Recommendations & Conclusions
48 items
1
Recommendation
First Report - Universities and Scotland
Acknowledged
Although higher education is a devolved competence, reserved UK Government policies—such as foreign affairs, immigration and research and development— have significant consequences for UK and Scottish universities. We recommend that the UK Government continues to work with the Scottish Government (and the other devolved administrations) acknowledging that higher education cuts …
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Although higher education is a devolved competence, reserved UK Government policies—such as foreign affairs, immigration and research and development— have significant consequences for UK and Scottish universities. We recommend that the UK Government continues to work with the Scottish Government (and the other devolved administrations) acknowledging that higher education cuts across the competencies of all UK Governments and should outline how the Governments will work together to better deliver higher education in Scotland, for example through the tripartite meeting. (Paragraph 13) Finances of Scottish universities
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Government response AI summary
The government acknowledges the importance of working with devolved administrations on higher education and states that ongoing engagement at ministerial and official levels will continue to exchange information and policy developments.
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Scotland Office
2
Conclusion
First Report - Universities and Scotland
Acknowledged
In mid-2020 insolvency was a very real prospect facing a number of universities in Scotland. Both the UK and Scottish Governments should be congratulated on their efforts and significant financial investments into Scottish universities in response to the pandemic. It is quite possible that without that support, some institutions may …
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In mid-2020 insolvency was a very real prospect facing a number of universities in Scotland. Both the UK and Scottish Governments should be congratulated on their efforts and significant financial investments into Scottish universities in response to the pandemic. It is quite possible that without that support, some institutions may not have survived. We also welcome the commitment made by the Scottish Government that it will make every effort to ensure that no university becomes insolvent as a result of the pandemic.
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Government response AI summary
The government acknowledged the committee's congratulations, highlighting its ongoing engagement with the Scottish Government and support for Scottish universities, and referencing the International Education Strategy's goal of diversified student recruitment.
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Scotland Office
15
Conclusion
First Report - Universities and Scotland
Acknowledged
Higher public sector spending on higher education in Scotland compared to the rest of the UK is predominately a consequence of the Scottish Government policy of free tuition for Scottish students (and until recently EU students). Scotland is the only country in the UK that offers fee-free university tuition. This …
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Higher public sector spending on higher education in Scotland compared to the rest of the UK is predominately a consequence of the Scottish Government policy of free tuition for Scottish students (and until recently EU students). Scotland is the only country in the UK that offers fee-free university tuition. This is a policy which has support across the political spectrum in Scotland, with the Scottish National Party, Conservatives, Labour, Liberal Democrats and Scottish Greens all backing it.24 Debates continue however about the impact this policy has on students and Scottish universities.25 The Secretary of State for Scotland, Rt Hon Alister Jack MP, told us that: In order to meet the costs of this policy, the Scottish Government provides £213 million in funding (approx. £1,800 per student per academic year for a degree programme) with a cap on places to control costs. In England, UK and EU students are personally liable to pay up to £9,250 per academic year for a degree programme. While income from undergraduate students only represents part of the funding picture, this difference in approach between Scotland and England clearly contributes to the budgetary pressures that institutions in Scotland face.26
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Government response AI summary
The government notes that higher education in Scotland is largely a devolved responsibility and details its ongoing engagement with the Scottish Government. It also highlights its International Education Strategy and the Graduate Route as measures to help universities diversify their student recruitment and funding.
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Scotland Office
20
Conclusion
First Report - Universities and Scotland
Acknowledged
Audit Scotland’s 2019 report found that tuition fees were the single largest source of university income in 2017–18.32 This has remained the case in subsequent years.33 The chart below, which relates to 2017–18 (from Audit Scotland’s 2019 report), shows that over half of that tuition fee income came from international …
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Audit Scotland’s 2019 report found that tuition fees were the single largest source of university income in 2017–18.32 This has remained the case in subsequent years.33 The chart below, which relates to 2017–18 (from Audit Scotland’s 2019 report), shows that over half of that tuition fee income came from international (non-EU) students. 28 Scottish Government, ‘University fees EU students: FOI release’, accessed 7 April 2021 29 Q249 30 “Scottish students ‘squeezed out’ of university places”, The Times, 12 January 2020 31 The Scottish Parliament (Research Briefings), ‘The impact of Coronavirus (Covid-19) on university funding In Scotland’, accessed 24 January 2021 32 Audit Scotland, Finances of Scottish universities, September 2019, para 29 33 The Scottish Parliament (Research Briefings), ‘The impact of Coronavirus (Covid-19) on university funding In Scotland’, accessed 24 January 2021 12 Universities and Scotland Income profile for the university sector in 2017–1834
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Government response AI summary
The government acknowledged that higher education in Scotland is a devolved responsibility and recognised the benefits of international students. It highlighted the International Education Strategy and Graduate Route for attracting students and advised universities to diversify recruitment to manage dependence on a single source of …
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Scotland Office
21
Conclusion
First Report - Universities and Scotland
Acknowledged
Scottish Funding Council (SFC) grants made up the second highest income source in 2017–18. This has also remained the case in subsequent years.35 Karen Watt, Chief Executive of the Scottish Funding Council, told us that although Scottish Funding Council funding represents about 30% of the whole sector’s total income, reliance …
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Scottish Funding Council (SFC) grants made up the second highest income source in 2017–18. This has also remained the case in subsequent years.35 Karen Watt, Chief Executive of the Scottish Funding Council, told us that although Scottish Funding Council funding represents about 30% of the whole sector’s total income, reliance on their funding varies very much below the surface.36 To illustrate this point she informed us that: [ … ] the University of the Highlands and Islands [ … ] relies quite heavily on [SFC] funding—69% of its funds come from the Scottish Funding Council—whereas the University of St Andrews has a very low reliance, at 15% of total funds.37
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Government response AI summary
The government states that higher education in Scotland is largely devolved and highlights its ongoing engagement with the Scottish Government, as well as its International Education Strategy which aims to help universities diversify student recruitment and funding sources.
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Scotland Office
24
Conclusion
First Report - Universities and Scotland
Acknowledged
Just as there are large disparities in the importance of different incomes streams to Scottish universities, the same disparities exist—and have existed for a long time—in the financial health of institutions. Audit Scotland noted pre-pandemic that: While the sector overall is in good financial health, this masks significant variation across …
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Just as there are large disparities in the importance of different incomes streams to Scottish universities, the same disparities exist—and have existed for a long time—in the financial health of institutions. Audit Scotland noted pre-pandemic that: While the sector overall is in good financial health, this masks significant variation across universities, and many sector-level indicators are disproportionately affected by the financial results of three of the four ancient universities. At an aggregate sector level, the operating position has remained broadly stable [between 2014 and 2018], but six universities reported deficits every year. Between 2014–15 and 2017–18, the underlying position for the sector improved, but the position was worse for six universities [of 18].44 41 Q4 42 Audit Scotland, Finances of Scottish universities, September 2019, page 9 43 Audit Scotland, Finances of Scottish universities, September 2019, p 13 ‘Exhibit 2’ 44 Audit Scotland, Finances of Scottish universities, September 2019, page 9 14 Universities and Scotland
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Government response AI summary
The government acknowledges the committee's findings on the varied financial health of Scottish universities, reiterating that higher education is primarily a devolved matter. It highlights ongoing collaboration with the Scottish Government and the UK government's efforts to support the sector and the Scottish economy.
