Aberdeen University will face a 'challenge' breaking even

The newly appointed principal of the University of Aberdeen, Prof Peter Edwards, has described the goal of reaching a break-even financial position by 2028 as a considerable challenge. Prof Edwards, who began his tenure last month, acknowledged that while the university has already identified savings exceeding 5 million, substantial efforts remain necessary.

In an interview with BBC Scotland News, Prof Edwards expressed hope that compulsory redundancies could be avoided. However, he emphasized the need for a comprehensive review of the current university funding system. He noted that government support for Scottish students has been declining and requires reevaluation to ensure long-term sustainability.

The Scottish government reaffirmed its commitment to a strong and sustainable higher education sector. Officials highlighted the significant economic, cultural, and societal contributions of universities, emphasizing ongoing investment exceeding 2 billion in post-school education this year, along with generous student support schemes.

Financial Measures Underway

Earlier this year, the university reopened a voluntary severance and early retirement program aimed at saving 5.5 million. Recruitment was frozen, and departments were tasked with identifying additional cost-saving measures. So far, 41 staff members have opted for early retirement or severance packages.

As a result of these wide-ranging measures, the university reduced its projected deficit for 2024/25 to 4.3 million. Leadership reports that the institution is on track to meet the approved budget for the current year and continues working toward the 2028 break-even goal.

Leadership Transition and Institutional Review

Prof Edwards succeeded Prof George Boyne as principal on 1 November, stepping into ongoing financial challenges. He stated that both he and the senior management team aim to achieve further improvements in the current financial year. Despite this, he admitted that rising costs make reaching a break-even position by 2028 a significant hurdle.

Prof Edwards also addressed cultural issues at the university. Following a leaked report revealing internal power struggles and a toxic culture in some meetings, he stressed the importance of fostering a respectful work environment.

Academic Programs Under Scrutiny

The university is reviewing all undergraduate and postgraduate degree programs to ensure they meet student and employer needs. While Prof Edwards did not rule out the possibility of discontinuing additional courses, he emphasized careful evaluation to maintain program relevance.

Employment Outlook

So far, no compulsory redundancies have occurred. Prof Edwards expressed optimism that future necessary changes could be implemented without job cuts, citing the voluntary severance scheme as a key tool.

Wider Scottish Higher Education Context

Other Scottish institutions are also facing financial pressures. Edinburgh University recently announced 140 million in budget reductions, while Dundee University received a 40 million emergency government bailout. A Scottish government spokesperson emphasized collaboration with universities to secure a sustainable future and confirmed that free tuition remains a priority, contributing to historically low student debt levels in Scotland.

Author: Sophia Brooks