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Scottish universities form new alliance amid financial challenges

Universities to use government transformation funding to explore collaboration opportunities, but representatives insist institutions will maintain their own identities

Published on
July 2, 2026
Last updated
July 2, 2026
Edinburgh at sunset
Source: Getty Images/MEDITERRANEAN

Three Scottish higher education institutions are planning to work more closely together in a “strategic alliance”, but have insisted that there are no plans to merge.

Edinburgh Napier University, Queen Margaret University (QMU) and SRUC (Scotland’s Rural College) are set to join forces in a new partnership, with money from the Scottish Funding Council’s (SFC) transformation fund.

While some English universities are pressing ahead with formal mergers, the Scottish institutions are positioning their venture as an opportunity to explore collaboration opportunities rather than a complete restructure.

The universities are expected to maintain their own governance structures and degree-awarding powers, as well as brands and institutional identities.

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A spokesperson for QMU said potential areas for exploration “include shared services, procurement, curriculum collaboration, student pathways and regional skills planning”.

“The project is being developed as a partnership of equals, with each institution maintaining its autonomy while exploring opportunities to work together where this may be beneficial,” they added.

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All three institutions have faced financial pressures in recent years. QMU posted an operating deficit of £3.2 million in 2024-25, while Edinburgh Napier announced plans last year to cut up to 70 jobs. SRUC, which offers both further and higher education programmes, posted a £6.7 million deficit in 2024-25.

A spokesperson for Edinburgh Napier said: “While maintaining our institutional independence, we are exploring the possibility of a strategic alliance with QMU and SRUC which would aim to build on our strong regional partnerships, presenting a long-term opportunity to explore potential areas of cooperative growth and improve resilience.”

The university, which is also reducing its number of schools from five to three, has confirmed that it will not be making any compulsory redundancies.

The group will receive funding from the SFC for the project. Last year, the funding body announced a University Transformation Framework that will allow institutions to fund transformation and innovation initiatives in the face of sector-wide financial challenges.

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The Scottish government has also begun a cross-party review of higher education funding.

Wayne Powell, SRUC principal and chief executive, said: “We are working with Queen Margaret University and Edinburgh Napier University to explore how our existing relationships might evolve through deeper collaboration.

“This is an opportunity to consider how we can build on our complementary strengths, enhance resilience and create greater value for our students, staff and stakeholders, while fully respecting the distinct identity, mission and autonomy of each institution.”

helen.packer@timeshighereducation.com

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