Universities: Funding and Employment

Scott Arthur Excerpts

Wednesday 2nd April 2025 Westminster Hall

[Stephen Gethins (Arbroath and Broughty Ferry) (SNP)]

In following the hon. Member for Colchester (Pam Cox), I should refer to my entry in the Register of Members’ Financial Interests. I am a vice-chair of the all-party parliamentary university group and I am proud of my relationship with the University of St Andrews. The hon. Member talked about her experience; I was previously assistant vice-principal at St Andrews, with oversight of recruitment and internationalisation—areas that are crucial to the health of the university sector.

Today, I will remain closer to home and talk a little bit about the University of Dundee. My hon. Friend the Member for Dundee Central (Chris Law) has already referred to this issue. I should also register my interest as a graduate of the university. Like most people locally, the university is very much part of my family, with my father also being a graduate of it and my grandmother having worked there as a cleaner.

Before I move on, I want to make clear something that we do not hear enough in this place. Our higher education sector thrives and is world leading in teaching and in research because it is international, and because it is competitive and brings in the best researchers and students from all over the world. It will remain competitive only if it remains international. Today, the University of Dundee and the city face 700 job cuts. That would be devastating for families, for the city and for Scotland and the wider UK. We all benefit from the research and the teaching there.

The main issue that has been highlighted—it dwarfs all the others—is the huge drop in international income. The acting principal, Professor O’Neill, told the Scottish Parliament recently that

“changes in immigration policy and related factors…have had a negative impact on our international student recruitment.”

He also pointed to a two-thirds drop in taught postgraduate student numbers in the last two years.

[Dr Scott Arthur (Edinburgh South West) (Lab)]

I agree with the hon. Gentleman’s points about the impact of immigration policy—the sector needs a policy that helps it to attract the best staff and the best students—but he will know that the challenge facing the sector in Scotland is long-lasting and is due to underfunding. Student fees have dropped substantially below the level in England and there has been a cap on places. That is why universities in Scotland have had to look overseas so much. Does the hon. Gentleman share my disappointment that this year Scottish universities faced a real-terms cut from the Scottish Government?

[Stephen Gethins]

I wanted to give the Member the opportunity to intervene because I am going to criticise Scottish Labour and talk about some of its priorities. The difference between English fees and Scottish fees would not even cover the national insurance increase that has been imposed by his Government.

[Dr Arthur]

rose—

[Stephen Gethins]

I think the hon. Member has said enough. His Government have damaged the sector enough, never mind the £12 million, which is structural, that my hon. Friend the Member for Dundee Central highlighted. The sector has been battered by Brexit and by a Tory hostile environment that the Labour Government have embraced. We want to see something international.

Scottish Labour previously proposed that we should devolve greater migration policy. The First Minister has talked about a tailored visa route for Scotland, which Scottish Labour proposed previously. I would love to find out whether Scottish Labour still propose that, because that could make a real difference to our sector. The Labour party previously campaigned on that.

We have seen the biggest drop in dependant visas, whereas we know that the markets bring in dependants from all over the world. The hon. Member for Bedford (Mohammad Yasin) identified that as an issue, as have others. Will the Government rethink wiping out dependant visas? It is entirely understandable that people bring their kids with them when they come to study. I understand that the hon. Member for Edinburgh South West (Dr Arthur) cannot answer that, but I know that the Minister will. I hope the hon. Member will agree with me that the dependant visa needs to be looked at, because the health of the sector depends on it.

The UK is hobbling universities’ international competitiveness. I am pleased that the Scottish Government stepped up for the University of Dundee and made a contribution. Labour and SNP Members called on them to do so, and I was glad we all had that common approach. Given the damage that is being done at a UK level, as we sit in the UK Parliament, it would be nice to hear Scottish Labour stand up for the sector and address the damage that their own Government are doing. Will the Minister look at the hostile environment when they look at this issue? That is key to the sector.

--- Later in debate ---

[Dr Scott Arthur (Edinburgh South West) (Lab)]

It is a pleasure to serve with you in the Chair today, Mr Vickers. I thank my hon. Friend the Member for Bedford (Mohammad Yasin) for introducing the debate so well. I should start by referring Members to the register of interests and saying I am a member of the University and College Union. I am also proud to say that I employ two university students in my office on a part-time basis.

“Our education system in Scotland is crumbling, and it’s being allowed to happen. It’s becoming all too common to hear from university or college management that course closures are necessary and staff redundancy schemes unavoidable.”

These are not my words, but those of Sai Shraddha Suresh Viswanathan, the current president of NUS Scotland. Scotland is unique in so many ways, but one of those ways is that it stands alone in the world with a Government who think they can grow the economy by cutting university funding and capping the number of places available to Scottish students. Our universities are at breaking point in Scotland. Funding per undergraduate student in Scotland is more than £2,000 less per student compared with England. Think about what that would mean for universities in England. Undergraduate education in Scotland—universities—cannot run at a profit; they cannot break even. They have to do other things.

The cap on places is brutal. Since 2006, there has been a 56% increase in the number of applicants to universities, which is fantastic, but the number of refused entries has increased by 84%. When clearing comes in the summertime and options are posted for Scotland’s universities, they are available only for students from outside Scotland. Even when Scottish students have better qualifications, they cannot get access to those places because the cap has been used up.

The financial crisis is resulting in job losses right across Scotland. We heard about Dundee; the hon. Member for Dundee Central (Chris Law) is not in his place just now, but he outlined that 700 jobs are at risk there due to a £35 million deficit. The Scottish Government described the bleak outlook in Dundee as “troubling”—I think the staff there probably view it quite differently. The University of Edinburgh is looking at £140 million-worth of cuts over the next 18 months. That is 10% of its annual budget. The principal there has refused to rule out compulsory redundancies, saying,

“nothing is off the table”.

In Aberdeen, voluntary redundancy schemes are open. Robert Gordon University is talking about losing 100 staff. It is expected that the Scottish Funding Council will say, that, as we heard earlier, over half the institutions in Scotland are running at a deficit. This is a crisis that demands urgent action.

It is not just universities that are being short-changed; poor students are when it comes to loans for living costs. The living wage went up yesterday, which is good, but a single parent on the national minimum wage in Scotland working 37 hours per week will be earning £3,000 over the threshold for their child having full support at university, meaning that that single parent is expected to give the child £1,500 to attend university. That is utterly shameful.

I am a huge supporter of Scottish universities, and I love meeting staff and students in this place to hear about all they do. I have to acknowledge that often the hon. Member for Arbroath and Broughty Ferry (Stephen Gethins) is also there, supporting the sector in Scotland. Universities are at the heart of Scotland’s economy, and have been for centuries, but they need to be cherished, and that is not happening right now. We need a Scottish Government who take the sector seriously.