Update from 28 May Court
We normally wouldn’t send a message at this time, but our governing body University Court concluded its meeting earlier this evening and we wanted to convey the outcome as soon as possible.
The challenges facing the UK higher education sector are well reported with many Scottish universities in deficit and this is simply not sustainable. We recognise the uncertainty this is causing and will continue to do our utmost to support colleagues through this time.
Last June, Court approved a three-year plan to return to financial break even by 2028. Since then, we have all played our part – managing workloads as recruitment was paused, cutting operational spend, and there have been two Enhanced Retirement and Voluntary Severance (ER/VS) schemes, predominantly taken up by Professional Services colleagues. We are also continuing to develop our transnational education, online, and commercial opportunities.
After two years of deficit, we are currently forecasting a £4m surplus for the end of this financial year - 31 July 2026. However, much of this is due to one-off savings and income which cannot be relied on to occur again in future years, and which mask the underlying structural deficit. Short term measures like pausing promotions have also contributed to this surplus but we need to get to a position where we can return to normal operations.
To meet the target set by Court to break even by 2028, Court agreed a £10m savings plan to ensure financial stability, eradicate annual uncertainty, and generate surpluses for investment.
The budgeting process will now take this into account, with future staffing budgets informed by indicative student:staff ratios (SSRs) of 20:1 for STEM disciplines and 25:1 for SHAPE.
SSRs will be used to guide how much money should be spent on staffing across academic areas based on student numbers – but they don’t necessarily mean every area will end up with these exact ratios. Instead SSRs are a method for calculating staffing budgets with flexibility given to how those are applied locally. They also help deliver greater parity across academic areas.
Regrettably, this will mean we need to reduce our academic staffing numbers. Court and SMT remain committed to doing this by voluntary means as far as possible, and as a first step we are opening an ER/VS scheme within our academic community next week. The outcome of this scheme will be considered in the Autumn alongside the latest student number position before agreeing any further action. While Court approved that compulsory redundancies cannot be ruled out in the future, this remains a last resort.
Based on current indicative modelling, the papers presented to Court showed that the total reduction in our academic workforce could be up to 111 FTE. Importantly, however, the focus of the decision made by Court was to reduce our costs, not to reduce our workforce by a specific number.
Next steps
We will provide more information at the Town Hall on Monday and will announce the arrangements for ER/VS in our academic areas later next week.
At the same time the new financial resourcing model will be shared with Heads of School who will take forward initial local planning and engagement. This timeline was approved at Court following a recommendation from SMT as a result of consultation with the community.
Finally
We are under no illusion as to how challenging this news will be for many. These decisions have not been easy, and Court has deliberated extensively over several meetings with a wide range of views and opinions expressed and considered. Court heard and acknowledged feedback from our community as part of these discussions. The challenge we and the rest of our sector face is stark. Decisive action is needed to protect the future of our University and allow us to return to a more stable footing to grow and succeed in a way that meets the needs of the communities we serve.
Gary and Peter
Gary McRae, Interim Senior GovernorProfessor Peter Edwards, Principal and Vice-Chancellor