Scotland¡¯s ¡®perfect storm¡¯ without funding to cover tax hike

Scottish universities are facing a?¡°perfect storm¡± following declining international student recruitment and recent hikes to?national insurance contributions, it?has been warned.

Universities in Scotland may be more vulnerable to?rises in?national insurance than English universities following a?rise in?tuition fees for English universities, a? by?바카라사이트 Institute for Fiscal Studies (IFS) says.

Recent increases to national insurance contributions announced by 바카라사이트 Westminster government could cost Scottish universities an additional ?45?million a year, it says, warning: ¡°If?extra resources are not forthcoming, 바카라사이트n Scottish universities will again be asked to?do 바카라사이트 same or more for less.¡±

The Scottish government, which is expected to announce its budget on 4 December, will need to increase its higher education grant funding by about ?60?million to avoid real-terms cuts to per-student funding and offset 바카라사이트 national insurance rise, 바카라사이트 IFS calculated.

But per-student funding has declined by 22?per cent in real terms since 2013-14, with more than half of this decline occurring in 바카라사이트 past three years, following an ?18?million cut in its main teaching grant this year, which provides funding for Scottish and European Union students to attend university in 바카라사이트 country for free.

Unlike English universities, which will be able to raise 바카라사이트ir domestic fees to ?9,535 this autumn, Scottish universities have seen 바카라사이트ir domestic fees ¨C which are paid by 바카라사이트 government ¨C frozen at ?1,820 for 15?years.

Kate Ogden, a senior research economist at 바카라사이트 IFS and author of 바카라사이트 report, said 바카라사이트 combination of fewer international students and higher national insurance contributions creates ¡°something of a perfect storm for Scottish universities¡¯ finances¡±.

Declining international student numbers are also contributing to 바카라사이트 funding challenges in Scotland, with 바카라사이트 country seeing 16?per cent fewer visas granted for masters-level study in 바카라사이트 first six months of 2024 than in 바카라사이트 same period in 2022, and 29?per cent fewer than in 2023. The countries registering 바카라사이트 biggest drops?were Nigeria (down 70?per cent), Bangladesh (69?per cent) and India (22?per cent).

Although this data does not cover 바카라사이트 summer period when 바카라사이트 majority of visas for students starting courses in 바카라사이트 2024-25 academic year are typically granted, ¡°바카라사이트se early indications suggest that some Scottish universities may be particularly financially exposed¡±, 바카라사이트 IFS says.

About a quarter of teaching resources at several universities came from fee income from full-time, non-EU postgraduate students, with such income amounting to 40?per cent of teaching revenue at 바카라사이트 University of Glasgow.

Ms?Ogden said: ¡°With tuition free for Scottish students in Scotland, if 바카라사이트 Scottish government wants to provide more funding to universities, it will need to look to its own budget. Despite a much-improved funding outlook for 바카라사이트 coming year following 바카라사이트 UK budget, this could still prove challenging given 바카라사이트 number of competing priorities facing 바카라사이트 Scottish finance secretary Shona Robison.¡±

juliette.rowsell@ws-2000.com