Scottish HE funding review to start in January despite election

The Scottish government has confirmed that a cross-party review of the financial sustainability of Scotland’s universities will go ahead after months of initial talks between university leaders and politicians. 

Speaking in the Scottish parliament on 18 December, Ben Macpherson, Scotland’s minister for further and higher education, announced the creation of the “Framework for Sustainability and Success of Scotland’s Universities”. 

The project will bring together the Scottish government, Universities Scotland and others to “co-design and secure a successful and sustainable future” for the nation’s higher education sector for the next two decades, he said. 

Macpherson continued: “This is an issue that goes beyond party political boundaries, which is why the work of MSPs from across the chamber in seeking to find common ground on these complex issues is desirable and important. 

“The Scottish government and Universities Scotland are engaging on a cross party basis on this work.”

The review is expected to look at research and innovation as well as teaching and skills development in order to explore options for securing a sustainable path for the nation’s 19 universities until 2045. 

In a statement, Universities Scotland said the review “will address the extent of funding challenges facing the sector and it will focus on positioning institutions ahead of the curve of a raft of anticipated changes to the nation’s demographics, its workforce needs, emerging industries and digital advancements”.

A steering group, co-chaired by the Scottish government and Universities Scotland, will meet for the first time in January 2026 and are expected to produce a concluding report in Autumn 2026. 

Universities Scotland said the framework’s remit “is to consider options within the publicly-funded model for undergraduate education for Scots, which recognises the broad political consensus behind this position”. 

Although many Scottish universities are struggling financially, the Scottish National Party has been clear that it will not change its stance on free tuition fees.

Macpherson said the party is “resolute in our commitment to state-funded undergraduate tuition in Scotland, for domiciled Scots – free for the recipient and based on their ability to learn, not their ability to pay”. 

But, with Holyrood elections being held in May, a new party could come to power during the course of the discussions. 

Some are also calling for action to be taken sooner. With the Scottish budget set to be published in January, the National Union of Students (NUS) Scotland has warned that some institutions may collapse if the government does not increase investment in tertiary education imminently. 

The organisation has urged the government to rule out cuts to university and college funding in the upcoming budget, claiming the issue could sway how students vote in the upcoming elections. 

"Students in Scotland are watching this government’s final budget before the election closely,” said Sai Shraddha S. Viswanathan, president of NUS Scotland. 

“For too long, we have heard warm words about the value of education, while watching our colleges and universities crumble under the weight of underfunding.

“If MSPs don’t support students now they won’t receive their support at the ballot box. We need a budget that funds our future. That means no cuts, a real-terms reinvestment in our institutions, and finally keeping the promise to students on support that actually matches the cost of living.” 

James Miller, convener of Universities Scotland and vice-chancellor at the University of the West of Scotland, described the review as “urgent”. 

“While the sector is facing profound and disruptive financial pressures, this moment also presents a vital opportunity: to work in genuine partnership with government to shape a more resilient, sustainable and fully funded future for higher education in Scotland.”

helen.packer@timeshighereducation.com