Exclusive:The £60m drop in surplus at a major Scottish university - as principal's pay rises by £20,000

The 2023/24 accounts for the University of Strathclyde also show its outgoing principal, Sir Jim McDonald, was given a £20,000 pay rise in the year, with his salary increasing from £330,000 to £350,000.

The figures have emerged as the Glasgow-based institution faces strike action later this month by technicians, cleaners, security and estates staff over pension changes.

Many universities across Scotland have been reporting a deterioration in their finances in their 2023/24 accounts as a result of a series of pressures, including funding cuts, the ongoing impact of higher inflation, and challenges recruiting overseas students.

Edinburgh University’s surplus before other gains and losses, and prior to pension-related changes, was £25m, down from £104m in the year before. Glasgow University’s accounts showed a surplus of £28.7m, having fallen from £68.2m in the previous year.

St Andrews University posted an underlying operating deficit of £13m, while the University of the West of Scotland had a deficit of £14.4m in its accounts for last year.

Robert Gordon University in Aberdeen and Abertay University in Dundee both moved from operating surpluses to a deficit position last year. Crisis-hit Dundee University is the only higher education institution in Scotland that is still to publish its accounts for 2023/24.

In his foreword, Sir Jim said the university had taken “a number of steps to address these financial challenges”, including by looking at the use of assets, particularly the campus.

Central to the efficiency reviews was said to be a “process and systems enhancement programme (PSEP)”, which is undertaking “a root-and-branch review of university operational processes to ensure efficiency in these, generating cost savings and improving the experience of our staff and students”.

Sir Jim announced in October that he would be retiring after 16 years as principal and vice-chancellor of Strathclyde University.

The accounts show his salary increased from £330,000 to £350,000 in the year, with his total package, including other payments in lieu of employer’s pension contribution, rising from £401,000 to £417,000.

Sir Jim’s income is below that of Stirling University’s long-serving boss, Sir Gerry McCormac, who is the highest paid principal in Scotland, and one of the best-paid in the UK

The Scotsman previously revealed how Sir Gerry’s salary increased from £363,000 to £414,000 last year, with his total package, including pension contributions, now being £438,000.

At Edinburgh University, Sir Peter Mathieson’s salary increased from £348,000 to £362,000, with the package, including payment in lieu of employer's pension contributions, rising from £385,000 to £402,000. His total remuneration is now £422,000.

A spokesperson for the University of Strathclyde said: “Like the rest of the higher education sector, the university continues to operate in a challenging financial environment.

“The situation has been compounded by the ongoing reduction in international students choosing to study in Scotland and a funding settlement for Scottish universities which has seen a cut from the 2024/25 teaching budget across the sector.

“The principal’s basic salary, which is set by a remuneration committee, increased in line with the nationally negotiated pay award.”