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Scotland Office
25
Conclusion
First Report - Universities and Scotland
Acknowledged
Audit Scotland also highlighted that six of Scotland’s universities had reported deficits every year since 2014–15; more than half of all Scottish universities were in deficit in 2017–18; and that the position was worse in 2018 than in 2014–15 for most modern and chartered universities.45 They found that this was …
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Audit Scotland also highlighted that six of Scotland’s universities had reported deficits every year since 2014–15; more than half of all Scottish universities were in deficit in 2017–18; and that the position was worse in 2018 than in 2014–15 for most modern and chartered universities.45 They found that this was due to various factors including sustained reductions in SFC funding (outlined further in paragraph 22), increased contributions to pension schemes (up to £23 million extra per year), the effects of EU withdrawal and major estate maintenance requirements.46 Audit Scotland found that, in July 2018, universities estimated that the total value of outstanding estate maintenance requirements was equivalent to 25% of annual income across the sector.47 The Scottish university estate is large and diverse. There are 1,856 buildings throughout Scotland, in 146 locations. [ … ] 6% of the estate was built before 1840 and 24% between 1840 and 1959. The value of the estate is just over £5 billion, with Edinburgh having 33% (£1.7 billion) of the total value.48
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Government response AI summary
The government acknowledges the committee's observations on the financial health and estate challenges of Scottish universities, emphasizing that higher education is largely a devolved responsibility. It highlights ongoing close working relationships with the Scottish Government and its efforts to support the Scottish economy and universities.
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Scotland Office
26
Conclusion
First Report - Universities and Scotland
Acknowledged
They also found that ‘ancient’ universities were generally better placed to withstand these pressures, because of their ability to generate income from other sources and the balances in their reserves, but they faced strong competition from other universities in the UK and the rest of the world.49 Financial impact of …
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They also found that ‘ancient’ universities were generally better placed to withstand these pressures, because of their ability to generate income from other sources and the balances in their reserves, but they faced strong competition from other universities in the UK and the rest of the world.49 Financial impact of the pandemic
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Government response AI summary
The government acknowledges higher education as a devolved responsibility and emphasizes its ongoing engagement and collaboration with the Scottish Government to support the sector and recovery efforts.
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Scotland Office
28
Conclusion
First Report - Universities and Scotland
Acknowledged
The covid-19 pandemic affected the higher education sector in Scotland to such an extent that a number of interventions were required by both the UK and Scottish Governments in 2020 and 2021. These are detailed in the table below (up to and including April 2021). 45 Audit Scotland, Finances of …
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The covid-19 pandemic affected the higher education sector in Scotland to such an extent that a number of interventions were required by both the UK and Scottish Governments in 2020 and 2021. These are detailed in the table below (up to and including April 2021). 45 Audit Scotland, Finances of Scottish universities, September 2019, page 9 46 Audit Scotland, Finances of Scottish universities, September 2019, page 18 47 Audit Scotland, Finances of Scottish universities, September 2019, page 19 48 Audit Scotland, Finances of Scottish universities, September 2019, para 39 49 Audit Scotland, Finances of Scottish universities, September 2019, page 17 50 Scottish Parliament, The impact of Coronavirus (COVID-19) on university funding in Scotland (23 July 2020), p 11 51 Scottish Parliament, The impact of Coronavirus (COVID-19) on university funding in Scotland (23 July 2020), p 3 Universities and Scotland 15 Date of Intervention Detail of intervention announcement made by April 2020 UK Government A UK-wide (but not higher education-specific) Coronavirus Job Retention Scheme. The scheme enabled any employer in the UK to seek a grant to cover 80% of the salary of retained (but furloughed) workers up to a total of £2,500 per person per month.52 April 2020 Scottish £5 million emergency financial support for Government students facing hardship as a result of the pandemic. £2.2 million of this was allocated to the Higher Education Discretionary Fund and made available to colleges and universities.53 May 2020 UK Government A support package for universities and students which included: – Temporary student numbers controls – An additional 10,000 student places at the discretion of the UK Government (with 5,000 of those ring-fenced for nursing, midwifery or allied health courses) – £100 million of funding brought forward for research – £2.6 billion of tuition fee payments brought forward The package did not include any additional funding but brought forward some existing income strea
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Government response AI summary
The government acknowledges the significant impact of the COVID-19 pandemic on the Scottish higher education sector and the need for interventions, reiterating that higher education is largely a devolved responsibility. It highlights ongoing collaboration with the Scottish Government and the UK government's efforts to support …
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Scotland Office
32
Conclusion
First Report - Universities and Scotland
Acknowledged
By 17 February 2021 the forecast operating deficit for the higher education sector in academic year 2020–21 had improved significantly and was estimated to be around £50 million83 (compared to the £450–500 million expected in July 202084). The Times reported that an unanticipated influx of fee-paying international students has given …
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By 17 February 2021 the forecast operating deficit for the higher education sector in academic year 2020–21 had improved significantly and was estimated to be around £50 million83 (compared to the £450–500 million expected in July 202084). The Times reported that an unanticipated influx of fee-paying international students has given a “lifeline” to Scottish universities.85 74 Q67 75 Q110 76 Q110 77 Q110 78 Q111 79 Q121 80 Q117 81 Q121 82 Q35 83 Scottish Parliament, COVID-19: Scotland’s colleges and universities (1 March 2021), p 17 84 Scottish Parliament, The impact of Coronavirus (COVID-19) on university funding in Scotland (23 July 2020), p 3 85 “Fee-paying foreign students provide a lifeline for Scottish universities”, The Times, 11 October 2020 Universities and Scotland 19
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Government response AI summary
The government acknowledges the observation about the improved financial outlook for Scottish universities and the role of international students, stressing that higher education is a devolved responsibility. It highlights ongoing collaboration with the Scottish Government and general UK government support for the sector and economy.
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Scotland Office
33
Conclusion
First Report - Universities and Scotland
Acknowledged
Universities Scotland argue however that level of public funding invested in teaching and research in Scotland’s universities has been unsustainable for a number of years, that and the pandemic has further exposed and exacerbated this financial vulnerability.86 Likewise, Iain Stewart MP, Minister for Scotland, told us that “there were deep …
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Universities Scotland argue however that level of public funding invested in teaching and research in Scotland’s universities has been unsustainable for a number of years, that and the pandemic has further exposed and exacerbated this financial vulnerability.86 Likewise, Iain Stewart MP, Minister for Scotland, told us that “there were deep concerns, even before the covid crisis hit, that a lot of universities had deficits” and that the “long- term funding will have to be addressed”.87
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Government response AI summary
The government acknowledges the concerns about the financial vulnerability and unsustainable public funding for Scottish universities, stating that higher education is primarily a devolved responsibility. It highlights ongoing collaboration with the Scottish Government and the UK government's general efforts to support the sector's recovery from …
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Scotland Office
34
Conclusion
First Report - Universities and Scotland
Acknowledged
The ongoing effects of the covid-19 pandemic will have financial implications for the foreseeable future,88 with Minister Lochhead, Scottish Government, recognising that there was “more to be done”89 to support universities. The Scottish Funding Council has identified some of the main continuing financial pressures facing Scottish universities: • The fall …
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The ongoing effects of the covid-19 pandemic will have financial implications for the foreseeable future,88 with Minister Lochhead, Scottish Government, recognising that there was “more to be done”89 to support universities. The Scottish Funding Council has identified some of the main continuing financial pressures facing Scottish universities: • The fall in stock markets and pressures on the local and global economy leading to significant drops in regular donations and income from endowments. • Commercial income reductions from residence income, catering and sport. • Research activities affected by closures. • Additional costs from IT and support costs to support online teaching, and assessment and feedback, along with contract costs associated with the suspension of work on campus redevelopment programmes.90
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Government response AI summary
The government acknowledges the ongoing financial implications of the COVID-19 pandemic and the identified pressures facing Scottish universities, stressing that higher education is largely a devolved responsibility. It highlights ongoing collaboration with the Scottish Government and the UK government's efforts to support the sector's recovery.
