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Reverse business tax cuts to fund higher education

1 March 2011

UCU has called for a greater contribution from business to fund higher education. Speaking at a summit on the future of Scottish universities, UCU Scottish official, Mary Senior argued that last year's business tax cut should be reversed and the funds used for areas which benefit the economy such as higher education.

UCU welcomes the Scottish government's commitment to delivering a new funding settlement and believes the gap between English and Scottish universities can be plugged without charging students tuition fees. While higher education funding was slashed by £70m last year, the Scottish government cut local business tax from 48.1% to 40.7% at a cost to the country of £200m.

UCU says that, as one of the key beneficiaries of higher education, business should be making a greater contribution to this new funding settlement and, in difficult times, should not expect generous tax breaks.

UCU Scottish official, Mary Senior, said: 'We welcome the government's commitment to our universities and we believe that business contributions are a part of a solution to meet that promised investment.

'Business rates should be increased to recoup the £200m stripped from the Scottish budget last year and that money used in areas which benefit the economy, such as higher education. For too long business has been enjoying the benefits of higher education without paying its share.'

Last updated: 11 December 2015