HE in Scotland post-General Election 2015 An independent think piece for ECC

The new Scottish Government programme, ‘One Scotland’ (http://www.gov.scot/Resource/0046/00464455.pdf) focusses as much on tackling inequality as it does on economic growth. Indeed, it sets out a vision that tackling inequality itself is a driver of economic growth. In this context, the HE sector in Scotland will face a strong battle for resources within a spending review in the second half of 2015. Given a Scottish parliament election in 2016, a review in late 2015 may only set a budget for 2016-17 with a further review post the Scottish election. The sector has a strong track record as a driver of economic growth and in tackling inequality but will be in strong competition for limited funds.

There is already some evidence of a risk to levels of Scottish Government funding of the sector. The cut of £21m from the HE programme budget for 2015-16 has already had demonstrable effects on research funding in particular. This has been felt particularly hard given the Scottish sector’s strong performance in the REF. Should the sector secure a cash flat settlement for 2016-17 then this will make existing Scottish Funding Council commitments unsustainable, including the Council’s programme of additional places for widening access.

Meanwhile, the Scottish Government has invited the Scottish Funding Council, in partnership with the sector, to set out a 10 year strategy for capital investment. With capital funding set at £21m in 2015-16 (a drop of over 75% over recent years) this is a key initiative. An increased capital grant would alleviate the pressure on the Scottish Funding Council’s programme grant as the Council is currently diverting significant volumes of programme funding to capital to meet strategic match funding commitments.

Whilst there is likely to be pressure on government funding, both the SNP and Labour have ruled out the re-introduction of a student contribution to fees. In this context, should Labour form the next UK government and introduce a £6K fee in England, this would shift the market for rUK students in Scotland. Scottish Labour has committed that, if it were to form the next Scottish Government, it would meet this gap by direct funding using funds from the Barnett consequentials of the £6K fee policy in England. The current Scottish Government have not stated what their response would be.

In the context of wider political developments in Scotland, the workforce practices in all sectors will continue to come under close scrutiny. Issues such as the Living Wage, the use of ‘zero hours’ contracts and the gender balance on boards are high on the political agenda and it is likely that universities will be asked to sign the proposed ‘business pledge’ (see http://news.scotland.gov.uk/News/National-

1 Economic-Forum-131b.aspx) to address these and other issues. The Scottish Government has suggested that access to high level business support, for example from the enterprise agencies, will be dependent on signing this pledge.

The relationship between the state and the HE sector continues to diverge across the administrations in the UK. In Scotland the sector is concerned about a growing instrumentalism in policy for the sector that conflicts with institutions’ autonomy. Central to this, the Scottish Government has included legislation on university governance in its legislative agenda for 2015 with a Bill anticipated in June 2015. Opinion on the merits of legislation, and the proposed measures, is divided strongly. Universities’ Chairs and Principals do not consider there to be a need for legislation and have strong concerns about the proposals, in particular the suggestion of election of Chairs of Court by a broad constituency beyond the Court itself and for Trade Union representatives to have seats on courts by virtue of that office rather than through election as individuals by all staff.

Written for ECC by a Scottish HR commentator March 2015

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