University boss: We may have to downsize

Edinburgh sell-off plan to meet £150m black hole

ONE of Scotland’s top universities may have to sell off facilities over fears coronavirus could cause annual income to plunge by up to £150million.

University of Edinburgh principal Professor Peter Mathieson said the pandemic had left finances under ‘serious threat’.

Travel restrictions and social distancing regulations will have a major impact on campuses, he said. Cash from commercial ventures could also dry up.

Edinburgh, which has an annual income of £1billion, has running costs, including wages, of around £90million a month.

The university is braced for a huge drop in foreign students – who pay tuition fees of up to £30,000 a year – because of restrictions imposed by the Covid-19 crisis.

There are fears the decline could be anywhere between 25 per cent and a complete collapse.

Professor Mathieson told BBC Scotland: ‘We’re trying to be honest and transparent with our staff, so we’ve said that at the moment we’re looking at things like limiting pay rises and limiting promotions in the next academic year, because that will save us money.

‘All universities are looking at their future size and shape.’

Professor Mathieson, who has taken a 20 per cent pay cut for six months, said fewer buildings would be required if there were fewer students and staff continued to work from home.

Last month, universities across Scotland warned of a looming catastrophe in tertiary education, estimating that the sector is facing a £500million funding gap.

Universities north of the Border are set to receive a one-off funding boost totalling £75million but for some of the biggest, such as Edinburgh, it will not meet their shortfall.

Edinburgh attracts thousands of fee-paying students from

North America and the Far East but there is growing concern that some of this autumn’s new intake may not start their courses and that current students may not return for now.

Experts have suggested it could take up to four years for their numbers to recover.

Professor Mathieson said traditional aspects of student life may have to alter radically.

Universities are likely to continue with some online learning. Tutorials could be allowed, but halls of residence may have to be redesigned for social distancing.

Secretary of State for Scotland Alister Jack said: ‘We’re working closely with the Scottish Government to provide as much stability as possible.’

‘As much stability as possible’