International tuition fees set to dominate funding of Scottish universities

Scotland’s universities are expected to be funded more by international students than by the Scottish government’s block grants by 2025, Universities Scotland analysis suggests.

Those living in Scotland for three or more years are eligible for free university degrees, while international students pay £20,000-£30,000 on average. This has led Scotland to increasingly rely on fees paid by those attending universities outside of Scotland and the EU.

The government primarily funds Scottish universities through its national Funding Council alongside a college budget of £675.7 million in 2022. This differs from universities in England and Wales, which are funded by a combination of both national and international tuition fees. These currently stand at £9,250 for students in England and Wales, and £20,000 for international students.

The Scottish government have enacted cuts in per-student funding since 2014. It is argued that inflation has exacerbated these, with forecasts by Universities Scotland suggesting that this will amount to real cuts of 37-41% in the ten years running up to 2024-25. This would amount to a cut of approximately £2,325 per student.

Non-EU students paid 50% of tuition fees in Scotland during the COVID-19 lockdowns while making up only 13% of Scotland’s total student population.

According to Erudera, international students make up a large portion of Scotland’s student population at 68,180 across all universities, with three universities (Edinburgh, Glasgow, and St Andrews) attracting 29,986 students. In addition, St Andrews has offered almost half of its places to international students.

Most international students attending Scottish universities originate from China at 16%, followed by the US at 9%, and India at 3%.

In a press release published on the government website by the Cabinet Office,  MP Andrea Jenkyns and MP Jake Berry outlined that international students in 2022 will generate £44.4 million for the Scottish economy. In the report, the International Recruitment Manager for the University of Glasgow stated that at the university, “international students enhance the learning environment” and “contribute to research output”, adding further to the “cultural vibrancy of our campus.”

The projected economic benefit in the UK from international students is highest in Scottish cities, with Glasgow’s economy projected to benefit by £9 million and Edinburgh’s economy is expected to benefit by £8.5 million from international students.