Latest updates
Finance & Governance
“A very serious problem”: No clear government plan for universities risking insolvency, MPs find in new report
The Education Committee’s May 2026 report warns that UK universities are under “unprecedented” financial pressure, already resulting in job losses, course closures, and asset sales. Despite these escalating risks, MPs criticise the government for having no clear plan to deal with institutions facing insolvency and describe this as a “very serious problem.” They call for an early warning system, triggered by the regulator, and for a structured response framework that includes options such as restructuring, mergers, financial support or an orderly closure, with proper protections for students, staff and local communities.
A key issue highlighted is the lack of legal clarity over whether universities can continue operating while insolvent, with conflicting evidence suggesting some may face immediate liquidation, causing severe disruption to students. The Committee therefore recommends legislation to clarify this position and supports the introduction of a formal insolvency regime to ensure orderly “teach‑out” arrangements so students can complete their courses. It also finds that current Student Protection Plans are inadequate, urging stronger, sector-wide safeguards that take into account the wider impact on staff, research, and local economies.
The report further highlights structural pressures, including heavy reliance on international student fees, rising borrowing costs, and governance weaknesses. MPs stress the need for more coordinated government policy, warning that measures such as tighter visa rules and a proposed international student levy could worsen financial instability if not balanced with sustainable funding solutions. Overall, the Committee concludes that without urgent and joined‑up action, the risk of university insolvency could have serious consequences for students, communities, and the UK’s global reputation in higher education and research.
You can read more here.
Two in five universities consider joining forces through ‘multi academy trust’ style models or mergers, a new survey shows
A survey of more than 140 UK universities highlights the growing financial pressures the higher education sector faces, and the steps universities are taking to remain sustainable. Many universities are exploring collaborative and efficiency-driven approaches, with 81% considering digital transformation, 71% open to shared procurement, and 65% looking at partnerships such as federations or alliances. Notably, around two in five universities are now considering or actively exploring mergers or acquisitions as a way to strengthen their long-term position.
The survey shows widespread cost-cutting across the sector. Staffing has been a major focus, with 79% of institutions implementing hiring freezes or voluntary redundancies. Universities have also reduced student support and academic activity, with increases in cuts to bursaries, hardship funding, and research. Course provision has been scaled back, with many institutions consolidating or closing courses, while operational reductions such as cutting maintenance or even closing campuses have also become more common.
These changes are largely driven by ongoing financial strain, including rising costs, policy changes, and volatility in international student recruitment. Although recent tuition fee increases have provided some relief, 92% of universities say these do not fully offset financial pressures. Institutions are therefore calling for greater government support, including more flexibility around VAT and the creation of a Transformation Fund to help finance collaboration and structural reform, as they seek more sustainable solutions beyond continued cuts.
You can read more here.
Information Systems and Technology
£10M boost for Edinburgh spinout aiming to solve ‘three of Europe’s most pressing challenges’
A University of Edinburgh spinout, Exergy3, has secured £10 million in funding to scale technology aimed at tackling three major challenges in Europe: industrial decarbonisation, grid balancing, and energy security. The company’s system converts surplus renewable electricity, such as excess wind power that would otherwise be wasted, into high‑temperature heat for industrial use, helping reduce emissions while providing a stable and low‑cost energy source for heavy industry. This approach addresses the mismatch between intermittent renewable energy supply and the industry’s need for continuous, high-temperature heat.
The funding round led by Axeleo Capital with support from Bayern Kapital, Kibo Invest, and existing backers, including Scottish Enterprise, will enable Exergy3 to move from pilot projects to full commercial deployment. The company plans to expand manufacturing, grow its workforce, and establish a presence in Germany as it targets wider European markets. Investors see strong potential in its technology, given that heavy industry accounts for a significant share of global energy consumption and emissions, making its decarbonisation both a major challenge and a significant market opportunity.
You can read more here.
Ulster University partners with StructureFlow on legal tech
Ulster University has partnered with legal tech firm StructureFlow to launch a research and education collaboration focused on preparing students for the growing complexity of modern legal practice. Led by the Centre for Legal Technology, the initiative will embed StructureFlow’s visual modelling platform into teaching, research, and innovation activities.
The collaboration aims to strengthen students’ ability to analyse and present complex legal information clearly. Students will gain practical experience using visual tools to simplify legislation, map connections between legal elements, and show how changes in one area can affect the wider system.
You can read more here.
Estate and Environments
Estates and Environment (Scottish Property)
Plans for new Glasgow purpose-built student accommodation recommended for approval
Plans to demolish an underused office building on Bath Street in Glasgow and replace it with a 208-bed purpose-built student accommodation development have been recommended for approval. The proposed scheme would include studio apartments alongside commercial space and form part of a wider regeneration of the city centre.
While the development attracted nine letters of objection relating to its scale, design, and concentration of student accommodation in the area, planning officers concluded that it aligns with strategic aims around regeneration and sustainable placemaking. If approved, the scheme would contribute additional capacity to support Glasgow’s significant student population and continued demand for modern accommodation close to university campuses.
You can read more here.
Edinburgh council explores introducing affordability requirements for student accommodation
The City of Edinburgh Council has agreed to explore new planning policies that would require future purpose-built student accommodation developments to include a proportion of affordable units. Proposals under consideration suggest that at least 35% of bedspaces could be made available at rents linked to student income levels, with higher thresholds for developments on public land.
The move reflects ongoing concerns around affordability and availability of student housing within the city, where demand has risen significantly in recent years. The policy, if implemented, would represent a notable shift in the planning landscape for student accommodation and could have implications for developers, universities, and funding models across the sector.
You can read more here.
Downing Property Finance provides funding for the Glasgow postgraduate accommodation project
Downing Property Finance has completed a £12 million development loan to support the conversion of a city centre building in Glasgow into purpose-built student accommodation aimed at postgraduate students at the University of Glasgow. The transaction forms part of a wider programme of investment in the student accommodation sector across key UK university cities.
The deal highlights continued lender appetite for purpose-built student accommodation despite wider market pressures and demonstrates the role of specialist financing in enabling schemes to proceed. It also reflects growing demand for accommodation tailored to specific student groups, particularly at the postgraduate level.
You can read more here.
HR Issues
QMU voted in favour of future strike action this summer over redundancy fears
Members of the University and College Union (UCU) at Queen Margaret University (QMU) in Edinburgh have voted unanimously in favour of strike action in response to a dispute over £4 million in proposed cuts and concerns about potential compulsory redundancies. The strike has not yet taken place and is forecast for this summer.
You can read more here.
Staff at 5 Scottish Universities have taken a 24-hour strike over pay dispute
More than 1,100 Unite union members have already taken 24-hour strike action across five Scottish universities in an ongoing dispute over pay. Staff at the University of Glasgow, University of Strathclyde, Glasgow School of Art, Edinburgh Napier University, and Heriot-Watt University walked out on the 24th of April.
The action follows years of below-inflation pay rises, with unions arguing that a 1.4% pay offer for 2025/26 amounts to a real-terms pay cut given current inflation levels. Those participating in the strike are primarily non-academic staff including cleaners, technicians, security, estates, and administrative workers.
Trade unions are calling for a pay increase of at least inflation plus 3% or £3,000, alongside a minimum hourly rate of £15. Union officials say the dispute reflects wider concerns about long-term underfunding in higher education.
You can 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
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.
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 businesses that provide legal services. Part 3 deals with the complaint’s procedure of 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
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
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
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
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 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
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
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.
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.
