Rejected Dundee University recovery plan included more job cuts

Dundee University currently faces a £35m deficit

A Dundee University recovery plan which included a proposal for 400 additional job cuts has been rejected by the Scottish Funding Council (SFC).

The cash-strapped institution had suggested a further 220 voluntary redundancies and 170 compulsory redundancies.

This is in addition to a previously-announced voluntary scheme to shed 300 jobs.

The 105-page confidential recovery plan, which has been seen by BBC Scotland News, said the university's current operating costs are £25-30m per month.

The university said the SFC, which is an arms-length public body, had now written to "outline a different proposed direction".

It added this would be considered by its court "at the earliest opportunity."

The university currently faces a £35m deficit for this financial year.

Its financial woes initially came to light last November when the then principal Prof Iain Gillespie revealed an eight-figure deficit and "inevitable" redundancies.

These were originally estimated at 632 job losses but later revised to about 300 through the use of a voluntary redundancy scheme.

A damning report in June into the university's financial collapse led to the resignations of its interim principal Prof Shane O'Neill and two senior members of its governing body.

The Gillies Report said university bosses and its governing body failed multiple times to identify the worsening crisis and continued to overspend instead of taking action.

Dundee University said the report had been a "chastening experience and triggered a time for deep self-reflection".

The Courier has reported that the SFC believes it is "not appropriate" for fundamental decisions that would "bind the university for decades" to be made by its interim leadership team.

It has quoted a letter from the SFC to Ian Mair, the university's acting chair of court, which said such decisions should not be taken "without the existence of an approved, and properly consulted upon, university strategic plan."

The rejected recovery plan proposed "a range of workforce reduction measures" including natural turnover, retirement and flexible working.

However, it added that further redundancies would be required "to achieve the scale and shape of the change of the workforce that is required."

It proposed 50 further voluntary redundancies in November and another 170 in March.

A further 170 compulsory redundancies were forecast "with notice given in May 2026."

The plan also outlined selling four university-owned properties, including the five-bedroom University House

The plan also outlined selling four university-owned properties, including the five-bedroom University House, previously used by Prof Gillespie and his predecessor, to raise £2.2m.

In addition, the plan details restructuring of the university's executive group and four new Faculties replacing its existing eight Schools.

The university said it had received a £10m SFC grant to "ease the immediate cash issues" and will receive a further £40m of support over the next two financial years.

It is also set to receive a £12m SFC loan in October.

The recovery plan document said: "Currently, the university is unable to secure any additional commercial funding through a commercial bank and is therefore very reliant on the support from the Scottish government which may have to be brought forwards to help support cashflow whilst the plan is matured and set in action."

A spokesperson for the Scottish Funding Council said: "We received the university's proposed recovery plan on 11 August and our teams have developed a response as a matter of priority.

"We are committed to supporting its return to a position of financial health that will ensure this continues for future generations.

"It's important that the foundations for this are solid.

"This is why we are prepared to fund the university over a defined period of fundamental longer term strategic planning informed by constructive engagement with staff and students."

A Dundee University spokesman confirmed it had submitted a recovery plan to the SFC last week.

He said: "The SFC has now written to outline a different proposed direction, which will now be considered by court at the earliest opportunity."