Scotland’s universities recorded a £200 million gap between income and expenditure in 2023–24, according to a report commissioned by the Scottish Government and Universities Scotland. The findings raise concerns about the sustainability of free tuition for Scottish students and the sector’s growing dependence on higher fees from international students.

The report found that public funding covered only 82% of teaching costs for Scottish students, creating a £288 million shortfall. Non-EU student fees supplied £1.25 billion in 2023–24 and made up nearly half of teaching income, up from 30% in 2016–17, while Scottish Funding Council grants fell from 38% to 27%. Labour blamed SNP ministers for reduced funding, while the Scottish Government pointed to a record 17,920 Scottish 18-year-olds securing university places this year.