£10.5m deficit a 'notable achievement' says Scottish university boss

The principal of a Scottish university has claimed its £10.5 million underlying deficit for last year represented a “notable achievement” in the existing financial climate.

The loss recorded in Heriot-Watt University’s accounts for 2023/24 was lower than the £15.7m underlying deficit posted by the institution in 2022/23.

Meanwhile, Glasgow Caledonian University’s accounts show an underlying surplus of £13.5m for last year, down slightly on the £14.5m surplus in the previous year.

The Scotsman has recently reported the University of the West of Scotland had posted a deficit of £14.4m in its accounts for 2023/24, while the underlying operating deficit at St Andrews University was £13m.

Glasgow University’s accounts showed a surplus of £28.7m, down from £68.2m in the previous year, and £142.3m in 2021/22. Edinburgh Napier University had a surplus before exceptional items of £2m in 2023/24, down from £8.6m.

And the University of the Highlands and Islands (UHI) recorded a surplus before other gains and losses of £4.6m, compared to a surplus of £700,000 in 2022/23.

The financial results are emerging as universities battle a series of pressures, including a reduction in the number of fee-paying international postgraduate students, real-terms funding cuts from the Scottish Government over many years, and inflation.

King Charles III and Principal and Vice-Chancellor Heriot-Watt University Richard Williams unveil a plaque to mark the official opening of the Dubai campus. Former First Minister Humza Yousaf looks on. Picture: Chris Jackson/Getty Images. | Getty

Richard Williams, principal and vice-chancellor of Heriot-Watt University, wrote in the Edinburgh-based institution’s annual report: “Our international student intake in Scotland this year was, as with all other UK institutions, below our expectations, even though we were one of only two Scottish universities to show an increase on the previous year.

“Given this unexpected decline in fee income, and the continued constraints on our SFC [Scottish Funding Council] grant, our financial outturn for the year, while a £10.5m deficit (after removing the impact of the USS pension revaluation), was a notable achievement delivered through careful control of costs and increased income in areas outside of tuition fees, such as research.

“Our university’s court and our executive leadership are committed to restoring the university to financial surplus, and thus ensuring economic sustainability, and the next two years will see a renewed focus on our goal of delivering impact and effectiveness with margin.”

A Heriot-Watt University spokesperson said: “Higher education institutions across the UK are navigating a challenging financial landscape, and our university is no exception.

“In response to these pressures, we have undertaken difficult but necessary measures to reduce our operational loss by approximately one third during the latest financial year.

”These steps are vital to ensure we maintain our commitment to delivering a world-class learning experience for our students and conducting cutting-edge research that benefits society.

"We remain steadfast in our focus on financial sustainability and will continue to monitor our position closely, taking further action when necessary to safeguard the university's mission.”

In its annual report, Glasgow Caledonian University principal Stephen Decent said: “Academic year 2023/24 marked another exceptional year for Glasgow Caledonian. We had a very strong performance both in terms of our education and research metrics as well as our financial outturn.”