The Joint Future Thinking Taskforce, set up by Education Secretary Fiona Hyslop and Universities Scotland published its draft report for consultation today. It recommends more autonomy for universities to allocate money and a reduction in bureaucracy for the sector and also a stronger role for universities in Government policy and priorities through the creation of a Tripartite Advisory Group bringing together universities, the SFC and the Government.

The report proposes that Scotland’s universities become the seventh key sector given their key position within the Government Economic Strategy. It outlines that universities must demonstrate that Government funding is in keeping with the Government’s economic growth priorities.

In terms of funding, a new funding system for universities has been recommended by the Taskforce. This includes a more flexible General Fund and a Horizon Fund to provide new incentives that support delivery of the Government’s priorities. New criteria have been proposed for future Spending Reviews including one for targeted growth in postgraduate numbers. The idea of ‘teaching only’ universities has also been rejected by the Taskforce.

Welcoming the report Hyslop said:

"Today's report sets out a framework for a new relationship between the Scottish Government, SFC and our universities for the next 20 years and marks the beginning of the move towards an even more effective and responsive university sector.

"In future, I will expect the sector to demonstrate more explicitly how the funding it receives contributes towards our purpose of increasing sustaining economic growth for all. In return the sector will strengthen its case to continue to receive public resources at a level that will ensure it is nationally and internationally competitive."

Co-Chair of the Taskforce, Convener of Universities Scotland and Principal of the University of Glasgow, Sir Muir Russell said:

"The Taskforce has delivered more freedom and more influence for universities in Scotland. In return we will continue to demonstrate ways in which universities transform Scotland for the better.

"The report hasn't solved the funding issues facing the higher education sector in the coming years but it has given us an unprecedented opportunity to make our case directly to the heart of Government."

John McClelland, Chair of the Scottish Further and Higher Education Funding Council, added:

"The work of the Taskforce and its report provide a platform for new approaches for funding the provision of learning and conduct of research at our higher education institutions.

"The changes envisaged will strengthen the position and support the future of the sector within Scotland. They will also provide an opportunity to re-position the role of the Funding Council to become an organisation that is less involved in the administration of institutions and more focussed on outcomes.

"All of us at the Council look forward to the challenge of responding to this opportunity."

But Conservatives Spokesperson for Education & Lifelong Learning, Murdo Fraser MSP responded to the report deeming it a ‘missed opportunity’ which fails to tackle the issue of competition from English and Welsh universities. He commented:

“There are some interesting and welcome ideas in this paper. We are particularly pleased to see the recommendation that there should be lighter regulation of universities by the Funding Council and greater freedom for these institutions to operate, a policy which the Scottish Conservatives proposed in our manifesto last year.

“However, overall this report is disappointing, as it has not addressed the fundamental challenge facing Scottish universities – namely how do we ensure that they receive the necessary funding to prevent them falling behind their counterparts in England and Wales who derive additional income from top-up tuition fees?

“It is clear that the SNP Government were anxious to avoid this vital point being included at the heart of these JFTT discussions. The serious question remains; how do we safeguard the future competitive position of Scottish Universities? This exercise has entirely failed to address that vital issue.

“We have called for an independently chaired review of Higher Education in Scotland to address a wide range of issues, and specifically look at the funding challenge. Today’s report represents a missed opportunity and it will simply add more fuel to these calls for an independent review, which have already been backed by many stakeholders.”

Likewise Claire Baker MSP, Labour spokesperson on Higher Education said:

"The fact is that the SNP are failing to fund our universities properly and for all their vague promises of 'jam tomorrow' there is still no more money on the table for the vital work our universities do. Despite the SNP's tinkering with funding arrangements we are still facing the stark reality of a major funding gap opening up between universities in Scotland and their English counterparts. That is bad news, not only for students, but for Scotland and our economy.

"Over the last 10 years we have seen increased funding per student in Higher Education in Scotland and our universities are currently world leaders in teaching and research. However the SNP risk squandering this legacy left to them by previous administrations.

"We are approaching a cross roads in terms of funding universities and student support, but Fiona Hyslop have so far ducked the vital decisions. Scotland is already falling far behind the rest of the UK in terms of student support, we now face the real prospect of falling behind the rest of the UK in terms of funding for our university sector. All we have had so far from the Scottish Government is short-termism and that will do our universities, students and future economy no favours whatsoever."