is to make sure we don’t.”

Edinburgh University secured £360 million from foreign students in the last academic year, compared to just £27 million in fees from Scottish students. Another £82 million came from students from other parts of the UK.

Universities have warned that the around £7,500 in tuition paid for each student is well below the cost of education, making universities more reliant on overseas students – whose numbers have plummeted in recent years.

Sir Peter said the Scottish Government would have to substantially increase the funding for each student or look at other options to raise income.

These could include cutting the number of Scottish students, allowing universities to recruit Scots willing to pay or introduction graduate contributions.

He said: “We need more income into the system, either through some kind of means testing or a post-graduate system of earnings repayment.

“Either we have tuition fees which are adequate to pay the costs, or we have another mechanism to pay the costs.

“If we had a hybrid system, where some people pay fees and some people don’t, one possibility is that that’s means-tested in some way.”

In the meantime, he said Edinburgh University would take action to make the institution more efficient.

Sir Peter said: “There are inefficiencies about the way we deliver things.

“This is a mammoth university with 22 schools and lots of duplication. We’re very good at adding new things, not at taking things away.

“We need to take a serious look at the way we do things, and be responsible with the scale of operations we can afford to provide.

“So there’s radical rewiring (needed) of the way we do our business, but also of political imperatives.

“If it’s to be a political priority, then it has to be adequately funded to ensure its future.”

The Scottish Government has been approached for comment.