Rennie demands urgency as half of Scotland’s universities fall into deficit

Scottish Liberal Democrat education spokesperson Willie Rennie MSP has today called on the Scottish Government to move with urgency to secure sustainable funding for Scotland’s universities as new analysis indicated that almost half of the country’s higher education institutions fell into deficit in 2024.

A 2024 report from PwC previously said ten of Scotland’s 15 universities were at risk of falling into a financial deficit by 2027. However analysis of university accounts and public statements suggests that among the 18 institutions where students can study for degrees in Scotland, seven of them have recorded a deficit in 2024. Dundee University’s accounts remain unpublished but have suggested they may face a £25-30m deficit in the year ahead.

Even the institutions which did not record a deficit last year recorded far smaller surpluses than in previous years.

The analysis follows public statements from University of Edinburgh indicating that they expect a £140m deficit over the next 18 months unless action is taken.

Commenting on the figures, Willie Rennie said:

“Scotland’s word class universities produce talented graduates, important research and good jobs across the country, but without action now, Scottish higher education is not sustainable.

“The previous model of relying on income from international students to subsidise domestic students is all but dead thanks to changes in the global economy.

“Greater geopolitical upheaval could easily send the system over the precipice.

“When I pressed Graeme Dey at education committee to commit to a discussion on sustainable funding he agreed. This effort must now proceed with urgency.

“I know that Universities Scotland are working hard on this issue, whilst the Royal Society of Edinburgh are hosting an event.  

“We are now past the point where the SNP can just point at Scotland’s lack of tuition fees and declare the conversation over higher education over. If both free tuition and the sustainability of our higher education institutions are to be maintained, now is the time to step up."