Current status: Answered by Graeme Dey on 22 July 2024
To ask the Scottish Government, further to the answer to question S6W-27927 by Graeme Dey on 13 June 2024, what specific risks were identified at the meeting held on 29 May, and what contingencies are in place in the event that any university in Scotland faces bankruptcy.
Ensuring universities are on a sustainable trajectory is at the heart of our considerations to reform the post-school system, so that the significant investment we are making delivers the best outcomes for learners, the economy and society.
I met with officials from PriceWaterhouseCoopers (PwC), Universities Scotland and the Scottish Funding Council on 29 May 2024. At this meeting, PwC outlined the key findings from Scotland-specific modelling that Universities Scotland had commissioned them to undertake to assess the financial outlook for universities.
On the basis of this analysis, the potential risk of a sustained decline in numbers of international students leading to future financial challenges for some universities, was discussed.
As autonomous institutions, universities have the key role in mitigating financial pressures and external risks. On this basis, it was further discussed at the meeting that universities would consider a range of actions to mitigate the risks around declining international student recruitment, and that Scottish Government and the Scottish Funding Council would continue to engage with the university sector on financial sustainability risks and developing their own mitigation strategies.