Recommendation 25

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