Modern universities are a key driver of growth in Scotland, despite funding pressures, MillionPlus VC tells SNP Conference

Modern universities are a key driver of growth in Scotland, Professor Liz Bacon, Principal and Vice-Chancellor of Abertay University, and a member of the MillionPlus Executive, will tell a fringe event at the Scottish National Party Conference today (30 August), as well as calling for sustainable funding so that these universities can “sustain [their] momentum and continue contributing to economic development.”

Professor Bacon will outline the deep roots that modern universities have in their communities and the part they play in delivering skills across Scotland:

“Scottish modern universities have always been attuned to the needs of their communities, whether at the local, national, or international level. They boast a rich history of delivering the skills, training, research and development, and innovation that industries rely on to thrive.”

Citing MillionPlus research, Professor Bacon will outline the vast contribution that modern universities make to the Scottish economy, and how their qualities mean they can thoroughly engage with emerging industries, positioning them at the cutting edge.

Professor Bacon will say:

“A recent report by MillionPlus underlined this, showing that modern universities contribute over £1.2bn to their regional economies each year, in addition to supporting more than 9,000 Scottish jobs in Scotland, and accounting for just under half of all Scottish graduate startups. That last statistic is particularly striking, particularly when you consider that modern universities represent just a third of all Scottish universities.

“A core aspect of modern universities' engagement in these emerging sectors is our agility and adaptability. Our institutions, often more agile in terms of their ability to pivot and change direction, are well equipped to respond swiftly to the evolving needs of industries when disruptions like AI come along, allowing us the flexibility to create and offer programmes and research initiatives that align with the latest technologies and trends.”

The enormous contribution made by modern universities to skills and growth in Scotland risks being undermined by the current financial model, Professor Bacon will say in closing, calling for close collaboration with the government to establish a surer financial footing for higher education.

“Our dedication to innovation, skills development, and collaboration with industry fuels economic growth, nurtures talent and drives positive societal change. However, to sustain this momentum and continue contributing to economic development, we need sustainable funding.

“…Ongoing cuts to the higher education sector pose a significant threat to our ability to create a more prosperous nation. It is essential that we partner with the government to unlock the full potential of our universities and establish a more stable long-term financial foundation for the sector, building on the excellent work going on across our institutions.”

ENDS

Notes to editors

1. For further information or to arrange an interview, please contact Dan Blows on 020 3927 2916 or email press@millionplus.ac.uk
2. MillionPlus is the Association for Modern Universities in the UK, and the voice of 21st century higher education. We champion, promote and raise awareness of the essential role and impact of modern universities in the UK’s world-leading higher education sector. More information can be found at www.millionplus.ac.uk
3. What are modern universities? Modern universities are long established centres of higher education in their communities with roots that stretch back decades, if not centuries. Many gained university title following legislation agreed by parliament in 1992. They make up almost half of the UK university sector with over a million students studying at modern universities every year.
4. Modern universities: facts and stats

***CHECK AGAINST DELIVERY***

Good afternoon, everyone. It's wonderful to be here today, and I extend my thanks to the team at MillionPlus for putting together this event that highlights the crucial and diverse work undertaken by Scotland's modern universities.

Scottish modern universities have always been attuned to the needs of their communities, whether at the local, national, or international level. They boast a rich history of delivering the skills, training, research & development, and innovation that industries rely on to thrive.

Overview of Abertay

My own institution, Abertay University in Dundee, serves as an excellent example of a modern, dynamic post-92 university that meets the needs of its local community while maintaining a global perspective. Like many of our counterparts, we take pride in providing high-quality teaching, internationally recognised research with tangible real-world impact, and an outstanding student experience.

What distinguishes Abertay from others is our strong emphasis on widening access and college articulation, coupled with our smaller size. With approximately 4,000 students on campus, we enjoy the unique advantage of delivering a small, friendly, and community-oriented approach to education - a commitment reflected year after year in metrics such as the recent National Student Survey 2024, where we were ranked Scotland’s top modern university for overall satisfaction, for the second year in a row.

Supporting growth

In our rapidly changing world, the role of modern universities is more crucial than ever and at Abertay our research is sharply focused on industry challenges, often with our industry partners directly influencing and guiding the projects our researchers undertake. Scotland’s modern universities are not merely centres of education; we are engines of innovation, hubs of social change, and drivers of economic development.

A recent report by Million Plus underlined this, showing that modern universities contribute over £1.2 billion to their regional economies each year, in addition to supporting more than 9,000 Scottish jobs in Scotland, and accounting for just under half of all Scottish graduate startups. That last statistic is particularly striking, particularly when you consider that modern universities represent just a third of all Scottish universities.

All universities play a vital role in equipping students with the skills and knowledge necessary to excel in the rapidly evolving labour market, but modern universities stand out for their commitment to nurturing skills that are critical for Scotland's economic advancement.

A core aspect of modern universities' engagement in these emerging sectors is our agility and adaptability. Our institutions, often more agile in terms of their ability to pivot and change direction, are well equipped to respond swiftly to the evolving needs of industries when disruptions like AI come along, allowing us the flexibility to create and offer programmes and research initiatives that align with the latest technologies and trends.

For example, at Abertay our world-leading video games programmes are reviewed each year to ensure their content is aligned to what the industry needs and can continue to support the growth of what is a hugely important sector for Scotland.

Indeed, our Faculty of Design, Informatics and Business plays a crucial role in the ongoing success of the Dundee video games cluster, which has attracted £400 million in inward investment since 2019, leading to a remarkable 164% rise in direct GVA.

The latest evolution for this sector is the new CoSTAR Realtime Lab for screen and performance technology, currently being constructed Dundee. This initiative will deliver vital R&D support to fuel economic growth and innovation in virtual production industry for the film and performance industries. The technology used for this cutting-edge cinematography technique includes CGI, augmented reality, and motion capture and is closely aligned to the skills and expertise already held by Scotland’s video games studios, opening to door to opportunities to diversify and grow their businesses.

This lab will position R&D alongside live commercial production, opening avenues for commercialisation that extend beyond the reach of most small and medium-sized enterprises (SMEs).

Video games and virtual production are of course technology-focused industries, but of courses there are numerous other areas of strength where modern universities excel, from architecture and planning, through to nursing, social work and the creative industries.

Conclusion

Before I close, I want to underscore how important it is that vital role that modern universities play in shaping Scotland's future is protected.

Our dedication to innovation, skills development, and collaboration with industry fuels economic growth, nurtures talent, and drives positive societal change. However, to sustain this momentum and continue contributing to economic development, we need sustainable funding.

While we absolutely appreciate the funding pressures currently facing all part of the UK, it is a fact that the ongoing cuts to the higher education sector pose a significant threat to our ability to create a more prosperous nation. It is essential that we partner with the government to unlock the full potential of our universities and establish a more stable long-term financial foundation for the sector, building on the excellent work going on across our institutions.

Thank you for your attention, and I’d be happy to take any questions in the discussion that follows.