Chancellor Rachel Reeves blamed University of Dundee chiefs for its crisis – and refused to concede UK Government immigration policy had played a part.
Speaking in Fife, Ms Reeves says the Scottish Government must ensure the crisis is a “one-off”.
More than 600 jobs are at risk at the institution as it looks to make dramatic cuts to plug a £35 million deficit.
An under-recruitment of fee-paying foreign students has cost the university around £12.5m and the sector says the so-called “hostile environment” and visa rule changes for international students has made it harder to recruit.
Problems at Dundee University ‘reflect decisions made there’
Almost of half of Scots universities have reported a deficit.
But Ms Reeves does not accept immigration is the cause of the cash crisis.
She said: “I think that the problems at Dundee are greater than other universities across Scotland and reflect some of the decisions made there.”
Asked about immigration policy, she told The Courier: “There are still huge numbers of international students coming to UK universities.
“There are obviously some specific issues at Dundee University.
“It is now imperative the Scottish Government works with Dundee University, and also with other universities across Scotland who have seen cuts in their budgets, to make sure that this is a one off and does not affect other universities around Scotland, whilst also working with Dundee University to limit the impact of these cuts.”
Ms Reeves also refused to criticise the SNP’s policy guaranteeing Scots students pay no tuition fees.
A freeze in the amount of money received for each home student has also been blamed by the sector.
Asked about the Scottish Government policy, Ms Reeves said: “I think the issues at Dundee University are quite specific to Dundee.
“University tuition fees are a devolved matter. We have our policy in England and Wales.
“Scotland rightly makes those decisions for themselves, but these cuts at universities do show the importance of university finance.”
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