Analysis: A double whammy for Scottish universities

Published on Thursday 9 December 2010 18:29

THE main effect of this move is to make it possible to charge much higher tuition fees at English universities - which means they will become much less dependent on state funding and state funding will decrease.

The consequence for Scotland will be that the Scottish Government will lose out because of the Barnett Formula, which determines the way changes in English public spending has a consequence for Scottish public spending. Any decrease in English spending causes an equivalent decrease in Scottish spending. Because there will be less reliance on the state in England that means that there will be cuts in the money available for Scottish universities.

However Scotland will not have the additional resources available to English universities from tuition fees, so in terms of financing Scottish universities it is a double whammy.

This will bring a lot of increased pressure to Scottish universities to find alternative sources of finance. One possible solution would be to introduce fees, another would be to give the Scottish Government real tax-raising powers to fund the difference. However the Tory proposals to implement the Calman report would be inadequate and would not fill the gap that will follow from the consequences of the Barnett formula.

Central government has put us under enormous pressure and something will have to be done. Scotland lacks clout at Westminster and this vote is but one of the first of many in the years ahead that will highlight how Scotland has been sidelined and the limitations of devolution.

If I put on my hat of political scientist then I would say that the future is going to be very interesting. But as an academic I would have to say that things are looking very scary.

• Professor James Mitchell is head of school of government and public policy at Strathclyde University.