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Decision to penalise universities financially should be reversed

It was just four months ago that Fiona Hyslop, the then Education Secretary, hailed the achievement of universities for increasing the number of students they were recruiting in the STEM subjects (science, technology, engineering and maths).

Ms Hyslop highlighted the policy in a speech at the SNP conference, noting that changes introduced in 2006-07 removed restrictions on the number of places that may be offered in these

subjects and that universities had “seized this opportunity to contribute to Scotland’s economic recovery”.

Yet, apparently, economic recovery is now to be subordinated to the more immediate need to stay within pressured budgets. What was so recently praised is now to be penalised.

It is disappointing that the numbers of students in the STEM subjects are to be capped, but it is remarkable that universities are to be slapped with financial penalties for being proactive in a good cause, one in which they were, until so recently, encouraged by the government and at a time when every penny of funding they possess is precious.

Last week, the Scottish Funding Council, which distributes money for higher education on behalf of the government, warned of major financial constraints ahead for universities, including a reduction in public funding, a decline in income from charities and business corporations, and lower returns on investments.

Although higher education spending in Scotland increased by nearly 4% between 2008-09 and 2009-10, it is feared cuts will feature in the next budget.

There is an argument for prudence and realism in the administration of universities, certainly. Yet it is hard to see how the imposition of penalties on institutions such as Heriot-Watt University does anything but make the financial problems worse. The univer­sity was one of those to have “seized the opportunity”, and is now 11% over the newly imposed cap because of the extra students it has recruited since 2007-08. Worse luck for Heriot-Watt that the rules changed halfway through the game.

It must be asked: why was the need for restraint in the recruitment of STEM students not made explicit sooner? Perhaps if it had been, Heriot-Watt would not be facing these penalties.

What all this leaves unresolved is the long-term economic need for graduates in these fields. It is perhaps an inevitable feature of recessions that the overriding concerns of governments revert to being more short-term. However, the need for these students cannot be ignored for long.

With an ageing population and an economy that is disproportionately dependent on the public sector, universities are a powerhouse of future national prosperity. They must be supported accordingly.

We must hope that this unwelcome change is quickly reversed.