Scotland's higher education sector stands at a pivotal moment. In an exclusive article for The Herald, The University of Edinburgh Principal and Vice-Chancellor Professor Sir Peter Mathieson reflects on the appointment of Alyn Smith and the challenges facing universities, colleges and innovation.

This week has brought some welcome developments for Scotland’s universities: an authoritative consideration of the sector’s finances, a new Minister, and a programme for government which puts innovation at the heart of Scotland’s future growth.

The public recognition that there is a £200 million funding gap across the sector has helped put into stark relief the reality that university leaders have been confronting, and in my case writing about including in The Herald, for years: that the current funding model is unsustainable, and Scotland must be prepared to explore new approaches.

The Future Framework is an evidence-based review jointly led by the Scottish Government and Universities Scotland. This is the first outcome of that work, and contains no surprises for universities, but maybe some previously unappreciated insights for the government, public and media. It has examined the funding of teaching, skills development, research and innovation. Its cross-party support is significant because it demonstrates a broad consensus that the status quo cannot continue.

The detail confirms that the funding of the education of home students and of research is inadequate and deteriorating, with international student fees cross-subsidising both. This leaves institutions in a fragile position, with little resilience to withstand further shocks.

This is important foundational evidence, but the critical work now lies ahead. The next two phases of the Future Framework will move from diagnosis toward exploring solutions, and it is there that we........

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