A major blow has been delivered to university education in Tayside and Fife with funding set to be slashed by £4 million.
Dundee University is among the biggest losers in the raid on higher education budgets, with its teaching and research grant to be cut by 3.9% in 2016/17.
A spokesman for the university said they were “disappointed” with the settlement and are now working out how to balance the books amid a £10m shortfall.
The proposed £26m cut for Scotland’s universities follows a 3.3% reduction in funding from Finance Secretary John Swinney’s draft budget.
It has led to fears of job losses and falling standards in teaching and research fields.
The Dundee University spokesman said: “We are disappointed to be one of those institutions suffering the largest percentage cut, especially given how well we have delivered against the policy priorities of the Scottish Government and SFC in areas such as widening access to Scottish students from disadvantaged backgrounds.
“However, the outcome indicated by the Scottish Funding Council is broadly in line with what was expected and includes previously communicated changes which we have already factored into our financial planning.
“We anticipate setting a deficit budget for next year and are already working across the university on plans for both increased income generation and cost savings which will address this.”
Dundee’s vice-chancellor told staff earlier this month that financial pressures meant they had to “fundamentally look at the sustainability of the university and consider the shape and size of the institution”.
Savings of between £8m to £10m have to be found for 2016/17, with officials to put their proposals before university chiefs in April. The Courier understands that redudancies are not being considered “at the moment”.
Under the proposed funding deal, Dundee will see its grant cut by £2.6m, while St Andrews and Abertay universities stand to lose £1.1m and £400,000 respectively. The figures will be finalised once Holyrood passes the Budget Bill.
A St Andrews University spokesman said grant cuts are a “source of concern and disappointment” for them as well as other institutions across the country. “Universities are net generators of positive economic activity any diminution to their hard-pressed resources has a knock-on effect to the wider economy,” he added.
Laurence Howells, SFC’s chief executive, said: “In a tough climate for public spending we have prioritised funding for core teaching activities and world class research in Scotland’s universities and have invested over £1 billion in the sector for 2016-17.”
The Scottish Liberal Democrat’s Liam McArthur said: “These grants allow Dundee University to develop cutting-edge technology and conduct the very best research, allowing us to expand our minds and our understanding of the world around us. It’s as if the SNP would prefer we live in the Dark Ages.”