The ‘major existential threat’ facing Scotland's universities hit by 'huge' 22% cut

​A university principal has warned the sector in Scotland is facing a "major existential threat", as he said they are "significantly underfunded".

His comments about the "financial black hole" come after bosses at Cardiff University confirmed plans to cut 400 jobs last month, as the university there also seeks to close some courses and merge departments to save money.

Prof Olivier told a fringe event at the Scottish Labour conference in Glasgow that while universities north of the Border contribute "something like £11 billion a year" to the economy, "it is unfortunately a system under major existential threat".

Robert Gordon University in Aberdeen

Saying universities are facing financial difficulties that are not of their making, he said this "unfortunately" affects jobs, pointing out that almost two thirds (64 per cent) of money at RGU goes on staffing.

Prof Olivier told the meeting: "Over 80 universities in the UK are facing deficits of between £10 million and then north of £50m. They have made job losses all over the place, Cardiff 400 to 500, Durham 200.

"All universities are feeling the pinch."

In Scotland he said this was because of a lack of public funding, adding: "We have received a 22 per cent real-terms cut in our teaching funding in the last ten years. That's huge.

"We are around £2,500 on average short of what English universities get per student, we are significantly underfunded."

His comments came as Neil Cowie, the principal and chief executive North East Scotland College, spoke about how further education is facing similar pressures.

While he said his college, which has main centres in Aberdeen and Fraserburgh, was dealing with "increasing demand", he added: "We've been hit with a succession of flat cash settlements that have been fundamentally real-terms cuts.

"Last year that impacted the college to the tune of around £2.7m. For a £50m organisation, that is significant."

Calling for changes to be made, he added: "We're constantly being asked to do more with less, and that is simply not sustainable.

"In my opinion funding reform is needed now, and if there are no additional monies forthcoming then we need to think more radically about what is already in the education pot and how we use it."

A Scottish Government spokesman: “Both the Scottish Government and Scottish Funding Council engage closely with universities and we value the important contribution they make to the economy and wider society.

“We have listened closely to the sector in the development of this year’s Budget and is why we will invest over £1.1 billion in university teaching and research.

“There are further factors impacting universities, including UK migration policies and the UK Government’s increase to employer national insurance contributions which is estimated to cost Scottish universities up to £45m.

“The Scottish Government has continued to invest more than £2bn a year in colleges, universities and the wider skills system, recognising the vital role they play in both education and the economy.”