This is an issue to do with the need for Scotland to balance the needs of its society for a well-educated population, with the financial incentives of universities to attract high-paying international and private school students.
When considering how to respond to this report, we can ask what is best for Scotland and we can offer separate answers addressing short, medium and long term perspectives.
SHORT TERM
In the short term, funding from wealthier students allows universities to invest in facilities, staff, and global research recognition.
But of course, this means limiting access for local students, especially from disadvantaged backgrounds, in order to sell "their" places to wealthy and overseas parents.
This risks exacerbating social inequality and could impact the availability of skilled professionals (e.g., teachers, healthcare workers).
What is to stop the Scottish Assembly from setting quotas for Scottish students to ensure local representation? Or providing financial or other carrots, or sticks, to encourage private school students to study outside Scotland, freeing places for locals?
MEDIUM TERM
To respond seriously to this challenge of "Scotland for the Scottish", we could start by creating an Equity Based Admissions Policy, EBAP let's call it.
We would like a higher proportion of qualified Scottish students, to enhance the availability of educated workers in crucial sectors like the nascent aerospace industry we intend to create in Edinburgh, and generally for supporting the local economy.
After all, letting the universities make lots of money to spend on we don't know what is rather like letting them catch lots of fish, whereas what we want is the fishing rods that could come from educating our own youth.
As well as a seedbed for greater economic growth, another goal of the equity based, the EBAP, is equality - greater diversity as an objective in admissions will boost social mobility, reducing inequality in the long run.
Of course, the university’s reputation might suffer if funding cuts and budget constraints limit research opportunities or "global outreach", or international cooperation on important future projects.
But again, how could we deal with these potential disadvantages? We could encourage philanthropic funding or partnerships with industries to offset financial losses - this was always the way in the past, where wealthy individuals and successful corporations would sponsor projects in the public sector and why don't we have PPP private public partnerships today?
Also, look at the student-level mix - focus on attracting international students into postgraduate courses, because this will mean less impact on the availability of undergraduate places.
It would definitely be a good idea for Scotland to offer a UK passport to those paying students successfully completing their course.
LONG TERM
The goals must surely be economic growth and social peace. A well-educated, locally-rooted population will strengthen Scotland’s ability to address its economic and social challenges, independently of wealthy interfering foreigners, including dare I say those from Westminster.
Furthermore, by investing in Scottish students, we will foster loyalty and retention ie they are more likely to stay and contribute to the national workforce and economy and make for a well integrated and peaceful, albeit ethnically diverse community, because local solutions give hope to local people and encourage ambition and conscientious hard work for the nation.
But to repeat, the risk is that on lower budgets, the universities will lose overseas opportunities to enhance their reputation. And at home, there could be a brain drain because once local Scottish lads and lasses get over-qualified in an economy which cannot offer them sufficient opportunity for career advancement and salary, the best will flee to higher reward economies such as Silicon Valley.
So, in terms of long term solutions, EBAP could establish SGRS, a Scottish Graduate Return Scheme, where local students commit to working in Scotland post-graduation and in return receive a first class subsidised education. And for reasons of symmetry, a scheme too, attract foreign students into postgraduate courses with the promise of a uk, passport could equally enrich the knowledge base of Scotland.
I'm sure this happens already, but it also makes sense to have the universities less dependent on tuition fees from these wealthy overseas parents by diversifying funding sources, eg create corporate partnerships.
CONCLUSION
Scotland stands at a crossroads in shaping the future of its higher education system. The challenge lies in balancing the pressing need to develop a well-educated, locally invested population with the financial realities of running a globally competitive university setup.
In the short term, the reliance on high-paying international and private school students provides essential funding but risks widening social inequality and limiting opportunities for local talent. Implementing quotas or incentives for local students could address this imbalance while maintaining financial stability.
In the medium term, an Equity-Based Admissions Policy (EBAP) could transform admissions to prioritise Scottish students, fostering economic growth and social mobility. Innovative funding models, such as public-private partnerships or postgraduate-focused international recruitment, could offset financial risks and ensure universities remain globally competitive.
In the long term, the vision must centre on a well-educated, locally rooted workforce driving Scotland's independence, prosperity, and equality. Policies like the Scottish Graduate Return Scheme (SGRS) can ensure local graduates remain invested in their homeland while diversifying funding sources to reduce dependency on tuition fees. The university system could even be used to attract high calibre graduates to Scotland on the promise of a UK passport.
Ultimately, Scotland’s universities must serve the nation’s needs without sacrificing the nation's global ambitions. Thoughtful reforms that prioritise equity and opportunity for Scottish students will secure a stronger, fairer, peaceful and more prosperous future for all.
