Scottish budget promises £55 million extra for universities

Universities in Scotland are set to benefit from a real-terms funding uplift in the Scottish National Party’s (SNP) final budget before voters head to the polls in Holyrood elections.  

The government said it would give a combined increase in resource and capital funding to Scotland’s universities of more than £55 million, equivalent to a 5 per cent uplift on last year’s budget.

Unveiling the 2026-27 draft budget on 13 January, the SNP said its plans amounted to a “significant real terms increase” in investment in the nation’s university sector.

But universities said while the extra money was welcome, it was not enough to combat the financial challenges they face. 

James Miller, the convener of Universities Scotland, said: “We recognise the fiscal pressures on the Scottish government, therefore, a settlement for teaching that sits slightly above inflation is welcome.

“However, it does not adequately address the sustained financial challenges the sector has faced over recent years. Universities will continue to experience financial pressures, and this budget will have little impact, particularly when it comes to funding for teaching which underpins the student experience and supports jobs in the sector.”

Included in government spending plans is £20 million for the University of Dundee, which has already been promised over £60 million in bailout funds. 

The amount of money given to the Scottish Funding Council – which distributes money to universities and colleges – increased from £1,987 million, after the autumn budget revision, to £2,046 million. However, higher education resource has fallen from £828 million to £818 million. 

In the draft budget, the total amount allocated for student support and tuition fee payments has fallen from £310 million last year to £287 million in the coming year.

Miller said the budget had brought “better news for university research, given there is less pressure on government budgets for capital”.

“An uplift to the university capital budget of £30 million in cash terms is welcome as this is central to the sector’s role in driving economic growth for Scotland. Yet, it is important we point out this fund is not distributed evenly across the sector and so will be of more help to some institutions than others,” he added. 

Colleges were given more airtime than universities in finance secretary Shona Robison’s budget speech as she announced a 10 per cent funding uplift for the sector compared with last year, equivalent to an extra £70 million in resource and capital funding. 

“Our significant new investment in Scotland’s colleges and universities will ensure these important institutions are fiscally sustainable into the long term, and can undertake important reform,” draft budget documents say. 

“We will continue to work closely with both colleges and universities as they design and deliver the vital reforms needed to meet learner and business needs now and well into the future.”

It comes as politicians are set to undertake a cross-party review of university funding in Scotland. 

Speaking in Holyrood, Robison reiterated the SNP’s pledge to maintain free tuition fees for Scottish students, which she said would protect young Scots from “a debt burden approaching £30,000”. 

The SNP will require support from other political parties to pass the draft budget. This will be the party’s last budget before Holyrood elections in May 2026. 

helen.packer@timeshighereducation.com