New funding model will be created for Scottish universities and colleges following £46m uplift cut

SNP minister Graeme Dey announced the plans as he unveiled new blueprint

The Scottish Government has announced that a new funding model will be developed for all colleges and universities.

The plans include investigating options to deliver a single funding body, which would also cover tuition and living cost support.

Higher and further education minister Graeme Dey has revealed the move following a series of reviews and funding controversies. The SNP-Green Government was heavily criticised last month after U-turning on a promised £46 million funding uplift for colleges and universities.

A university graduation

The row came amid ongoing industrial action in both sectors, as well as proposed job losses at some colleges.

Edinburgh University principal Sir Peter Mathieson suggested ministers could even consider bringing back tuition fees for wealthier students from Scotland, to try to help solve financial pressures in the sector.

On Wednesday, the Scottish Government also announced it would take over responsibility for skills planning, with the new national qualifications body overseeing all publicly funded post school qualifications, except degrees.

The changes are set out in a new blueprint for the future of post-school education, research and skills.

Higher Education Minister Graeme Dey

According to the document, the reforms will give colleges and universities “greater flexibility” in how institutions use the investment that is available, and more “autonomy” to set targets for delivery, but with “greater accountability for their contribution to Scotland’s economy and society at home and abroad”.

The report also accepts a number of the recommendations in the recent Withers review, which called for major change in the skills delivery system.

Further detail is expected to be announced by the Government after Holyrood’s summer recess.

Mr Dey said: “Over half a million people are participating in our education, research and skills system every year, underpinned by over £3 billion of investment. We need to ensure it is fit for the future and that’s why we are embarking on a widespread programme of reform across the sector.

“Globalisation, technological advances, the impact of the pandemic and demographic changes all point toward the need for change, as well as the shifting expectations of students and of employers.

“A key part of this is ensuring all elements of the lifelong education and skills sector work together as one single system.

"The recent review of skills delivery by James Withers set out a clear case for change, starting with these key actions for Government, which I believe will help to deliver the improvement required. The skills landscape must fit the needs of the people of Scotland so that everyone can fulfil their potential and contribute to our society, economy and place in the wider world."

Sir Paul Grice, vice convener of Universities Scotland, responded to the publication of the government’s “purpose and principles” report.

“Universities will always support a learner-centred approach and are relentlessly focused on delivering for Scotland’s people and economy with a very strong record of return on investment,” he said.

"The purpose and principles speak of financial resilience. That is the bedrock on which student choice, and quality and research competitiveness and other fundamental principles depend.

"Government has a key responsibility to invest properly in higher education to ensure these principles can be delivered in practice.”

Sir Paul added: “Universities have had four major Scottish-Government reports land on desks in recent weeks, with at least two still to come. Given that context, the purpose and principles can add value as an overarching framework, ensuring that vital connections are made between different strands of work.

"The framework is currently framed at a macro-level; there needs to be a lot more engagement and transparency to develop the detail of the way forward, in order to provide students, staff and institutions with much-needed confidence in the future.”

Shona Struthers, chief executive of Colleges Scotland, said the current structure was “not sustainable”, and that the new report sets out some areas of change which might help to bring stability to Scotland’s 26 colleges.“Stability, and creating a sustainable future for colleges is vital, as students deserve to learn in colleges that are thriving, ambitious and strongly connected to industry, and re-enforce to businesses that colleges are the go-to place for skills training and high-quality qualifications,” she said.“Colleges should play a leading and active role in their regions in terms of skills planning, as well as delivery, so that Scotland’s economy and communities can thrive – this must be in close connection to what employers need and with industry being good partners in supporting their local colleges.“Colleges are swiftly adapting under pressure to new ways of working, finding efficiencies and are trying to find new markets, but the core purpose of a college is to provide world-class education and training, which is extremely challenging without sustainable funding.“There have recently been a range of reviews and publications which seem to be setting a direction of travel for the Scottish Government. College leaders will keep engaging with Scottish Government to elevate and enhance the critical role colleges play within Scotland.”