Decision still to be made on crisis-hit Scottish university's share of SNP's £15m emergency funding

Other institutions could be ‘in the mix’ for financial support

A decision is still to be made on Dundee University’s share of a £15 million fund from the Scottish Government to help struggling higher education institutions, MSPs have been told.

A senior figure from the Scottish Funding Council (SFC) told Holyrood’s education committee that allocations would need to be decided by its board following a process that would also consider “who else might be in the mix for any funding”.

Finance Secretary Shona Robison announced the £15m in her Budget speech last month, implying that it would be used to help Dundee, which is finalising a financial recovery plan to secure its future amid ongoing strike action by staff.

She said the loans would “support the sector and universities such as the University of Dundee”, later adding the Budget “will help sustain Dundee University”.

Ministers have to be careful in relation to funding announcements for universities, or they could risk higher education institutions losing their “charitable” status and being reclassified as public bodies, which would mean they would not be able to use borrowing or reserves in the same way.

Striking workers at Dundee University | Lisa Ferguson

Jacqui Brasted, interim director of access, learning and outcomes at the SFC, was asked about the money on Wednesday.

“So the Cabinet secretary I believe announced £15m of financial transactions, which are basically low-interest loans, to support institutional sustainability for institutions like Dundee,” she said. “So it is not restricted just to the University of Dundee.

“We have an internal process to work through in terms of how we allocate this funding, and we are working through that at the moment. So we are not in a position to say how much of that will go to the University of Dundee, or indeed any other institution.”

Ms Brasted added: “We will need to work through what our internal process is for allocating that, based on how we allocate those funds, and who else might be in the mix for any funding, and what that might be used for in terms of those financial transactions.”

Ms Brasted suggested decisions could be made at an SFC board meeting later this month.

Committee convener Douglas Ross said MSPs had been given the impression the money was for Dundee University.

Higher Education Minister Graeme Dey was also questioned on the funding when he appeared in front of MSPs on Wednesday.

He said: “Ministers will not be directly involved in directing the SFC as to how to allocate monies, and on what basis. That said, the Cabinet secretary was clear that the monies were available for the SFC to utilise in the space of supporting institutions with sustainability issues, including Dundee.

“And Dundee is without doubt the most pressing example of an institution that has challenges.”

Mr Dey also revealed he believed the “internal engagement on the shape of the recovery” at Dundee would begin with staff next week.

Shane O’Neill, interim principal of Dundee University, welcomed the £15m funding for the sector in a memo to staff last week.

He said: “We expect we will receive the additional funding as a bridging loan, which gives us the time and space to develop, fund and implement the recovery plan. While this support is of critical importance to us, it is not the solution to our financial challenges.”