20 October 2000
The principal, Sir Stewart Sutherland, said the cash would 'help reshape the university' to make the most of its buildings and other resources.
In an open letter to staff, Sutherland said a steady reduction in funding had created the shortfall, which would result in staff cutbacks, property sales and a major fundraising effort.
He said: 'In common with all other higher education institutions, Edinburgh has had to cope with the cumulative effects of years of so-called efficiency gains.'
The emergency measures at Edinburgh include plans to increase the number of full-fee international students, the sale of non-essential property, and cuts in the range of courses covered at the university.
The Scottish Executive denied Sutherland's claim that the university faced a fall in the real value of funding. A spokesman said: 'Higher education is receiving as much funding as before.'