Dundee University crisis: What we know so far

Dundee University has been engulfed in crisis since a £30 million funding deficit and potential job losses were revealed last November.

The alarming headline was swiftly followed by Principal Iain Gillespie’s sudden resignation.

And on March 11, the university announced the deficit had grown to £35m – and as many as 632 full-time equivalent posts will be cut.

Angry staff began had already protested and gone on strike, while the university was given access to £15m lifeline support from the Scottish Government.

Our step by step timeline is set out below.

Resignations follow deficit revelation

On November 13, The Courier reported job losses at Dundee University were “inevitable” as bosses grappled with a £30m blackhole in the finances.

Principal Professor Iain Gillespie wrote to staff warning there would have to be reduction in staffing levels.

This prompted a flurry of interest as many insiders reached out to share serious concerns.

The cause of the funding crisis is complex, though university bosses blamed a significant reduction in international students this year.

We also revealed how, as a result of recruitment problems, 300 empty student hall beds were costing around £2m.

But the scale of the deficit prompted accusations that the university’s executive had allowed it to “balloon” overnight.

Other universities have also revealed a deficit. Abertay University reported a loss of £576,000, also revealing it had under-recruited students.

5-star principal’s largesse

Professor Iain Gillespie, Principal of Dundee University. Image: Kenny Smith/DC Thomson. — Professor Iain Gillespie, former Principal of Dundee University. Image: Kenny Smith/DC Thomson.

Tough criticism from inside the university was aimed at Mr Gillespie. Staff were critical that he booked first class flights to the Far East and enjoyed 5-star hotel stays at the university’s expense.

The high spending left many furious and prompted questions about how the university’s finances had been handled.

We also revealed that months before his email warning of job losses, the university’s governing body handed Mr Gillespie a pay rise.

It took his salary to £305,000, nearly double the amount paid to Prime Minister Sir Keir Starmer.

Within weeks Mr Gillespie announced his sudden exit from the university.

There was also an apparent exodus of other senior figures.

Governance and management concerns

The confusion about how such a large blackhole could develop also prompted questions from local politicians about who knew what and when.

And in evidence to parliament education committee, the remaining management team admitted mistakes had been made.

The powerful “court” which oversees the running of Dundee University has come under scrutiny as a result.

The Courier also revealed how the university hired a senior member of staff despite an ongoing misconduct investigation by her previous employer.

In February, the chair of this powerful body resigned.

“The scale of this failure of governance is a scandal,” one insider said.

Government bailout

The Scottish Government faced questions after concerns about the future of the university reached Holyrood.

In her 2025-26 budget, finance chief Shona Robison singled out Dundee University as facing challenges.

She said the university would be given access to a £15m emergency loan. The Courier has taken a look at how that might help here.

Bank loan negotiations

On January 28, The Courier revealed bosses at the university were in negotiations to secure a bank loan to fund a redundancy scheme.

Securing the fund for a redundancy scheme would allow the institution to lay-off staff and make the savings required to close its £30m deficit.

Sources at the university described the success of the discussions as “critical” to any financial recovery.

But negotiations cooled after senior members of staff – including the interim principal – appeared before a Holyrood committee.

It led to several key revelations – including that the financial situation at the institution was so dire that it could have out of cash by June without government support.

What happens next?

First Minister John Swinney has made clear the draft financial recovery plan – which proposes as many as 632 full time equivalent job losses – is “unacceptable”.

One senior government told source The Courier: “The one thing we know about the current job loss figures is that won’t be the level of job losses.

“We need a recovery plan, not just a financial recovery plan. That is not negotiable.”

An independent probe into mismanagement has also been confirmed, and will be led by Dundonian former former Glasgow Caledonian principal Pamela Gillies.

The university is now working on a second draft of the plan, and optimism that a potential solution can be identified is said to have increased.

The university is likely to submit its second plan in the coming weeks, and it will be for government to confirm if it is willing to get behind the revised proposals.

What is clear is this could be costly and may require significant public funds.