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Scotland Office
35
Conclusion
First Report - Universities and Scotland
Acknowledged
The Scottish Parliament research service, SPICe, has noted that whilst the Scottish Budget, announced on 28 January 2021, did not deliver the £200 million funding increase called for by the sector, the capital budget increased by £4.5 million, the resource budget increased by £25 million and universities would share (along …
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The Scottish Parliament research service, SPICe, has noted that whilst the Scottish Budget, announced on 28 January 2021, did not deliver the £200 million funding increase called for by the sector, the capital budget increased by £4.5 million, the resource budget increased by £25 million and universities would share (along with colleges) £60 million in funding announced in the budget update statement.91
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Government response AI summary
The government acknowledges the devolved nature of higher education in Scotland and highlights its ongoing close and constructive working relationships with the Scottish Government to support the sector and recovery from COVID-19.
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Scotland Office
36
Conclusion
First Report - Universities and Scotland
Acknowledged
Following the UK Budget on 3 March 2021, the Scottish Government made the announcement on 24 March 2021 that teaching funding would increase by 8.1% to £1,112.4 million, which would fund “additional places created following increased applications from school leavers.”92 Responding to this announcement, Universities Scotland said: Universities welcome the …
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Following the UK Budget on 3 March 2021, the Scottish Government made the announcement on 24 March 2021 that teaching funding would increase by 8.1% to £1,112.4 million, which would fund “additional places created following increased applications from school leavers.”92 Responding to this announcement, Universities Scotland said: Universities welcome the increased resources allocated today by the Scottish Funding Council. The additional funding for 2020/21 is recognition of the work universities have done to support students through the pandemic. As we look beyond the pandemic, the additional funding for 2021/22 will help to support the crucial role of higher education in building an education-led recovery, with a strong focus on meeting increased demand for a university education.93
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Government response AI summary
The government acknowledges the general context of support for higher education in Scotland, emphasizing its devolved nature and the importance of UK government policy impact. It highlights ongoing collaboration with the Scottish Government and efforts to support the sector's recovery from COVID-19.
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Scotland Office
37
Conclusion
First Report - Universities and Scotland
Acknowledged
It is not yet clear the extent to which this additional funding—along with positive indicators regarding sustained international student numbers—will support Scottish 86 Universities Scotland, The Scottish Government’s 2021/22 budget is critical for Scottish HE (December 2020) 87 Q248 88 Scottish Parliament, The impact of Coronavirus (COVID-19) on university funding …
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It is not yet clear the extent to which this additional funding—along with positive indicators regarding sustained international student numbers—will support Scottish 86 Universities Scotland, The Scottish Government’s 2021/22 budget is critical for Scottish HE (December 2020) 87 Q248 88 Scottish Parliament, The impact of Coronavirus (COVID-19) on university funding in Scotland (23 July 2020), p 3 89 Q227 90 Scottish Funding Council, COVID-19 Further and Higher Education Financial Impacts (3 September 2020), para 4 91 Scottish Parliament, COVID-19: Scotland’s colleges and universities (1 March 2021), p 17 92 Scottish Funding Council, ‘Funding puts students and economy first’, accessed 8 April 2021 93 “Universities Scotland response to SFC publication of additional and indicative funding allocations”, Universities Scotland, 24 March 2021 20 Universities and Scotland universities as they recover from the pandemic, especially those already facing difficulties and deficits pre-pandemic. However, Minister Lochhead outlined that the Scottish Government will “make every effort to make sure that no university goes insolvent” as a result of the pandemic.94
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Government response AI summary
The government acknowledges the ongoing uncertainty regarding the recovery of Scottish universities from the pandemic, emphasizing that higher education is largely a devolved responsibility. It highlights ongoing collaboration with the Scottish Government and the UK government's general efforts to support the sector and economy.
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Scotland Office
39
Conclusion
First Report - Universities and Scotland
Acknowledged
Universities Scotland have noted that a strong component of Scottish universities’ internationalisation strategy has been their drive to increase the number of international students: each year more than 58,000 international students from 180 countries (including from the EU) study in Scotland.95 In 2018, this made up about a quarter of …
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Universities Scotland have noted that a strong component of Scottish universities’ internationalisation strategy has been their drive to increase the number of international students: each year more than 58,000 international students from 180 countries (including from the EU) study in Scotland.95 In 2018, this made up about a quarter of the total student population.96 The RSE Young Academy of Scotland informed us that, as a result, Scotland has a high proportion of international students relative to other OECD countries, with the net economic impact of international students for Scotland estimated to be £1.94bn in 2016.97
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Government response AI summary
The government acknowledged the importance of internationalisation and responded by detailing its UK-wide International Education Strategy, which aims to increase international students and education exports, noting that the target of 600,000 international students per year by 2030 has already been met.
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Scotland Office
40
Conclusion
First Report - Universities and Scotland
Acknowledged
According to NUS Scotland, some international students are paying £20,000 a year to study at Scottish universities.98 Audit Scotland found that in 2016–17, on average, Scottish universities recovered 138.2% of the full cost of non-publicly-funded teaching, mainly by teaching non-EU students.99 Income from international (non-EU) student tuition fees made up …
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According to NUS Scotland, some international students are paying £20,000 a year to study at Scottish universities.98 Audit Scotland found that in 2016–17, on average, Scottish universities recovered 138.2% of the full cost of non-publicly-funded teaching, mainly by teaching non-EU students.99 Income from international (non-EU) student tuition fees made up 16% of total income across the entire university sector in 2017–18100 and the Scottish Funding Council expects that to increase to 18% in 2019–20.101
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Government response AI summary
The government reiterated its International Education Strategy's ambition to increase international students to 600,000 by 2030, noting that this target has already been met for the 2020-21 academic year.
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Scotland Office
41
Conclusion
First Report - Universities and Scotland
Acknowledged
The Scottish Parliament has identified that 57% of all tuition fee income received by Scottish universities was derived from international (non-EU) students in 2018–19: 94 Q187 95 Universities Scotland, ‘Internationally Scottish: Creating global communities’, accessed 24 January 2021 96 Scottish Government, The Impact of International Students in Scotland (March 2018), …
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The Scottish Parliament has identified that 57% of all tuition fee income received by Scottish universities was derived from international (non-EU) students in 2018–19: 94 Q187 95 Universities Scotland, ‘Internationally Scottish: Creating global communities’, accessed 24 January 2021 96 Scottish Government, The Impact of International Students in Scotland (March 2018), p3 97 RSE Young Academy of Scotland (USC0006) p 3 98 Q33 99 Audit Scotland, Finances of Scottish universities, September 2019, para 33 100 Audit Scotland, Finances of Scottish universities, September 2019, p 13 101 Scottish Funding Council, The Financial Sustainability of Colleges and Universities in Scotland (11 February 2020), p 20 Universities and Scotland 21 Tuition fee income by domicile in 2018–19102 Level of reliance on international student fees
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Government response AI summary
The government acknowledges the importance of international students and the need for diversified recruitment, highlighting existing strategies like the International Education Strategy and Graduate Route to attract international students while managing risks.
