Scottish independence could threaten free tuition for its students

If Scotland were an independent member of the EU, it would be forced to re-think its fee arrangements. The Scottish government's policy of free tuition for Scottish students could be threatened if the country votes for independence later this month.

Free tuition is currently granted to residents of other EU countries, but English, Welsh and Northern Irish students in Scotland pay up to £9,000 a year. If Scotland were an independent member of the European Union, it could be forced to allow all UK students to study without paying fees. EU regulations stress that countries cannot discriminate among residents from other EU states.


"There doesn't seem to be any way around this rule. It has been tested in Austria where they have tried to have differential fees, but this failed in the European courts," says professor David Bell from Stirling University, who has examined the financial impact of independence.


A recent Economic and Social Research Council (ESRC) report into the impact of the 2012 English tuition fee changes on the cross-border flow of UK students entering higher education showed only a modest decline - around half a per cent - in the number of Scottish students studying elsewhere in the UK, and little change among English students. But the Scottish government has estimated that even a small increase in the number of English students enrolling in Scotland in the event of independence - between two and five per cent - would see their numbers equal those of home students.


That would present two problems, says professor Sheila Riddell from the University of Edinburgh.


"If there was an increase in other UK students, then there would be fewer places available for Scottish students. And if they studied for free, there would be a loss of revenue for the older universities where they tend to go," says Riddell, who led a recent ESRC study into the possible consequences for higher education after a yes vote.


Riddell believes that a possible solution would be the Scottish government offering bursaries to Scottish students to pay their fees. That possibility is also put forward by Murray Pittock, professor of English literature at the University of Glasgow and member of Academics for Yes.


"The Scottish government has got a clear case," he says, "and the no campaign has skated over all the EU case law – and action taken by governments currently in the EU – to support their home students," he says.


Scottish universities are also having to deal with demographic challenges, with a projected drop of 11% in the numbers of 18- to 20-year-olds in the country until 2027. This is likely to lead to a drop of 8% in undergraduate admissions. "In order to sustain the sector it will be necessary for Scotland to recruit more international, EU and UK students," says Riddell.


But the number of international students enrolling at Scottish universities has dropped in recent years, with international first-year undergraduates down 4% in 2012/13. There is a divergence of views on whether an independent Scotland would be more attractive overseas. Riddell says independence would have "no particular bearing" on the situation. "Scotland is still competing in an international market with institutions across the English-speaking world for international students," she says.


The Scottish government has pledged it would reintroduce the post-study work visa for graduates after independence. This policy is supported by Universities Scotland, although it is remaining neutral in the independence debate.


Alastair Sim, its director says: "We have been consistently clear that the UK government's current policy on immigration makes universities uncompetitive in the market for international students and that its rhetoric on immigration has been highly damaging.


"Such policy changes are deliverable under current constitutional arrangements or in an independent Scotland should either government be minded to do so."


But Pittock believes this will only be delivered by an independent Scottish government. "Independence would offer a more friendly environment by moving away from the immigration policy of the current coalition government." He thinks it's unlikely that the coalition would alter its immigration policy "given the pressure that Ukip are exerting on electoral behaviour south of the border".


Guardian.com