Half of Scotland’s universities spent more than they earned last year

Older universities tend to have more reserves, assets, endowments and cash which could be drawn on at times of crisis, albeit with a bigger cost base to cover.

They also raise 75% of all university research income in the country.

The newer, post-1992 institutions are typically more exposed to fluctuations in income streams from international students and a long-term proportionate drop in public funding.

The report said all the universities recorded an overall surplus of £90.6m, which was an improvement on the previous year’s £15.8m.

However, that falls to a deficit of £7m for the rest of the sector, when the universities of Edinburgh, Glasgow and St Andrews are removed, revealing the acute struggles which more modern universities have experienced recently in Scotland.

The annual Financial Sustainability of Universities report did not include the University of Dundee – which had to be bailed out by the Scottish government after a collapse in its finances – as its accounts were not finalised.

Overall, Heriot-Watt University declared the biggest operating deficit in Scotland, at £9.88m.

The University of Strathclyde recorded a deficit of £9.5m and the University of the West of Scotland spent £8.88m more than it earned.

Glasgow Caledonian University, whose lecturers and staff have come together for an unprecedented joint strike against job cuts, was the only one of seven “modern” universities that delivered a surplus in 24/25.

However, the university has said it is worried about its long-term financial security and is facing a £10m deficit in the next academic year.