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Scotland Office
42
Conclusion
First Report - Universities and Scotland
Acknowledged
The Scottish Funding Council says it is clear that universities in Scotland “need” international students as a source of income in order to remain financially sustainable and to support other areas of their operation.103 Throughout our inquiry we have heard similar messages from our witnesses. In the view of Professor …
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The Scottish Funding Council says it is clear that universities in Scotland “need” international students as a source of income in order to remain financially sustainable and to support other areas of their operation.103 Throughout our inquiry we have heard similar messages from our witnesses. In the view of Professor Rebecca Lunn, Head of the Centre for Ground Engineering and Energy Geosciences, University of Strathclyde, cross- subsidy of teaching from international fees “leaves us in rather a vulnerable position”.104 Matt Crilly, President of NUS Scotland told us that institutions “should not be relying on a marketised system of exorbitant tuition fees from international students”.105
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Government response AI summary
The government acknowledges the observations regarding universities' reliance on international student income and associated vulnerabilities, emphasizing its International Education Strategy and Graduate Route to support diversified international student recruitment.
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Scotland Office
43
Conclusion
First Report - Universities and Scotland
Acknowledged
Professor James Conroy, Dean for Global Engagement (Europe) and Vice Principal Emeritus at the University of Glasgow told us that “we are increasingly dependent on international student fee income not just to plug the gap, but to create the facilities, the capital spend that maintains our infrastructure.”106 He went on …
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Professor James Conroy, Dean for Global Engagement (Europe) and Vice Principal Emeritus at the University of Glasgow told us that “we are increasingly dependent on international student fee income not just to plug the gap, but to create the facilities, the capital spend that maintains our infrastructure.”106 He went on to say that “we are cross- subsidising everything at the moment from our international student base, which has been a mark of our great success and our international reputation, but it does carry problems”107 and “we cannot expect [international students] in the long term to fund our universities’ development, and certainly not on their own”.108
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Government response AI summary
The government acknowledges the observation regarding universities' increasing dependence on international student fees for infrastructure by promoting diversified recruitment through its International Education Strategy and Graduate Route, and noting that universities are aware of funding risks.
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Scotland Office
44
Conclusion
First Report - Universities and Scotland
Acknowledged
Rebecca Hackett, Office of the Secretary of State for Scotland, told us that the level of reliance Scottish universities have on international student fees varies from university to university but that a loss of international fees has a “big impact” on some Scottish universities in particular.109 This disparity is clearly …
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Rebecca Hackett, Office of the Secretary of State for Scotland, told us that the level of reliance Scottish universities have on international student fees varies from university to university but that a loss of international fees has a “big impact” on some Scottish universities in particular.109 This disparity is clearly visible in the table above (paragraph 23), which identifies the income streams of each of Scotland’s universities.
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Government response AI summary
The government acknowledges the devolved nature of HE in Scotland and its support for the sector, stressing that diversifying student recruitment is a key strategic priority to manage risks associated with dependence on single funding sources.
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Scotland Office
45
Conclusion
First Report - Universities and Scotland
Acknowledged
Richard Lochhead MSP, Minister for Further Education, Higher Education and Science, Scottish Government, recommended that: We now have to look at whether [Scotland’s universities] are sustainable going forward, and whether we are overdependent on international 102 Scottish Parliament, The impact of Coronavirus (COVID-19) on university funding in Scotland (23 July …
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Richard Lochhead MSP, Minister for Further Education, Higher Education and Science, Scottish Government, recommended that: We now have to look at whether [Scotland’s universities] are sustainable going forward, and whether we are overdependent on international 102 Scottish Parliament, The impact of Coronavirus (COVID-19) on university funding in Scotland (23 July 2020), p 8 (Figure 4) 103 Scottish Funding Council, The Financial Sustainability of Colleges and Universities in Scotland (11 February 2020), p 20 104 Q101 105 Q54 106 Q4 107 Q5 108 Q4 109 Q247 22 Universities and Scotland students. I do not think that means being less attractive to international students or having fewer international students coming to Scotland, but I think there is a challenge in terms of the overall financial model.110
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Government response AI summary
The government acknowledges the concerns raised about the financial sustainability and overdependence on international students, highlighting its International Education Strategy and Graduate Route for attracting a diversified international student base.
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Scotland Office
46
Conclusion
First Report - Universities and Scotland
Acknowledged
Rt Hon Alister Jack MP, Secretary of State for Scotland, also recognised the reliance of Scottish universities on international students: Scotland’s education sector should, in the first instance, exist to support Scottish and [rest of the UK] domiciled students and the long-term contribution that they will make to economic growth. …
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Rt Hon Alister Jack MP, Secretary of State for Scotland, also recognised the reliance of Scottish universities on international students: Scotland’s education sector should, in the first instance, exist to support Scottish and [rest of the UK] domiciled students and the long-term contribution that they will make to economic growth. The sector still has much to do on widening access, yet is effectively selling places on the international market in order to sustain itself. International participation will always be welcome, however we need to get the balance right. For example, we need to be sure that when budgets are tight, capacity that could be used to address issues such as widening access in order to support ‘levelling up’ is not offered instead to the highest international bidder.111 Impact of the covid-19 pandemic on international student numbers
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Government response AI summary
The government acknowledges the points raised by the Secretary of State regarding the balance of international students and domestic provision, outlining its International Education Strategy and Graduate Route to attract a diversified international student base while noting universities' awareness of funding risks.
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Scotland Office
47
Conclusion
First Report - Universities and Scotland
Acknowledged
In early 2020 there were major fears that international students would stay away from UK universities due to the pandemic. In July 2020 there were forecasts that 12% to 61% of Chinese students (who make up the biggest single contingent of overseas students) could cancel their places at UK universities …
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In early 2020 there were major fears that international students would stay away from UK universities due to the pandemic. In July 2020 there were forecasts that 12% to 61% of Chinese students (who make up the biggest single contingent of overseas students) could cancel their places at UK universities for the following academic year.112 Universities Scotland calculated that a 50% drop in Scottish universities’ intake of international (non- EU) students in would have resulted in Scottish universities losing £435m in 2020–21, and that there would be a multi-year effect.113
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Government response AI summary
The government generally acknowledges the importance of international students and diversified recruitment in the context of pandemic-related fears, citing its International Education Strategy and Graduate Route as mechanisms to support universities and attract students.
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Scotland Office
50
Conclusion
First Report - Universities and Scotland
Acknowledged
Although international students do not seem to be staying away from Scotland like many had feared, commenters have noted that the pandemic has demonstrated just how vulnerable the current model is.120 Richard Lochhead MSP told us that “it has been a bit of a wake-up call for the institutions”.121 Whereas …
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Although international students do not seem to be staying away from Scotland like many had feared, commenters have noted that the pandemic has demonstrated just how vulnerable the current model is.120 Richard Lochhead MSP told us that “it has been a bit of a wake-up call for the institutions”.121 Whereas usually the SFC are most concerned about income of Scotland’s modern universities, the pandemic caused a situation where some of the “larger, more established institutions are much more challenged about their business model and about some of those exposures on international and commercial fees”.122 Dr Stuart Fancey, Director of Research and Innovation, Scottish Funding Council, told us that even before the pandemic the SFC “were having conversations in the higher education community about the overdependence of certain universities on particular markets” and that covid-19 brought home “exactly how quickly that can turn into a real challenge”.123 Impact of UK immigration policies on international student numbers
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Government response AI summary
The government acknowledges the vulnerability of the current funding model and overdependence on international students by reiterating its commitment to diversified student recruitment, as outlined in its International Education Strategy and supported by measures like the Graduate Route.
