Scottish universities face deficits despite overall sector surplus, report finds
A new report shows most Scottish universities are operating at a loss, while the sector as a whole posted a modest surplus.
The Scottish Funding Council's latest analysis reveals that ten of Scotland's universities ran financial deficits in the 2024/25 academic year and are expected to repeat this pattern next year despite higher funding allocations. While the historic universities of Edinburgh, Glasgow and St Andrews posted the biggest surpluses, modern institutions such as Heriot-Watt, Strathclyde and the University of the West of Scotland faced deficits of £9.88 million, £9.5 million and £8.88 million respectively.
The combined surplus for all Scottish universities reached £90.6 million, but excluding the three ancient universities reduces the figure to a £7 million shortfall, highlighting the fiscal strain on newer campuses. Paul Devoy, interim chief executive of the council, described the environment as one of the toughest in recent memory and said the council is working with institutions to bolster resilience. The report recommends expanding transnational education and diversifying international student sources to mitigate risk. Ongoing staff strikes at several universities underscore the sector's broader challenges.
Why it matters
University finances affect tuition costs, research funding and employment for thousands of staff and students.
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