St Andrews University facing worst financial crisis ‘of modern times’

St Andrews University is facing a financial crisis, as the higher education sector battles with major funding shortfalls due to coronavirus.

The principal of Scotland’s oldest university said it faced a “hole in our financial position” of at least £25 million - described as “as serious a financial crisis as our university has faced in modern times”.

Urgent talks are being held between universities and the Scottish Government to discuss financial support.

It was reported that reported St Andrews’ principal, Professor Sally Mapstone, sent a letter to staff on Thursday warning difficult decisions would have to be made.

She said the £25m was 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.”

Education Secretary John Swinney has held a meeting with representative body 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.”