Universities offered 'olive branch'

Published on Monday 28 January 2008 21:18

UNIVERSITIES have reacted with caution to a funding deal which could see them set targets in return for more spending freedom.

The proposal to create a " concordat", mirroring that made with local authorities, has been tabled by the Scottish Government as a way to solve the sector's funding crisis.

Universities had asked for 168million last year, to allow them to compete with their English counterparts which have access to extra funds through tuition fees.

Instead, the sector was allocated just 30million in a tight budget settlement which Scottish principals warned could see the sector fall behind international competitors.

A concordat could see less ring-fencing of funding, giving universities more power: for example, to reallocate student places to more popular courses.

However, the move has created a mood of uncertainty with many waiting to see details before welcoming the plan. A spokesman for St Andrews University said: "We would give this a very cautious welcome. We look forward to seeing more details on this, but the devil may be in the detail."

Other university sources were concerned about the terms upon which universities would have to agree, in areas such as widening access.

A spokesman for umbrella body Universities Scotland said: "The idea of a concordat is one we are very happy to talk about. It has only just been put on to the table and we are very interested to hear what the government's idea might be.

"Universities have an excellent track record of using public money responsibly."

A one-off additional 10million for the sector announced yesterday also received a mixed reaction.

Many welcomed it as an olive branch to universities but others saw it as an attempt to buy goodwill.

The Scotsman revealed in November that Fiona Hyslop, the education secretary, had promised the extra cash to universities if it could be found.

David Caldwell, director of Universities Scotland, said the money would help meet the funding gap.

He said: "Since the announcement of the Scottish budget, Universities Scotland has had helpful discussions with the cabinet secretary for education and lifelong learning about the cost pressures on universities in 2008-9.

"We were pleased to be assured that the universities were at the top of the priority list for any additional funding which became available, and we are very encouraged that Fiona Hyslop has already found an additional 10 million from within her own budget."

Ms Hyslop said she had worked hard to find the additional money, despite an extremely tight financial settlement. She said: "I made a commitment to find more money if I could and I am delivering on that.

"Ten million pounds will make a difference to universities, lecturers and, importantly, students across the country."

However, political opponents were scathing of the move.

Jeremy Purvis, Liberal Democrat education spokesman, dismissed the move as "outrageous spin".

He said: "The 10 million committed is actually 'end-year flexibility funding' out of an education budget set by the previous Labour-Liberal Democrat administration. This fits and starts approach to the university sector is damaging.

"The 10 million will have no impact on the spending-review period currently being debated. The 'funding crisis' is of the cabinet secretary's own making. This announcement is akin to Sweeney Todd offering a sticking plaster for a shaving cut he himself inflicted."

Murdo Fraser, Conservative education spokesman, welcomed the idea of a concordat.

He said: "The system for allocating funds to universities is not only too bureaucratic but also hampers universities' freedom to pursue their own priorities and to respond to demand."