Ministers prepare bailout for struggling university sector
A BAILOUT package is being prepared for Scotland’s universities amid fears over the disastrous fallout of the coronavirus pandemic, Nicola Sturgeon has said.
The First Minister insisted the scale of the financial challenge facing higher education is “well understood by ministers” and talks are ongoing.
It came as the principal of St
Andrews University said it is grappling with a “hole in our financial position” of at least £25 million.
In a letter to staff, Professor Sally Mapstone said it is “as serious a financial crisis as our university has faced in modern times”.
Institutions across Scotland are bracing for a financial hit.
Universities Scotland, which represents higher education institutions, said a 50 per cent drop in international students would cost its members £435m in 2020/21.
Ms Sturgeon said Deputy First Minister John Swinney, who is also Scotland’s Education Secretary, has “already been in dialogue with universities”.
She pledged cash arising from any UK Government support package would be passed on to universities in Scotland.
She said: “We clearly want our universities to remain where they are right now, which is at the very forefront of global education, delivering the quality education and research that they are globally renowned for.
“So we will work closely with the sector to inform a package of support that could be forthcoming from the Scottish and UK governments.
“And we will keep very close to them as we understand the scale and the nature of the challenge that we face.”
Ms Sturgeon said the challenge facing universities is “one example of the deep impact” of Covid-19.
She said: “I want to be very clear – this is a public health crisis and, as I’ve said before, the preservation of human life is our top priority.
“But clearly, that public health crisis and the way we have dealt with it has also created an economic crisis.
“An economic crisis in turn can create issues with health and poverty and inequality.”
The First Minister said there are “some very complex discussions” that need to take place.
She said any extra money Scotland receives as a result of spending on universities down south will be passed on to institutions.
She said: “The one thing I will give a commitment to today, is whatever Barnett consequentials come to Scotland through funding announcements for particular sectors or particular areas because of this, we will pass on those consequentials in full.”
Urgent talks are being held between universities and the Scottish Government to discuss financial support.
The Guardian reported St Andrews’ principal, Professor Mapstone, sent a letter to staff on Thursday warning difficult decisions would have to be made.
She said: “I need to make you all aware that, as a result of the Covid-19 pandemic, the university is already facing a hole in our financial position of over £25 million this year.
“This is largely made up of losses in research grants through the lockdown period, the loss of conference and accommodation rentals over the summer, and our decision to act in a socially responsible manner by being one of the first universities in the UK to release students from their accommodation contracts.
“It does not take account of further losses to revenue which we would reasonably anticipate incurring as the global Covid-19 crisis continues.
“It is as serious a financial crisis as our university has faced in modern times, and it will mean that we cannot do everything you want or expect us to, and that we have to take some very
We have to take some very difficult decisions about our future
difficult decisions about our future.”
Scottish universities have around 250,000 students and staff. Some institutions are contributing to the fight against coronavirus by carrying out tests in laboratories.
Education Secretary John Swinney has held a meeting with Universities Scotland to discuss a rescue package.
Mr Swinney said: “The scale of the financial challenges facing higher education institutions are clearly very serious and, in order to inform the development of a package of support from the Scottish and UK Governments, ministers will work closely with the sector on how our universities can remain at the forefront of global education when we emerge from this crisis.”
Professor Andrea Nolan, convener of Universities Scotland, welcomed the urgent attention ministers have given to the issue.