‘Comprehensive review’ under way to try to secure the future of the University of the Highlands and Islands (UHI)

Bosses drawing up plans for ‘new operating model’ as minister warns it must become ‘more sustainable’

Plans are being drawn up for a significant restructure of the University of the Highlands and Islands (UHI) to try to secure its future.

The university has already been undergoing a shake-up, including the completion last year of the merger of three colleges.

Job cuts have also provoked a furious backlash at some sites in the last few months, including UHI Perth and UHI Shetland, as well as in the university’s executive office in Inverness.

Drone image of the University of Highlands and Islands campus in Fort William

Minutes of an October meeting of the UHI Perth board suggest further changes are being considered amid escalating financial pressures.

The notes say: “UHI 2024 has morphed into a more comprehensive review of the institution with detailed attention being placed on a number of factors including costs and financial sustainability within UHI as a whole going forward.

"UHI Perth on the front foot regarding their sustainability with other partners still having some way to go. Work is continuing with the principals of all the assigned institutions looking at a new operating model for UHI.”

Members also discussed how “the work being done now will need to be much more radical”, and that there was a “full transformation team

Vicki Nairn expressed excitement at the Gaelic plan

doing the background activities”.

The chair of the UHI court, Alastair MacColl, was reported to have said: “We need a workable and bold new way of taking UHI forward.”

Graeme Dey, the further and higher education minister at the Scottish Government, referenced the changes at a recent meeting of Holyrood’s education committee.

"The concept of UHI is absolutely committed to. But we recognise, all of us collectively recognise, that it will have to evolve to meet some of the challenges that are there,” he said.

Shona Robison, the deputy first minister and finance secretary

"UHI internally is doing a substantial piece of work to consider what that would look like. It’s a piece of work which recognises that, even within UHI, the cost base of delivering in some localities will be higher than others.”

Mr Dey said “additional support” had been provided to colleges like Shetland, which have higher costs because of its location.

However, he added: “But that doesn’t mean that any college can continue in an unsustainable way in the long term. Colleges have to become more sustainable for their own good, whilst recognising the additional costs.”

The SNP minister said there needed to be more collaboration between colleges, while “recognising that you might not be able to deliver every discipline in every specific locality”.

He added: “We also need to develop and grow the university offering in the Highlands. We need these centres to be moving more into the delivery of higher education courses than they currently are.

"We have a commitment to the future of UHI but we do need to see elements of it become more sustainable in the long term.”

UHI is a network of colleges that was awarded university status 2011, after a long campaign to create an institution that would allow young residents to stay and study degree-level courses in the region, rather than leave their communities.

It now has 36,000 students studying in further and higher education across 70 centres.

UHI Perth announced in May that 50 jobs could be cut, along with courses, to try to plug a £3 million hole in its finances.

In Shetland, meanwhile, it was feared as many as 25 staff could lose their jobs over the next 18 months, due to a £1.2m shortfall.

Redundancies have also been suggested in Inverness as part of plans to save £4m at UHI’s executive office.

Last year, the university marked the completion of the complicated merger of three of its colleges – UHI North Highland, UHI Outer Hebrides and UHI West Highland.

In last month’s Scottish budget, ministers announced fresh cuts to resource spending for both further and higher education.

UHI is currently advertising for a new principal and vice chancellor. Interim boss Vicki Nairn said UHI was “pleased” to note Mr Dey’s public support for the university at the committee.

“UHI is very proud of its success to date and its critical place within the UHI region. In 2022 we launched our 2030 university strategy that is building on our success to date and taking our ambition forward across five key strategic themes: teaching, learning and student support; research and innovation impact; enterprise and growth; environmental sustainability; and operational excellence,” she said.

“Our strategy is supporting the university in responding to the significant challenges of the current economic climate, which includes an extremely competitive recruitment market in further and higher education, post pandemic and Brexit recovery, together with flat cash government funding.

"A number of our university partners, such as UHI Shetland, are in remote and rural areas where the cost of delivering education is significantly higher than more populated areas on the mainland and the university is working very closely with the Scottish Funding Council to address challenges in specific UHI academic partners.

"In real terms, these challenging economic factors have meant a significant reduction in our funding and like many publicly funded organisations we are now reshaping our workforce to meet the challenges of the current economic climate. 

“By taking these actions now we will ensure that we are in the very best position to provide a sustainable and successful institution for the UHI region, an economic development anchor and to deliver the best possible experience to our students, staff and communities in the future.”