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Scotland Office
51
Conclusion
First Report - Universities and Scotland
Acknowledged
A further potential risk to international student numbers in Scotland is, as identified by the RSE Young Academy of Scotland, the impact of—and the perception abroad of— UK immigration policies. They view this risk as having already materialised, and give the example of Indian students, where the UK saw a …
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A further potential risk to international student numbers in Scotland is, as identified by the RSE Young Academy of Scotland, the impact of—and the perception abroad of— UK immigration policies. They view this risk as having already materialised, and give the example of Indian students, where the UK saw a 58% drop in numbers between 2010–11 and 2016–17.124 The RSE Young Academy of Scotland argue that: With a wide range of destinations available on the international education market, Scotland and [ … ] [universities in other parts of the UK] face competition by providers in Australia, Canada, the United States, as well as EU countries developing teaching and research provision with English as the main delivery language. With culture and lifestyle key aspects identified as attractors for international students, it is essential that policies do not damage aspects of life in the UK that are a selling point for applicants. The long-term effect of brand damage cannot be overstated, since 22% of prospective students consider their destination of choice for international study at least 2-years in advance.125 118 “UCAS data cause for assurance in value of Scottish higher education”, Universities Scotland, 18 February 2021 119 “UCAS data cause for assurance in value of Scottish higher education”, Universities Scotland, 18 February 2021 120 Q33 121 Q232 122 Q68 123 Q85 124 RSE Young Academy of Scotland (USC0006) p 3 125 RSE Young Academy of Scotland (USC0006) p 3 24 Universities and Scotland UK Government immigration policies are discussed further in Chapter 4 (regarding students) and Chapter 5 (regarding academic/research staff).
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Government response AI summary
The government acknowledges the potential risk from UK immigration policies by highlighting its International Education Strategy and Graduate Route as key measures to attract a diversified international student base, and notes universities are aware of funding risks.
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Scotland Office
53
Conclusion
First Report - Universities and Scotland
Acknowledged
Under EU rules on freedom of movement, European students studying in another EU member state had to be given the same access to higher education as local students. This meant that when the UK was part of the European Union, EU students had the same right to free tuition in …
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Under EU rules on freedom of movement, European students studying in another EU member state had to be given the same access to higher education as local students. This meant that when the UK was part of the European Union, EU students had the same right to free tuition in Scotland as Scottish students did. Figures from the Student Awards Agency Scotland (SAAS) show that 15,310 full-time EU students received funding in academic year 2018–19 while studying at a Scottish university.126
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Government response AI summary
The government acknowledges the devolved nature of Higher Education in Scotland and its commitment to working with the Scottish Government, while highlighting its International Education Strategy and efforts to diversify international student recruitment.
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Scotland Office
54
Conclusion
First Report - Universities and Scotland
Acknowledged
Following the UK’s exit from the EU, and the end of the UK-EU Transition Period, 2020–21 will be the last academic year in which EU students will be eligible to apply to have their tuition fees paid for by the SAAS.127 From 2021–22 Scottish universities will be able to charge …
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Following the UK’s exit from the EU, and the end of the UK-EU Transition Period, 2020–21 will be the last academic year in which EU students will be eligible to apply to have their tuition fees paid for by the SAAS.127 From 2021–22 Scottish universities will be able to charge EU students international student rates,128 which can be up to £20,000 per year.129 EU students wishing to study in Scotland will also need to apply for a student visa before they arrive in the UK. The application costs £348 and the Immigration Health Surcharge (which grants access to the NHS) costs £470 (for student visa holders).130 126 Scottish Government, ‘University fees EU students: FOI release’, accessed 7 April 2021 127 “Update on HE and FE support”, Scottish Government, 9 July 2020 128 Scottish Parliament, The impact of Coronavirus (COVID-19) on university funding in Scotland (23 July 2020), p 3 129 Q33 130 The Scholarship Hub, ‘Funding for EU students after Brexit’, accessed 8 April 2021 Universities and Scotland 25 EU student numbers from 2021–22
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Government response AI summary
The government acknowledges that Higher Education in Scotland is devolved and reiterates its commitment to working with the Scottish Government and supporting the sector, referring to its International Education Strategy and efforts to diversify student recruitment.
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Scotland Office
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Conclusion
First Report - Universities and Scotland
Acknowledged
Throughout our inquiry we also heard about the non-financial benefits EU students provide to Scottish universities, including that: • EU students enrich campuses by “creating multinational, multicultural learning environments”, which is of “tremendous benefit to our home students in Scotland”.138 131 Scottish university admissions figures, Universities Scotland, 4 August 2020 …
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Throughout our inquiry we also heard about the non-financial benefits EU students provide to Scottish universities, including that: • EU students enrich campuses by “creating multinational, multicultural learning environments”, which is of “tremendous benefit to our home students in Scotland”.138 131 Scottish university admissions figures, Universities Scotland, 4 August 2020 132 Q140 & Q167 133 “UCAS data cause for assurance in value of Scottish higher education”, Universities Scotland, 18 February 2021 134 “UCAS data cause for assurance in value of Scottish higher education”, Universities Scotland, 18 February 2021 135 Q124 136 Scottish Parliament, The impact of Coronavirus (COVID-19) on university funding in Scotland (23 July 2020), p 3 137 Scottish Parliament, The impact of Coronavirus (COVID-19) on university funding in Scotland (23 July 2020), p 15 138 Q135 [Rachel Sandison, University of Glasgow] 26 Universities and Scotland • A significant number of EU students apply for vital science, technology, engineering and mathematics (STEM) subjects139 and subject areas that are very hard to recruit to from within the local Scottish ecosystem.140 • EU students stay in Scotland after their studies far more than other international students do.141 Sustaining EU student numbers post-Brexit
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Government response AI summary
The government acknowledged the non-financial benefits of international students, aligning with the committee's observations that they enrich learning environments, foster cultural exchange, and build future networks.
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Scotland Office
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Conclusion
First Report - Universities and Scotland
Acknowledged
Richard Lochhead MSP, Scottish Minister for Further Education, Higher Education and Science, told us that: We do work with the UK Government, and the UK Government have been speaking to us. There will be lots more discussions because these are the very early stages of post-Brexit Britain, so we will …
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Richard Lochhead MSP, Scottish Minister for Further Education, Higher Education and Science, told us that: We do work with the UK Government, and the UK Government have been speaking to us. There will be lots more discussions because these are the very early stages of post-Brexit Britain, so we will continue to work with the UK Government on what they can do to support us. [ … ] What is important to me is that the Scottish brand is protected, because we have a very powerful 184 Q45 185 Scottish Affairs Committee, Fourth Report of Session 2017–19, Immigration and Scotland, HC 488, paras 91–92 186 Q42 187 HMG, ‘Graduate route to open to international students on 1 July 2021’, accessed 13 April 2021 188 HMG, ‘Graduate route to open to international students on 1 July 2021’, accessed 13 April 2021 189 HMG, ‘UK announces 2-year post-study work visa for international students’, accessed 13 April 2021 190 Q48 191 Scottish Affairs Committee, Fourth Report of Session 2017–19, Immigration and Scotland, HC 488, para 98 192 Cabinet Office, Giving evidence to Select Committees: Guidance for Civil Servants, October 2014, para 68 34 Universities and Scotland brand for Scottish higher education. It is really important that we maintain the brand. Yes, we are open to working with the UK Government on that, of course.193 [ … ] The issue we have discussed so far [with the UK Government] is making sure that Scottish education is attractive, and the immigration system, the visa costs, all these issues are very, very important. Making it easy for researchers and students to come here, and not more expensive compared with going to another European country or elsewhere. That is where we really need the UK Government’s help to make sure that our institutions are seen as attractive.194
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Government response AI summary
The government acknowledged the premise of continued cooperation with devolved administrations on higher education, stating that engagement is ongoing at ministerial and official levels.
