Gary Devlin: The challenge facing our universities can be met

The success of our cities and universities are inextricably linked, and it is hugely encouraging to hear political leaders and the chief executives of our city councils talk more and more about how better to harness the role and work of universities to support economic growth, social inclusion and mobility.

But in the current economic climate, the big question is: how this can realistically happen?

The university sector is at a crossroads as it faces up to funding cuts, policy differences with England and increasing competitiveness for students and research talent. At the same time, businesses often complain that universities don’t produce graduates with the correct skills.

The Scottish Government has confirmed it will not impose tuition fees on Scottish students and has set up a review of the sector. This will cast doubt on whether our universities will be able to generate the funds to remain competitive.

What is the way forward? Some commentators are proposing a move back to the three-tier approach to higher education seen in the 1970s, with funding concentrated on elite universities focused on world-beating research, then polytechnic-type universities focused on teaching, then further education colleges offering a mix of teaching and practical courses. Would this be a retrograde step?

Grant Thornton’s recent report, “The Financial Health of the Higher Education Sector”, called for more collaborative working and shared services as a means of managing a challenging financial position. In Scotland, without tuition fees, I doubt this approach will be enough, and I expect to see a reduction in universities and further education colleges through merger or takeover. This will inevitably mean a reduction in the number of student places and choice, but niche players can also be a strength. I think Scotland will retain its international standing in higher education, and that this will support the promotion of our cities as economic drivers. But we can expect a radically different education landscape.

•  Gary Devlin is a director at Grant Thornton Scotland.