University recovery plan

Background and context

We announced in November 2024 that the University was facing a financial crisis with an anticipated £30 million deficit, brought about by factors including:

• a severe drop in international student recruitment
• ongoing structural underfunding of higher education
• cost increases
• inflationary pressures
• a range of other detrimental changes, including an increase in our National Insurance contribution.

This was compounded by internal factors, including but not limited to:

• a longstanding structural imbalance, with the scale and intensity of the University’s research profile being significantly greater than can be sustained by the scale of teaching and commercial activity delivered
• inadequate financial discipline and control and some poor investment decisions
• inadequate oversight of the financial underpinnings of strategic ambitions.

This means we need to address: 

• a structural deficit that has been growing and now needs to be urgently filled
• a serious fall in income which led to the increase in projected budget deficit this year
• size and shape of the University, for which a new operating model including restructuring of academic and professional services is proposed
• the sale of assets including property, intellectual property, and share disposals.

We need to become a more appropriately balanced and financially sustainable institution, remaining integral to the economic, social and cultural well-being of the city, our region and beyond.

We are committed to ensuring the success of the University now and into the future. We have renewed our vision for the future so that we can continue to deliver in our key areas of academic strength in education, research and knowledge exchange. We will remain an attractive destination for students from Scotland and across the world, offering an outstanding student experience.

Current position

Following extensive consultation with internal and external stakeholders, and with support from the Scottish Funding Council, a University Recovery Plan has been submitted to the Scottish Funding Council and Scottish Government. They will undertake due diligence on the plan, and their endorsement, including any related conditions and assurances, will ensure that additional financial support will be released to support the University as we work towards financial sustainability.

The proposed route forward will require significant additional public funding. We are engaged in discussions, through the Scottish Funding Council, as we look to secure that support over the next two years, Further liquidity support funding may also be required.

Financial analysis of the deficit

The structural deficit is the gap between our ongoing anticipated levels of income and our recurrent costs. Challenges around international recruitment, increasing staff costs, high costs of research intensity and inflationary pressures on other operating costs are all contributing factors to the stated position.

The structural deficit within our costs was sharply exposed by the rapid decline in international tuition fee income early in the 2024/25 academic year.

The University took urgent action to control costs in 2024/25, for example a recruitment freeze and tight controls on all operating expenses.

Although not impacting on our operating position the University has protected the cash position by reducing capital expenditure and through the sale of assets.

Impact on students

It is a priority for us to ensure continuity and a high-quality education for all our students. We are delivering our courses as normal and will continue throughout this year, and beyond.

We are actively recruiting new students to start in September 2025 and January 2026, with a full prospectus, all signs of our determination to achieve a more sustainable future and continue to be a great place to live, work, and study.

Scottish Funding Council (SFC) support

On 20 March, the SFC announced that it had approved a £22m support package for the University, comprising a mix of long-term loans and capital grant funding. This is vital liquidity support, but it does not address our structural deficit.

Scottish Parliament engagement

Members of the University Executive and the Acting Chair of Court gave evidence relating to the University’s situation at a session of the Education, Children and Young People committee at Scottish Parliament on Wednesday 19 March. Follow up correspondence from the University has also been made available. Former members of the University Executive and the former Principal gave evidence to the Education, Children and Young People Committee on 25 and 26 June.

Governance and accountability

The University gave its full support to the independent investigation into the circumstances leading to the current financial situation. This investigation was Chaired by former Principal of Glasgow Caledonian University Professor Pamela Gillies following her appointment by the SFC, who sponsored the investigation. 

The Gillies Report was published on 19 June and the University’s Action Plan in response to the report was published on 13 August 2025.