NEWS: Universities in a fine mess

By MARK McLAUGHLIN
Edinburgh Evening News
25 March 2010

TWO Edinburgh universities have been fined for over-recruiting students during the recession.

Edinburgh Napier University and Queen Margaret University have been fined GBP 338,000 and £42,000, respectively, as part of nearly £1 million of fines handed out to Scottish institutions as a result of a 12 per cent increase in students accepted on university courses last year.

The rise has been attributed to a lack of jobs in the recession.

Aberdeen University was hit with the highest penalty of nearly £500,000, while Robert Gordon University has a fine of £62,000.

The fines were revealed as the Scottish Funding Council announced a 1.4 per cent increase in funding for the 2010-11 academic year, awarding £1.12 billion of funding to Scotland's 20 universities.

However, critics say the £15.3m increase on 2009-10 amounts to a 0.6 per cent funding cut, in real terms, when inflation of 2 per cent is taken into account.

Under the settlement universities will get a total of £994.1m to support their core activities of teaching and research and to help modernise and maintain campuses.

A further GBP 129.5m of cash is being awarded as part of the horizon fund - which supports strategic initiatives such as the pooling of research activities across several universities.

SFC chief executive Mark Batho said: "Maintaining high quality teaching and learning in Scotland's universities has been at the forefront of our minds when making decisions about our allocations for university funding.

"The public spending environment is undoubtedly challenging but the funds which the Scottish Government have made available have allowed us to provide a cash increase for the coming year, reflecting the important contribution that higher education has to make to economic recovery and future prosperity in Scotland.

"These resources will safeguard the stability of the sector and mean that the quality of the student experience is maintained at a high level."

SFC chairman John McClelland said: "Scotland's universities are extremely well-positioned to play a vital role in the country's long-term economic growth.

"Our universities are already leading in areas such as energy and cutting-edge medical research that are at the forefront of innovation and technology. They also produce the skills and attributes in people that help businesses to compete internationally.

"By protecting investments in strategic areas such as skills, employability, and research, this funding settlement is important for both our economy and for society."

However, Liam Burns, president of the National Union of Students, said the decision not to expand university places meant "the door had been slammed shut" for many.

He added: "However, for those that are already at university, this announcement represents protection from course cuts and department cuts."

Mary Senior, of the University and College Union Scotland, called the real-term funding cut "disappointing and embarrassing".