EUROPEAN students are shunning Scottish universities in the wake of the Brexit vote, new figures reveal.

Officials statistics from university admissions body Ucas show applications from the EU dropped by five per cent between 2016 and 2017 - from 44,430 to 42,250 - after six years of increases.

However, the figures also show increasing numbers of students from the rest of the UK (rUK) are applying to Scotland, bringing with them lucrative fees. There has been a slight decline in applications from Scots.

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Last year, universities warned of the damaging impact of Brexit because it would lead to an impression EU students were no longer welcome in Scotland.

Some courses at both undergraduate and postgraduate levels may no longer be viable if numbers of EU students dry up and there are also fears Scotland will lose out on some of the brightest students in Europe.

A study in 2011/12 showed EU students generated £414m for the Scottish economy and in doing so created 3,743 jobs.

A spokeswoman for Universities Scotland, which represents principals, said it was no surprise there had been a five per cent drop in EU applications.

She said: “The uncertainty caused by the Brexit vote and the unwelcoming message this sent out across Europe were always set to have a negative impact.

“Applicants across the EU also had to wait months to receive news on their fee and immigration status before they could apply with confidence.”

The spokeswoman said it was vital students from across Europe continued to feel welcome called on the Scottish Government to provide an early assurance on the status of EU students for next year’s intake.

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Vonnie Sandlan, president of student body NUS Scotland, added: “It’s incredibly concerning to see such a significant drop in the number of EU students which is a clear result of the uncertainty surrounding Brexit.”

The Ucas figures also show the number of applicants from Scotland has fallen by more than 2,000 from 177,220 to 175,200. However, is unlikely to translate to a reduction in students because demand currently exceeds supply.

In addition, EU students currently compete for the same places as Scottish students so a decline in interest from Europe could free up places.

And between 2016 and 2017 the number of applications from England increased by five per cent - from 36,420 to 38,210. The increase is important for universities because these students pay fees of more than £9,000 a year.

Meanwhile, John Swinney, the Education Secretary, said Scottish universities had been given an “appropriate and effective financial settlement”, despite claims from the sector it is underfunded.

Mr Swinney defended the Scottish Government’s spending in higher education during an appearance at Holyrood’s Public Audit Committee.

Universities Scotland said higher education had seen a 13 per cent real terms drop in funding between 2010/11 and 2017/18.

And a report by public spending watchdog Audit Scotland last year said institutions were having to place “increasing reliance on generating income from fee-paying students from the rest of the UK and outside the EU”.

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Mr Swinney said: “I recognise universities have a range of different financial resources at their disposal and I recognise the importance of universities taking forward their operations as independent organisations responsible for the efficiency and the delivery of efficiency within their organisations.

“I think the government has given appropriate financial support to the universities sector... within the constraints of public finances.”