Insolvency threat looms over Dundee University amid ‘misleading’ financials

The University of Dundee is facing a “real possibility” of insolvency after admitting to “misleading” financial information, Members of the Scottish Parliament (MSPs) have been told.
The university’s interim Principal and Vice-Chancellor Professor Shane O’Neill revealed the scale of the financial problems only became clear in November 2024.
The university recently announced plans to cut 632 full-time equivalent posts to address a £35 million deficit, with these job losses expected to save £49m. A recovery plan has been developed, aiming to avoid scenarios such as a merger or closure.
During a three-hour session at Holyrood’s Education Committee, it emerged that key individuals who could provide answers to outstanding questions were no longer at the university.
The week, the Scottish Funding Council (SFC) is set to decide on funding distribution of an extra £25m from the Scottish Government. It is now expected that £22m will go to the University of Dundee.
While several Scottish universities face financial challenges, Dundee’s situation is deemed “unique”, attributed to structural issues and reliance on international student funding. Questions remain about the extent to which poor decisions and a lack of transparency contributed to the crisis.
The committee focused on establishing who knew what and when about the university’s financial difficulties. The university’s delegation, consisting of interim officials, highlighted the recent departure of key personnel, including the former finance director and principal.
An external review, led by former Glasgow Caledonian University principal Professor Pamela Gillies, will investigate the university’s finances. However, concerns were raised about the review’s ability to compel former officials to provide evidence.
The crisis has reignited debate about the sustainability of free tuition for Scottish students and the broader funding model for universities.
Commenting after the Education Committee session on Dundee University Scottish Labour Education spokesperson Pam Duncan-Glancy, MSP for Glasgow, said: “The jaw-dropping evidence heard at this session exposes the scale of the chaos at the top of Dundee University.
“This session has left us all with more questions than answers, and it is vital that the investigation gets to the bottom of what went so badly wrong here.
“With hundreds of jobs on the line, it is essential that we find out exactly who knew what and when. We urgently need real leadership from the SNP government to support Dundee University through this crisis, and we cannot ignore the flaws in the SNP’s wider university funding model.”