Labour’s first budget spells bad news for universities, with the sector already in dire financial straits.

The University of Edinburgh, University of Dundee, and Robert Gordon University have issued redundancy warnings to staff. This comes amidst budget cuts to Higher Education and a decline in international enrollments. 

Principal of the University of Edinburgh Sir Peter Mathieson told staff that involuntary redundancies could be “unavoidable.” The University of Dundee said job losses were “inevitable”, and Robert Gordon University has placed over 100 roles at risk of redundancy. 

This news comes amidst the national insurance rise in the first Labour Budget, creating extra financial pressure on the already stretched university sector. The University of Edinburgh claims that the increase to national insurance has “created a multi-million pound increase to our salary bill.”

Principal of the University of Edinburgh Sir Peter Mathieson told staff that involuntary redundancies could be 'unavoidable'

The budget also promises an increase in tuition fees are set to increase in England, with Scotland, Wales, and Northern Ireland likely to follow suit. Some critics have suggested that this increase is too small to meaningfully boost the higher education sector.. 

The decline in international students has also had a serious impact on British universities, including the University of Glasgow. In recent years, international enrolments have been a major source of funding, but recent decline has led to an increased financial strain for many universities.  

The University of Glasgow has not announced any redundancies so far, but the financial situation following the Budget means that a similar pattern is likely to spread across Higher Education. 

The Scotland official for the Universities and Colleges Union, Mary Senior, said that this is a “deeply worrying” time for staff and students.

Sir Peter Mathiseon said, "I don’t underestimate how unsettling this news will be, however, it is important that I am honest about the scale of the challenge we have [been] transparent about the actions we need to take to address it."

Published 27 November 2024