Exclusive:Scottish universities seek 'swift intervention' from SNP amid growing funding gulf with England after fee rise

Scottish universities have said “swift intervention” is needed from SNP ministers to close a growing funding “gulf” in the wake of tuition fee rises in England.

Higher education leaders responded to Labour’s announcement at Westminster by issuing a fresh plea last night for a more sustainable financial model in Scotland.

Umbrella body Universities Scotland warned that while funding north of the border was “profoundly different” to England, the sector was “clear of the need for the Scottish Government to address our own funding challenge”, which it said was getting “more acute every year”.

The remarks come after it was announced on Monday that undergraduate tuition fees for English universities will rise from 2025/26 to £9,535 a year, having previously been frozen at a maximum of £9,250 since 2017.

English Education Secretary Bridget Phillipson said the Westminster government was taking the “tough decisions needed to put universities on a firmer financial footing”, and signalled that further "major reform" would be announced soon.

SNP politicians have seized on the rise, which comes despite Sir Keir Starmer having previously been committed to abolishing tuition fees.

Holyrood ministers took to social media to highlight the party’s ongoing commitment to free undergraduate tuition in Scotland.

But Scottish universities have long been calling for a review of the current funding model, arguing that free undergraduate tuition is not fully funded, leaving universities over-reliant on the fees of international students to plug the gap.

Scotland’s universites are facing severe financial pressures (Picture: Lisa Ferguson) | National World

Even before the fee rise in England, the Institute for Fiscal Studies calculated that the resources available for Scottish undergraduates was around 21 per cent lower than those for an English university teaching an English student, after several years of below-inflation funding increases in Scotland.

A spokesperson for Universities Scotland said: “England and Scotland have both experienced a decade-long near freeze in funding undergraduate education for home students, creating funding models that are unsustainable.

“The UK government’s announcement to increase English tuition fees and keep pace with inflation, while also increasing maintenance loans, will be welcomed by the sector in England as a step in the right direction.

“While Scotland’s current model is profoundly different, we are clear of the need for the Scottish Government to address our own funding challenge – which gets more acute every year.”

It is understood the fee rise will enable Scottish universities to charge English students the slightly higher rate from next year, potentially boosting income.

However, Universities Scotland said: “The fees of students from England who choose to study in Scotland are part of the funding mix for Scottish universities, but institutions cannot be reliant on these small, inflationary changes to fill in the gaps when public funding is under so much pressure.

“Without swift intervention from the Scottish Government, yesterday’s announcement will increase the funding gulf between undergraduate education for Scottish students and their peers in England.”

The umbrella body added: “Scotland’s universities will take a close interest in the broader English sector reform proposals outlined by the Secretary of State today.

“Our sectors are so integrated, it is in everyone’s interests to consider the consequences of policy changes, particularly where they support UK wide policy like the new Industrial Strategy.”

In recent months it has been announced that Edinburgh University is placing “significant constraint” on recruitment, while “reducing spending in all areas”, as a result of pressures in the sector.

Aberdeen University, meanwhile, could not guarantee it would continue as a “going concern” earlier this year.

Sir Paul Grice, vice-chancellor at Queen Margaret University (QMU) and a vice convener of Universities Scotland, recently called for a “compromise” over funding in Scotland, as he signalled his support for creating a cross-party commission to look at options.

Funding pressures intensified this year as a result of a £28.5m cut to the teaching budget from the Scottish Government, following several years of below-inflation rises.

This has coincided with a huge 20 per cent drop in the number of students from overseas enrolling in taught postgraduate courses, leaving a £100m hole in universities’ plans.

Mary Senior, Scotland official at the UCU union, said: “Regrettably, we anticipate universities in Scotland will now be allowed to charge students from the rest of the UK £9,535 from next autumn. 

“UCU has consistently called for better funding for universities in Scotland, but we don’t want that to come at the expense of saddling students coming to study in Scotland’s universities from England, Wales and Northern Ireland with more debt.”

A Scottish Government spokesperson said: “We are aware of the UK government’s decision to increase tuition fees for the 2025/26 academic year and are currently considering the impact of this change for students from the rest of the UK studying in Scotland.

“Scotland’s universities play a pivotal role in the economy and society. And despite facing the most challenging budget since devolution, the Scottish Government continues to invest over £1 billion in teaching and research, including an increase in research and innovation funding.

“This funding ensures that free tuition is maintained - which has seen the number of Scottish students entering university increase by 27 per cent since its implementation. Additionally there are record numbers of students from the poorest communities now being accepted into universities.”

Meanwhile, the fee rises in England have led to questions about Scottish Labour’s position on free tuition, which it has previously said it supports.

In a letter to Scottish Labour leader Anas Sarwar, Scottish Green MSP Ross Greer said: “This decision by your UK Labour colleagues has raised the prospect of tuition fees returning to Scotland under a Scottish Labour government, causing significant unease.”

Mr Greer’s letter asks Mr Sarwar to clarify how he will instruct Scottish Labour MPs to vote on increasing tuition fees in England, and his position on the funding of tuition in Scotland, including whether Scottish Labour would seek to reintroduce fees.

A Scottish Labour spokesperson said “Scottish Labour’s position remains unchanged – we are committed to free tuition for Scottish students attending Scottish universities.”