Current status: Answered by Ben Macpherson on 20 March 2026
To ask the Scottish Government what assessment it has made of the financial sustainability of Scotland’s universities, in light of reported deficits across the sector.
The Scottish Government remains confident in the strength and long-term potential of Scotland’s world-leading university sector, while recognising that institutions across the UK are managing a challenging financial situation. We also appreciate the pressures currently impacting the sector across the UK, due to a range of factors including the impact of inflation and energy prices, UK Government immigration policies hampering international student recruitment, and UK Government increases to employer National Insurance contributions.
Under the Further and Higher Education (Scotland) Act 2005, the Scottish Funding Council (SFC) has a statutory duty to secure the coherent provision of high-quality further and higher education and research. In line with this duty, and on behalf of the Scottish Government, the SFC monitors financial health across the sector, engages directly with institutions on sustainability, and considers appropriate forms of support. We receive regular and timely updates from the SFC on delivery and financial performance as part of robust assurance arrangements.
Alongside this, the Scottish Government and Universities Scotland have jointly launched the Framework for the Sustainability and Success of Scotland’s Universities, which is exploring long-term options to help the sector adapt, innovate and remain competitive in a rapidly changing global landscape.
Despite current financial pressures, universities continue to take proactive steps to reform, improve efficiency and strengthen their future position. For Scotland’s universities, Government investment will exceed £1.4 billion this year, which includes a combined increase of over £55 million in resource and capital funding via the SFC, the equivalent to a 5% uplift on last year’s budget.
With this level of investment and continued commitment to protecting free tuition, we remain focused on providing stability and supporting the sector to build on its considerable strengths in the years ahead.