Wendy Alexander, Scotland's minister for enterprise and lifelong learning, has ordered the Scottish Higher Education Funding Council to reduce its level of top slicing, delighting vice-chancellors.
Ms Alexander also wants a permanent adjustment in Shefc's core funding formula to reward institutions that recruit and retain students from under-represented groups. In return she said she expected excellence in leadership and management.
Ms Alexander said the £660 million budget for 2001-02 was a 5.6 per cent real-terms increase.