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Scotland Office
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Conclusion
First Report - Universities and Scotland
Acknowledged
Unlike the EU Horizon Programme, the UK decided not to participate in Erasmus+ following the end of the UK-EU Transition Period. The Government said this was because Erasmus+ was “extremely expensive”.199 This was despite the Chancellor of the Duchy of Lancaster, Rt Hon Michael Gove MP, telling the Committee on …
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Unlike the EU Horizon Programme, the UK decided not to participate in Erasmus+ following the end of the UK-EU Transition Period. The Government said this was because Erasmus+ was “extremely expensive”.199 This was despite the Chancellor of the Duchy of Lancaster, Rt Hon Michael Gove MP, telling the Committee on the Future Relationship with the European Union on 17 December 2020, seven days before the EU-UK Trade and Cooperation Agreement was reached, that UK participation in Erasmus+ was intended to be included within the EU-UK Trade and Cooperation Agreement.200 This was in addition to the Chancellor telling the same Committee in March 2020 that, although he had some value for money and social mobility reservations, it was “certainly the case that, on current trajectories, if we can carry on being part of Erasmus we do see benefits in that.”201 Launch of the Turing Scheme
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Government response AI summary
The government confirmed funding for the Turing Scheme for three years and outlined its aims to promote international educational mobility, also noting President Von Der Leyen's comment that partial country association with Erasmus+ is not legally possible.
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Scotland Office
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Conclusion
First Report - Universities and Scotland
Acknowledged
By way of comparison, Erasmus+ funding for 2018 covered 49,000 students in the UK (17,000 outgoing and 32,000 incoming) and over 7,000 staff, at a cost of around €160 million.205 This means that, for the one year currently funded, the Turing Scheme will be able to fund more than twice …
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By way of comparison, Erasmus+ funding for 2018 covered 49,000 students in the UK (17,000 outgoing and 32,000 incoming) and over 7,000 staff, at a cost of around €160 million.205 This means that, for the one year currently funded, the Turing Scheme will be able to fund more than twice the number of places for UK students to study aboard than would have been the case under Erasmus+ (17,000 for Erasmus+ vs 35,000 for Turing). Higher education sector reaction to the replacement of Erasmus+ with Turing
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Government response AI summary
The government confirmed £110 million funding for the Turing Scheme for three years from 2022/23, reiterating its commitment to international educational mobility and the scheme's evaluation to ensure it delivers on its objectives.
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Scotland Office
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Conclusion
First Report - Universities and Scotland
Acknowledged
The Welsh Government is similarly disappointed that the UK is no longer participating in the Erasmus+ scheme and, as a result, has begun developing its own scheme called the ‘New International Learning Exchange’ to “fill the gaps Turing leaves”.220 A fundamental principle of the programme will be reciprocity: a two-way …
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The Welsh Government is similarly disappointed that the UK is no longer participating in the Erasmus+ scheme and, as a result, has begun developing its own scheme called the ‘New International Learning Exchange’ to “fill the gaps Turing leaves”.220 A fundamental principle of the programme will be reciprocity: a two-way exchange.221 Whilst the UK Government has allocated £110m for the first year of the Turing Scheme (UK-wide), the Welsh Government is allocating £65m between 2022 and 2026.222 According to the Welsh Government, students and staff across universities, further education, adult education, 214 “Erasmus loss ‘a huge blow’”, Scottish Government, 28 December 2020 215 “Erasmus loss ‘a huge blow’”, Scottish Government, 28 December 2020 216 Q202 217 Q199 & Q180 218 Q236 219 Q236 220 “New International Learning Exchange programme to make good the loss of Erasmus+”, Welsh Government, 21 March 2021 221 “New International Learning Exchange programme to make good the loss of Erasmus+”, Welsh Government, 21 March 2021 222 “New International Learning Exchange programme to make good the loss of Erasmus+”, Welsh Government, 21 March 2021 Universities and Scotland 39 youth work settings and schools will be able to “benefit from international exchanges in a similar way to the opportunities that flowed from Erasmus+, not just in Europe but also further afield”.223 UK Government position on Erasmus+ and Turing
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Government response AI summary
The government confirmed continued funding for the Turing Scheme at £110 million for 2022/23, committed to its development and evaluation, and stated its intent to engage with Devolved Administrations, noting that partial association with Erasmus+ is not legally possible.
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Scotland Office
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Conclusion
First Report - Universities and Scotland
Acknowledged
In relation to Erasmus+, Iain Stewart MP, Minister for Scotland, told us that that he “fully acknowledge the benefits that that scheme brought”224 and that: The possibility of staying part of Erasmus was a central part of the negotiations all the way through. I am not saying you have alleged, …
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In relation to Erasmus+, Iain Stewart MP, Minister for Scotland, told us that that he “fully acknowledge the benefits that that scheme brought”224 and that: The possibility of staying part of Erasmus was a central part of the negotiations all the way through. I am not saying you have alleged, but others have alleged that we ruled it out from the start because it was European and, therefore, bad. We took an objective look at the cost. [ … ] the judgment that was made by the negotiators was that it did not represent best value for money.225
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Government response AI summary
The government confirmed continued funding for the Turing Scheme at £110 million for 2022/23, committed to its development and evaluation, and stated its intent to engage with Devolved Administrations, noting that partial association with Erasmus+ is not legally possible.
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Scotland Office
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Conclusion
First Report - Universities and Scotland
Acknowledged
In relation to the importance of inward, rather than just outward exchanges, Minister Stewart said, “I absolutely get the value of these exchanges in both directions”228 and: In terms of students coming here, what we are also working on—and Scottish universities have a representation in this—is the International Education Strategy, …
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In relation to the importance of inward, rather than just outward exchanges, Minister Stewart said, “I absolutely get the value of these exchanges in both directions”228 and: In terms of students coming here, what we are also working on—and Scottish universities have a representation in this—is the International Education Strategy, which will conclude in the summer. That is looking at deepening the various partnerships that come in both directions.229 He also said that the International Education Strategy, led by Sir Steve Smith, would not only look at the inbound student element, but also international marketing and attraction, and inbound researchers.230
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Government response AI summary
The government confirmed continued funding for the Turing Scheme at £110 million for 2022/23, committing to its development and evaluation, and stated its intent to engage with Devolved Administrations. It generally acknowledged international educational mobility but did not directly address the International Education Strategy.
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Scotland Office
100
Conclusion
First Report - Universities and Scotland
Acknowledged
Until 17 December 2020, one week before the EU-UK Trade and Cooperation Agreement was reached, the UK Government was reassuring Parliament that UK participation in Erasmus+ was intended to be included within the UK-EU deal. Given that Erasmus+ disproportionally benefited Scotland compared to other parts of the UK, we are …
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Until 17 December 2020, one week before the EU-UK Trade and Cooperation Agreement was reached, the UK Government was reassuring Parliament that UK participation in Erasmus+ was intended to be included within the UK-EU deal. Given that Erasmus+ disproportionally benefited Scotland compared to other parts of the UK, we are disappointed that no agreement on this could be reached. Nevertheless, we support the Government’s Turing Scheme, especially that it should benefit 35,000 UK students per year (compared to 17,000 under Erasmus+), and that it will open international opportunities wider than just the EU. We look forward to working with UK Government on this and the International Education Strategy.
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Government response AI summary
The government acknowledged the committee's support for the Turing Scheme by confirming its funding for the next three years, committing to evaluating its first year's impact, and continuing engagement with Devolved Administrations.
