
The downside view
Principals at Scotland's 19 institutions had asked for a £168m real terms increase in core funding in last November's Scottish spending review. They have had to make do with £30m. Subsequently the SNP-led administration at Holyrood has announced an extra £20m of funding on top of this year's cash. SFC CEO Roger McClure acknowledged that the £1102m figure for 2008-2009 was smaller than many would have hoped for.
The total funding package included £280m for research and knowledge transfer, an increase of 6.2% on the previous year; £690m for teaching, which the SFC said would allow the level of funding to be maintained in real terms; and £87m for capital funding.
"The context was a tight spending review settlement and there were concerns this would all be very disappointing," he said. "I think we will find it is not as disappointing as some people thought it was going to be. We think it is quite a positive settlement. It's an increase and it's a steady increase."
Those institutions which have performed well in the highest quality research and in knowledge transfer saw the biggest increases.
The University of St Andrews, saw a 5.5% overall funding increase, with a 9.7% increase in money for research and knowledge transfer. St Andrews principal and vice-chancellor Dr Brian Lang said he was very pleased with the components of the settlement which, he said, recognised "the crucial importance of research excellence to the Scottish economy and the imperative for this country to remain internationally competitive."
Dundee University, meanwhile, saw a 3.2% overall increase, with a 7% increase in research funding. A spokesman for the university said the figures were what they had expected. "The 7% increase in our research grant, which is quality-related, is particularly pleasing as it augments the significant increases we have achieved in competitive research income from other funding bodies."
The biggest beneficiary was the University of the Highlands and Islands Millennium Institute, which saw an overall funding increase of 6.1%. The SFC said this was due to targeted funding for health-related courses in rural areas, an increase in part-time places at the institution, and a 33% increase in grants for research and knowledge transfer.
The University of Abertay Dundee, Napier University and Robert Gordon University saw the smallest increases. Abertay's budget rose by just 1.3%, but their funding for research dropped by more than 15%, and the SFC said it was talking to the institution to see whether this was due to the university's own actions or the result of the metrics used to determine funding share. A review of the metrics is currently underway.
Abertay principal Professor Bernard King said the metrics used to determine funding took no account of the university's leading role in developing computer games technology. Last year, a team of students from Abertay won a BAFTA for a game they had devised. Professor King said the SFC had been advised in a report it commissioned from the Royal Society of Edinburgh that it needed to look at strategic research development funding for creative industry research.
Robert Gordon University saw a 10% decrease in its research funding and Napier University saw an 8.7% decline.
The upside approach
Funding increases for Scotland's higher education institutions means there is no need to rush into redundancy threats, according to a university staff union. Scotland's 19 universities and higher education colleges are to share more than £1.1bn in the next academic year. The cash, from the SFC, means funding rises of between 1.3% and 6.1%. The University and College Union (UCU) said there was "no obvious financial justification for staff cuts".
The union, which represents about 7,000 members in Scottish higher education institutions, said some universities would experience real terms cuts. But it said additional and capital funding would yield increases in all institutions. The funding announcement means a real terms increase for everyone. The union said that, of the institutions which had recently announced possible redundancy proposals, Dundee University had received a real terms increase of 1.7%, Heriot-Watt 1.6% and Glasgow Caledonian 1% in grants.
UCU Scotland president Terry Brotherstone said: "The funding announcement means a real terms increase for everyone - including those institutions that have been talking about redundancies."
The funding agreement includes £689.8m for teaching in 2008/09, which will allow the level of funding to be maintained in real terms. In addition £279m, an increase of 6.2%, will go on research and knowledge transfer. The money will also include £87.4m for capital funding - to be used to modernise estates and to provide fit-for-purpose facilities for learning and teaching.
SFC chief executive Roger McClure said: "The increased level of capital investment is particularly welcome. It will help the universities to continue to tackle the backlog of building maintenance and provide excellent facilities for students and staff."
Sources: http://education.guardian.co.uk/higher/news/story/0,,2266591,00.html
http://news.bbc.co.uk/1/hi/scotland/7305929.stm