The University of Edinburgh’s principal and vice-chancellor Peter Mathieson has unveiled plans for up to £140 million of cuts to tackle severe financial difficulties.
Mathieson announced “radical university wide-action” to make the savings needed to close a projected financial deficit.
The principal said in a message to staff the measures would be needed to ensure a “sustainable reduction” in costs to help the institution cope with falling income and higher bills.
“The size of the financial gap that we need to close over the next 18 months is about 10 per cent of our annual turnover – a similar percentage to that of many other universities,” said Mathieson.
“This has to be a recurring and sustainable reduction in our costs. For us, this is of the order of £140 million …
“To make these recurrent savings, we need radical University-wide actions, which will lead to a smaller staff base and lower operating costs.
“We are also reviewing all capital expenditure – including previously approved projects – with a renewed lens of affordability.
“There will be five workstreams to deliver the required changes, aiming to restore the University to a secure sustainable position by financial year 2026/27.”
Mathieson added: “There are several coinciding factors that have brought about the circumstances our sector is now reckoning with, many of which I have warned of publicly and privately for a number of years in a bid to abate this situation.
“These factors include years of income for teaching not rising in line with costs, steeply rising utilities prices, inflation, recent unexpected announcements on National Insurance Contributions, and rise in employment costs: these have all contributed to the fragility of the sector’s finances.
“Moreover, across the UK, we are facing a reduction in the attractiveness of the UK as a destination for international students.”
The Edinburgh Uinversity news comes as Dundee University staff began strike action to protest proposed job cuts, which the institution say is needed to help cover a potential £30 million deficit.
Members of the University and College Union (Scotland) recently voted that they had “no confidence in the principal and senior management” at the university.
The union said that the level of cuts at Edinburgh were “off the scale” and questioned the actions of management in getting the university into a position where it was looking for cuts of this magnitude.
The union also said that the university should consider using some of its reserves — the university’s accounts show net assets of £3.1 billion — rather than cutting staff.
UCU general secretary Jo Grady said: “The University of Edinburgh is one of the oldest and richest institutions in Scotland with endowments stretching back through the centuries, so management’s threat to make cuts of this size is shocking.
“Professor Mathieson needs to use the billions of pounds the university boasts in wealth to protect jobs, protect provision and protect the university’s global reputation.
“The Scottish Government also needs to call on university management to halt these devastating cuts. Scotland cannot afford to allow one of its great public institutions to engage in academic vandalism of this scale.”