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Scotland Office
102
Conclusion
First Report - Universities and Scotland
Acknowledged
Since the announcement that the UK will no longer participate in the EU Erasmus+ programme following the end of the Transition Period, both the Scottish Government and Scottish academics have been lobbying for Scotland to remain in Erasmus+ independently from the UK. Minister Richard Lochhead informed us that the Scottish …
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Since the announcement that the UK will no longer participate in the EU Erasmus+ programme following the end of the Transition Period, both the Scottish Government and Scottish academics have been lobbying for Scotland to remain in Erasmus+ independently from the UK. Minister Richard Lochhead informed us that the Scottish Government was exploring options with the EU for Scotland to continue to participate in the Erasmus scheme. The UK Government was opposed to Scotland having any formal involvement in the scheme, though Mariya Gabriel, the EU Commissioner for Education, and many MEPs, were keen on the idea.232
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Government response AI summary
The government acknowledges the ongoing situation regarding Scotland's desire to participate in Erasmus+ but reiterates that association by part of a country is not legally possible, while also providing an update on Turing Scheme funding.
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Scotland Office
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Conclusion
First Report - Universities and Scotland
Acknowledged
Rebecca Hackett, Office of the Secretary of State for Scotland, told us however that: The European Commission has confirmed, following the decision of the UK Government not to participate in the next programme, that there was not an option for Scotland or Wales to join. I think there has been …
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Rebecca Hackett, Office of the Secretary of State for Scotland, told us however that: The European Commission has confirmed, following the decision of the UK Government not to participate in the next programme, that there was not an option for Scotland or Wales to join. I think there has been a clear view from the European Commission that it needs to be the member state applying or the third country applying rather than individual parts of a country.235
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Government response AI summary
The government confirmed that association by part of a country with the Erasmus+ programme is not legally possible, reinforcing the statement from the Office of the Secretary of State for Scotland, and outlined Turing Scheme funding and evaluation.
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Scotland Office
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Conclusion
First Report - Universities and Scotland
Acknowledged
When asked what position of the UK Government would be if the European Commission changed its mind on Scottish participation in Erasmus+, Minister Stewart said: My point would be that Scotland would be paying twice: first for the Turing Scheme and then for Erasmus. I do not think it is …
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When asked what position of the UK Government would be if the European Commission changed its mind on Scottish participation in Erasmus+, Minister Stewart said: My point would be that Scotland would be paying twice: first for the Turing Scheme and then for Erasmus. I do not think it is a nationwide scheme, and I think we are at a very early stage with Turing. When the full benefit and the detail of it is there and comes into practice—of course, we also have the interruption at the moment with the covid situation. It is very difficult to assess one and the other when students are not able, under any scheme, to properly travel. Of course, Turing can be evaluated in the fullness of time and could evolve into something else, but the ambitions for it, I think, will both capture the benefits of Erasmus and extend them in the ways that I have indicated.236
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Government response AI summary
The government reiterated its position that association with Erasmus+ by part of a country is not legally possible, citing President Von Der Leyen, and provided an update on the Turing Scheme's three-year funding and evaluation plans.
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Scotland Office
107
Conclusion
First Report - Universities and Scotland
Acknowledged
Scotland’s universities have an international reputation for excellent research that delivers economic and social benefits for both Scotland and the wider world.237 Richard Lochhead MSP, Scottish Minister for Further Education, Higher Education and Science, has said that “Scotland is a science and research nation—we already punch well above our weight …
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Scotland’s universities have an international reputation for excellent research that delivers economic and social benefits for both Scotland and the wider world.237 Richard Lochhead MSP, Scottish Minister for Further Education, Higher Education and Science, has said that “Scotland is a science and research nation—we already punch well above our weight and enjoy a global reputation as a welcoming, pro-science nation that supports research and innovation.”238 Demonstrating the impact of Scottish research, the RSE Young Academy of Scotland told us that: The value for money provided by Scottish research is high: with 10% of the UK researcher population producing 12% of the UK research outputs in
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Government response AI summary
The government acknowledges Scotland's strong global reputation for higher education and research, stating the need to work together to maintain it.
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Scotland Office
108
Conclusion
First Report - Universities and Scotland
Acknowledged
The University of Glasgow argues that Scottish universities’ global reputation for excellent research is evidenced through ‘Research Excellence Framework’ exercises and the percentage of funding won from UK research funders compared to the relative size of the research base.240 As Edinburgh University points out, Scotland gains roughly 11% of total …
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The University of Glasgow argues that Scottish universities’ global reputation for excellent research is evidenced through ‘Research Excellence Framework’ exercises and the percentage of funding won from UK research funders compared to the relative size of the research base.240 As Edinburgh University points out, Scotland gains roughly 11% of total UKRI research funding for just over 8% of the population, and Edinburgh was fifth in the Russell Group for winning EU funding.241 Professor Rebecca Lunn, University of Strathclyde, told us that Scotland is 63% ahead of the UK average in academic citations.242 Endorsing the benefits of Scottish academic research, the Scottish Funding Council told us that: [Universities] provide Scotland with a hugely important pipeline of skilled people. They also make the research breakthroughs that will solve some of the big health, social and economic challenges of our time, including covid-19. They are also very important anchor institutions in their local communities. They employ almost 60,000 staff. They generate £11 for every £1 of public investment we make, and their international reputation attracts talent and investment. They are going to help us survive and thrive through a global pandemic and help our economic recovery.243
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Government response AI summary
The government acknowledges Scotland's strong global reputation for higher education and research and expresses a desire to work together to ensure its continuation, but does not outline specific actions.
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Scotland Office
109
Conclusion
First Report - Universities and Scotland
Acknowledged
The Secretary of State for Scotland, Rt Hon Alister Jack MP, also highlighted to us the importance of Scotland’s research base: 237 Universities Scotland, Internationally Scottish - Creating global communities (July 2020), p 12 238 “Putting Scottish science and research on the world stage”, Scottish Government, 13 June 2019 239 …
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The Secretary of State for Scotland, Rt Hon Alister Jack MP, also highlighted to us the importance of Scotland’s research base: 237 Universities Scotland, Internationally Scottish - Creating global communities (July 2020), p 12 238 “Putting Scottish science and research on the world stage”, Scottish Government, 13 June 2019 239 RSE Young Academy of Scotland (USC0006) p 5 240 University of Glasgow (USC0003) p 6 241 University of Edinburgh (USC0004) p 7 242 Q95 243 Q59 Universities and Scotland 43 Scotland has for many years batted above our weight in terms of the proportion of funded research activity that is supported here. We have been able to build on this through our work on the City Deals Programme, where a number of research proposals covering some of the key sectors underpinning the Scottish and UK economy have come forward. We are very mindful of the need to sustain this research base and that is why we have established a UK-wide Ministerial Taskforce on research sustainability.244 [ … ] Research in our HE institutions is a jewel in the UK’s higher education crown and it is right that we work together to protect this while tackling the challenges posed by covid-19.245 Effect of covid-19 on research
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Government response AI summary
The government acknowledged Scotland's strong reputation in higher education and research, stating the need for continued collaboration to maintain it.
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Scotland Office
110
Conclusion
First Report - Universities and Scotland
Acknowledged
Alastair Sim, Universities Scotland, made the point to us that a large amount of how we respond to the pandemic is going to be through research, and the need therefore for having a “vibrant world-class research base”.246 Professor Chris Pearce, University of Glasgow, also spoke to us about the impact …
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Alastair Sim, Universities Scotland, made the point to us that a large amount of how we respond to the pandemic is going to be through research, and the need therefore for having a “vibrant world-class research base”.246 Professor Chris Pearce, University of Glasgow, also spoke to us about the impact of the pandemic on academic research. He told us that: [ … ] the recent crisis of covid-19 has demonstrated the value and importance of not just universities but the research they do, and has shown how they work together. They have worked collaboratively. They have worked with industry and with the health service to fight covid-19 and I am absolutely confident that they will help in the recovery from the pandemic, but that comes only through investment.247
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Government response AI summary
The government acknowledges Scotland's strong global reputation for higher education and research and states the need to work together to ensure this continues, but does not commit to specific new actions or investment.
