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EXCLUSIVE: SNP government reduced initial Dundee University lifeline cash by £5m

Emergency loans announced by Shona Robison in February had originally been set at £20 million before the package was announced, The Courier can reveal.

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John Swinney
John Swinney approved the £20 million before it was later cut. Image: PA

The initial lifeline cash for under-threat Dundee University was reduced by £5 million before being announced in Holyrood, The Courier can reveal.

Notes of internal discussions reveal First Minister John Swinney had signed off plans for finance chief Shona Robison to announce £20 million in financial support for the university sector.

But hours later a revised form of words was sent after discussions with government finance chiefs, reducing the support by £5 million.

The government eventually delivered the university’s full ask of £22 million liquidity support in March, but MSPs said it was indicative of the government’s slow response after the scale of potential job losses were revealed in February.

No explanation was given for the sudden reduction in support for the crisis hit city institution.

Ms Robison eventually announced the £15 million emergency cash in parliament on February 25, making clear it was being provided to the sector but singling out Dundee University for having a specific need.

Dundee University staff
Hundreds of jobs ae on the line at the university. Image: Mhairi Edwards/DC Thomson.

Days earlier officials and SNP government advisers were discussing the support and how it would be revealed.

Shortly before 9:30am on February 24, Mr Swinney’s private secretary emailed to say the first minister had agreed the wording for Ms Robison to use.

This passage for her speech reveals the first minister had approved £20 million in support being made available to “universities such as Dundee”.

But hours later, deputy director Stuart Greig sent a revised version of the statement, saying it had come about as a result of discussions with “central finance colleagues”.

Cut ‘disappointing’

This form of words closely matched what Ms Robison went on to announce at Holyrood the next day.

The apparent cut was branded “disappointing” by trade union UCU.

Union official Mary Senior told The Courier: “It’s disappointing to learn that the initial cash announcement to support Dundee University was reduced by £5million ahead of the budget debate.

“Nevertheless, the £22million of funding that the Scottish Government is now providing to the university via the Funding Council is vital liquidity support.

“But given the unprecedented number of the jobs on the line we are urging Scottish Ministers to dig deeper and provide that industrial scale bail-out that the university needs to recover.”

SNP education chief Jenny Gilruth. Image: PA.

A further £10 million in support has since been made available, with Dundee University set to receive around £22m of the total cash.

It delivers on the total support requested from government so far.

The chair of the university’s governing body earlier revealed how crucial the funding was, telling parliament that without it the university could have run out of money by June.

A copy of an email sent by officials revealing the education secretary’s frustration at official. Image: Scottish Government FOI response.

The documents also reveal education secretary Jenny Gilruth scolded officials for not involving her in discussions on the crisis.

In one email, her private secretary expresses frustration that her input had not been sought on a briefing prepared for ministers.

Maurice Golden, Tory MSP for the North East, said: “These emails show just how conflicted the Scottish Government was over helping Dundee University.

“Even heavily redacted briefings paint a picture of support being dialled back, further and further.

Tory MSP Maurice Golden. Image: Richard Gardner.

“Three days before the budget debate, ministers and their special advisers banked on £20 million going to the troubled institution.

“It looks like everyone but the education secretary was involved in this.

“Even John Swinney got involved.”

He said there are questions over whether that extra £5m could have made a difference for staff.

Education secretary Jenny Gilruth said it was a “matter of record” the government had provided the £22 million liquidity support requested by the university.

But questions will remain over why the initial funding support was reduced and not made available more quickly.

Ms Gilruth said: “If there is a further financial ask to be made of government in relation to the University’s immediate challenges, then this will be carefully considered.

“We have acted quickly to provide £25 million to the SFC to support universities like Dundee facing immediate financial challenges, on top of £1.1 billion of investment already in the budget for university teaching and research.”

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