Edinburgh University warns staff over funds gap

The University of Edinburgh has warned its staff about an "urgent" gap in financial stability which could lead to programmes and schools being closed.

An email, sent to all staff by Principal Peter Mathieson, said significant cost-cutting measures would be needed in the near future and "nothing is off the table".

In November, the university warned staff it would have to make job cuts in response to "unsustainable" funding and a voluntary redundancy scheme recently opened.

A spokeswoman said the university wanted to be transparent with staff and it had extended the deadline to its voluntary redundancy scheme.

The University and College Union (UCU) branch at the university disputed the need for cuts and said the institution was richer than it had ever been.

It urged management to rule out compulsory redundancies.

The union said its members recently passed a vote of no confidence in the principal and senior management at the university, with a final count of 265 to 25.

The university principal said potential cost-cutting measures could include "restructuring, possible closures of programmes or even schools, mergers or shared services between Schools, centralisation of some services, outsourcing of others".

The executive board will consider its financial position next week and update staff with more details.

Mr Mathieson said he understood that the email would cause "anxiety and uncertainty", but it was best to be honest about "the scale and urgency of the measures likely to be needed".

He said swift and decisive action now would secure the future of the university.

A spokeswoman for the University of Edinburgh said: "In line with our commitment to be transparent about the university's financial position, we have shared with staff that we anticipate having to take further actions to ensure the university remains on a secure financial footing.

"We have also decided to extend the deadline for applications to the voluntary severance scheme by two weeks until Friday 28 February."

UCU general secretary Jo Grady it was a "deeply worrying" time for workers at the university.

She added: "UCU has already lodged a failure to agree with senior management over its refusal to rule out compulsory redundancies as it undertakes this current restructure process.

"This is an employer that wastes millions on capital projects, but is now seeking to cut the very staff who deliver the teaching, research and student support that make the university the successful institution that it is.

"Management now needs to change course and guarantee workers will not be forced out the door."

A number of Scottish universities are coming under financial pressure from rising costs and reduced income from international students, described as a "perfect storm" by the Institute for Fiscal Studies.

The University of Dundee revealed a potential deficit of £30m in November.

Staff voted to strike last month after the university announced its intention to cut jobs in an effort to stabilise its finances.

The principal, who resigned after a row over expenses, had warned of an "extremely challenging period" for the UK higher education sector.

In Wales, Cardiff University announced that it would cut 400 full time jobs amid a funding shortfall.

Scottish Conservative education spokesperson Miles Briggs said the current funding model is "short-changing universities".

He said: "This stark warning from Edinburgh's principal, which will cause alarm and anxiety among staff and students, is just the latest siren call from a leading Scottish university over its perilous financial position."

Scottish Liberal Democrat education spokesperson Willie Rennie MSP said jobs will be lost if the government does not act fast.

He said: "The government is in danger of sleepwalking into a disaster in our university sector.

"There needs to be an acknowledgment that the current financing model is just not fit for purpose."

A Scottish government spokesperson said: "While this is ultimately a matter for Edinburgh as an autonomous institution, we recognise that staff and students will be worried.

"We encourage the university to carefully consider its proposals in line with our Fair Work principles, and to work with trade unions to ensure staff are treated fairly.

"Both the Scottish government and Scottish Funding Council engage closely with universities and we value the important contribution they make to the economy and wider society."