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Scotland Office
117
Conclusion
First Report - Universities and Scotland
Acknowledged
In response to the immediate economic pressures the UK faced as a result of the pandemic, the UK Government decided in November 2020 to temporarily reduce the funds it would make available for Official Development Assistance (ODA) from 0.7% to 0.5% of UK Gross National Income (GNI).267 On 11 March …
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In response to the immediate economic pressures the UK faced as a result of the pandemic, the UK Government decided in November 2020 to temporarily reduce the funds it would make available for Official Development Assistance (ODA) from 0.7% to 0.5% of UK Gross National Income (GNI).267 On 11 March 2021 UKRI wrote to higher education institutions to explain that this decision would have a “significant impact” on the work it funded under ODA programmes.268 UKRI went on to say: The Department for Business, Energy and Industrial Strategy’s ODA allocation to UKRI has reduced significantly its planned ODA expenditure for FY21/22, leading to a £125m budget and a £120m gap between allocations and commitments to grant holders. It is too early to detail the final impact of this review on individual grants funded by the Global Challenge Research Fund (GCRF), Newton Fund and other ODA funds within our councils including Innovate UK.269
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Government response AI summary
The government acknowledged the temporary ODA reduction by outlining its commitment to increase public R&D spending to £20 billion by 2024/25, and to return ODA funding to 0.7% of GNI by 2024/25, contingent on the fiscal situation.
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Scotland Office
119
Conclusion
First Report - Universities and Scotland
Acknowledged
The Chancellor has said that sticking rigidly to the ODA target was difficult to justify under current economic circumstances but that he intended to return to 0.7% “when the fiscal situation allows”.271
Government response AI summary
The government reiterates its commitment, made at the Spending Review 2021, to return ODA funding to 0.7% of GNI by 2024/25, conditional on the fiscal situation allowing, and highlights an increase in R&D ODA spend.
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Scotland Office
131
Conclusion
First Report - Universities and Scotland
Acknowledged
Horizon 2020 was the EU’s framework programme for research and innovation. The UK was both a significant contributor to and beneficiary from Horizon 2020 with, between 2014 and 2016, the highest share of participants in signed grant agreements (12.8% of total Horizon 2020 participants)305 and the second highest share of …
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Horizon 2020 was the EU’s framework programme for research and innovation. The UK was both a significant contributor to and beneficiary from Horizon 2020 with, between 2014 and 2016, the highest share of participants in signed grant agreements (12.8% of total Horizon 2020 participants)305 and the second highest share of programme funding distributed (at 15.2%, behind Germany on 16.7%).306 Professor Tim Bedford, University of Strathclyde, told us that Scotland as a whole secured €755 million over the six-year Horizon 2020 programme, which was 1.3% of the total Horizon 2020 budget, and Scotland’s higher universities got 81% of that.307 Minster Lochhead pointed out that Scotland had benefited more from Horizon 2020 compared with the rest of the UK.308 He also noted that: Universities’ research excellence plays a big role in attracting Horizon funding. [ … ] It is extremely important, and about 68% of all research in Scottish universities comes from Europe. As much of that as we can protect as possible is really important for the sustainability of research and higher education in Scotland, so it is really important both in terms of the collaboration and the culture of that collaboration, as well as the actual hard cash that comes in through Horizon. I know the Russell Group, for instance, said that for every £1 spent on research in Scotland, over £5 is created in the economy.309 Participation in Horizon Europe
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Government response AI summary
The government stated it has agreed to associate with Horizon Europe and is ready to formalise participation, but has faced delays from the EU. It confirmed UK applicants are eligible and outlined financial terms and a contingency plan if association is not possible.
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Scotland Office
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Conclusion
First Report - Universities and Scotland
Acknowledged
It is currently unclear how much influence the UK will have over Horizon Europe. The Declarations agreed between the UK and EU as part of the EU-UK Trade and Cooperation Agreement state that the UK “shall participate as an associated country in all parts of the Horizon Europe programme”, and …
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It is currently unclear how much influence the UK will have over Horizon Europe. The Declarations agreed between the UK and EU as part of the EU-UK Trade and Cooperation Agreement state that the UK “shall participate as an associated country in all parts of the Horizon Europe programme”, and that UK “entities may participate in direct actions of the Joint Research Centre”316 (the EU Commission’s science and knowledge service), but “without voting rights”.317 In addition, the EU Commission’s guidance note on UK participation in Horizon Europe states that the EU is able to exclude the UK from elements of Horizon Europe: In duly justified exceptional cases for actions related to Union strategic assets, interests, autonomy or security, Horizon Europe work programmes may provide that the participation can be limited to those legal entities established in Member States only, or, to those legal entities established in specified associated or other third countries in addition to Member States. Moreover, for duly justified and exceptional reasons, in order to guarantee the protection of the strategic interests of the Union and its Member States, the work programme may also exclude the participation of legal entities established in the Union or in associated countries directly or indirectly controlled by non-associated third countries or by legal entities of nonassociated third countries from individual calls, or make their participation subject to conditions set out in the work programme.318 311 Wellcome, Why the UK should associate to Horizon Europe (November 2019), p 1 312 European University Association, ‘European University Association and Universities UK International’s common statement on the EU-UK agreement’, accessed 25 January 2021 313 Royal Society of Edinburgh Fellows (USC0013) para 16 314 Q177 315 Q269 316 HM Government, EU-UK Declarations (24 December 2020), p 18 317 HM Government, EU-UK Declarations (24 December 2020), p 18 318 European Commission, Q&A on the U
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Government response AI summary
The government confirms its agreement to associate with Horizon Europe, explaining that the UK will participate in all areas except the EIC Fund and that applicants are eligible on equivalent terms, with financial provisions ensuring no payment for excluded parts.
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Scotland Office
139
Conclusion
First Report - Universities and Scotland
Acknowledged
Professor Nigel Seaton, Abertay University, told us that higher education is “fundamentally international”.324 Universities Scotland have also stated that “internationalisation is top of the agenda for Scottish universities”325 and, in July 2020, they published a report on the importance of internationalisation for Scottish universities.326 The RSE Young Academy of Scotland …
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Professor Nigel Seaton, Abertay University, told us that higher education is “fundamentally international”.324 Universities Scotland have also stated that “internationalisation is top of the agenda for Scottish universities”325 and, in July 2020, they published a report on the importance of internationalisation for Scottish universities.326 The RSE Young Academy of Scotland point out that one of the key reasons behind Scotland’s internalisation agenda is that “with a population growth rate below 1%, and large poorly populated areas, Scotland’s industries rely upon an influx of non-Scottish born people across all sectors”.327 They go on to say that “recruitment and retention of an innovative, multi-cultural workforce is essential for research, development, up-skilling and competitiveness of local communities”.328 Outlining the importance of international recruitment, Universities Scotland highlight that “staff from outside the UK make up 22.3% of the workforce in Scotland’s universities, which is higher than in universities across the rest of the UK”.329
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Government response AI summary
The government acknowledges the international nature and importance of Scottish higher education, citing ongoing collaboration with the Scottish Government and UK government support for universities, recognising the benefits of international students.
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Scotland Office