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Undergraduate tuition fees are free in Scotland, with funding for universities provided by a mixture of the Scottish Government, research grants from the private sector, and fees charged to overseas students.
However, while underlining the importance of the university sector to the skills pipeline and technology development, one prominent business figure in Glasgow has warned that the increasing reliance of Scottish universities on fees from overseas students has left them in a “precarious position”.
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Stuart Patrick, chief executive of Glasgow Chamber of Commerce, told The Herald: “We cannot overstate the importance of Glasgow’s universities to the City Region. Beyond providing an essential skills flow to sectors such as financial services and driving innovation in the life sciences, quantum technologies, and creative industries, they also play a vital role in the wider economy.
“For example, every year, Scottish universities collaborate with over 20,000 Scottish businesses on innovation projects and create around 300 new businesses and spin-off companies, boosting economic growth and entrepreneurship in Glasgow and beyond. We should not and cannot take the role of our world-class universities for granted.”
However, he added: “The reliance on international student fees to subsidize research and teaching has left universities in a precarious position. Although public investment per student is five times higher in Scotland than in England, Scottish universities still receive 23% less funding per student, forcing them to rely on international students.
“There is no doubt that international students play a vital role in our cities, greatly improving our campuses and our workforce. However, the funding model also puts pressure on domestic student numbers, limiting opportunities for local talent. In Glasgow, we must protect opportunities for indigenous talent to study, work and contribute to their local economy. This is the only way we will ensure sustainable success.”
Mr Patrick said that a review of the funding model was needed to ensure the stability of the ongoing funding.
“In Glasgow, where universities are driving the innovation and skills pipeline, a sustainable, long-term funding model is urgently needed to avoid future instability and ensure the continued economic contribution of these institutions,” he said.
“Cities like Glasgow are central to tackling the UK’s productivity problem. The strength of our universities in sectors such as life sciences and creative technologies positions the city as a center of growth. However, universities can only help drive this growth if they receive the investment needed to carry out research and innovation.
“For every £1 million invested in university research, £8.1m is generated in economic return, so we know the size of the prize is significant. However, without stable funding, Glasgow’s ability to lead national growth and productivity will be undermined.”
Catherine McWilliam, national director (Scotland) of the Institute of Directors, also expressed concern about the current university funding model. Ms McWilliam said universities in Scotland “play an important role in equipping graduates with the skills and attributes that businesses need”, adding that they “do a good job of keeping up with business demands” in an environment where the “range of skills required. changes rapidly”.
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However, he warned that skills shortages and gaps “remain a significant concern for businesses in Scotland”.
“According to this year’s IoD State of the Nation Directors Survey, only 54% of directors were confident they could recruit enough skilled staff in the next 12 months, down from 57% the previous year,” Ms McWilliam told The Herald . “There is a key role for universities and further education institutions to play in tackling this; ensure that they align what they offer with the needs of the commercial sector.
“The current funding model may also play a role in limiting the extent to which universities can adapt to commercial demands. Although it has enabled free tuition for Scottish students, it places significant pressure on university resources, potentially limiting the ability to invest in cutting-edge facilities and programmes.
“With the Scottish Government allocating funding to universities, and in the absence of tuition fees, there is a cap on student numbers. In England, there is no cap, and teaching grants are only provided for courses that are expensive to run.
“This is an issue of its own to discuss. However, it means that the sector in England has become much more commercial than the Scottish sector.
“Future options could include exploring more diverse income streams through private sector partnerships, more international student admissions, and more government support for industry-related research and innovation programs.”
Read more in the series:
Why are overseas students so important to our universities?
Funding must be increased to support free university tuition
In north-east Scotland, Aberdeen and Grampian Chamber of Commerce said the city’s two universities and colleges were working closely with the business community across the region, particularly in providing the skills needed in sectors such as energy , food and drink, and life sciences.
However, chief executive Russell Borthwick said the organization would like to see “more joined-up thinking between departments in the Scottish Government, particularly around the key skills needed for the economy of the future”.
“The energy transition is a good example of this; “Higher education institutions here are having to make cuts at a time when the Government should be supporting them to grow courses where young people can learn the skills this region needs for the future,” he told The Herald.
Mr Borthwick also urged the UK Government to reverse the ban on international students bringing their dependents to the UK and maintain the Graduate Pathway Visa to ensure the country “continues to offer post-study work that internationally competitive for international students”.
“The UK Government must also recognize that some postgraduate courses are only viable because of the presence of international students,” he added.
The Federation of Small Businesses (FSB) in Scotland said that although small companies have good links with the college sector, there is room to improve communication with universities.
Vikki Manson, deputy head of policy at the Federation of Small Businesses, said: “Small businesses in Scotland have a strong working relationship with the college sector. There is certainly a willingness among universities to engage with the small business community, and vice versa. We are aware of good work being done by universities in this area. Perhaps the challenge is for universities to find ways of communicating that are more accessible to business owners.”
Meanwhile, Universities Scotland has highlighted the sector’s desire to work closely with businesses to provide the skills companies need, now and in the future. Director Claire McPherson said: “Granular projections of workforce needs are notoriously difficult to make over the long term but at a skill or sector level, the data strongly suggests that the vast majority of new jobs by 2035 have high skills. level and that there will be tremendous growth in jobs in computing and engineering, education, health and the creative industries, which are all sectors that universities are well placed to support.
“Universities work closely with employers and respond to workforce needs and new delivery models. They have shown a strong desire to expand graduate apprenticeships in partnership with business and are keen to bring more agility to this model.
“Beyond apprenticeships, universities offer students other work-based and work-related opportunities within a degree. This means that our graduates have the knowledge, experience and confidence to start working in their careers and have a set of transferable skills that prepare them for a long and varied career. Last year, 83% of Scotland’s senior leaders with a degree said that going to university had given them a good basic knowledge of their industry/sector.
“Looking to the future we can also be sure that we will need to reskill and upskill the current workforce as Scotland’s demographics shift and as new industries emerge and grow. Scotland will need flexibility in its teaching funding model and student support options to enable mature and part-time learners to study at degree level and potentially in shorter courses.”
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source link https://www.heraldscotland.com/news/24607955.the-model-places-pressure-domestic-student-numbers/?ref=rss
