Latest updates
Finance and Governance
New university governance code requires financial stress tests and three-year board reviews
The Committee of University Chairs (CUC) has published its 2026 Code of Higher Education Governance. The code sets minimum expectations at institutions in England, Wales, and Northern Ireland for financial stress testing, academic risk oversight, board composition, conduct, and independent performance reviews.
The code operates on an apply-or-explain basis. Institutions are to follow provisions marked “must” to claim compliance whereas boards that take a different approach to provisions that are marked “should” are required to publish a clear and specific explanation. It is expected that the framework is to be used by institutions for ongoing self-assessment rather than as a compliance checklist. Each institution is required to complete an annual board assessment, commission an independent review every three years, and publish an annual development action plan.
University boards should increase their scrutiny on financial resilience and risk. In light of this, the code requires stress testing and scenario analysis against a range of plausible adverse conditions, and boards must ensure that their contingency plans are credible, actionable, and implemented where necessary.
The code explicitly focuses on student interests and academic risks by giving boards ultimate responsibility for effective academic governance, including for teaching, research, knowledge exchange, academic standards, and student matters.
The code strengthens expectations around board composition and accountability through the inclusion of a majority of independent members, defined term limits, regular performance evaluations, and improved transparency through measures such as registers of interests. Institutions should establish Audit, Nominations, Remuneration, and Finance Committees (or equivalent bodies) while retaining collective board responsibility for delegated decisions.
Read more here.
Report shows that almost a quarter of higher education institutions were left with less than 70 days of cash to cover costs in 2024/25
The report published by the University of East London was based on 160 institutions, highlighting growing financial pressure across the sector. 60 universities performed poorly on key financial sustainability metrics, with 39 reporting under two months’ cash reserves.
The report found structural issues such as heavy reliance on limited income streams, high staffing costs accounting for at least 60% of expenditure, and high marginal cost ratios meaning that spending has increased faster than income in recent years. Amanda Broderick (Vice-Chancellor and President at UEL) warned that without reform, “institutions will be unable to sustainably leverage or transform strategic performance outcomes over the medium to long term”.
The financial concerns follow a period of substantial expansion which has included significant borrowing for new infrastructure, which has left universities pressed by rising interest rates and decreasing income from students. A report in May from the Office for Students found that 43% of universities were likely to have ended 2025/26 in deficit. Universities attributed their rising costs and decreasing income to increases in National Insurance contributions, inflation, and changes to international student recruitment such as visa restrictions.
Read more here.
Information Systems and Technology
A University of Edinburgh report highlights the need to strengthen AI education and skills development
A University of Edinburgh report, Governing the Future, calls for data and AI skills to be embedded at the heart of national industrial strategy, with education identified as a key driver of this ambition. Based on input from stakeholders across government, academia, industry and society, the report sets out priorities for policymakers to support both economic growth and workforce development.
The report highlights a significant gap in data and AI capabilities, noting that many organisations have only limited levels of knowledge in these areas. It suggests that this shortfall is partly due to insufficient access to education and training, and warns that without sustained investment in skills development, the full benefits of AI technologies and infrastructure will not be realised.
To address these challenges, the report recommends strengthening AI education across the system, including integrating these topics more fully into school curricula and providing better training and support for teachers. It emphasises that building strong learning pathways from an early stage will be essential to equipping both students and educators with the skills needed to use AI responsibly and effectively, while also supporting wider economic and social outcomes.
Read more here.
Estate and Environment
Estate and Environment (Scottish Property)
£60 million sought for Edinburgh student accommodation blocks
Student accommodation blocks in Edinburgh have been brought to market, with a sale expected to achieve around £60 million.
The accommodation, which is situated near to Edinburgh city centre and was completed in 2024, comprises a 259-bed development, including 220 studios, amenity spaces and courtyards. Since opening, the accommodation has been fully occupied and has “delivered consistent year-on-year rental growth”.
Read more here.
Estate and Environment (Planning)
First university in Europe achieves highly-respected sustainability rating
University College Cork (UCC) has become the first university in Europe to achieve a Platinum rating under the Sustainability Tracking, Assessment and Rating System (STARS), a leading global framework for measuring sustainability performance in higher education. UCC’s achievement is the result of continued commitment to sustainability through initiatives such as reducing fossil-fuel-related emissions by 41% since 2017 and eliminating over 8 million disposable cups through a campus-wide reusable cup policy. The institution has set ambitious targets, including reaching net-zero carbon emissions by 2040 and becoming zero-waste certified by 2030.
Read more here.
HR Issues
University of Dundee to cut 190 more jobs amid financial crisis
The University of Dundee plans to cut another 190 jobs to reduce a major financial shortfall. Despite cutting around 675 roles through voluntary redundancies, the university explained that it still needs to save £20 million annually, largely from staff costs.
Unions and staff have strongly criticised the move, and warning they may not be truly voluntary. University and College Union (UCU) members have staged 28 days of strike action in the past year. The University says the reductions are necessary to remain financially viable, though discussions are ongoing.
