University of Dundee: Cabinet Secretary for Education and Skills statement – 24 June 2025

Presiding Officer,

Scotland’s universities are anchor institutions in our communities, acting both locally and globally. Put simply, they are woven into the very fabric of Scotland’s identity.

Before I turn to the substantive matters of today’s statement, I want to acknowledge the deep concern, uncertainty, and distress that many of the staff, students and wider community of the University of Dundee have felt in recent months.

I have witnessed this at first hand, having engaged with trade unions directly over recent months and having met with staff at the University’s School of Life Sciences.

At the heart of Dundee University is a community who care deeply about the future of the institution.

My focus, the focus of this Government, is on ensuring that the University of Dundee emerges from this crisis stronger than ever.

Before we can move forward to secure that future, the University must respond to the urgent and clear conclusions of Professor Pamela Gillies’ report, on financial oversight and decision making.

We have already seen individuals at the university take decisive action, with changes at a senior level being announced last week.  

This is welcome and it must be the start of a process to not just appoint fresh leadership, but also to restore confidence amongst staff.

I am encouraged that Professor Nigel Seaton, formerly Principal of Abertay University, will take on the role of Interim Principal on a short-term basis.

Iain Mair, who is Deputy Chair of Court, will step in as Interim Chair of Court, whilst elections, quite rightly, take place for a new Chair of Court over the summer.

I also want to put on record my gratitude to the wider sector and to Universities Scotland for their collaborative efforts in supporting the University of Dundee.

Turning to the Gillies Review itself, I want to sincerely thank Professor Pamela Gillies and her investigation team for the robust report which has been produced.

I thank everyone who gave evidence to that review and I extend my gratitude for a thorough and insightful report, which has uncovered the events leading to this situation.

Indeed, there is much detail in the report alongside important recommendations for the university to consider. The overall themes include:

• a breakdown in governance and processes at a leadership and court level, as well as a culture which did not cultivate openness and challenge
• issues with financial management, reporting and oversight
• missed opportunities that could have been taken earlier to raise and respond to a worsening financial situation

Now, Professor Gillies outlines that, whilst the Scottish Funding Council’s Financial Memorandum and Code of Good Higher Education Governance in Scotland are fit for purpose, and the university was obliged to comply, it did not.

The Code provides a framework for effective management and governance arrangements, but the university failed to operate effectively in practice.

Professor Gillies notes that there were inconsistencies and gaps in the information reported to the university’s Executive Group, Finance Committee and to Court. But there was information produced which, with appropriate challenge, should have signalled warnings from March 2024, if not earlier.

Whilst many of the recommendations are, quite rightly, a matter for Dundee University to respond to, Ministers have already held early discussions with the Scottish Funding Council to consider what more we might seek to do to strengthen governance in our institutions.

And it is right that we do this given the public interest in our universities.

With that in mind, I want to turn to the actions of the Scottish Government, that we are taking to support the university at this difficult time.

Let me be clear: this is not about rewarding failure. This is about responding to an unprecedented and a unique situation which threatens much of what we hold dear in our University sector.

Students’ futures, Dundee University’s contribution to Health and other sectors, the vitality of our communities and the profound impact that the university has on the wider city region.

Colleagues will recall the announcement earlier this year of £25m from the Scottish Government to the sector, of which £22m was directed by the Scottish Funding Council to the University of Dundee. 

Presiding Officer, the Scottish Government is determined to do everything that we can to secure a positive future for Dundee University.

That must be achieved through delivery of a sustainable, long-term recovery plan which will see public financial support work alongside commercial and private investment, to ultimately see reliance on extraordinary public funding ending.

To that end, Ministers are keen to see progress at pace from the university to deliver that plan.

We will, accordingly, develop appropriate conditions for the funding, working closely with the SFC and only when that plan is in place will funding be released.

The university’s journey towards immediate and longer-term sustainability will continue to be supported by the ongoing work of the Strategic Advisory Taskforce, chaired by Sir Alan Langlands.

The Taskforce is expected to complete its work in July.

Presiding Officer, members understand that our universities are independent and autonomous institutions. In normal circumstances, decisions on the allocation of funding to individual institutions are, quite rightly, the responsibility of the Scottish Funding Council.

However, this is a unique and an unprecedented set of circumstances, which requires a unique and an unprecedented response.

Where there has been the appearance of financial mismanagement at an institution, Scottish Ministers are obliged to consider whether it is necessary or expedient to issue a direction to the SFC about the provision of financial support.

Subject to the public value test I have set out today, Scottish Ministers consider it is both necessary and expedient for a direction to be issued to the SFC under section 25 of the Further and Higher Education (Scotland) Act 2005.

The use of this power is unprecedented and has been made necessary by the exceptional circumstances at the University, as set out in the findings of the Gillies Report, which recount “poor financial judgement” and “weak governance”.  

The process as set out does, however, allow for Ministers to target a direct settlement to the University of Dundee, and to place specific conditions on that funding, in this unprecedented set of circumstances.

I can therefore confirm that the Scottish Government will provide funding in principle of up to £40 million over 2 academic years, or 3 financial years, via the Scottish Funding Council, to support the University of Dundee.

This funding is subject to further due diligence prior to any expenditure occurring.

The SFC will continue to support the university in their development of a robust and deliverable recovery plan, which leverages commercial lending.

There remains, however, a liquidity gap. Dundee University estimate the gap to be in the region of between £45 million up to £60 million, across the next 2 academic years.

And this figure is also likely to be impacted by progress at the university to reduce expenditure and to stabilise their income.

Now, colleagues will understand that this figure requires to be further interrogated by the Scottish Funding Council.

The SFC has been advised by Dundee University that whilst this is not an immediate cash need, it will need to be addressed before the end of this financial year.

It is, therefore, vitally important that the university works to secure a plan which will allow for commercial lending to support some, or all of the liquidity ask.

The Scottish Government will, of course, consider all avenues and other support we can provide to achieve that end.

Presiding Officer, I do want to provide reassurance to the wider Higher Education sector today, that the additional funding to Dundee University will not impact on the funding available from the SFC to any other institution.

In doing so, I recognise that many institutions have worked proactively in response to a challenging operating environment over recent years, to rationalise their operations, including onstaffing levels.

But there is a need for a reflection from our universities on the levels of growth that we witnessed in some institutions, particularly during the pandemic.

Some of the planned job losses being experienced at the current time relate directly to that uncapped expansion – the cost being paid today are the unsustainable jobs created as a result.

And whilst Dundee’s finances may be unique, their approach to investment in the international student economy is not.

There is, therefore, a lesson in the experiences at Dundee University, which other institutions should be mindful of.

Presiding Officer, clearly Dundee University will need time to fully work through the challenges presented by the Gillies review, and to respond accordingly.

Ministers will support that endeavour via the auspices of the Scottish Funding Council. The SFC will provide an update to the Education Children and Young People Committee on its associated next steps. Ministers will provide a further update to Parliament early in the new term.

I have appreciated the cross-party engagement with local members and I give colleagues an undertaking today that engagement will continue as we progress with the associated next steps.

Finally, I want to place on the record my personal thanks to the trade union representatives at Dundee University.

Your leadership and support to your members at this time has been invaluable.

Presiding Officer, a line must now be drawn under mistakes made by a collective few, and we must jointly - across this Chamber – endeavour to support Dundee University to rebuild, to thrive and once again, to flourish.

The City of Discovery should expect no less.