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Scottish Universities and the Independence Referendum:
A Scottish political commentator’s think piece for ECC
On 18th September 2014 the people of Scotland will decide whether or not Scotland breaks away
from the rest of the UK and becomes an independent country.
That momentous event could have a huge impact not just on universities in Scotland, but throughout
the UK.
Although publicly professing to be neutral, there are grave concerns in Scottish universities about the
prospect of Scotland going it alone.
As well as the general uncertainty that such an event might have, a number of specific issues are
giving grave cause for concern.
Scotland has a strong international reputation as a provider of higher education, but only in the
context of it being part of the UK. Might independence lessen its attraction for potential students by
making Scotland a small player in a crowded market? Might the loss of Scotland similarly dilute the
appeal of UK universities more broadly?
Many overseas students want to be able to work in the UK after completing their studies - would
they still come to Scotland if they were restricted to its jobs market after completing their course,
rather than being able to go anywhere they want in the UK?
Research funding is also crucial to the HE sector. For example, Dundee University's research income
in 2012/12 totalled £140 million, supporting thousands of jobs. Some £24 million of that came from
the Medical Research Council alone.
A recent UK Government paper said Scottish universities secured 13% of the funding from UK
research institutions in 2012/13, despite Scotland accounting for only 8% of UK GDP. Would
independence put this level of funding at risk? (especially from UK institutions such as the MRC,
which may not be able to fund projects in what would then be a foreign country unless special
arrangements were made.)
At present Scottish universities benefit from substantial tuition fees charged to students from other
part of the UK.
The SNP reckon they can make an "objective justification" under EU law to continue this policy after
independence, but it has not been confirmed this would be allowed. How would they replace this
income if it was lost and would it put at risk free tuition for Scottish students?
There is also the question of state funding of universities, with taxpayers money allocated through
the Scottish Funding Council. There are simply no guarantees of what level of funding an
independent Scottish Government could afford as that would depend on the overall state of the
economy.
It could be argued that Scottish universities punch above their weight when it comes to attracting big
names in specialist fields.
Would an independent Scotland be such an attractive destination for potential staff? Dundee
University's college of life sciences has 1100 staff and research students drawn from more than 60
countries. Would so many people still be willing to come to what by global standards would be a
small country?
There is little risk to staff moving from one part of the country to another to join a world-beating
team in a centre of excellence north – or south - of the Border.
But would leaders in their field move to a university in a foreign country to take up a job?
It has been reported that an estimated £9.8 billion shortfall in the Universities Superannuation
Scheme (USS) would be payable immediately if Scotland left the UK.
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The managers of the scheme – the UK’s second largest pension fund – are currently implementing a
ten-year plan to eliminate the deficit that involves universities making higher contributions.
But this delay would no longer be permitted if Scotland separated and joined the EU thanks to
European regulations that are much more stringent for international schemes.
There is a real question over whether a small independent Scotland could sustain 15 universities.
Would it be economically viable to have three universities offering medicine, for example, or would it
not be more practical to have a single centre of excellence?
There are a lot of questions to be answered and a great deal of uncertainty, for all UK universities.
Written for ECC
January 2014
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