UNIVERSITY bosses have asked the Scottish Government for more money following the UK Government’s National Insurance hike.
Robert Gordon University in Aberdeen alongside Edinburgh and Dundee have warned staff of potential job losses and other cuts as a result of tax hikes in the UK Budget.
In an email sent to Edinburgh University staff seen by The National, the university said that the National Insurance hikes in the Budget have created a “multi-million pound increase to our salary bill”.
Now umbrella body Universities Scotland has taken the "unprecedented step" of increasing its 2025-26 budget ask to tell the Scottish Government it will need another £49 million.
In its original submission to ministers, the organisation said a "sudden drop" in the number of international students had taken "tens of millions" out of the sector's finances and called for action to "ensure the long-term sustainability" of higher education.
But it has now gone back to the Scottish Government to say more money will be needed as a result of decisions taken by the Labour UK Government.
In a statement, Universities Scotland said the increase in employer's National Insurance contributions would cost the sector £45m in the next full financial year.
However, analysis by the Institute for Fiscal Studies suggests the figure could be as high as £57m.
Universities Scotland said: "Before the uplift in fees in England, there was a 21% gap, or £2020, between what is invested on a per student basis in Scotland and England.
"We do not want to be in a situation where the level of resource invested in the higher education of our Scottish students in Scotland falls even further behind that experienced by an English student in England."
An announcement was made earlier this month that tuition fees in England will rise to £9535 from April next year.
In a paper earlier this week, the IFS warned the Scottish Government must increase investment in higher education by £60m this year to prevent universities from having to "do more with less".
While the number of international students hit a record high in 2022/23, the number of applications has receded.
The Scottish Government has called on the UK Government to "fully reimburse" the cost of the National Insurance hike on the public sector.
Scottish Health Secretary Neil Gray said the change could cost the public purse more than £500m.