The Scottish government provided £40 million in emergency funding last year, initially expecting this would limit job losses to around 300. The crisis has led to growing criticism of management and concern from government and students, with total job losses now nearing 1,000.
Read more here.
Draft code of practice for single-sex spaces
Following the landmark ruling in For Women Scotland v Scottish Ministers, in which the Supreme Court ruled that ‘woman’ and ‘sex’ in the Equality Act 2010 refer to “biological sex”, the Equalities and Human Rights Commission published the long-awaited Draft Code of Practice for Services, Public Functions, and Associations in May. This draft code is currently before Parliament, where there is a 40-day window for objections to be made.
The guidance makes clear that single-sex spaces, such as toilets and changing rooms, should be used based on biological sex. This has raised significant concern among members of the trans community as it means that trans people can be restricted from using single-sex spaces that do not align with their biological sex. However, it also recommends that a third, gender-neutral space, should be provided as an alternative. In addition, where fully gender-neutral toilets are already provided, these should be fully self-contained.
With many higher education institutions across the country operating sporting facilities, study spaces, and cafeterias that are open to the public, this guidance is likely to apply to aspects of their operations. Universities and colleges may therefore need to review policies concerning the use of single-sex spaces, particularly where access has previously been based on self-identification. The changes may also create financial and logistical challenges, particularly where institutions are required to create or designate new gender-neutral facilities.
Read more here.
Upcoming Consultations
Scottish Government consultation on the definition of school age childcare – consultation closed 18 May 2026 and a response is awaited.
Department for Education consultation on medical conditions at school ahead of updated guidance – consultation closed 15 May 2026 and a response is awaited.
Scottish Government consultation on supporting children’s learning code of practice – consultation closed 7 May 2026 and responses can be found here.
Scottish Government consultation on proposals to update the School Premises Regulations – closed 31 March 2026 and a response is awaited.
Support for part-time study and disabled students: Survey for the Higher Education and Further Education sector, training providers, third sector and interested organisations – consultation closed on 9 October 2025 and the Scottish Government commissioned an analysis of all consultation responses, here.
Key Legislative and Regulatory Changes
Royal Assent Received
SUMMARY OF CHANGE
Building Safety Levy (Scotland) Bill
The Bill introduces a new tax, called the Scottish Building Safety Levy, to be charged on the construction or conversion of residential property developments, with some exceptions.
WHEN
The Bill received Royal Assent on 13 May 2026.
SUMMARY OF CHANGE
Tobacco and Vapes Bill
The Bill prohibits the sale of tobacco to those born on or after 1 January 2009 and allows for product requirements to be imposed in connection with tobacco, vapes, and similar products.
WHEN
The Bill received Royal Assent on 29 April 2026.
SUMMARY OF CHANGE
Tertiary Education and Training (Funding and Governance) (Scotland) Bill
The Bill has three key parts. Part 1 confers powers and duties on the SFC in respect of funding and securing the delivery of national training programmes, Scottish apprenticeships, and work-based learning. Part 2 of the Bill looks to amend the governance structure of the SFC, altering the arrangements for re-appointing members of the SFC Board (such as conferring on the SFC the power to co-opt two additional members). Part 3 clarifies the process for providing student support to Scottish students studying at private institutions in the UK.
WHEN
The Bill received Royal Assent on 11 March 2026.
SUMMARY OF CHANGE
Land Reform (Scotland) Bill
The Bill proposes measures will apply to land over 1,000 hectares, prohibiting sales in some cases until Ministers consider the impact on the local community.
WHEN
The Bill received Royal Assent on 16 December 2025.
SUMMARY OF CHANGE
Education (Scotland) Bill
The Bill establishes a new body called Qualifications Scotland. It also creates a new office His Majesty’s Chief Inspector of Education in Scotland.
WHEN
The Bill received Royal Assent on 6 August 2025.
SUMMARY OF CHANGE
Care Reform (Scotland) Bill (formerly known as the National Care Service (Scotland) Bill)
The Bill allows Scottish Ministers to transfer social care responsibility from local authorities to a new, national service. This will be known as the National Care Service (the NCS). Ministers will be able to transfer healthcare functions from the NHS to this new NCS.
WHEN
The Bill received Royal Assent on 22 July 2025.
SUMMARY OF CHANGE
Regulation of Legal Services (Scotland) Bill
The Bill has four key parts. Part 1 considered the overarching regulatory framework of legal services. Part 2 provides rules about the regulation of business that provide legal services. Part 3 deals with the complaints procedure for legal services. Part 4 considers who can provide legal services and creates new offences in relation to those who pretend to have the ability to provide legal services.
WHEN
The Bill received Royal Assent on 27 June 2025.
SUMMARY OF CHANGE
Data (Use and Access) Bill
The Bill proposes to allow the ‘smart data’ model to be used in more sectors, to establish a trust framework for digital verification services, to modernise the data protection landscape, and to strengthen the ICO’s enforcement powers for both the UK GDPR and the Privacy and Electronic Communications Regulations.
WHEN
The Bill received Royal Assent on 19 June 2025.
This bulletin is for information purposes only and should not be regarded as legal advice but if you would like further information on any aspect please get in touch with any of the contacts below.
