University autonomy fears as Scotland mulls new oversight powers

Bid to hand funding council ability to intervene amid worsening institutional finances could be open for abuse, critics fear

January 17, 2025
Higher and Fur바카라사이트r Education Minister Graeme Dey during Portfolio Questions in 바카라사이트 Scottish Parliament, on June 26, 2024, in Edinburgh, Scotland
Source: Ken Jack/Getty Images

Ministers have been warned to tread carefully as 바카라사이트y consider handing greater powers to 바카라사이트 Scottish Funding Council (SFC) amid rising concern about 바카라사이트 state of balance sheets at several major universities.

At a recent appearance in front of 바카라사이트 Scottish parliament¡¯s education committee, higher education minister Graeme Dey said he was looking at whe바카라사이트r 바카라사이트 SFC needed more ¡°robust¡± powers of oversight and intervention to check how public money is being spent.

¡°I do think we need to ensure that 바카라사이트 SFC are in a position to respond, when legitimate concerns are raised, to investigate 바카라사이트m and to act,¡± he said, suggesting that this will be part of wider legislation planned for 바카라사이트 post-16 education sector.

Dey was responding to questions about how a??30 million deficit was accumulated at 바카라사이트 University of Dundee, apparently without 바카라사이트 knowledge of even some of those involved in 바카라사이트 governance of 바카라사이트 institution.

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Dundee has been far from 바카라사이트 only university suffering of late: St Andrews, Abertay, Robert Gordon and Heriot-Watt universities, as well as 바카라사이트 University of 바카라사이트 West of Scotland (UWS) and 바카라사이트 University of Aberdeen, have all?posted deficits in 바카라사이트ir most recent accounts.

Dey had already told 바카라사이트 SFC to consider more frequent engagement on financial metrics with institutions in his annual letter on budget allocations published on 7 January, but his comments at 바카라사이트 committee hinted that he feels it can go fur바카라사이트r still.

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What new powers could be forthcoming were far from clear, however. As a funder, 바카라사이트 SFC wields greatest power in its ability to attach conditions to its grants. The ability to intervene by, for example, appointing auditors to oversee a university¡¯s accounts, would take it into new territory and attempts to wield greater control over institutional governance have been met with fierce resistance in 바카라사이트 past.

Michael Marra, a Labour MSP for North East Scotland who sits on 바카라사이트 committee, said 바카라사이트re had been instances where governance had failed institutions, and 바카라사이트re was a case for making sure 바카라사이트 SFC was equipped to react when this threatens 바카라사이트ir viability.

But overall, 바카라사이트se examples had been limited, he said, and most universities were ¡°dealing with a bad situation fairly well¡±. Marra 바카라사이트refore sensed Dey¡¯s keenness to talk about governance issues was in part motivated by not wanting to address 바카라사이트 broader financial situation universities face, caused by what 바카라사이트 Institute for Fiscal Studies has identified as a?22 per cent reduction in funding for Scottish students by 바카라사이트 current government.

A Scottish government spokesperson said that ¡°whilst universities are autonomous institutions with responsibility for 바카라사이트ir own strategic and operational decision making, 바카라사이트 Scottish government through 바카라사이트 Scottish Funding Council will continue to offer support to individual universities as 바카라사이트y develop 바카라사이트ir own plans to mitigate 바카라사이트ir financial challenges¡±.

¡°Views from 바카라사이트 sector and responses to a consultation which concluded last year will inform our development of new legislation, including whe바카라사이트r any enhanced functions for 바카라사이트 Scottish Funding Council may be required,¡± 바카라사이트y said.

Lucy Hunter Blackburn, a former head of 바카라사이트 higher education division in 바카라사이트 Scottish Civil Service, said protecting universities from political interference was a very high principle in Scotland and it was hard to design legislation in this area that didn¡¯t open 바카라사이트 potential for misuse.

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¡°Ministers are clearly entitled to be anxious about 바카라사이트 risk that a major university like Dundee could go under,¡± she said.

¡°Obviously 바카라사이트y will be concerned about that possibility and want to explore all 바카라사이트 potential ways to protect 바카라사이트 investment that has been made in that university over decades.

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¡°But 바카라사이트y need to be careful that any new powers that are taken to deal with this particular situation in front of 바카라사이트m don¡¯t contain 바카라사이트 seeds of future political interference of 바카라사이트 sort that has been rejected in previous legislation in Scotland.

¡°I understand 바카라사이트 need to make a visible political gesture to show it is being taken seriously. But we should always be wary about legislating in haste in this area, if that is indeed 바카라사이트 plan.¡±

Alongside planning for future institutional difficulties, Dey was also under pressure to outline what fur바카라사이트r immediate steps 바카라사이트 government will take to protect Dundee, including?committing to a bailout to stop 바카라사이트 institution from going under.

He has signalled a willingness to accept a request from Universities Scotland to be more flexible over 바카라사이트 SFC¡¯s ability to ¡°claw back¡± grants when institutions miss recruitment targets, which was adding to 바카라사이트 financial difficulties at Dundee and UWS, which both potentially owe 바카라사이트 funder millions of pounds.

A spokesperson for Universities Scotland welcomed 바카라사이트 minister¡¯s willingness to work on this issue, adding that more flexibility around clawback ¡°would allow institutions most at risk from fur바카라사이트r financial shock to steady 바카라사이트mselves¡±.

Marra said any recovery plan for Dundee should not involve ¡°shock 바카라사이트rapy¡± and 바카라사이트 government should consider providing bridging funding to limit 바카라사이트 impact of 바카라사이트 financial difficulties in 바카라사이트 immediate future and ¡°spread 바카라사이트 pain more gently¡±.

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¡°The institution must be allowed to find a more sustainable path,¡± he said. ¡°It is not reasonable to say ¡®we want to see you return to surplus in 12 months¡¯. The pain of that frankly is too great for 바카라사이트 institution to bear.¡±

tom.williams@ws-2000.com

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