- Expert calls for tuition fees to be reintroduced in Scotland amid funding crisis at institutions
- Dr. Gavan Conlon, of consultancy London Economics, said there was a ‘very significant risk’ that some Scottish universities could be forced to close
- A damning analysis comes after the University of Aberdeen’s annual report warned its future is in doubt due to financial pressures
Universities face ‘significant’ risk of closure amid financial crisis fueled by crisis SNP‘The promise of ‘free’ degrees for all Scottish students, a leading economist warned yesterday.
Dr. Gavan Conlon said raising tuition fees could ensure institutions not only survive but are able to thrive and rival some of their better-funded UK counterparts.
Dr. Conlon, partner at consultancy firm London Economics told Holyrood’s education committee that the SNP policy introduced in 2008 to provide ‘free’ education to Scots means students are ‘effectively paid to go to university’.
His analysis comes after the University of Aberdeen’s annual report warned last month that its future was ‘significantly in doubt’ due to financial pressures.
Dr. Conlon spoke about the funding challenges facing the sector in Scotland, noting that more than half of institutions are in deficit and ‘seriously struggling with their overdrafts’.
‘The University of Aberdeen warned last month that its future was uncertain due to mounting financial pressures
He told MSPs: ‘Probably about half of those institutions don’t have any reserves to cover their overdrafts.’
Dr. Conlon said ministers should pay “very serious concern and attention” to what could happen if a university closes, adding: “There is a very, very high risk of that.”
He continued: “If you want institutions to be better funded so they can grow their weight, and they are already doing that, but if you want them to be comparable to England… there needs to be some form of cost passing on to graduates.
“That could be lowering repayment thresholds, or introducing reimbursement in some way, shape or form, or a graduate endowment, whatever you want to call it.
‘But that would certainly result in enormous savings. Introducing the English system could save the Scottish Government 40 per cent of the total cost of higher education overnight.” Dr. Conlon said universities “are relatively underfunded in Scotland compared to England, Wales and Northern Ireland”.
He added: ‘Despite the Scottish Government investing five times the amount per capita, its universities are the least well funded.
‘An English student contributes approximately 16 percent to the cost of higher education and the exchequer 84 percent. In Scotland, students are effectively paid to go to university.
‘The Scottish Government contribution level is in excess of 100 per cent as it includes free fees, servicing and loan write-offs.’
Tory Scottish education spokesman Liam Kerr said: ‘The SNP’s underfunding of higher education means more than half of our universities are in financial difficulty.
‘Funding for students has fallen by 19 per cent in real terms since 2013-14, leaving Scottish universities increasingly reliant on international fees.
The approach of the ‘nationalists’ is damaging and unsustainable. SNP ministers must ensure our beloved institutions get the financial support they need.”
Mary Senior of the University and College Union said that ‘higher education should be free for those who can take part in it’.
She told MSPs: “I understand all political parties believe that. It must be properly financed from public resources.”
The Scottish Government said it was ‘steadfast in its commitment to free education’.
A spokesperson added: ‘Since this policy was introduced, the number of Scottish students attending university has increased by 31 per cent.’
