Initial discussions by Scottish politicians on the future of higher education funding have been hailed as a ¡°positive¡± step for the cash-strapped sector, but uncertainty remains over how far any party will be willing to budge on the current model.

Leaders of the country¡¯s top universities have welcomed a renewed ¡°openness and willingness¡± to talk about funding, after long advocating for a more sustainable settlement for institutions.?

Minds have been focused by the situation at the University of Dundee, which had to be bailed out by the taxpayer after running into severe financial trouble.

While governance at that institution has been questioned, many universities are understood to be in similarly precarious positions as funding lags behind the cost of educating students.

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In June, Graeme Dey, Scottish minister for higher and further education, chaired a behind-closed-doors cross-party discussion on the future of the sector.

¡°There was agreement in that discussion on the need for a long-term solution,¡± said Claire McPherson, director of Universities Scotland, who helped convene the meeting.

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¡°It was a really positive discussion. The cross-party nature of it is really, really important and¡­we feel like there¡¯s a real opportunity to progress things.¡±

Sally Mapstone, principal of the?University of St Andrews, said it was the first time in her 10-year tenure that ¡°I¡¯ve actually felt that there was a sort of openness and willingness to consider the funding landscape in its entirety¡±.?

¡°It¡¯s important to emphasise that it¡¯s like agreeing to talk about talks,¡± she continued. ¡°But that in itself is progress.¡±

While major parties are expected to maintain red lines on the question of charging tuition fees to students, politicians appear to be more alert to the wide-ranging problems facing the sector.

¡°There¡¯s often a tendency in public discussions to focus on the issue of fee versus free, and we¡¯re really keen for that not to be the framing of any work that goes forward,¡± said McPherson.?

¡°We¡¯re also really keen that any work on funding looks at the investment in research as well as the investment in teaching and thinks about the funding situation in the round.¡±

However, Mapstone said, ¡°The conversations are really at an early stage and we just don¡¯t know at this stage what will be on the table.¡±?

It appears unlikely that there will be any significant policy movements before the Holyrood elections next year.?

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However, with institutions struggling financially and the UK government¡¯s proposed immigration restrictions likely to further diminish universities¡¯ income, there are concerns that this could be too late.?

¡°I favour having a debate this side of the election rather than waiting until after the election, because whoever forms the next government will be confronted with this situation,¡± said Peter Mathieson, principal of the University of Edinburgh.

He said that in a taxpayer-funded higher education system, the only choices available are either putting more money into it or reducing the number of funded places.

¡°Both of those are politically very difficult, but nevertheless, these are political choices. So if the political choice is to have taxpayer-funded education, the current system is not adequately funded and therefore it needs more money or lower expectations of it and those are the only two avenues that can be explored.¡±

McPherson added that Universities Scotland has a ¡°high level of confidence¡± that political parties ¡°recognise this is an issue to be addressed¡±.

¡°Whether that translates into electoral talking points, I think it¡¯s probably far too early to say,¡± she said.?

Scottish policymakers are also likely to look closely at the Westminster government¡¯s plan for reforms to the post-16 education system, due to be published this autumn.?

But ¡°we¡¯re clear that there isn¡¯t a solution on the shelf, just waiting for us to pick it up¡±, said McPherson. ¡°We actually need to think about how Scotland charts its own course on this, and that¡¯s¡­ultimately a political decision.¡±

In a statement, the Scottish higher education minister Graeme Dey said: ¡°The sector is aware we are open to exploring the future funding model of universities, but we are clear that this government will not reintroduce tuition fees. Access to higher education must be based on the ability to learn, not the ability to pay. This would remain the case in an independent Scotland, where we would also continue to welcome students from the EU.¡±

Dey said the Scottish government?¡°recognises the vital role universities play in Scotland¡¯s economy and wider society, which is why we are investing over ?1.1 billion in the sector this year alone¡±.

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Among the?¡°broad range of pressures¡± universities face were the UK government¡¯s policies on migration?and?extra costs of ?48 million due to the increase in employer National Insurance contributions, he added.

helen.packer@timeshighereducation.com