Holyrood ‘deeply concerned’ by Scottish university job losses

A further £10 million is being made available for universities by the Scottish Government after the first minister said he was concerned at the “very severe” situation faced by the University of Dundee.

The money will be distributed via the Scottish Funding Council (SFC) to help support institutions such as Dundee “navigate current financial challenges”, a statement said.

In February, the Scottish Government announced an initial £15 million in funding for universities which, although it was not mentioned explicitly, was largely viewed as a way of helping Dundee bridge the gap until a longer-term solution could be found.

The university has since announced plans to cut more than 600 jobs after revealing its deficit had reached £35 million - £5 million more than previously feared.

This week John Swinney, the Scottish National Party leader, said he was “deeply troubled” by the scale of the job losses and they should be a “wake up call” for the sector.

Falls in international recruitment have been blamed for the financial problems while questions have also been asked of decisions made by the former leadership of the institution. Scotland’s funding model that provides free tuition to Scottish students has also long been criticised for not providing enough money to universities.

Announcing the additional support, education Secretary Jenny Gilruth said the Scottish Government will also bring together a range of expertise from across the higher education sector, government, and Dundee city region to support the university while it develops its financial recovery plan.

“Ministers have held further meetings with the University of Dundee, unions and the Scottish Funding Council this week, building on the extensive engagement that has already taken place with the institution since financial issues came to light,” Gilruth said.

“Both the higher education minister and I have conveyed our deep concern at the level of job losses currently being discussed at the university.

“While the university is an autonomous institution, it is our clear expectation that the university’s leadership works with us, and engages fully with staff and trade unions, to explore all options to protect jobs.

The £25 million in funding provided so far has been identified from within the education budget but comes on top of the £1.1 billion in the 2025-26 budget for university teaching and research.

Gilruth said the support package was “another clear sign of the Scottish Government’s commitment to support the sector with financial challenges – challenges which have been compounded by UK government policies on migration and employer national insurance contributions”.

tom.williams@timeshighereducation.com